Water leaking from bottom of disposal where

Wrap a dry towel completely around the outside of the disposal above where you believe its leaking but below any drain. Secure in place with tape and wait. If towel stays dry, then ok its leaking through the bottom bearing and replace unit.

If the towel is wet... keep looking.

The motor shaft seal has worn out. If it's still under warranty, check the details for repairs, otherwise go for a replacement.

You have to replace the disposal.
Disposals are sealed units, and cannot be repaired once they rust out.
If water is coming out red reset button, then that is very common point for water to exit the steel canister.
The motor is getting wet.
The electrical wires are getting wet.
This is a shock hazard, and sink and disposal should NOT be touched when switch is ON.

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Disposal is rusted out and needs replacement.
If the hole is patched, then the motor fills up with water and electric shorts out.
I wrote ez disposal replacement steps:
http://www.fixya.com/support/r7929008-replace_garbage_disposal

there should be two openings at the bottom, one for the drain to the drain line, and one towards the top for a dishwasher to drain into the garbage disposal. If you do not have a dishwasher, the top drain should come with a cap, and the lower drain is what the drain pipe gets tied to.

After seeking the answers in solving my problem I decided to just replace the old disposal with a new one. Considering the costs it was easier to replaced than to repair. It the end it would result that I still had a disposal that was old and could develop problems down the road. Thank you

It is possible that the water heater has a leak at the bottom. They eventually rust out. The valve should be removed if it is leaking and you should replace it. They are cheap. Be sure to use teflon tape to seal it back up

These holes are probably due to wear, as they are at about the level of the cutter. In general, residential disposals are not repairable and once they begin to leak, they must be replaced. The Badger series is Insinkerator's budget line and probably has about a 5 year lifespan with normal use.

If it's leaking directly from the bottom, then it's the flywheel seal. For about $20 you can fix this by unplugging and disconnecting the garbage disposal from the sink, taking it apart and replacing the flywheel seal. I've had to do this only once in my entire life, so it is rare, but happens.

If the leaks comes from somewhere else and just happens to drip along the side and looks like it's coming from the bottom, then you've got problems with the installation. You may be able to fix these types of leaks by tightening the mounting bracket and/or hoses.