Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Reconciliations of the provision (benefit) for income taxes to the amount compiled by applying the statutory federal income tax rate to profit (loss) before income taxes is as follows for each of the years ended September 30:  

 

    2012     2011  
Federal income tax (benefit) at statutory rates     (34 )%     (34 )%
Stock-based compensation     3 %     0 %
Nondeductible interest expense     (12 )%     14 %
Extinguishment of debt     0 %     6 %
Change in valuation allowance     (13 )%     31 %
State tax benefit     (12 )%     (8 )%
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Temporary differences between the financial statement carrying amounts and bases of assets and liabilities that give rise to significant portions of deferred taxes relate to the following at September 30, 2012 and 2011:

 

    2012     2011  
Deferred income tax assets:                
Net operating loss carryforward   $ 14,037,500     $ 10,821,500  
Deferred interest, consulting and compensation liabilities     2,967,300       2,400,500  
Amortization     7,700       (7,100 )
Deferred income tax assets – other     8,700       3,600  
      17,021,200       13,218,500  
Deferred income tax liabilities—other     -       -  
Deferred income tax asset—net before valuation allowance     17,021,200       13,218,500  
Valuation allowance     (17,021,200 )     (13,218,500 )
Deferred income tax asset—net   $ -     $ -