Income Taxes

12 Months Ended

Sep. 30, 2011

Income Taxes

8.             Income Taxes:

Deferred tax assets (liabilities) are comprised of the following at September 30:

	2011		2010
	Current	Long Term	Current	Long Term
Deferred assets (liabilities):
Tax effect of net operating loss carry-forward (includes $12,000 of charitable carry-forward)	$            –	$3,128,000	$                –	$3,047,000
Partnership basis difference	–	147,000	–	173,000
Deferred revenue	–	126,000	–	160,000
Property and equipment basis differences	–	339,000	–	286,000
Other accrued liability difference	63,000	43,000	90,000	41,000
Net deferred tax assets	63,000	3,783,000	90,000	3,707,000
Less valuation allowance*	( 63,000 )	( 3,783,000 )	( 90,000 )	( 3,707,000 )
Net deferred tax assets	$            –	$                  –	$                –	$                  –

*              The valuation allowance increased by $49,000 during the year ended September 30, 2011.

The Company has net operating loss carry-forwards of approximately $8,196,000 for income tax purposes which expire from 2012 through 2031.  The use of these net operating loss carry-forwards may be restricted due to changes in ownership.

Total income tax expense for the years ended 2011 and 2010 differed from the amounts computed by applying the U.S. Federal statutory tax rates to pre-tax income as follows:

	2011	2010
Total expense (benefit) computed by applying the U.S. Statutory rate (35%)	$( 355,000 )	$( 1,026,000 )
State income tax, net of federal tax benefit	( 31,000 )	( 88,000 )
Effect of change in valuation allowance	49,000	989,000
Permanent differences	22,000	30,000
Expiration of net operating loss carry-forward	312,000	–
Other	3,000	95,000
Provision for income taxes	$                –	$