INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2011

Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE B - INTANGIBLE ASSETS

Intangible assets acquired and their carrying values at June 30, 2011 and September 30, 2010 are as follows:

	(Unaudited)
	June 30, 2011			September 30, 2010
Trade secrets and developed technologies (Weighted average life of 7 years)	$	9,430,900		$	9,430,900
Patents (Weighted average life of 5 years)		34,257			34,257
Total Amortized identifiable intangible assets-Gross carrying value:		9,465,157			9,465,157
Less:
Accumulated amortization		(3,446,355	)		(3,173,511	)
Impairment (See below)		(5,655,011	)		(5,655,011	)
Net:	$	363,791		$	636,635
Residual value:	$	0		$	0

During the year ended September 30, 2006, the Company’s management performed an evaluation of its intangible assets (intellectual property) for purposes of determining the implied fair value of the assets at September 30, 2006. The test indicated that the recorded remaining book value of its intellectual property exceeded its fair value for the year ended September 30, 2006, as determined by discounted future cash flows. As a result, upon completion of the assessment, management recorded a non-cash impairment charge of $5,655,011, net of tax, or $0.05 per share during the year ended September 30, 2006 to reduce the carrying value of the patents to $2,091,800. Considerable management judgment is necessary to estimate the fair value. Accordingly, actual results could vary significantly from management’s estimates.

Total amortization expense charged to operations for the three and nine months ended June 30, 2011 was $90,948 and $272,844, respectively. Total amortization expense charged to operations for the three and nine months ended June 30, 2010 was $90,948 and $272,988, respectively.