INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2013

INCOME TAXES [Abstract]

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of September 30 are as follows:

	2013			2012
Deferred tax assets - Current:
Inventory	$	208		$	202
Accrued compensation and vacation		192			255
Accrued expenses and other		185			252
Total current deferred tax assets		585			709
Deferred tax liabilities - Current:
Prepaid expenses		(49	)		(74	)
Total net current deferred tax assets		536			635
Deferred tax assets - Noncurrent:
Domestic net operating loss carryforwards		5,737			2,483
Stock compensation expense		45			14
Foreign net operating loss		-			2,334
Foreign tax credit carryover		119			119
AMT credit carryover		54			42
Total noncurrent deferred tax assets		5,955			4,992
Deferred tax liabilities - Noncurrent:
Unrealized gain/loss - warrant liability		(530	)		(296	)
Worthless stock deduction		(3,214	)		-
Basis difference for fixed assets		(461	)		(459	)
		(4,205	)		(755	)
Total net noncurrent deferred tax assets		1,750			4,237
Valuation allowance for net deferred tax assets		(2,286	)		(4,872	)
Net deferred tax  asset (liability)	$	-		$	-

Schedule of the Provision (Benefit) for Income Taxes

Significant components of the provision (benefit) for income taxes are as follows as of the year ended September 30:

	2013		2012
Current:
Federal	$	13	$	(3	)
State and local		3		5
Foreign		-		-
Deferred:
Federal		-		-
State and local		-		-
Foreign		-		-
Income tax expense	$	16	$	2

Reconciliation of Effective Income Tax Rate

The effective income tax rate on continuing operations varied from the statutory federal income tax rate as follows:

	2013			2012
Statutory federal income tax rate		34.0	%		34.0	%
Increases (decreases):
State and local income taxes, net of Federal tax benefit, if applicable		0.3			(0.1	)
Nondeductible expenses		7.2			(0.5	)
Valuation allowance changes		(39.4	)		(33.5	)
Other		-			-
Effective income tax rate		2.1	%		(0.1	)%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Change in unrecognized tax benefits:	2013		2012
Balance at beginning of the year	$	16	$	16
Additions based on tax positions related to the current year		-		-
Additions for tax positions of prior years		-		-
Reductions for tax positions of prior years		-		-
Settlements		-		-
Balance at end of the year	$	16	$	16