10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

FORM 10-Q/A
(Amendment No. 1)

________________

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012.

OR

[   ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____.

Commission File Number: 0-6669

________________

FORWARD INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

________________

New York	13-1950672
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

477 Rosemary Ave., Suite 217-219, West Palm Beach, FL 33410

(Address of principal executive offices, including zip code)

(310) 526-3005
________________

(Registrant’s telephone number, including area code)

3110 Main Street, Suite 400, Santa Monica, CA 90405

(310) 526-3005
______________________________________________________________

(Former name, former address, and former fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    [X] Yes                   [   ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [ X]                  No [  ]

1

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

[   ] Large accelerated filer
[   ] Non-accelerated filer (Do not check if a smaller reporting company) [   ] Accelerated filer             
[X] Smaller reporting company         

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).          [   ] Yes   [X] No

The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, at the latest practical date August 8, 2012, was 8,105,185 shares.

2

EXPLANATORY NOTE

The purpose of this Amendment No. 1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 20, 2012 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q.  Exhibit 101 provides the financial statements and related notes from the Form 10-Q formatted in XBRL (Extensive Business Reporting Language).

No other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q continues to speak as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

3

PART II. OTHER INFORMATION

Item  6. Exhibits

Exhibit No.	Description
31.1	Certification of the Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from Security Land and Development Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 is  formatted in Extensible Business Reporting Language (XBRL):  (i) The Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Retained Earnings, (iii) the Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements

4

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Dated:  September 19, 2012
	FORWARD INDUSTRIES, INC.
	(Registrant)
	By: /s/ Robert Garrett Jr.
	Robert Garrett Jr.
	Chief Executive Officer
	(Principal Executive Officer)
	By: /s/James O. McKenna
	James O. McKenna
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

5

EX-31

Forward Industries, Inc.

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE EXCHANGE ACT

I, Robert Garrett Jr., certify that:

1.	I have reviewed this Quarterly Report on Form 10‑Q for the three months ended June 30, 2012, of Forward Industries, Inc. (“registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for registrant and we have:
		a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America;
		c)	Evaluated the effectiveness of registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report  based on such evaluation; and
		d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
		a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;  and
		b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: September 19, 2012

/s/ Robert Garrett Jr.
Robert Garrett Jr.
Chief Executive Officer
(Principal Executive Officer)

EX-31

Forward Industries, Inc.

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE EXCHANGE ACT

I, James O. McKenna, certify that:

1.	I have reviewed this Quarterly Report on Form 10‑Q for the three months ended June 30, 2012, of Forward Industries, Inc. (“registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for registrant and we have:
		a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America;
		c)	Evaluated the effectiveness of registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report  based on such evaluation; and
		d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
		a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;  and
		b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: September 19, 2012

/s/ James O. McKenna
James O. McKenna

Chief Financial Officer
(Principal Financial and Accounting Officer)

EX-32

Exhibit 32.1

CERTIFICATIONS OF THE CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Robert Garrett Jr., Chief Executive Officer of Forward Industries, Inc. (”Forward”), and James O. McKenna, Chief Financial Officer of Forward, do each certify pursuant to 18 U.S.C. §1350 that, to the best of their knowledge:

1. Forward’s Quarterly Report on Form 10-Q for the three months ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Forward.

IN WITNESS WHEREOF, the undersigned have set their hands hereto as of the 19th day of September 2012.

/s/ Robert Garrett Jr.

Chief Executive Officer

(Principal Executive Officer)

/s/ James O. McKenna

James O. McKenna

Chief Financial Officer

(Principal Financial and Accounting Officer)

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SHARE-BASED COMPENSATION (Details Textuals 2) (Stock Options, USD $)		3 Months Ended		9 Months Ended
	Jun. 30, 2012 1996 Stock Incentive Plan	Jun. 30, 2012 2011 Long Term Incentive Plan and 2007 Equity Incentive Plan	Jun. 30, 2011 2011 Long Term Incentive Plan and 2007 Equity Incentive Plan	Jun. 30, 2012 2011 Long Term Incentive Plan and 2007 Equity Incentive Plan	Jun. 30, 2011 2011 Long Term Incentive Plan and 2007 Equity Incentive Plan	Jun. 30, 2012 2011 Long Term Incentive Plan	Jun. 30, 2012 2007 Equity Incentive Plan	Sep. 30, 2011 2007 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fully vested common stock options, outstanding and unexercised	30,000
Stock options granted				1,617,500
Forfeited and reverted, shares under 2007 and 2011 Plan						365,500	55,000
Recognized compensation expense		$ (81,000)	$ 116,000	$ 170,000	$ 251,000
Recognized compensation expense discontinued operations		(142,000)	16,000	(48,000)	21,000
Unrecognized compensation expense		$ 426,000		$ 426,000
Unvested stock option awards granted		740,500		740,500			7,500	25,799

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COMMITMENTS AND CONTINGENCIES (Details Textuals 1) (Robert Garrett Jr, Stock Options, 2011 Long Term Incentive Plan)	Jun. 30, 2012
Robert Garrett Jr | Stock Options | 2011 Long Term Incentive Plan
Compensation Arrangement With Individual Excluding Share Based Payments and Postretirement Benefits [Line Items]
Common stock authorized for grants	200,000

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OPERATING SEGMENT INFORMATION - Summary of net sales of each segment by geographical region (Details) (USD $)	3 Months Ended				9 Months Ended
	Jun. 30, 2012		Jun. 30, 2011		Jun. 30, 2012		Jun. 30, 2011
Segment Reporting Information [Line Items]
Total net sales	$ 7,664,252	[1]	$ 6,156,543	[1]	$ 20,049,363	[1]	$ 17,121,017	[1]
Asia Pacific Region
Segment Reporting Information [Line Items]
Total net sales	3,262,000		2,744,000		8,870,000		7,944,000
Americas
Segment Reporting Information [Line Items]
Total net sales	3,184,000		1,768,000		7,028,000		5,054,000
Europe
Segment Reporting Information [Line Items]
Total net sales	$ 1,218,000		$ 1,643,000		$ 4,151,000		$ 4,122,000

[1] Totals may not total due to rounding.

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SHAREHOLDERS' EQUITY (Details Textuals 1) (Repurchase plan for September 2002 and January 2004, USD $)	9 Months Ended
	Jun. 30, 2012	Jan. 31, 2004	Sep. 30, 2002
Repurchase plan for September 2002 and January 2004
Equity, Class of Treasury Stock [Line Items]
Number of shares authorized to repurchase		486,200	486,200
Shares repurchased	172,603
Cost of repurchasing shares	$ 403,000

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ACCOUNTING POLICIES (Details Textuals 1) (USD $)			9 Months Ended
	Jun. 30, 2012	Sep. 30, 2011	Jun. 30, 2012 Maximum	Jun. 30, 2012 Minimum
Credit Term			90 days	30 days
Coverage on trade accounts with customers in EMEA region	90.00%
Allowance for doubtful accounts		$ 14,000

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COMMITMENTS AND CONTINGENCIES (Details Textuals 3)	3 Months Ended	9 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2012 EUR (€)
Commitments Contingencies and Guarantees [Abstract]
Amount of guarantee agreement with Swiss bank	$ 100,000	$ 100,000	€ 75,000
Extended notice of termination		60 Days
Amount of security interest		300,000
Amount of SGC service fees	$ 270,000	$ 332,000

XML

SHARE-BASED COMPENSATION (Details Textuals 5)	9 Months Ended						4 Months Ended	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 2011 Long Term Incentive Plan Common Stock	Jun. 30, 2012 2011 Long Term Incentive Plan Executive Officers and Employees Common Stock	Jun. 30, 2012 2011 Long Term Incentive Plan Executive Officers and Employees Stock Options	Jun. 30, 2012 2011 Long Term Incentive Plan Consultant Common Stock	Feb. 29, 2012 2011 Long Term Incentive Plan Consultant Stock Options	Jun. 30, 2012 2011 Long Term Incentive Plan Non-employee directors Common Stock	Jun. 30, 2012 2011 Long Term Incentive Plan Non-employee directors Stock Options	Jun. 30, 2012 2011 Long Term Incentive Plan Non-employee executive officer Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for grants			850,000
Common stock approved	420,000	685,000	965,000	730,000		160,000		70,000		5,000
Stock Option forfeited			365,500
Common stock available for grants of equity awards			250,500
Expiry period after date of grant for options							3 years		10 years
Vesting period from date of grant for options									1 year
Percentage of vesting on third anniversary of the grant date					50.00%
Percentage of vesting on fourth anniversary of the grant date					25.00%
Percentage of vesting on fifth anniversary of the grant date					25.00%
Vesting period in case of initial grants					5 years

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SHARE-BASED COMPENSATION (Details Textuals)	9 Months Ended						4 Months Ended	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 2011 Long Term Incentive Plan Common Stock	Jun. 30, 2012 2011 Long Term Incentive Plan Executive officers and employees Common Stock	Jun. 30, 2012 2011 Long Term Incentive Plan Executive officers and employees Stock Options	Jun. 30, 2012 2011 Long Term Incentive Plan Consultant Common Stock	Feb. 29, 2012 2011 Long Term Incentive Plan Consultant Stock Options	Jun. 30, 2012 2011 Long Term Incentive Plan Non-employee directors Common Stock	Jun. 30, 2012 2011 Long Term Incentive Plan Non-employee directors Stock Options	Jun. 30, 2012 2011 Long Term Incentive Plan Non-employee executive officer Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for grants			850,000
Common stock approved	420,000	685,000	965,000	730,000		160,000		70,000		5,000
Forfeited and reverted, shares			365,500
Common stock available for grants of equity awards			250,500
Expiry period after date of grant for options							3 years		10 years
Vesting period from date of grant for options									1 year
Percentage of vesting on third anniversary of the grant date					50.00%
Percentage of vesting on fourth anniversary of the grant date					25.00%
Percentage of vesting on fifth anniversary of the grant date					25.00%
Vesting period in case of initial grants					5 years

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COMMITMENTS AND CONTINGENCIES (Details Textuals) (USD $)	9 Months Ended
	Jun. 30, 2012	Mar. 01, 2012
Robert Garrett Jr
Compensation Arrangement With Individual Excluding Share Based Payments and Postretirement Benefits [Line Items]
Annual salary	$ 250,000
Signing bonus		9,167
Threshold limit of bonus		50,000
Employment agreement term	Employment agreement provides for successive one-year renewal terms, unless either party provides written notice of its intention not to renew the agreement not later than 90 days prior to the end of the term (or renewal period)
Severance payment term	12 months
Robert Garrett Jr | Stock Options | 2011 Long Term Incentive Plan
Compensation Arrangement With Individual Excluding Share Based Payments and Postretirement Benefits [Line Items]
Common stock authorized for grants	200,000
Brett Johnson
Compensation Arrangement With Individual Excluding Share Based Payments and Postretirement Benefits [Line Items]
Annual salary	250,000
Threshold limit of bonus		50,000
Employment agreement term	Employment agreement provided for successive one-year renewal terms, unless either party provides written notice of its intention not to renew the agreement not later than 90 days prior to the end of the term (or renewal period)
Severance payment term	12 months
James O. McKenna
Compensation Arrangement With Individual Excluding Share Based Payments and Postretirement Benefits [Line Items]
Annual salary	225,000
Housing Allowance per month	$ 7,500

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NOTE RECEIVABLE

9 Months Ended

Jun. 30, 2012

Receivables [Abstract]

NOTE RECEIVABLE

NOTE 4     NOTE RECEIVABLE

            On January 5, 2011, the Company entered into a loan agreement with Flash Ventures, Inc. (“Flash”), an unrelated party, to provide a credit facility of up to $1,000,000 that was originally due December 1, 2011.  Pursuant to the agreement Flash, executed an unsecured, unsubordinated term note in favor of the Company, bearing interest at 11% per annum on any unpaid principal, payable quarterly commencing March 31, 2011.   On January 6, 2011 and January 19, 2011, Flash drew $600,000 and $400,000, respectively, in funds under the note, leaving no further funding available.  Effective December 1, 2011, the terms of the loan were amended to, among other things, extend the maturity date to April 1, 2012 and provide the Company with a security interest and lien on all of Flash’s assets.  In connection with such amendment, Flash made a principal payment of $250,000 on December 1, 2011. Effective March 30, 2012, the terms of the loan were further amended to, among other things, extend the maturity date to June 1, 2012. In connection with such second amendment, Flash made a principal payment of $150,000 on March 30, 2012. On May 14, 2012, Flash paid the remaining principal balance of $600,000 and satisfied the loan in full. The Company recorded approximately $449,000 in sales to Flash under its customary terms of sale during the nine-month period ended June 30, 2011.

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INCOME TAXES - Summary (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Tax Disclosure [Abstract]
Current U.S. Federal and State		$ 56,050		$ 56,050
Deferred U.S. Federal and State	388,265	(271,354)	(469,705)	(511,677)
Current Foreign
Deferred Foreign	(144,343)	10,056	(188,495)	30,027
Change in valuation allowance	(243,922)	261,298	658,200	481,650
Benefit from income taxes		$ 56,050		$ 56,050

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NOTE RECEIVABLE (Details Textuals) (Flash Ventures, Inc., USD $)	May 14, 2012	Mar. 30, 2012	Dec. 01, 2011 Term Note	Jan. 19, 2011 Term Note	Jan. 06, 2011 Term Note	Jan. 05, 2011 Term Note
Loan Agreement [Line Items]
Credit facility provided						$ 1,000,000
Interest						11.00%
Amount draws				400,000	600,000
Principal payment	$ 600,000	$ 150,000	$ 250,000

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DISCONTINUED OPERATIONS (Details Textuals) (USD $)	3 Months Ended	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Discontinued Operations and Disposal Groups [Abstract]
Charges of write down inventory	$ 876,000	$ 964,423	$ 15,692
Charges of sales returns and price protection	681,000	681,000
Charges of write-off forfeited advances	150,000	150,000
Additional loss from discontinued operations		$ 1,300,000

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INCOME TAXES (Details Textuals) (USD $)	Jun. 30, 2012	Sep. 30, 2011
Operating Loss Carryforwards [Line Items]
Total net deferred tax assets, before valuation allowances	$ 2,739,000	$ 1,381,000
Valuation allowance	2,739,000	1,381,000
U.S. Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	6,342,000
Deferred tax assets	2,156,000
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	7,287,000
Deferred tax assets	196,000
Foreign
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	3,805,000
Deferred tax assets	$ 335,000

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NOTE RECEIVABLE (Details Textuals 1) (Flash Ventures, Inc., USD $)	9 Months Ended
	Jun. 30, 2011
Flash Ventures, Inc.
Loan Agreement [Line Items]
Sales recorded for an unrelated party	$ 449,000

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SHAREHOLDERS' EQUITY - Summary of changes in shareholders' equity (Details) (USD $)	3 Months Ended		9 Months Ended								9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012		Jun. 30, 2011	Jun. 30, 2012 Common Stock	Jun. 30, 2012 Capital In Excess of Par Value	Jun. 30, 2012 Retained Earnings (Accumulated Deficit)	Jun. 30, 2012 Treasury Stock	Sep. 30, 2011 Treasury Stock	Jun. 30, 2012 Accumulated Other Comprehensive Loss
Balance			$ 18,682,689	[1]		$ 87,943	$ 16,845,673	$ 3,009,130	$ (1,260,057)	$ (1,260,057)
Share-based compensation			124,195			173	124,022
Foreign currency translation			(11,558)								(11,558)
Net loss	(3,308,928)	(682,724)	(6,365,983)		(1,220,037)			(6,365,983)
Balance	$ 12,429,343		$ 12,429,343			$ 88,116	$ 16,969,695	$ (3,356,853)	$ (1,260,057)	$ (1,260,057)	$ (11,558)

[1] Note 1

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DISCONTINUED OPERATIONS

9 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 3     DISCONTINUED OPERATIONS

On June 21, 2012, the Company determined to exit its global retail business and focus solely on growing its OEM business.  The decision to eliminate the retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong top line growth and cost rationalizations in the OEM business.

Accordingly, the results of operations for the retail division have been recorded as discontinued operations in the accompanying consolidated financial statements for all periods presented. During the three and nine-month period ended June 30, 2012, total discontinued operations include charges of $876,000 to write down inventory to net realizable value, $681,000 related to sales returns and price protection, and $150,000 to write-off forfeited advances made to suppliers.

Summarized operating results and assets and liabilities of discontinued operations are presented in the following tables:

	Three Months Ended June 30,		Nine Months Ended June 30,
	2012	2011	2012	2011
Net sales............................................................	$430,540	$             --	$2,093,718	$             --
Gross loss.......................................................	(1,524,337)	--	(1,084,894)	--
Operating expenses......................................	(1,138,487)	(275,026)	(3,594,979)	(389,939)
Other expense...............................................	(15,251)		(42,343)
Net loss from discontinued operations.......	$(2,678,075)	$(275,026)	$(4,722,216)	$(389,939)

	June 30,	September 30,
	2012	2011
Accounts receivable, net...................................	$1,043,023	$             --
Inventory, net......................................................	1,152,190	31,024
Prepaid assets and other current receivables..	502,398	640,219
Note receivable....................................................	--	1,000,000
Property and equipment, net.............................	3,300	--
Total assets of discontinued operations.........	$2,700,911	$1,671,243
Accounts payable..............................................	$218,468	$160,300
Accrued liabilities...............................................	587,611	164,035
Total liabilities of discontinued operations	$806,079	$324,335

The Company expects to complete its exit of its retail business by September 30, 2012 and does not expect to have any continuing involvement in the retail business after this date. The Company anticipates an additional loss from discontinued operations of approximately $1.3 million, all of which the Company anticipates incurring in the fiscal quarter ending September 30, 2012.

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SHAREHOLDERS' EQUITY (Details Textuals)	Jun. 30, 2012	Sep. 30, 2011
Preferred stock, shares authorized	4,000,000	4,000,000
Blank Check Preferred Stock
Preferred stock, shares authorized	4,000,000

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SHARE-BASED COMPENSATION (Details Textuals 3) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012	Jun. 30, 2011
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock Options granted			420,000	685,000
Weighted average grant date fair values (in dollars per share)			$ 0.96	$ 2.09
Recognized a recovery	$ 305,000	$ 46,000

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CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2012	Sep. 30, 2011
Current assets:
Cash and cash equivalents	$ 7,185,538	$ 14,911,844	[1]
Accounts receivable, net	6,149,205	3,894,118	[1]
Inventories	2,152,071	1,014,195	[1]
Prepaid expenses and other current assets	395,216	378,008	[1]
Current assets of discontinued operations	2,700,911	1,671,243	[1]
Total current assets	18,582,941	21,869,408	[1]
Property and equipment, net	234,847	302,158	[1]
Other assets	27,601	88,716	[1]
Total Assets	18,845,389	22,260,282	[1]
Current liabilities:
Accounts payable	4,282,528	2,787,263	[1]
Accrued expenses and other current liabilities	1,327,439	465,995	[1]
Current liabilities of discontinued operations	806,079	324,335	[1]
Total liabilities	6,416,046	3,577,593	[1]
Commitments and contingencies			[1]
Shareholders' equity:
Preferred stock, par value $0.01 per share; 4,000,000 shares authorized; no shares issued and outstanding			[1]
Common stock, par value $0.01 per share; 40,000,000 shares authorized, 8,811,595 and 8,794,296 shares issued; and 8,105,185 and 8,087,886 shares outstanding, respectively	88,116	87,943	[1]
Capital in excess of par value	16,969,695	16,845,673	[1]
Treasury stock, 706,410 shares at cost	(1,260,057)	(1,260,057)	[1]
Retained earnings (accumulated deficit)	(3,356,853)	3,009,130	[1]
Accumulated other comprehensive loss - foreign currency translation	(11,558)		[1]
Total shareholders' equity	12,429,343	18,682,689	[1]
Total liabilities and shareholders' equity	$ 18,845,389	$ 22,260,282	[1]

[1] Note 1

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LOSS PER SHARE (Details Textuals)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings Per Share [Abstract]
Anti-dilutive outstanding common equivalent shares	1,224,500	539,299	1,224,500	108,798

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OVERVIEW

9 Months Ended

Jun. 30, 2012

Overview [Abstract]

OVERVIEW

NOTE 1     OVERVIEW                   

Forward Industries, Inc. was incorporated under the laws of the State of New York and began operations in 1961 as a manufacturer and distributor of specialty and promotional products. The Company designs, markets, and distributes carry and protective solutions, primarily for hand held electronic devices. Its principal customer market is original equipment manufacturers, or “OEMs” (or the contract manufacturing firms of these OEM customers), that either package the Company’s products as accessories “in box” together with their product offerings, or sell them through their retail distribution channels, which the Company services in its OEM division. The Company’s OEM products include carrying cases and other accessories for medical monitoring and diagnostic kits, portable consumer electronic devices (such as smartphones, tablets, personal computers, notebooks, and GPS devices), and a variety of other portable electronic and non-electronic products (such as firearms, sporting, and other recreational products). The Company’s OEM customers are located in the Americas, the EMEA Region, and the APAC Region. 

On June 21, 2012, the Company determined to exit its global retail business (“discontinued operations”) and focus solely on growing its OEM business.  The decision to eliminate the retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong top line growth and cost rationalizations in the OEM business. As such, the Company has reflected the retail business as discontinued operations in the accompanying consolidated financial statements.

The Company does not manufacture any of the products that it designs, markets, and distributes.  The Company sources substantially all of its products from independent suppliers in China. 

In the opinion of management, the accompanying consolidated financial statements presented in this Quarterly Report on Form 10-Q reflect all normal recurring adjustments necessary to present fairly the financial position and results of operations and cash flows for the interim periods presented herein, but are not necessarily indicative of the results of operations for the fiscal year ending September 30, 2012. These financial statements should be read in conjunction with the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2011, and with the disclosures and risk factors presented herein and therein, respectively. The September 30, 2011 balance sheet has been derived from the audited consolidated financial statements.

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SHARE-BASED COMPENSATION - Fair value of each stock option (Details 1)	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		5 years
Expected dividend yield	0.00%	0.00%
Estimated Annual Forfeiture rate	13.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years
Risk-free interest rate	0.83%	2.20%
Expected volatility	69.00%	69.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years
Risk-free interest rate	0.04%	0.30%
Expected volatility	63.00%	66.00%

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INCOME TAXES (Tables)

9 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

	For the Three-Month Periods Ended June 30,		For the Nine-Month Periods Ended June 30,
	2012	2011	2012	2011
U.S. Federal and State
Current...................................	$          --	$56,050	$             --	$56,050
Deferred.................................	388,265	(271,354)	(469,705)	(511,677)
Foreign:
Current...................................	--	--	--	--
Deferred.................................	(144,343)	10,056	(188,495)	30,027
Change in valuation allowance	(243,922)	261,298	658,200	481,650
Benefit from income taxes.......	$         --	$56,050	$            --	$56,050

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SHARE-BASED COMPENSATION - Summary of restricted stock activity (Details 2) (2007 Equity Incentive Plan, Stock Options, USD $)	9 Months Ended
	Jun. 30, 2012
2007 Equity Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Shares, non-vested balance	25,799
Shares granted
Shares vested	17,299
Shares forfeited	1,000
Shares, non-vested balance	7,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted Average Grant Date Fair Value, non-vested balance at September 30, 2011	$ 2.04
Weighted Average Grant Date Fair Value, granted
Weighted Average Grant Date Fair Value, vested	$ 2.05
Weighted Average Grant Date Fair Value, forfeited	$ 2.02
Weighted Average Grant Date Fair Value, non-vested balance at June 30, 2012	$ 2.02

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ACCOUNTING POLICIES (Details Textuals) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense			$ 82,657	$ 45,415
FDIC insured limits for cash and cash equivalents	4,200,000		4,200,000
Maturity of short term bonds			90 days
Allowance for obsolete inventory	90,000		90,000
Advertising and promotion costs	14,000	42,000	30,000	125,000
Foreign currency transaction gains	(26,000)	11,000	(46,000)	21,000
Comprehensive loss	(3,316,000)		(6,378,000)
Property and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 30,000	$ 17,000	$ 83,000	$ 45,000
Property and Equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life			10 years
Property and Equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life			3 years

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ACCOUNTING POLICIES

9 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

ACCOUNTING POLICIES

NOTE 2     ACCOUNTING POLICIES

Accounting Estimates

The preparation of the Company's consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. ("Forward") and its wholly owned subsidiaries (Forward US, Forward Switzerland, Forward HK, Forward APAC, and Forward UK). All significant intercompany transactions and balances have been eliminated in consolidation.

Reclassifications

Certain prior period amounts have been reclassified, in addition to discontinued operations as disclosed in Note 3, to conform to the current period presentation.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of cash on deposit and highly liquid money market accounts, short-term bonds, and certificates of deposit with original contractual maturities of three months or less, predominately in U.S. dollar denominated instruments. The Company may purchase these short-term bonds with anticipated maturity of 90 days or less at a premium or discount. The Company records these investments as cash and cash equivalents net of amortization of premium or discount. The Company minimizes its credit risk associated with cash and cash equivalents by investing in high quality instruments and by periodically evaluating the credit quality of the primary financial institution issuers of such instruments. The Company holds cash and cash equivalents at major financial institutions in the United States, at which cash amounts may significantly exceed FDIC insured limits. At June 30, 2012, this amount was approximately $4.2 million. Historically, the Company has not experienced any losses due to such cash concentrations.

Accounts Receivable

Accounts receivable consist of unsecured trade accounts with customers or their contract manufacturers. The Company performs periodic credit evaluations of its customers including an evaluation of days outstanding, payment history, recent payment trends, and perceived credit worthiness, and believes that adequate allowances for any uncollectible receivables are maintained. Credit terms to customers generally range from net thirty (30) days to net ninety (90) days. The Company has not historically experienced significant credit or collection problems with its OEM customers or their contract manufacturers. In addition, the Company maintains credit insurance that provides up to 90% coverage on trade accounts with customers in the EMEA region. At June 30, 2012, no allowance for doubtful accounts relating to the Company’s continuing operations was deemed necessary. At September 30, 2011, the allowance for doubtful accounts was approximately $14,000.

Inventories

Inventories consist primarily of finished goods and are stated at the lower of cost (determined by the first-in, first-out method) or market.  Based on management’s estimates, an allowance is made to reduce excess, obsolete, or otherwise un-saleable inventories to net realizable value. The allowance is established through charges to cost of goods sold in the Company’s consolidated statements of operations. As reserved inventory is disposed of, the Company charges off the associated allowance.  In determining the adequacy of the allowance, management’s estimates are based upon several factors, including analyses of inventory levels, historical loss trends, sales history, and projections of future sales demand. The Company’s estimates of the allowance may change from time to time based on management’s assessments, and such changes could be material. At June 30, 2012, the allowance for obsolete inventory of the Company’s continuing operations was approximately $90,000. At September 30, 2011, no allowance for obsolete inventory was deemed necessary.

Property and Equipment

Property and equipment consist of furniture, fixtures, and equipment and leasehold improvements and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful life for furniture, fixtures and equipment ranges from three to ten years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. For the three-month periods ended June 30, 2012 and 2011, the Company recorded approximately $30,000 and $17,000 of depreciation and amortization expense, respectively, in continuing operations. For the nine-month periods ended June 30, 2012 and 2011, the Company recorded approximately $83,000 and $45,000 of depreciation and amortization expense, respectively, in continuing operations. Depreciation and amortization for production related property and equipment is included as a component of costs of goods sold in the accompanying consolidated statements of operations. Depreciation and amortization for selling and general and administrative related property and equipment is included as a component of operating expenses of continuing operations in the accompanying consolidated statements of operations.

Income Taxes

The Company accounts for its income taxes in accordance with accounting principles generally accepted in the United States of America, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carryforwards to the extent that realization of these benefits is more likely than not. The Company periodically evaluates the realizability of its net deferred tax assets.   See Note 7 to these Notes to Consolidated Financial Statements. The Company’s policy is to account for interest and penalties relating to income taxes, if any, in “income tax expense” in its consolidated statement of operations and include accrued interest and penalties within “accrued liabilities” in its consolidated balance sheets. For the three and nine-month periods ended June 30, 2012 and 2011, no income tax related interest or penalties were assessed or recorded.

Revenue Recognition

The Company generally recognizes revenue from product sales to its customers when: (1) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (2) persuasive evidence of an arrangement exists; (3) the Company has no continuing obligations to the customer; and (4) collection of the related accounts receivable is reasonably assured. The Company offers certain of its customers a variety of sales and incentive programs, including discounts, allowances, and co-op advertising and marketing funds; such amounts are estimated and recorded as a reduction in revenue.

Shipping and Handling Costs

The Company classifies certain shipping and handling costs (including inbound and outbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, and other costs associated with the Company’s Hong Kong distribution facility and network) as a component of cost of goods sold in the accompanying consolidated statements of operations.

Advertising and Promotion Costs

Advertising and promotion costs, consisting primarily of samples and tradeshow costs, are expensed as incurred. Advertising and promotion costs are included in selling expenses in the accompanying consolidated statements of operations and amounted to approximately $14,000 and $42,000 for the three-month periods ended June 30, 2012 and 2011, respectively; and $30,000 and $125,000 for the nine-month periods ended June 30, 2012 and 2011, respectively. 

Foreign Currency Transactions

The functional currency of the Company and each of its wholly-owned foreign subsidiaries is the U.S. dollar (except for Forward UK, which is the British Pound). Transactions denominated in foreign currencies may generate accounts receivable or payable balances that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in “other income (expense), net” in the accompanying consolidated statements of operations. For the three-month periods ended June 30, 2012 and 2011, the Company recorded approximately $(26,000) and $11,000 in foreign currency transaction gains (losses), respectively. For the nine-month periods ended June 30, 2012 and 2011, the Company recorded approximately $(46,000) and $21,000 in foreign currency transaction gains (losses), respectively.  Such foreign currency transaction losses were primarily the result of Euro denominated sales to certain customers.

Comprehensive Loss

We calculate comprehensive loss as the total of our net income (loss) and all other changes in equity (other than transactions with owners), including foreign currency translation adjustments. Comprehensive loss was $(3,316,000) and $(6,378,000) for the three and nine-month periods ended June 30, 2012, respectively. The Company did not have any material components of comprehensive loss, other than net loss, for the three and nine-month periods ended June 30, 2011.

Fair value of financial instruments

For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, note receivable, accounts payable, and other accrued liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments.

Share-Based Payment Expense

The Company recognizes share-based equity compensation in its consolidated statements of operations at the grant-date fair value of stock options and other equity-based compensation. The determination of grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. Changes in any of these variables could result in material increases to the valuation of options granted in future periods and increases in the expense recognized for share-based payments. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 6 Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees (refer to Note 6) based upon the fair value, using the Black-Scholes pricing model, determined at the deemed measurement dates over the related contract service period.

Recent accounting pronouncements

In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-12, Comprehensive Income (Topic 220):  Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-12, defers the specific requirement to present items that are reclassified from accumulated other comprehensive income to net income separately within their respective components of net income and other comprehensive income as described by Comprehensive Income (Topic 220) - Presentation of Comprehensive Income (ASU N0. 2011-05).  The Company will continue to report any applicable reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05.

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CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Jun. 30, 2012	Sep. 30, 2011
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	4,000,000	4,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	8,811,595	8,794,296
Common stock, shares outstanding	8,105,185	8,087,886
Treasury Stock, shares	706,410	706,410

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LEGAL PROCEEDINGS

9 Months Ended

Jun. 30, 2012

Legal Matters and Contingencies [Abstract]

LEGAL PROCEEDINGS

NOTE 12 LEGAL PROCEEDINGS

Targus Group International, Inc., et al. v. Forward Industries, Johnson, et al.

On September 19, 2011, the Company, Brett Johnson (our President and Chief Executive Officer), and one of our employees were named in a Complaint filed in Orange County Superior Court by Targus Group International, Inc. and two of its affiliates.  The Complaint alleged a claim for breach of contract against Mr. Johnson.  The Complaint further alleged a “breach of fiduciary duty/duty of loyalty” against the employee, and it asserted claims against Mr. Johnson and the Company for allegedly aiding and abetting that alleged breach.  The Complaint also asserted a cause of action against all Defendants for unfair competition.  An Amended Complaint was filed on October 11, 2011.  In addition to the claims asserted in the original Complaint, the Amended Complaint added an additional Targus affiliate as a plaintiff and named an additional employee of the Company as a defendant.  The Amended Complaint asserted a claim against that employee for breach of contract and for “breach of fiduciary duty/duty of loyalty, ” and it added new claims against the Company and Mr. Johnson for allegedly interfering with that employee’s contract and for allegedly aiding and abetting his breach of duty.  The claim for unfair competition in the Amended Complaint relies on these new allegations as well.  All of the claims asserted in this action arise out of the decisions of former employees of one or more of the plaintiffs to accept offers of employment with the Company.  The amount of damages sought is not specified.  On November 11, 2011, the Company, Brett Johnson, and James Berberian filed a demurrer with respect to certain of the claims asserted in the Amended Complaint.  On January 30, 2012, the district court sustained the demurrer in part and ruled that Plaintiffs had not pled a valid cause of action against Mr. Johnson with respect to its claim against him for breach of contract.  The court permitted Plaintiffs to amend this defective claim and on February 10, 2012, Plaintiffs filed a Second Amended Complaint. On March 12, 2012, Mr. Johnson filed a demurrer to the breach of contract claim that was re-pled against him in the Second Amended Complaint.  The court overruled Mr. Johnson’s demurrer in an order dated June 11, 2012.  The Company believes it has substantial defenses to these claims and intends to vigorously defend the action. The Company has not recorded a loss provision for these complaints as of June 30, 2012.

Other Litigation

            From time to time, the Company may become a party to other legal actions or proceedings in the ordinary course of its business.  As of June 30, 2012, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely to the Company’s interests, the Company believes would be material to its business.

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Document And Entity Information	9 Months Ended
	Jun. 30, 2012	Aug. 08, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	FORWARD INDUSTRIES INC
Entity Central Index Key	0000038264
Trading Symbol	ford
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,105,185
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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ACCOUNTING POLICIES (Policies)

9 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Accounting Estimates

Accounting Estimates

The preparation of the Company's consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. ("Forward") and its wholly owned subsidiaries (Forward US, Forward Switzerland, Forward HK, Forward APAC, and Forward UK). All significant intercompany transactions and balances have been eliminated in consolidation.

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified, in addition to discontinued operations as disclosed in Note 3, to conform to the current period presentation.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of cash on deposit and highly liquid money market accounts, short-term bonds, and certificates of deposit with original contractual maturities of three months or less, predominately in U.S. dollar denominated instruments. The Company may purchase these short-term bonds with anticipated maturity of 90 days or less at a premium or discount. The Company records these investments as cash and cash equivalents net of amortization of premium or discount. The Company minimizes its credit risk associated with cash and cash equivalents by investing in high quality instruments and by periodically evaluating the credit quality of the primary financial institution issuers of such instruments. The Company holds cash and cash equivalents at major financial institutions in the United States, at which cash amounts may significantly exceed FDIC insured limits. At June 30, 2012, this amount was approximately $4.2 million. Historically, the Company has not experienced any losses due to such cash concentrations.

Accounts Receivable

Accounts Receivable

Accounts receivable consist of unsecured trade accounts with customers or their contract manufacturers. The Company performs periodic credit evaluations of its customers including an evaluation of days outstanding, payment history, recent payment trends, and perceived credit worthiness, and believes that adequate allowances for any uncollectible receivables are maintained. Credit terms to customers generally range from net thirty (30) days to net ninety (90) days. The Company has not historically experienced significant credit or collection problems with its OEM customers or their contract manufacturers. In addition, the Company maintains credit insurance that provides up to 90% coverage on trade accounts with customers in the EMEA region. At June 30, 2012, no allowance for doubtful accounts relating to the Company’s continuing operations was deemed necessary. At September 30, 2011, the allowance for doubtful accounts was approximately $14,000.

Inventories

Inventories

Inventories consist primarily of finished goods and are stated at the lower of cost (determined by the first-in, first-out method) or market.  Based on management’s estimates, an allowance is made to reduce excess, obsolete, or otherwise un-saleable inventories to net realizable value. The allowance is established through charges to cost of goods sold in the Company’s consolidated statements of operations. As reserved inventory is disposed of, the Company charges off the associated allowance.  In determining the adequacy of the allowance, management’s estimates are based upon several factors, including analyses of inventory levels, historical loss trends, sales history, and projections of future sales demand. The Company’s estimates of the allowance may change from time to time based on management’s assessments, and such changes could be material. At June 30, 2012, the allowance for obsolete inventory of the Company’s continuing operations was approximately $90,000. At September 30, 2011, no allowance for obsolete inventory was deemed necessary.

Property and Equipment

Property and Equipment

Property and equipment consist of furniture, fixtures, and equipment and leasehold improvements and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful life for furniture, fixtures and equipment ranges from three to ten years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. For the three-month periods ended June 30, 2012 and 2011, the Company recorded approximately $30,000 and $17,000 of depreciation and amortization expense, respectively, in continuing operations. For the nine-month periods ended June 30, 2012 and 2011, the Company recorded approximately $83,000 and $45,000 of depreciation and amortization expense, respectively, in continuing operations. Depreciation and amortization for production related property and equipment is included as a component of costs of goods sold in the accompanying consolidated statements of operations. Depreciation and amortization for selling and general and administrative related property and equipment is included as a component of operating expenses of continuing operations in the accompanying consolidated statements of operations.

Income Taxes

Income Taxes

The Company accounts for its income taxes in accordance with accounting principles generally accepted in the United States of America, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carryforwards to the extent that realization of these benefits is more likely than not. The Company periodically evaluates the realizability of its net deferred tax assets.   See Note 7 to these Notes to Consolidated Financial Statements. The Company’s policy is to account for interest and penalties relating to income taxes, if any, in “income tax expense” in its consolidated statement of operations and include accrued interest and penalties within “accrued liabilities” in its consolidated balance sheets. For the three and nine-month periods ended June 30, 2012 and 2011, no income tax related interest or penalties were assessed or recorded.

Revenue Recognition

Revenue Recognition

The Company generally recognizes revenue from product sales to its customers when: (1) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (2) persuasive evidence of an arrangement exists; (3) the Company has no continuing obligations to the customer; and (4) collection of the related accounts receivable is reasonably assured. The Company offers certain of its customers a variety of sales and incentive programs, including discounts, allowances, and co-op advertising and marketing funds; such amounts are estimated and recorded as a reduction in revenue.

Shipping and Handling Costs

Shipping and Handling Costs

The Company classifies certain shipping and handling costs (including inbound and outbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, and other costs associated with the Company’s Hong Kong distribution facility and network) as a component of cost of goods sold in the accompanying consolidated statements of operations.

Advertising and Promotion Costs

Advertising and Promotion Costs

Advertising and promotion costs, consisting primarily of samples and tradeshow costs, are expensed as incurred. Advertising and promotion costs are included in selling expenses in the accompanying consolidated statements of operations and amounted to approximately $14,000 and $42,000 for the three-month periods ended June 30, 2012 and 2011, respectively; and $30,000 and $125,000 for the nine-month periods ended June 30, 2012 and 2011, respectively.

Foreign Currency Transactions

Foreign Currency Transactions

The functional currency of the Company and each of its wholly-owned foreign subsidiaries is the U.S. dollar (except for Forward UK, which is the British Pound). Transactions denominated in foreign currencies may generate accounts receivable or payable balances that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in “other income (expense), net” in the accompanying consolidated statements of operations. For the three-month periods ended June 30, 2012 and 2011, the Company recorded approximately $(26,000) and $11,000 in foreign currency transaction gains (losses), respectively. For the nine-month periods ended June 30, 2012 and 2011, the Company recorded approximately $(46,000) and $21,000 in foreign currency transaction gains (losses), respectively.  Such foreign currency transaction losses were primarily the result of Euro denominated sales to certain customers.

Comprehensive Loss

Comprehensive Loss

We calculate comprehensive loss as the total of our net income (loss) and all other changes in equity (other than transactions with owners), including foreign currency translation adjustments. Comprehensive loss was $(3,316,000) and $(6,378,000) for the three and nine-month periods ended June 30, 2012, respectively. The Company did not have any material components of comprehensive loss, other than net loss, for the three and nine-month periods ended June 30, 2011.

Fair value of financial instruments

Fair value of financial instruments

For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, note receivable, accounts payable, and other accrued liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments.

Share-Based Payment Expense

Share-Based Payment Expense

The Company recognizes share-based equity compensation in its consolidated statements of operations at the grant-date fair value of stock options and other equity-based compensation. The determination of grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. Changes in any of these variables could result in material increases to the valuation of options granted in future periods and increases in the expense recognized for share-based payments. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 6 Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees (refer to Note 6) based upon the fair value, using the Black-Scholes pricing model, determined at the deemed measurement dates over the related contract service period.

Recent accounting pronouncements

Recent accounting pronouncements

In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-12, Comprehensive Income (Topic 220):  Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-12, defers the specific requirement to present items that are reclassified from accumulated other comprehensive income to net income separately within their respective components of net income and other comprehensive income as described by Comprehensive Income (Topic 220) - Presentation of Comprehensive Income (ASU N0. 2011-05).  The Company will continue to report any applicable reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05.

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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended				9 Months Ended
	Jun. 30, 2012		Jun. 30, 2011		Jun. 30, 2012		Jun. 30, 2011
Income Statement [Abstract]
Net sales	$ 7,664,252	[1]	$ 6,156,543	[1]	$ 20,049,363	[1]	$ 17,121,017	[1]
Cost of goods sold	6,906,769		4,713,959		16,989,281		13,140,385
Gross profit	757,483		1,442,584		3,060,082		3,980,632
Operating expenses:
Selling	282,020		674,375		925,245		1,630,050
General and administrative	1,088,552		1,262,792		3,821,512		3,314,802
Total operating expenses	1,370,572		1,937,167		4,746,757		4,944,852
Loss from operations	(613,089)		(494,583)		(1,686,675)		(964,220)
Other (expense) income:
Interest income	21,234		34,304		88,931		69,201
Other income (expense), net	(38,998)		(3,469)		(46,023)		8,871
Total other (expense) income	(17,764)		30,835		42,908		78,072
Loss from continuing operations	(630,853)		(463,748)		(1,643,767)		(886,148)
Benefit from income taxes			56,050				56,050
Loss from continuing operations	(630,853)		(407,698)		(1,643,767)		(830,098)
Loss from discontinued operations	(2,678,075)		(275,026)		(4,722,216)		(389,939)
Net loss	$ (3,308,928)		$ (682,724)		$ (6,365,983)		$ (1,220,037)
Net loss per basic and diluted common share:
Loss from continuing operations (in dollars per share)	$ (0.08)		$ (0.05)		$ (0.20)		$ (0.10)
Loss from discontinued operations (in dollars per share)	$ (0.33)		$ (0.03)		$ (0.58)		$ (0.05)
Net loss per share (in dollars per share)	$ (0.41)		$ (0.08)		$ (0.78)		$ (0.15)
Weighted average number of common and common equivalent shares outstanding:
Basic and diluted (in shares)	8,105,185		8,087,139		8,100,478		8,077,803

[1] Totals may not total due to rounding.

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INCOME TAXES

9 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 7  INCOME TAXES

The Company’s provision (benefit) for income taxes from continuing operations consists of the following United States Federal and State, and foreign components:

	For the Three-Month Periods Ended June 30,		For the Nine-Month Periods Ended June 30,
	2012	2011	2012	2011
U.S. Federal and State
Current...................................	$          --	$56,050	$             --	$56,050
Deferred.................................	388,265	(271,354)	(469,705)	(511,677)
Foreign:
Current...................................	--	--	--	--
Deferred.................................	(144,343)	10,056	(188,495)	30,027
Change in valuation allowance	(243,922)	261,298	658,200	481,650
Benefit from income taxes.......	$         --	$56,050	$            --	$56,050

                             For each period presented, there was no income tax provision related to discontinued operations.

At June 30, 2012, the Company had available net operating loss carryforwards for U.S. Federal and state income tax purposes of approximately $6,342,000 and $7,287,000, respectively, expiring through 2031, resulting in deferred tax assets in respect of U.S. Federal and state income taxes of approximately $2,156,000 and $196,000, respectively. In addition, at June 30, 2012, the Company had available net operating loss carryforwards for foreign income tax purposes of approximately $3,805,000 resulting in a deferred tax asset of approximately $335,000, expiring through 2017.  Total net deferred tax assets, before valuation allowances, was $2,739,000 and $1,381,000 at June 30, 2012 and September 30, 2011, respectively. Undistributed earnings of the Company’s foreign subsidiaries are considered to be permanently invested; therefore, in accordance with generally accepted accounting principles in the U.S., no provision for U.S. Federal and state income taxes would result. As of June 30, 2012, there were no accumulated earnings of any of the Company’s foreign subsidiaries.

As of June 30, 2012, as part of its periodic evaluation of the necessity to maintain a valuation allowance against its deferred tax assets, and after consideration of all factors, both positive and negative (including, among others, projections of future taxable income, current year net operating loss carryforward utilization and the extent of the Company’s cumulative losses in recent years), the Company determined that, on a more likely than not basis, it would not be able to use its remaining deferred tax assets (except in respect of United States income taxes in the event the Company elects to effect the repatriation of certain foreign source income of its Swiss subsidiary, which income is currently considered to be permanently invested and for which no United States tax liability has been accrued). Accordingly, the Company has determined to maintain a full valuation allowance against its deferred tax assets. As of June 30, 2012 and September 30, 2011, the valuation allowances were approximately $2,739,000 and $1,381,000, respectively.  If the Company determines in a future reporting period that it will be able to use some or all of its deferred tax assets, the adjustment to reduce or eliminate the valuation allowance would reduce its tax expense and increase after-tax income. Changes in deferred tax assets and valuation allowance are reflected in the “Benefit from income taxes” line item of the Company’s consolidated statements of operations.

As of June 30, 2012 and September 30, 2011, the Company has not accrued any interest and penalties related to uncertain tax positions. It is the Company’s policy to recognize interest and/or penalties, if any, related to income tax matters in income tax expense in the statement of operations. For the periods presented in the accompanying statements of operations, no income tax related interest or penalties were assessed or recorded. All fiscal years prior to the fiscal year ended September 30, 2009 are closed to Federal and State examination, except with respect to net operating losses generated in prior fiscal years.

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SHARE-BASED COMPENSATION

9 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

SHARE-BASED COMPENSATION

NOTE 6     SHARE-BASED COMPENSATION

2011 Long-Term Incentive Plan

In March 2011 shareholders of the Company approved the 2011 Long Term Incentive Plan (the “2011 Plan”), which authorizes 850,000 shares of common stock for grants of various types of equity awards to officers, directors, employees, consultants, and independent contractors. Under the 2011 Plan, as of June 30, 2012, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) has approved awards of stock options to purchase an aggregate of 965,000 shares of common stock to certain of the Company’s executive officers and employees (730,000 shares), a consultant (160,000 shares), non-employee directors (70,000 shares), and to a non-employee executive officer (5,000).  Of these awards, 365,500 shares were forfeited and reverted to, and are eligible for re-grant under, the 2011 Plan.  As of June 30, 2012, the total shares of common stock available for grants of equity awards under the 2011 Plan was 250,500. The prices at which equity awards may be granted and the exercise prices of stock options granted may not be less than the fair market value of the common stock as quoted at the close on the Nasdaq Stock Market on the grant date. The Compensation Committee administers the plan.  Options generally expire ten years after the date of grant and vest one year from the date of grant for non-employee directors, and, in the case of initial grants to officers and employees, vest over five years with 50%, 25% and 25% vesting on the third, fourth, and fifth anniversary of the grant date, respectively. Options granted under a consulting agreement in November 2011 expire three years after the grant date and vested equally over the term of the consulting agreement, which concluded February 29, 2012.

2007 Equity Incentive Plan

The 2007 Equity Incentive Plan (the “2007 Plan”), which was approved by shareholders of the Company in May 2007, and, as amended, in February 2010, authorizes an aggregate of 800,000 shares of common stock for grants of restricted common stock and stock options to officers, employees, and non-employee directors of the Company. Under the 2007 Plan, the Compensation Committee of the Company’s Board of Directors approved awards of restricted common stock and stock options of 836,000, in the aggregate, to certain officers, employees and non-employee directors. Of these awards, 78,366 shares were forfeited and reverted to, and are eligible for re-grant under, the 2007 Plan.  As of June 30, 2012, the total shares of common stock available for grants of equity awards under the 2007 Plan was 42,366. The prices at which restricted common stock may be granted and the exercise price of stock options granted may not be less than the fair market value of the common stock as quoted at the close on the Nasdaq Stock Market on the grant date. The Compensation Committee administers the 2007 Plan.  Options generally expire ten years after the date of grant, and in the case of non-employee directors, vest on the first anniversary of the date of grant. In the case of officers and employees, options either vest in equal amounts over three to five years or vest over five years with 50%, 25% and 25% vesting on the third, fourth, and fifth anniversary of the grant date, respectively. Restricted stock grants generally vest in equal proportions over three years.

1996 Stock Incentive Plan

The Company’s 1996 Stock Incentive Plan (the “1996 Plan”) expired in accordance with its terms in November 2006.  The exercise price of incentive options granted under the 1996 Plan to officers, employees, and non-employee directors of the Company was required by 1996 Plan provisions to be equal at least to the fair market value of the common stock at the date of grant. In general, options under this plan expire ten years after the date of grant and generally vest in equal proportions over three years.  Unexercised options granted  prior to 1996 Plan expiration remain outstanding until the earlier of exercise or option expiration. Under the 1996 Plan 30,000 fully vested common stock options are the only awards that remain outstanding and unexercised, all at exercise prices higher than the fair market value of the common stock at June 30, 2012.

Stock Option Awards

Under the 2011 and 2007 Plans, the Compensation Committee has approved awards of stock options to purchase an aggregate of 1,617,500 shares of common stock to the Company’s current and certain former non-employee directors, to certain key employees, to current and certain former Company officers, and to a consultant, of which awards covering 55,000 shares from the 2007 Plan and 365,500 shares from the 2011 Plan of common stock were forfeited, with such shares reverting to the respective plans and eligible for grant. The exercise prices of the awards granted was, in each case equal, to the closing market value of the Company’s common stock on the Nasdaq Stock Market on the various grant dates.

The Company recognized a recovery of approximately $(81,000) and an expense of $116,000 of compensation in continuing operations for stock option awards in its consolidated statements of operations for the three-month periods ended June 30, 2012 and 2011, respectively; and a recovery of approximately $(142,000) and an expense of $16,000 of compensation in discontinued operations for stock option awards in its consolidated statements of operations for the three-month periods ended June 30, 2012 and 2011, respectively.

The Company recognized approximately $170,000 and $251,000 of compensation in continuing operations for stock option awards in its consolidated statements of operations for the nine-month periods ended June 30, 2012 and 2011, respectively; and a recovery of $(48,000) and an expense of $21,000 of compensation in discontinued operations for stock option awards in its consolidated statements of operations for the nine-month periods ended June 30, 2012 and 2011, respectively.

As of June 30, 2012, there was approximately $426,000 of total unrecognized compensation cost related to 740,500 shares of unvested stock option awards granted under the 2007 and 2011 Plans, which is expected to be recognized over the remainder of the weighted average vesting period (extending to February 2017).

The following table summarizes stock option activity under the 2011 Plan and 2007 Plan from September 30, 2011 through June 30, 2012 (there was no activity during such period in respect of 1996 Plan grants):

	Shares	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at September 30, 2011	1,007,500	$3.45	5.9
Granted..............................................	420,000	2.92	6.8
Exercised............................................	--	--	--
Forfeited............................................	(285,500)	3.20	--
Expired...............................................	--	--	--
Outstanding at June 30, 2012	1,142,000	$3.32	7.7	--
Options expected to vest at June 30, 2012...................................	387,450	$2.22	4.9	--
Options vested and exercisable at June 30, 2012..................................	401,500	$3.06	5.2	--

Stock Option Awards (continued)

During the nine-month periods ended June 30, 2012 and 2011, the Company granted 420,000 and 685,000 stock options at weighted average grant date fair values of $0.96 and $2.09, respectively.

The fair value of each stock option on the date of grant was estimated using the Black-Scholes option-pricing formula applying the following assumptions for each respective period:

	For the Nine-Month Periods Ended June 30,
	2012	2011
Expected term (in years)...................................................	3.0 to 5.0	5.0
Risk-free interest rate.......................................................	0.04% to 0.83%	0.3% to 2.2%
Expected volatility............................................................	63% to 69%	66% to 69%
Expected dividend yield..................................................	0%	0%
Estimated Annual Forfeiture rate................................. .	13%	--

 The expected term represents the period over which the stock option awards are expected to be outstanding. The Company based the risk-free interest rate used in its assumptions on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s expected term. The volatility factor used in the Company’s assumptions is based on the historical price of its stock over the most recent period commensurate with the expected term of the award. The Company historically has not paid any dividends on its common stock and had no intention to do so on the date the share-based awards were granted. Accordingly, the Company used a dividend yield of zero in its assumptions. The Company estimates the expected term, volatility and forfeitures of share-based awards based upon historical data. The Company adjusted its estimated forfeiture rate effective October 1, 2011 and recognized a recovery of approximately $46,000 during the three-month period ended December 31, 2011. In addition, the Company recognized a recovery for actual forfeitures in the amount of $305,000 during the three-month period June 30, 2012.

Restricted Stock Awards

Under the 2007 Plan, the Compensation Committee has approved and granted awards of 183,500 shares of restricted stock, in the aggregate, to certain key employees. Of these awards, 152,634 have vested and 23,366 shares of restricted stock were forfeited and reverted to, and are eligible for re-grant under, the 2007 Plan. No awards of restricted stock were made during the three and nine-month periods ended June 30, 2012.  Vesting of restricted stock awards is generally subject to a continued service condition with one-third of the awards vesting each year on the three successive anniversary dates of the grant date, typically commencing on the first such anniversary date.  The fair value of the awards granted was equal to the closing market value of the Company’s common stock as quoted on the Nasdaq Stock Market on the grant date. During the three-month periods ended June 30, 2012 and 2011, the Company recognized approximately $1,000 and $(15,000), respectively, of compensation expense (recovery) in continuing operations in its consolidated statements of operations related to restricted stock awards; and $4,000 and $(1,000) for the nine-month periods ended June 30, 2012 and 2011, respectively.

The following table summarizes restricted stock activity under the 2007 Plan from September 30, 2011, through June 30, 2012.

	Shares	Weighted Average Grant Date Fair Value
Non-vested balance at September 30, 2011..........................................	25,799	$2.04
Changes during the period:
Shares granted.................................................................................	--	--
Shares vested...................................................................................	17,299	2.05
Shares forfeited................................................................................	1,000	2.02
Non-vested balance at June 30, 2012...................................................	7,500	$2.02

                As of June 30, 2012, there was approximately $3,000 of total unrecognized compensation cost related to 7,500 shares of unvested restricted stock awards (reflected in the table above) granted under the 2007 Plan. That cost is expected to be recognized over the remainder of the requisite service (vesting) periods (approximately 6 months). The total grant date fair value of restricted stock that vested during the nine-month period ended June 30, 2012 was approximately $35,000.

Warrants

    As of June 30, 2012, warrants to purchase 75,000 shares of the Company’s common stock at an exercise price of $1.75 issued in fiscal 1999 were outstanding. By their terms these warrants expire 90 days after a registration statement registering common stock (other than pursuant to employee benefit plans) is declared effective by the Securities and Exchange Commission. As of June 30, 2012, no such registration statement has been filed with the Securities and Exchange Commission.

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OPERATING SEGMENT INFORMATION (Tables)

9 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of net sales of each segment by geographical region

(all amounts in thousands of dollars)

	Three Months Ended June 30,		Nine Months Ended June 30,
	2012	2011	2012	2011
APAC.....................................................	$3,262	$2,744	$8,870	$7,944
Americas................................................	3,184	1,768	7,028	5,054
Europe ...................................................	1,218	1,643	4,151	4,122
Total net sales*....................................	$7,664	$6,156	$20,049	$17,121

*Totals may not total due to rounding

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DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Schedule of operating results and assets and liabilities of discontinued operations

	Three Months Ended June 30,		Nine Months Ended June 30,
	2012	2011	2012	2011
Net sales............................................................	$430,540	$             --	$2,093,718	$             --
Gross loss.......................................................	(1,524,337)	--	(1,084,894)	--
Operating expenses......................................	(1,138,487)	(275,026)	(3,594,979)	(389,939)
Other expense...............................................	(15,251)		(42,343)
Net loss from discontinued operations.......	$(2,678,075)	$(275,026)	$(4,722,216)	$(389,939)

	June 30,	September 30,
	2012	2011
Accounts receivable, net...................................	$1,043,023	$             --
Inventory, net......................................................	1,152,190	31,024
Prepaid assets and other current receivables..	502,398	640,219
Note receivable....................................................	--	1,000,000
Property and equipment, net.............................	3,300	--
Total assets of discontinued operations.........	$2,700,911	$1,671,243
Accounts payable..............................................	$218,468	$160,300
Accrued liabilities...............................................	587,611	164,035
Total liabilities of discontinued operations	$806,079	$324,335

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jun. 30, 2012

Commitments Contingencies and Guarantees [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10   COMMITMENTS AND CONTINGENCIES

Employment Agreements

On April 2, 2012, the Company appointed Robert Garrett Jr. and Brett Johnson as Co-Chief Executive Officers of the Company.  Mr. Garrett has served as a consultant to the Company pursuant to a consulting agreement since October 1, 2011. In connection with Mr. Garrett’s appointment as the Company’s Co-Chief Executive Officer, the consulting agreement was terminated effective as of February 29, 2012. As of August 1, 2012, Forward and Co-CEO, Mr. Johnson, have opted not to renew Mr. Johnson’s employment contract, with his employment to end August 31, 2012.

Robert Garrett Employment Agreement

Under his employment agreement, Mr. Garrett is employed as the Company’s Co-Chief Executive Officer, effective as of March 1, 2012, at an annual salary of $250,000. In executing his employment agreement, Mr. Garrett received a signing bonus of $9,167. During Mr. Garrett’s first year of employment he shall receive a bonus not less than $50,000.  In addition, during each year of his employment, Mr. Garrett is eligible to receive an annual bonus at the discretion of the Compensation Committee in a combination of cash or equity based compensation. Mr. Garrett’s employment agreement also entitles him to awards of stock options to purchase an aggregate of 200,000 shares of the Company’s common stock pursuant to the 2011 Long Term Incentive Plan

Mr. Garrett’s employment agreement provides for successive one-year renewal terms, unless either party provides written notice of its intention not to renew the agreement not later than 90 days prior to the end of the term (or renewal period). In the event of the termination of Mr. Garrett’s employment, depending on the circumstances, Mr. Garrett could be entitled to receive a severance payment which could be up to (12) twelve months of his salary, and under certain circumstances, the immediate vesting of any unvested options pursuant to applicable equity compensation plans, as well as any accrued discretionary bonus.

Mr. Garrett’s employment agreement binds him to customary non-competition and non-solicitation covenants of up to one year following the expiration of the employment term.

Brett Johnson Employment Agreement

Under his employment agreement, Mr. Johnson was employed as the Company’s Co-Chief Executive Officer, effective March 1, 2012, at an annual salary of $250,000.  During Mr. Johnson’s first year of employment, he was eligible to earn a bonus of up to $50,000, based on achievement of certain performance goals defined in his employment agreement. In addition, during each year of his employment, Mr. Johnson was eligible to receive an annual bonus at the discretion of the Compensation Committee in a combination of cash or equity based compensation. Mr. Johnson’s employment agreement provided for successive one-year renewal terms, unless either party provides written notice of its intention not to renew the agreement not later than 90 days prior to the end of the term (or renewal period). In the event of termination of Mr. Johnson’s employment, depending on the circumstances, Mr. Johnson could be entitled to receive a severance payment which could be up to (12) twelve months of his salary, and under certain circumstances the immediate vesting of any unvested options pursuant to applicable equity compensation plans, as well as any accrued discretionary bonus. Mr. Johnson’s employment agreement binds him to customary non-competition and non-solicitation covenants of up to one year following the expiration of the employment term. As of August 1, 2012, Forward and Co-CEO, Mr. Johnson, have opted not to renew Mr. Johnson’s employment contract, with his employment to end August 31, 2012.

James McKenna Employment Agreement

James O. McKenna serves as the Company’s Chief Financial Officer, Treasurer and Assistant Secretary pursuant to an Amended Employment Agreement, dated as of April 1, 2011 (the “Employment Agreement”), between the Company and Mr. McKenna.  The Employment Agreement provides for an annual salary of $225,000 and Mr. McKenna will be eligible to earn bonus compensation based on achievement of targets set by the Board’s Compensation Committee in respect of each fiscal year during the term.  Under the Employment Agreement, Mr. McKenna is entitled to reimbursement of reasonable out-of-pocket costs incurred in relocation to the Los Angeles area, and payment of a housing allowance of $7,500 per month, to be phased out over time.  The term of the Employment Agreement expires on December 31, 2012, with automatic renewal for successive terms of one year each.  Pursuant to the Employment Agreement, Mr. McKenna is entitled to a payment equal to one year of his salary as severance in the event of his termination “without cause” and termination for “good reason” (as such terms are defined in the Employment Agreement).  In addition, in case of termination for good reason or without cause, in either case within the first 36 months after relocation to the Los Angeles area, Mr. McKenna is entitled to reimbursement of reasonable out-of-pocket costs incurred in connection with relocation of his primary residence back to Florida.

Letters of Intent

Waterproof Case License

In September 2011, the Company entered into a Letter of Intent with a Florida corporation (“FloridaCo”) that has invented a patent pending waterproof electronics case. Under the Letter of Intent, the Company will be granted the exclusive worldwide license to manufacture, develop, distribute, and otherwise use the waterproof case, subject to maintaining certain minimum monthly sales levels, in exchange for making certain royalty payments to FloridaCo. In addition, the Company agreed to make four quarterly payments of advance royalties to FloridaCo, in the amount of $25,000 each, commencing December 1, 2011.  In July 2012, upon mutual agreement, the Company withdrew its Letter of Intent with FloridaCo. As of the date of such termination, the Company had paid FloridaCo $50,000 of advance royalties, which are non-refundable and interest free. The Company included these royalty payments in its “selling expenses” in the accompanying consolidated statements of operations during the three and nine-month period ended June 30, 2012.

Guarantee Obligation

In February 2010, Forward Switzerland and its European logistics provider (freight forwarding and customs agent) entered into a Representation Agreement whereby, among other things, the European logistics provider agreed to act as such subsidiary's Fiscal representative in The Netherlands for the purpose of providing services in connection with any value added tax matters. As part of this agreement, which succeeds a substantially similar agreement (except as to the amount and term of the undertaking) between the parties that expired June 30, 2009, the subsidiary agreed to provide an undertaking (in the form of a bank letter of guarantee) to the logistics provider with respect to any value added tax liability arising in The Netherlands that the logistics provider is required to pay to Dutch tax authorities on the subsidiary's behalf. As of February 1, 2010, such subsidiary entered into a guarantee agreement with a Swiss bank relating to the repayment of any amount up to €75,000 (equal to approximately $100,000 as of June 30, 2012) paid by such bank to the logistics provider in order to satisfy such undertaking pursuant to the bank letter of guarantee.  The subsidiary would be required to perform under the guarantee agreement only in the event that: (i) a value added tax liability is imposed on the Company's sales in The Netherlands, (ii) the logistics provider asserts that it has been called upon in its capacity as surety by the Dutch Receiver of Taxes to pay such taxes, (iii) the subsidiary or the Company on its behalf fails or refuses to remit the amount of value added tax due to the logistics provider upon its demand, and (iv) the logistics provider makes a drawing under the bank letter of guarantee. Under the Representation Agreement the subsidiary agreed that the letter of guarantee would remain available for drawing for three years following the date that its relationship terminates with the logistics provider to satisfy any value added tax liability arising prior to expiration of the Representation Agreement but asserted by The Netherlands after expiration. The initial term of the bank letter of guarantee expired February 28, 2011, but renews automatically for one-year periods until February 28, 2014, unless the subsidiary provides the Swiss bank with written notice of termination at least 60 days prior to the renewal date. It is the intent of the subsidiary and the logistics provider that the bank letter of guarantee amount be adjusted annually. In consideration of the issuance of the letter of guarantee, the subsidiary has granted the Swiss bank a security interest on all of the subsidiary’s assets on deposit with, held by, or credited to the subsidiary’s accounts with, the Swiss bank (approximately $300,000 at June 30, 2012). As of June 30, 2012, the Company had not incurred a liability in connection with this guarantee. 

Buying Agency and Supply Agreement

On March 12, 2012, the Company, entered into a Buying Agency and Supply Agreement (the “Agreement”) with Seaton Global Corporation, a British Virgin Islands corporation (“SGC”), dated as of March 7, 2012.  The Agreement provides that, upon the terms and subject to the conditions set forth therein, SGC shall act as the Company’s exclusive buying agent and supplier of Products (as defined in the Agreement) in the Asia Pacific region.  The Company shall purchase products at SGC’s cost, and shall pay a service fee on the net purchase price.  The Agreement shall terminate on March 11, 2014, subject to renewal.  Terence Wise, a director of the Company, is a principal of SGC. During the three and nine-month periods ended June 30, 2012, the Company recorded $270,000 and $332,000 of SGC service fees, respectively, which are included as a component of costs of goods sold in continuing operations in the accompanying consolidated statements of operations. As a result of this agreement, the Company is engaged in shutting down its legacy Hong Kong sourcing, logistics and quality assurance operations and expects to complete such activities by September 30, 2012.

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LOSS PER SHARE

9 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

LOSS PER SHARE

NOTE 8     LOSS PER SHARE

Basic per share data for each period presented is computed using the weighted-average number of shares of common stock outstanding during each such period.  Diluted per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method. Diluted loss per share data for the three-month and nine-month periods ended June 30, 2012 exclude 1,224,500 of outstanding common equivalent shares as inclusion of such shares would be anti-dilutive. Diluted loss per share data for the three-month and nine-month periods ended June 30, 2011 exclude 539,299 and 108,798, respectively, of outstanding common equivalent shares as inclusion of such shares would be anti-dilutive.

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OPERATING SEGMENT INFORMATION

9 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

OPERATING SEGMENT INFORMATION

NOTE 9     OPERATING SEGMENT INFORMATION

As of June 30, 2012, and during its 2011 fiscal year, the Company reported and managed its continuing operations based on a single operating segment: the design and distribution of carry and protective solutions, primarily for hand held electronic devices. Products designed and distributed by this segment include carrying cases and other accessories for medical monitoring and diagnostic kits, portable consumer electronic devices (such as smartphones, tablets, personnel computers, notebooks, and GPS devices), and a variety of other portable electronic and non-electronic products (such as firearms, sporting, and other recreational products). This segment operates in geographic regions that include primarily APAC, the Americas, and Europe. Geographic regions are defined by reference primarily to the location of the customer or its contract manufacturer.  The following table presents net sales related to these geographic segments:

                                                                                                (all amounts in thousands of dollars)

	Three Months Ended June 30,		Nine Months Ended June 30,
	2012	2011	2012	2011
APAC.....................................................	$3,262	$2,744	$8,870	$7,944
Americas................................................	3,184	1,768	7,028	5,054
Europe ...................................................	1,218	1,643	4,151	4,122
Total net sales*....................................	$7,664	$6,156	$20,049	$17,121

*Totals may not total due to rounding

On June 21, 2012, the Company determined to wind down its Retail segment, which commenced during the three-month period ended December 31, 2011, and focus solely on growing its OEM business.  The decision to eliminate the retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong top line growth and cost rationalizations in the OEM business. The Company expects to complete its exit of its retail business by September 30, 2012 and does not expect to have any continuing involvement in the retail business after this date.

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BINDING MEMORANDUM OF UNDERSTANDING

9 Months Ended

Jun. 30, 2012

License Agreement [Abstract]

BINDING MEMORANDUM OF UNDERSTANDING

NOTE 11   BINDING MEMORANDUM OF UNDERSTANDING

In August 2011, the Company entered into a binding Memorandum of Understanding (the “Prior MOU”) with G-Form LLC (“G-Form”), a manufacturer of consumer and athletic products incorporating proprietary extreme protective technology.  Under the Prior MOU, the Company was granted the exclusive right to use G-Form’s protective technology in the Company’s designated territory, subject to meeting certain minimum annual sales levels (or at the Company’s option, the making of royalty payments at corresponding levels) commencing with the twelve-month period after shipment of the first Forward-branded licensed product that used this technology, with the minimum levels increasing in the subsequent second and third twelve-month periods.  As of September 30, 2011, the Company had paid G-Form a $490,000 non-refundable advance against the first year’s royalties to be offset by cancellation of the $500,000 of loans made by the Company to G-Form in its capacity as a prospective joint venture partner. This amount increased to $500,000 as of March 30, 2012. 

On June 21, 2012, in connection with the Company’s determination to exit its global retail business, the Company entered into a second Memorandum of Understanding (the “New MOU”) with G-Form.  The New MOU contemplates, among other things, (i) that G-Form will repurchase from the Company certain G-Form inventory held by the Company, (ii) that the Company will assist G-Form on a short-term basis with certain operational and sales functions previously performed by Forward for G-Form products, (iii) that G-Form may offer employment to certain of Forward’s non-US based employees, (iv) that the Company and G-Form have agreed to work together to distribute the Company’s remaining inventory of products and to transition the Company’s distribution channels relating to G-Form products to G-Form, and (v) the Company and G-Form have agreed on the settlement of advanced royalties paid under the Prior MOU.  Pursuant to the New MOU, the Prior MOU was terminated. The remaining balance of the advanced royalties as of June 30, 2012 was approximately $116,000 and included in “Current assets of discontinued operations” in the Company’s consolidated balance sheets.

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SHARE-BASED COMPENSATION - Summary of stock option activity (Details) (USD $)	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Shares Granted	420,000	685,000
2011 Long Term Incentive Plan and 2007 Equity Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Shares Outstanding at September 30, 2011	1,007,500
Shares Granted	420,000
Shares Exercised
Shares Forfeited	(285,500)
Shares Expired
Shares Outstanding at June 30, 2012	1,142,000
Options expected to vest	387,450
Options vested and exercisable	401,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price Outstanding at September 30, 2011	3.45
Weighted Average Exercise Price Granted	2.92
Weighted Average Exercise Price Exercised
Weighted Average Exercise Price Forfeited	3.20
Weighted Average Exercise Price Expired
Weighted Average Exercise Price Outstanding at March 31, 2012	3.32
Weighted Average Exercise Price expected to vest	2.22
Weighted Average Exercise Price vested and exercisable	3.06
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term [Roll Forward]
Weighted Average Remaining Contractual Term (Years) Outstanding at September 30, 2011	5 years 10 months 24 days
Weighted Average Remaining Contractual Term (Years) Granted	6 years 9 months 18 days
Weighted Average Remaining Contractual Term (Years) Outstanding at March 31, 2012	7 years 8 months 12 days
Weighted Average Remaining Contractual Term (Years) expected to vest	4 years 10 months 24 days
Weighted Average Remaining Contractual Term (Years) vested and exercisable	5 years 2 months 12 days
Aggregate Intrinsic Value outstanding at March 31, 2012
Aggregate Intrinsic Value expected to vest
Aggregate Intrinsic Value vested and exercisable

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BINDING MEMORANDUM OF UNDERSTANDING (Details Textuals) (Binding Memorandum of Understanding, USD $)	Jun. 30, 2012	Mar. 30, 2012	Sep. 30, 2011
Binding Memorandum of Understanding
Binding Memorandum Of Understanding [Line Items]
Non-refundable advance paid			$ 490,000
Amount of loans cancelled			500,000
Increased amount of loans cancelled		500,000
Advanced royalties	$ 116,000

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SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of stock option activity under the 2011 Plan and 2007 Plan

	Shares	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at September 30, 2011	1,007,500	$3.45	5.9
Granted..............................................	420,000	2.92	6.8
Exercised............................................	--	--	--
Forfeited............................................	(285,500)	3.20	--
Expired...............................................	--	--	--
Outstanding at June 30, 2012	1,142,000	$3.32	7.7	--
Options expected to vest at June 30, 2012...................................	387,450	$2.22	4.9	--
Options vested and exercisable at June 30, 2012..................................	401,500	$3.06	5.2	--

Schedule of assumptions for estimating the fair value of each stock option

	For the Nine-Month Periods Ended June 30,
	2012	2011
Expected term (in years)...................................................	3.0 to 5.0	5.0
Risk-free interest rate.......................................................	0.04% to 0.83%	0.3% to 2.2%
Expected volatility............................................................	63% to 69%	66% to 69%
Expected dividend yield..................................................	0%	0%
Estimated Annual Forfeiture rate................................. .	13%	--

Schedule of restricted stock activity under the 2007 Plan

	Shares	Weighted Average Grant Date Fair Value
Non-vested balance at September 30, 2011..........................................	25,799	$2.04
Changes during the period:
Shares granted.................................................................................	--	--
Shares vested...................................................................................	17,299	2.05
Shares forfeited................................................................................	1,000	2.02
Non-vested balance at June 30, 2012...................................................	7,500	$2.02

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DISCONTINUED OPERATIONS - Summary of operating results of discontinued operations (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Discontinued Operations and Disposal Groups [Abstract]
Net sales	$ 430,540		$ 2,093,718
Gross loss	(1,524,337)		(1,084,894)
Operating expenses	(1,138,487)	(275,026)	(3,594,979)	(389,939)
Other expense	(15,251)		(42,343)
Net loss from discontinued operations	$ (2,678,075)	$ (275,026)	$ (4,722,216)	$ (389,939)

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COMMITMENTS AND CONTINGENCIES (Details Textuals 2) (Waterproof Case License, USD $)	9 Months Ended
	Jun. 30, 2012	Mar. 31, 2012
Waterproof Case License
Compensation Arrangement With Individual Excluding Share Based Payments and Postretirement Benefits [Line Items]
Payment for advance royalty	$ 25,000
Payments of advance royalty paid up to date	$ 50,000	$ 50,000

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SHARE-BASED COMPENSATION (Details Textuals 4) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for grants			75,000
Exercise price	$ 1.75		$ 1.75
Expiry of warrants			90 days
2007 Equity Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited and reverted, shares under 2007 Plan			78,366
Recognized compensation expense	$ 1,000	$ (15,000)	$ 4,000	$ (1,000)
Unrecognized compensation cost	3,000		3,000
Unvested stock option awards granted	7,500		7,500
Requisite service (vesting) period			6 months
Total grant date fair value of restricted stock			$ 35,000
Common stock authorized for grants			800,000
2007 Equity Incentive Plan | Certain Key Employees | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted			183,500
Shares vested			152,634
Forfeited and reverted, shares under 2007 Plan			23,366

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Jun. 30, 2012		Jun. 30, 2011
Operating activities:
Net loss	$ (6,365,983)		$ (1,220,037)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for obsolete inventory	964,423		15,692
Share-based compensation	124,195		270,792
Depreciation and amortization	82,657		45,415
Loss on disposal of property and equipment	35,411		15,373
Bad debt expense	26,311		1,222
Changes in operating assets and liabilities:
Accounts receivable	(3,324,422)		(312,834)
Inventories	(3,235,023)		(266,859)
Prepaid expenses and other current assets	120,614		(269,103)
Other assets	61,115		(62,569)
Accounts payable	1,553,434		411,341
Accrued expenses and other current liabilities	1,285,019		(298,304)
Net cash used in operating activities	(8,672,249)		(1,669,871)
Investing activities:
Issuance of note receivable			(1,190,000)
Repayments received from note receivable	1,000,000
Purchases of property and equipment	(54,057)		(152,429)
Net cash provided by (used in) investing activities	945,943		(1,342,429)
Net decrease in cash and cash equivalents	(7,726,306)		(3,012,300)
Cash and cash equivalents at beginning of period	14,911,844	[1]	18,471,520
Cash and cash equivalents at end of period	7,185,538		15,459,220
Cash paid for:
Income taxes			$ 77,104

[1] Note 1

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SHAREHOLDERS' EQUITY

9 Months Ended

Jun. 30, 2012

Stockholders Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 5     SHAREHOLDERS’ EQUITY

Anti-takeover Provisions

The Company is authorized to issue up to 4,000,000 shares of "blank check" preferred stock. The Board of Directors has the authority and discretion, without shareholder approval, to issue preferred stock in one or more series for any consideration it deems appropriate, and to fix the relative rights and preferences thereof including their redemption, dividend and conversion rights.

Stock Repurchase

In September 2002 and January 2004, the Company’s Board of Directors authorized the repurchase of up to an aggregate of 486,200 shares of outstanding common stock. Under those authorizations, as of June 30, 2012, the Company had repurchased an aggregate of 172,603 shares at a cost of approximately $403,000, but none during the three and nine-month periods ended June 30, 2012 and 2011.

Changes in Shareholders’ Equity

Changes in shareholders’ equity for the nine-month period ended June 30, 2012 are summarized below:

	Common Stock	Capital In Excess of Par Value	Retained Earnings (Accumulated Deficit)	Treasury Stock	Accumulated Other Comprehensive Loss	Totals
Balance at October 1, 2011.	$87,943	$16,845,673	$3,009,130	$(1,260,057)	$  --	$18,682,689
Share-based compensation......	173	124,022	--	--	--	124,195
Foreign currency translation..........	--	--	--	--	(11,558)	(11,558)
Net loss	--	--	(6,365,983)	--	--	(6,365,983)
Balance at June 30, 2012.................	$88,116	$16,969,695	$(3,356,853)	$(1,260,057)	$(11,558)	$12,429,343

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DISCONTINUED OPERATIONS - Summary of assets and liabilities of discontinued operations (Details 1) (USD $)	Jun. 30, 2012	Sep. 30, 2011
Discontinued Operations and Disposal Groups [Abstract]
Accounts receivable, net	$ 1,043,023
Inventory, net	1,152,190	31,024
Prepaid assets and other current receivables	502,398	640,219
Note receivable		1,000,000
Property and equipment, net	3,300
Total assets of discontinued operations	2,700,911	1,671,243
Accounts payable	218,468	160,300
Accrued liabilities	587,611	164,035
Total liabilities of discontinued operations	$ 806,079	$ 324,335

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SHARE-BASED COMPENSATION (Details Textuals 1) (2007 Equity Incentive Plan)	9 Months Ended
	Jun. 30, 2012
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited and reverted, shares under 2007 Plan	55,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for grants	800,000
Common stock granted to officers, employees and non-employee directors	836,000
Forfeited and reverted, shares under 2007 Plan	78,366
Common stock available for grants of equity awards	42,366
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period in case of initial grants	5 years
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period in case of initial grants	3 years
Non-employee directors | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiry period after date of grant for options	10 years
Executive Officers and Employees | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vesting on third anniversary of the grant date	50.00%
Percentage of vesting on fourth anniversary of the grant date	25.00%
Percentage of vesting on fifth anniversary of the grant date	25.00%

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SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Jun. 30, 2012

Stockholders Equity Note [Abstract]

Schedule of changes in shareholders' equity

	Common Stock	Capital In Excess of Par Value	Retained Earnings (Accumulated Deficit)	Treasury Stock	Accumulated Other Comprehensive Loss	Totals
Balance at October 1, 2011.	$87,943	$16,845,673	$3,009,130	$(1,260,057)	$  --	$18,682,689
Share-based compensation......	173	124,022	--	--	--	124,195
Foreign currency translation..........	--	--	--	--	(11,558)	(11,558)
Net loss	--	--	(6,365,983)	--	--	(6,365,983)
Balance at June 30, 2012.................	$88,116	$16,969,695	$(3,356,853)	$(1,260,057)	$(11,558)	$12,429,343