LIQUIDITY AND MANAGEMENT'S PLAN

6 Months Ended

Mar. 31, 2014

Liquidity And Management Plan [Abstract]

LIQUIDITY AND MANAGEMENT'S PLAN

NOTE B – LIQUIDITY AND MANAGEMENT’S PLAN

The Company has recurring net losses, which have resulted in an accumulated deficit of $195,735,697 as of March 31, 2014.  The Company incurred a net loss of $9,042,086 and generated negative operating cash flow of $4,262,536 for the six month period ended March 31, 2014.  However, the Company has attained positive working capital of $967,081 as of March 31, 2014.  At March 31, 2014, the Company had cash and cash equivalents of $1,988,184.  The Company’s current capital resources include cash and cash equivalents and other working capital resources, and cash generated through operations.  Historically, the Company has financed its operations principally from the sale of equity securities.

Continuation of the Company as a going concern is dependent upon future revenues, obtaining additional capital and ultimately, upon the Company attaining profitable operations.  The Company will require additional funds to complete the continued development of its products, product manufacturing, and to fund expected additional losses from operations, until revenues are sufficient to cover the Company’s operating expenses.  If the Company is unsuccessful in obtaining the necessary additional financing, it will most likely be forced to reduce operations.

Management believes that it will be able to raise additional funds and the Company is currently in discussions with investment bankers and potential investors regarding possible financing.  However, the Company has no formal commitments for any future funding, and may not be able to obtain additional financing on terms acceptable to it, if at all, in the future.

The ability of the Company to continue as a going concern is dependent on its ability to successfully accomplish the plan described in the preceding paragraphs.  The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.