10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission File Number

0-17187

LOGIC Devices Incorporated

(Exact name of registrant as specified in its charter)

California	94-2893789
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

1375 Geneva Drive, Sunnyvale, California 94089

(Address of principal executive offices)

(Zip Code)

(408) 542-5400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes þ    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes þ    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer o    Accelerated Filer o    Non-Accelerated Filer o    Smaller Reporting Company þ

Indicate by check whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o    No þ

As of August 21, 2012, there were 10,486,348 shares of the registrant’s common stock, without par value, issued and outstanding.

1

Explanatory Note

This Amendment No. 1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 of LOGIC Devices Incorporated (the “Company”), filed with the U.S. Securities and Exchange Commission on August 21, 2012 (the “Form 10-Q”), is being filed to submit the required XBRL exhibit 101s.

Except as set forth above, no other changes have been made to the Form 10-Q, and this Amendment No. 1 does not amend, update or change any other items or disclosure found in the Form 10-Q. Further, this Amendment No. 1 does not reflect events that may have occurred after the filing of the Form 10-Q.

In addition, as required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, new certifications by our principal executive officer and principal financial officer are filed herewith as exhibits to this Amendment No. 1.

2

Item 6.  Exhibits

Number	Description of Exhibits
31.1	Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith).
31.2	Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith).
32.1	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 (filed herewith).
101.INS	XBRL Instance Document (filed herewith).
101.SCH	XBRL Taxonomy Extension Schema (filed herewith).
101.CAL	XBRL Taxonomy Extension Calculation Linkbase (filed herewith).
101.DEF	XBRL Taxonomy Extension Definition Linkbase (filed herewith).
101.LAB	XBRL Taxonomy Extension Label Linkbase (filed herewith).
101.PRE	XBRL Taxonomy Extension Presentation Linkbase (filed herewith).

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	LOGIC Devices Incorporated (Registrant)
Date: August 21, 2012	By:  /s/ William J. Volz     William J. Volz President and Chief Executive Officer (Principal Executive Officer)
Date: August 21, 2012	By:  /s/ Kimiko Milheim    Kimiko Milheim Chief Financial Officer (Principal Financial and Accounting Officer)

4

EX-31

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

I, William J. Volz, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A of LOGIC Devices Incorporated for the quarter ended June 30, 2012;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	By:	/s/ William J. Volz
Date: August 21, 2012		William J. Volz
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

I, Kimiko Milheim, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A of LOGIC Devices Incorporated for the quarter ended June 30, 2012;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	By:	/s/ Kimiko Milheim
Date: August 21, 2012		Kimiko Milheim
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officers of LOGIC Devices Incorporated, a California corporation (the “Company”), do hereby certify, to such officers’ knowledge, that:

The Quarterly Report on Form 10-Q/A for the quarter ended June 30, 2012 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 21, 2012	By:  /s/ William J. Volz     William J. Volz President and Chief Executive Officer (Principal Executive Officer)
Date: August 21, 2012	By:  /s/ Kimiko Milheim    Kimiko Milheim Chief Financial Officer (Principal Financial and Principal Accounting Officer)

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Subsequent Events (Details Textuals 1) (Subsequent Event, President, USD $)	Aug. 07, 2012
Subsequent Event | President
Related Party Transaction [Line Items]
Working capital bridge loans	$ 100,000

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Shareholders' Equity and Related Party Transactions

9 Months Ended

Jun. 30, 2012

Shareholders' Equity and Related Party Transaction [Abstract]

Shareholders' Equity and Related Party Transactions

4.        Shareholders’ Equity and Related Party Transactions

The Company issues options to purchase common stock to its employees, certain consultants, and certain of its board members. Options are generally granted with an exercise price equal to the closing market value of a common share at the date of grant, have five- to ten-year terms and typically vest over periods ranging from immediately to three years from the date of grant. As of June 30, 2012, there were 1,035,000 authorized shares remaining for granting of future options.

A summary of stock option activity for the nine months ended June 30, 2012 is as follows:

				Weighted
		Weighted		Average
		Average		Contractual	Aggregate
		Exercise		Term	Intrinsic
	Shares	Price		(Years)	Value
Outstanding at September 30, 2011	286,000	$	1.13
Granted	85,000	$	0.19
Exercised	-	$	-
Forfeited	-	$	-
Expired	(45,000)	$	2.24
Outstanding at June 30, 2012	326,000	$	0.58	4.03	$	250.00
Options exercisable at June 30, 2012	282,250	$	0.77	3.23	$	62.50

The aggregate intrinsic value is calculated as the difference between the closing price of the Company’s common stock quoted on the OTCQX market and the exercise price of the underlying stock options for the shares subject to options that were in-the-money as of June 30, 2012.

In calculating compensation related to stock option grants, the fair value of each stock option is estimated on the date of grant using the Black-Scholes option-pricing model and the following weighted average assumptions for the nine months ended June 30, 2012 and 2011:

	Fiscal 2012	Fiscal 2011
Dividend yield	None	None
Expected volatility	178.62%	128.60%
Expected annual forfeiture rate	10%	10%
Risk-free interest rate	0.50%	1.10%
Expected term (years)	4	4

           The computation of expected volatility used in the Black-Scholes option-pricing model is based on the historical volatility of the Company’s share price. The expected term is estimated based on a review of historical exercise behavior with respect to option grants.

The estimated fair value of equity-based awards, less expected forfeitures, is amortized over the award’s vesting period on a straight-line, generally over three years. Share-based compensation expense recognized in the statements of operations for the nine months ended June 30, 2012 and 2011 related to common stock option grants was $9,000 (fair value of $0.18 per share) and $22,200 (fair value of $0.52 per share), respectively. There was no share-based compensation expense recognized in the quarter ended June 30, 2012 and 2011.

During the nine months ended June 30, 2012, the Company raised $450,000 through 12 private placements to the chairman of the Company’s board of directors, and another board member, as detailed below:

	# of Shares	Amount
To the chairman of the board, October 18, 2011	87,500	$	35,000
To a board member, December 1, 2011	192,308	25,000
To the chairman of the board, December 2, 2011	230,769	30,000
To a board member, December 7 2011	138,889	25,000
To the chairman of the board, December 23, 2011	200,000	30,000
To a board member, January 10, 2012	500,000	75,000
To a board member, February 7, 2012	272,727	60,000
To the chairman of the board, February 9, 2012	272,727	60,000
To a board member, April 30, 2012	125,000	25,000
To the chairman of the board, April 30, 2012	125,000	25,000
To the chairman of the board, May 11, 2012	136,364	30,000
To a board member, May 14, 2012	136,364	30,000
	2,417,648	$	450,000

These shares have not been registered with the SEC. However, the Company’s chairman of the board and the board member received demand registration rights, subject to certain limitations, and unlimited piggyback registration rights, with respect to the shares. The Company is only obligated to use its best efforts to obtain an effective registration statement.

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Capitalized Software

9 Months Ended

Jun. 30, 2012

Capitalized Software [Abstract]

Capitalized Software

3.        Capitalized Software

During fiscal 2010, the Company began capitalizing costs for internal test software development. The test programs are used to test the Company’s products before the products are sold by the Company to end-users, and the test programs are never used by individuals outside of the Company. As of June 30, 2012, these capitalized software development costs aggregated to $513,800. Amortization expenses for the quarters ended June 30, 2012 and 2011 were $7,200 and $7,300, respectively. Amortization expenses for the nine months ended June 30, 2012 and 2011 were $21,700 and $14,500, respectively.

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Condensed Balance Sheets (USD $)	Jun. 30, 2012	Sep. 30, 2011
Current assets:
Cash and cash equivalents	$ 100	$ 64,100	[1]
Accounts receivable	308,600	134,200	[1]
Inventories	1,111,400	1,073,200	[1]
Prepaid expenses and other current assets	52,200	97,000	[1]
Total current assets	1,472,300	1,368,500	[1]
Property and equipment, net	656,500	785,100	[1]
Capitalized software, net	513,800	451,400	[1]
Other assets	22,100	22,100	[1]
Assets, Total	2,664,700	2,627,100	[1]
Current liabilities:
Bank borrowings	160,200	51,400	[1]
Accounts payable	196,300	189,200	[1]
Accrued payroll and vacation	106,200	115,700	[1]
Other accrued expenses	38,300	37,500	[1]
Related party notes payable	639,000	174,000	[1]
Total current liabilities	1,140,000	567,800	[1]
Deferred rent	44,200	50,200	[1]
Total liabilities	1,184,200	618,000	[1]
Commitments and contingencies (Note 5)			[1]
Shareholders' equity:
Common stock; no par value; 10,000,000 shares authorized 10,486,348 and 8,068,700 shares issued and outstanding, respectively	19,821,200	19,371,200	[1]
Additional paid-in capital	246,000	237,000	[1]
Accumulated deficit	(18,586,700)	(17,599,100)	[1]
Total shareholders' equity	1,480,500	2,009,100	[1]
Liabilities and Equity, Total	2,664,700	2,627,100	[1]
Series A Preferred Stock
Shareholders' equity:
Preferred stock; no par value; 1,000,000 shares authorized 5,000 designated as Series A; no shares issued and outstanding 70,000 designated as Series B; no shares issued and outstanding			[1]
Series B Preferred Stock
Shareholders' equity:
Preferred stock; no par value; 1,000,000 shares authorized 5,000 designated as Series A; no shares issued and outstanding 70,000 designated as Series B; no shares issued and outstanding			[1]

[1] Amounts derived from the audited financial statements for the fiscal year ended September 30, 2011.

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Basis of Presentation

9 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation

1.        Basis of Presentation

The accompanying unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations, and cash flows of LOGIC Devices Incorporated (the “Company”) for the periods indicated.

The accompanying unaudited interim financial statements have been prepared in accordance with the instructions for Form 10-Q, and, therefore, do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows for the Company, in conformity with accounting principles generally accepted in the United States of America. The accompanying unaudited interim financial statements should be read in conjunction with the audited financial statements that include all information and footnotes necessary for such a presentation of the Company’s financial position, results of operations, and cash flows for the fiscal year ended September 30, 2011 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on December 29, 2011 and amended on January 30, 2012. In the opinion of management, the unaudited interim financial statements reflect all adjustments (consisting of normal and recurring accruals) necessary to make the results of operations for the interim periods a fair statement of such operations. The results of operations for the quarter and nine months ended June 30, 2012 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2012.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. This contemplates that assets will be realized and liabilities and commitments satisfied in the normal course of business. The Company has incurred operating losses in the past four years and will require additional funds to maintain its operations. The Company’s continuance of operations is contingent on raising additional working capital, and on the increase of revenues received from new product introductions. Accordingly, these factors raise substantial doubt about the Company’s ability to continue as a going concern. While the Company has established a limited line of credit with a commercial finance company and an equity line with an investment fund, its limited financing, cash on-hand and cash from operations may not be sufficient to meet the increased demands of its market. The Company has not utilized the equity line to date. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue operating as a going concern.

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Working Capital (Details Textuals) (Line of Credit, USD $)	3 Months Ended	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Feb. 25, 2011
Line of Credit Facility [Line Items]
Maximum percentage of borrowing capacity			80.00%
Daily interest rate of prime on accounts receivable			2.00%
Line of credit facility management fee percentage			1.10%
Description of variable rate basis		Prime rate
Maximum borrowing capacity	$ 160,200	$ 160,200
Interest expense on borrowings	3,100	10,800
President
Line of Credit Facility [Line Items]
Working capital bridge loans	$ 90,000	$ 639,000

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Subsequent Events (Details Textuals) (Subsequent Event, USD $)			0 Months Ended	1 Months Ended
	May 11, 2012 Chairman	Apr. 30, 2012 Chairman	Jul. 02, 2012 Chairman Private Placement PrivatePlacement	Jul. 17, 2012 Chairman Private Placement PrivatePlacement	May 14, 2012 Board Member
Related Party Transaction [Line Items]
Number of shares sold			207,143	207,143
Issue of Equity, Private Placement,Value	$ 55,000	$ 55,000	$ 30,000	$ 30,000	$ 25,000
Number of private placements			2	2

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Inventories

9 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventories

2.        Inventories

A summary of inventories follows:

	June 30,		September 30,
	2012		2011
	Unaudited
Raw materials	$	99,400	$	99,100
Work in process	291,500		255,400
Finished goods	720,500		718,700
	$	1,111,400	$	1,073,200

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Condensed Balance Sheets (Parentheticals) (USD $)	Jun. 30, 2012	Sep. 30, 2011
Preferred stock, no par value (in dollars per share)			[1]
Preferred stock, shares authorized	1,000,000	1,000,000	[1]
Common stock, no par value (in dollars per share)			[1]
Common stock , shares authorized	10,000,000	10,000,000	[1]
Common stock, shares issued	10,486,348	8,068,700	[1]
Common stock options outstanding	10,486,348	8,068,700	[1]
Series A Preferred Stock
Preferred stock, shares authorized	5,000	5,000	[1]
Preferred stock, shares issued			[1]
Preferred stock, shares outstanding			[1]
Series B Preferred Stock
Preferred stock, shares authorized	70,000	70,000	[1]
Preferred stock, shares issued			[1]
Preferred stock, shares outstanding			[1]

[1] Amounts derived from the audited financial statements for the fiscal year ended September 30, 2011.

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Shareholders' Equity and Related Party Transactions - Summary (Details) (Stock Options, USD $)	9 Months Ended
	Jun. 30, 2012
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Shares, Outstanding at September 30, 2011	286,000
Shares, Granted	85,000
Shares, Exercised
Shares, Forfeited
Shares, Expired	(45,000)
Shares, Outstanding at June 30, 2012	326,000
Shares, Options exercisable at June 30, 2012	282,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Outstanding at September 30, 2011	$ 1.13
Weighted Average Exercise Price, Granted	$ 0.19
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Forfeited
Weighted Average Exercise Price, Expired	$ 2.24
Weighted Average Exercise Price, Outstanding at June 30, 2012	$ 0.58
Weighted Average Exercise Price, Options exercisable at June 30, 2012	$ 0.77
Weighted Average Contractual Term (Years), Outstanding at June 30, 2012	4 years 11 days
Weighted Average Contractual Term (Years), Options exercisable at June 30, 2012	3 years 2 months 23 days
Aggregate Intrinsic Value, Outstanding at June 30, 2012	$ 250.00
Aggregate Intrinsic Value, Options exercisable at June 30, 2012	$ 62.50

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Document And Entity Information	9 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	LOGIC DEVICES INC
Entity Central Index Key	0000802851
Trading Symbol	logc
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,486,348
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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Shareholders' Equity and Related Party Transactions - Summary of calculation of compensation related to stock option grants (Details 1) (Stock Options)	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield
Expected volatility	178.62%	128.60%
Expected annual forfeiture rate	10.00%	10.00%
Risk-free interest rate	0.50%	1.10%
Expected term (years)	4 years	4 years

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Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement [Abstract]
Net revenues	$ 393,300	$ 406,400	$ 675,200	$ 1,184,600
Cost of revenues	241,900	114,600	617,700	425,800
Gross (loss) margin	151,400	291,800	57,500	758,800
Operating expenses:
Research and development	124,300	176,600	344,200	537,300
Selling, general and administrative	167,900	232,100	689,200	846,500
Total operating expenses	292,200	408,700	1,033,400	1,383,800
Loss from operations	(140,800)	(116,900)	(975,900)	(625,000)
Interest expense	(3,100)	(2,100)	(10,800)	(5,000)
Loss before income tax provision	(143,900)	(119,000)	(986,700)	(630,000)
Provision for income taxes		800	900	800
Net loss	$ (143,900)	$ (119,800)	$ (987,600)	$ (630,800)
Basic and diluted loss per share (in dollars per share)	$ (0.01)	$ (0.02)	$ (0.10)	$ (0.08)
Basic and diluted weighted average shares outstanding (in shares)	10,161,323	7,748,267	9,435,946	7,574,429

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Subsequent Events

9 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

7.        Subsequent Events

The Company raised $30,000 through two private placements for an aggregate of 207,143 shares sold. The shares were sold to the Company’s chairman of the board on July 2, 2012 and July 17, 2012. These shares have not been registered with the SEC. However, the Company’s chairman of the board received demand registration rights, subject to certain limitations, and unlimited piggyback registration rights, with respect to the shares. The Company is only obligated to use its best efforts to obtain an effective registration statement.

The Company obtained a working capital bridge loan of $100,000 from its president on August 7, 2012. This loan is non-interest bearing and due on demand, and is in addition to other outstanding loans that the Company has obtained from its president.

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Earnings Per Share

9 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

6.        Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted average common shares outstanding during the period. Diluted earnings per share reflects the net incremental shares that would be issued if dilutive outstanding stock options were exercised, using the treasury stock method. In the case of a net loss, no incremental shares would be issued because they are antidilutive. Stock options with exercise prices above the average market price during the period are also antidilutive.

There were 266,000 and 258,000 common stock options outstanding at June 30, 2012 and 2011, respectively. No options were considered in calculating the diluted loss per share for the quarters and nine months ended June 30, 2012 and 2011, as their effect would have been antidilutive. As a result, for the quarters and nine months ended June 30, 2012 and 2011, the Company’s basic loss per share and diluted loss per share are the same.

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Earnings Per Share (Details Textuals)	Jun. 30, 2012	Sep. 30, 2011		Jun. 30, 2012 Stock Options	Jun. 30, 2011 Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock options outstanding	10,486,348	8,068,700	[1]	266,000	258,000

[1] Amounts derived from the audited financial statements for the fiscal year ended September 30, 2011.

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Shareholders' Equity and Related Party Transactions - Summary of shares issued under private placement (Details 2) (Private Placement, Stock Options, USD $)	Jun. 30, 2012	May 11, 2012 Chairman	Apr. 30, 2012 Chairman	Feb. 09, 2012 Chairman	Dec. 23, 2011 Chairman	Dec. 02, 2011 Chairman	Oct. 18, 2011 Chairman	May 14, 2012 Board Member	Apr. 30, 2012 Board Member	Feb. 07, 2012 Board Member	Jan. 10, 2012 Board Member	Dec. 07, 2011 Board Member	Dec. 01, 2011 Board Member
Related Party Transaction [Line Items]
Number of Shares	2,417,648	136,364	125,000	272,727	200,000	230,769	87,500	136,364	125,000	272,727	500,000	138,889	192,308
Issue of Equity, Private Placement, Amounts	$ 450,000	$ 30,000	$ 25,000	$ 60,000	$ 30,000	$ 30,000	$ 35,000	$ 30,000	$ 25,000	$ 60,000	$ 75,000	$ 25,000	$ 25,000

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Inventories - Summary (Details) (USD $)	Jun. 30, 2012	Sep. 30, 2011
Inventory Disclosure [Abstract]
Raw materials	$ 99,400	$ 99,100
Work in process	291,500	255,400
Finished goods	720,500	718,700
Inventory Net	$ 1,111,400	$ 1,073,200	[1]

[1] Amounts derived from the audited financial statements for the fiscal year ended September 30, 2011.

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Inventories (Tables)

9 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Schedule of summary of inventories

	June 30,		September 30,
	2012		2011
	Unaudited
Raw materials	$	99,400	$	99,100
Work in process	291,500		255,400
Finished goods	720,500		718,700
	$	1,111,400	$	1,073,200

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Shareholders' Equity and Related Party Transactions (Tables)

9 Months Ended

Jun. 30, 2012

Shareholders' Equity and Related Party Transaction [Abstract]

Schedule of stock options activity

				Weighted
		Weighted		Average
		Average		Contractual	Aggregate
		Exercise		Term	Intrinsic
	Shares	Price		(Years)	Value
Outstanding at September 30, 2011	286,000	$	1.13
Granted	85,000	$	0.19
Exercised	-	$	-
Forfeited	-	$	-
Expired	(45,000)	$	2.24
Outstanding at June 30, 2012	326,000	$	0.58	4.03	$	250.00
Options exercisable at June 30, 2012	282,250	$	0.77	3.23	$	62.50

Schedule of weighted average assumptions

	Fiscal 2012	Fiscal 2011
Dividend yield	None	None
Expected volatility	178.62%	128.60%
Expected annual forfeiture rate	10%	10%
Risk-free interest rate	0.50%	1.10%
Expected term (years)	4	4

Schedule of issue of equity to related party

	# of Shares	Amount
To the chairman of the board, October 18, 2011	87,500	$	35,000
To a board member, December 1, 2011	192,308	25,000
To the chairman of the board, December 2, 2011	230,769	30,000
To a board member, December 7 2011	138,889	25,000
To the chairman of the board, December 23, 2011	200,000	30,000
To a board member, January 10, 2012	500,000	75,000
To a board member, February 7, 2012	272,727	60,000
To the chairman of the board, February 9, 2012	272,727	60,000
To a board member, April 30, 2012	125,000	25,000
To the chairman of the board, April 30, 2012	125,000	25,000
To the chairman of the board, May 11, 2012	136,364	30,000
To a board member, May 14, 2012	136,364	30,000
	2,417,648	$	450,000

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Capitalized Software (Details Textuals) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011
Capitalized Software [Abstract]
Capitalized software development costs	$ 513,800		$ 513,800		$ 451,400	[1]
Amortization expense	$ 7,200	$ 7,300	$ 21,700	$ 14,500

[1] Amounts derived from the audited financial statements for the fiscal year ended September 30, 2011.

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Shareholders' Equity and Related Party Transactions (Details Textuals 1) (Stock Options, USD $)	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of amortized equity-based awards	3 years
Fair Value of option granted	$ 9,000	$ 22,200
Fair value per share option granted	$ 0.18	$ 0.52
Private Placement | Chairman
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of private placements	12
Issue of equity private placement value	$ 450,000

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Condensed Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Jun. 30, 2012		Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (987,600)		$ (630,800)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	192,500		211,400
Deferred rent	(6,000)		200
Stock-based compensation	9,000		22,200
Changes in current assets and liabilities:
Accounts receivable	(174,400)		(163,600)
Inventory	(38,200)		(97,000)
Prepaid expenses and other current assets	44,800		(81,300)
Accounts payable	7,100		41,300
Accrued payroll and vacation	(9,500)		(33,200)
Other accrued expenses	800		29,700
Net cash used by operating activities	(961,500)		(701,100)
Cash flows from investing activities:
Capital expenditures	(42,100)		(70,200)
Capitalized software	(84,200)		(108,700)
Net cash used by investing activities	(126,300)		(178,900)
Cash flows from financing activities:
Proceeds from bank borrowings	433,700		717,600
Repayments of bank borrowings	(324,900)		(543,700)
Proceeds of common stock private placements	450,000		425,000
Proceeds of related party notes payable	465,000		55,000
Net cash provided by financing activities	1,023,800		653,900
Net decrease in cash and cash equivalents	(64,000)		(226,100)
Cash and cash equivalents, beginning balance	64,100	[1]	241,600
Cash and cash equivalents, ending balance	100		15,500
Interest expense paid	$ 10,800		$ 6,100

[1] Amounts derived from the audited financial statements for the fiscal year ended September 30, 2011.

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Working Capital

9 Months Ended

Jun. 30, 2012

Working Capital [Abstract]

Working Capital

5.        Working Capital

On February 25, 2011, the Company entered into an asset-based line of credit with Summit Financial Resources LP related to its accounts receivable. The Company may borrow up to 80% of domestic accounts receivable at a daily interest rate of prime plus 2%, plus a monthly management fee of 1.1% of the borrowed accounts. As of June 30, 2012, the Company owes $160,200 on the line of credit. Interest expense on these borrowings was $3,100 and $10,800 for the quarter and nine months ended June 30, 2012, respectively.

During the quarter and nine months ended June 30, 2012, the Company obtained working capital bridge loans from its president aggregating $90,000 and $639,000, respectively. These loans are non-interest bearing and due on demand, and are in addition to other outstanding loans that the Company has obtained from its president.

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Shareholders' Equity and Related Party Transactions (Details Textuals) (Stock Options)	9 Months Ended
	Jun. 30, 2012
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Minimum period of common shares grant	5 years
Maximum period of common shares grant	10 years
Authorized shares remaining for granting of future options	1,035,000
Method used for fair value of each option granted	Black-Scholes option-pricing model