INCOME TAXES

9 Months Ended

Jun. 30, 2011

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 8. INCOME TAXES

No provision for Federal and  state  income  taxes  has  been  recorded  as the Company  has  incurred  net  operating  losses  through  June 30, 2011. At June 30, 2011, the Company had approximately $21,991,285 of net operating loss carry-forwards for Federal income tax reporting purposes available to offset future taxable income. Such carry-forwards commenced expiring beginning in 2011.

Deferred tax assets at June 30, 2011 consist primarily of the tax effect of the net operating loss carry-forwards, which amounted to approximately $7,115,059.  Other deferred tax assets and liabilities are not significant.  We

provided a full valuation allowance on the deferred tax assets at June 30, 2011 to reduce  such  deferred  income  tax  assets to zero, as we believe that realization of such amounts is not considered more likely than not.

The following is a reconciliation of the provision for income taxes at the U.S. Federal income tax rate to the income taxes reflected in the Consolidated Statement of Operations:

	June 30, 2011			June 30, 2010
Tax Expense (Benefit) at Statutory Rate		(34	)%		(34	)%
State Tax Rate, Net of Federal		(6	)		(6	)
Change In Valuation Allowance		40			40
Effective Tax Rate		0	%		0	%

The components of the net deferred tax asset are summarized below:

	June 30, 2011			June 30, 2010
Deferred Tax Asset:
Net Operating Losses	$	7,115,059		$	7,115,059
Less: Valuation Allowance		(7,115,059	)		(7,115,059	)
Total	$	–		$	–