Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2013
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 fiscal years ended September 30:
 
 
 
2013
 
 
2012
 
 
Federal income tax (benefit) at statutory rates
 
 
(34)
%
 
 
(34)
%
 
Stock-based compensation
 
 
3
%
 
 
(3)
%
 
Nondeductible interest expense
 
 
4
%
 
 
12
%
 
Extinguishment of debt
 
 
(2)
%
 
 
0
%
 
Change in valuation allowance
 
 
3
%
 
 
13
%
 
State tax benefit
 
 
9
%
 
 
12
%
 
Inducement to convert
 
 
17
%
 
 
0
%
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, 2013 and 2012:
 
 
 
2013
 
2012
 
Deferred income tax assets:
 
 
 
 
 
 
 
Net operating loss carryforward
 
$
15,370,600
 
$
14,037,500
 
Deferred interest, consulting and compensation liabilities
 
 
1,168,300
 
 
2,967,300
 
Amortization
 
 
2,900
 
 
7,700
 
Deferred income tax assets – other
 
 
4,300
 
 
8,700
 
 
 
 
16,546,100
 
 
17,021,200
 
Deferred income tax liabilities—other
 
 
-
 
 
-
 
Deferred income tax asset—net before valuation allowance
 
 
16,546,100
 
 
17,021,200
 
Valuation allowance
 
 
(16,546,100)
 
 
(17,021,200)
 
Deferred income tax asset—net
 
$
-
 
$
-