Income Taxes

12 Months Ended

Sep. 30, 2013

Income Taxes [Abstract]

Income Taxes

8.  INCOME TAXES

  The provision for income taxes consisted of the following:

			Year Ended September 30,
			2013				2012
Currently payable:
Federal	$		0		$		0
State		(	37,085	)		(	38,582	)
Deferred (credit)			0				0
	$	(	37,085	)	$	(	38,582	)

The provision for income taxes differs from the amount that would result from applying the federal statutory rate for the periods ended September 30, 2013 and 2012 as follows:

			Year ended September 30,
		2013							2012
			Amount			%				Amount			%
Statutory tax rate	$	(	200,110	)	(	34.0	%)	$		12,654			34.0	%
State income tax net of:
Federal benefit		(	24,476	)	(	4.2	%)		(	25,464	)	(	68.4	%)
Research and experimentation
tax credits		(	20,276	)	(	3.4	%)		(	26,784	)	(	72	%)
Valuation allowance change			207,449			35.2	%			685			1.8	%
Permanent differences			328			0.1	%			327			0.9	%
	$	(	37,085	)	(	6.3	%)	$	(	38,582	)	(	103.7	%)

The temporary differences which give rise to deferred tax assets and (liabilities) at September 30 are as follows:

			2013				2012
Inventory	$		150,236		$		144,338
Accrued warranty			4,250				4,250
Accrued vacation			51,988				71,683
Accounts receivable			8,895				8,895
Valuation allowance		(	215,369	)		(	229,166	)
Net deferred tax assets
(liabilities) - current	$		0		$		0
Accelerated depreciation	$	(	83,245	)	$	(	55,691	)
Research and experimentation
tax credit carry forward			244,463				224,187
AMT credit carry forward			39,399				39,399
NOL carry forward			247,101				18,577
Valuation allowance		(	447,718	)		(	226,472	)
Net deferred tax assets
(liabilities) – noncurrent	$		0		$		0
Net deferred tax assets	$		0		$		0

As required by FASB ASC 740 (Prior Authoritative Literature: SFAS 109, Accounting for Income Taxes) the Company has evaluated the positive and negative evidence bearing upon the realization of its deferred tax assets.  The Company has determined that, at this time, it is more likely than not that the Company will not realize all of the benefits of federal and state deferred tax assets, and, as a result, a valuation allowance was established.  The research and experimentation tax credit carry forwards and NOL carry forwards expire in 2032.  At September 30, 2013, the Company's federal AMT credit can be carried forward indefinitely. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the fiscal years September 30, 2011 through September 30, 2013.The Company has no uncertain tax positions.  As of September 30, 2013 and 2012 there is no accrual for interest or penalties related to uncertain tax positions.