INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2014

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:

	2014			2013
Deferred tax assets - Current:
Inventory	$	187		$	208
Accrued compensation and vacation		246			192
Accrued expenses and other		178			185
Total current deferred tax assets		611			585
Deferred tax liabilities – Current:
Prepaid expenses		(72	)		(49	)
Total net current deferred tax assets		539			536
Deferred tax assets - Noncurrent:
Domestic net operating loss carryforwards		4,828			5,737
Stock compensation expense		54			45
Foreign tax credit carryover		-			119
AMT credit carryover		58			54
Total noncurrent deferred tax assets		4,940			5,955
Deferred tax liabilities - Noncurrent:
Unrealized gain/loss - warrant liability		(180	)		(530	)
Investment in subsidiary		(3,173	)		(3,214	)
Basis difference for fixed assets		(408	)		(461	)
		(3,761	)		(4,205	)
Total net noncurrent deferred tax assets		1,179			1,750
Valuation allowance for net deferred tax assets		(1,718	)		(2,286	)
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:

	2014		2013
Current:
Federal	$	5	$	13
State and local		2		3
Foreign		-		-
Deferred:
Federal		-		-
State and local		-		-
Foreign		-		-
Income tax (benefit) expense	$	7	$	16

Reconciliation of Effective Income Tax Rate

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

	2014			2013
Federal statutory income tax rate		34.0	%		34.0	%
Increases (decreases):
State and local income taxes, net of Federal tax benefit, if applicable		(0.1	)		0.3
Nondeductible expenses		(15.2	)		7.2
Nontaxable foreign (gains) losses		-			-
Uncertain tax positions		-			-
Valuation allowance changes		(19.3	)		(39.4	)
Other		-			-
Effective income tax rate		(0.6	)%		2.1	%

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:
	2014		2013
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