WARRANTS TO PURCHASE COMMON STOCK

9 Months Ended

Jun. 30, 2011

Warrants To Purchase Common Stock [Abstract]

Warrants To Purchase Common Stock [Text Block]

NOTE 7. WARRANTS TO PURCHASE COMMON STOCK

Outstanding Stock Warrants

In December 2010, the Company issued 240,000 stock warrants to a purchaser of common stock. The warrants allow the warrant holder to purchase 240,000 shares of common stock at a price of $0.10 per share. The two-year warrants expire in December 2012.

In August and September 2010, the Company issued warrants to two related-parties. The President, Mr. David Loflin, was issued 2,000,000 warrants for services rendered in establishing the Company. The law firm of Newlan & Newlan, Counsel to the Company, was issued 2,000,000 warrants for professional services rendered for organizing the Company. Additionally, 1,100,000 warrants were issued to purchasers of common shares during the period from Inception (August 17, 2010) through September 30, 2010. The warrants allow the warrant holders to purchase, in aggregate, 5,100,000 shares of common stock at a price of $0.10 per share. The two-year warrants expire during August 2012 and September 2012. All warrants are fully vested and exercisable at June 30, 2011.

A summary of the status and changes of the warrants issued during the period from September 30, 2010, through June 30, 2011, are as follows:

	Shares		Weighted Average Exercise Price
Outstanding at beginning of period		5,100,000	$	0.10
Issued		240,000	$	0.10
Exercised		-0-		-0-
Forfeited		-0-		-0-
Expired		-0-		-0-
Outstanding at end of period		5,340,000	$	0.10
Exercisable at end of period		5,340,000	$	0.10

A summary of the status of the warrants outstanding at June 30, 2011, is presented below:

		Warrants Outstanding					Warrants Exercisable
Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price

$	0.10		5,340,000	2 years	$	0.10		5,340,000	$	0.10

At June 30, 2011, vested warrants of 5,340,000 had an aggregate intrinsic value of $-0-.

The fair value of each of the Company’s stock warrants is estimated on the date of grant using a Black-Scholes option-pricing model that uses the assumptions noted in the table below. Expected volatility is based on an average of historical volatility of the Company’s common stock. The risk-free interest rate for periods within the contractual life of the stock warrant award is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. The Company uses historical data to estimate forfeitures within its valuation model.

The significant weighted average assumptions relating to the valuation of the Company’s options for the period ended June 30, 2011, were as follows:

Stock price	$	0.01
Strike price	$	0.10
Dividend yield		0	%
Expected life	2 years
Expected volatility		100	%
Risk-free interest rate (2 YR U.S. Treasury)	0.37% to 0.58		%

LOUISIANA FOOD Co 10-Q/A