Income Taxes (Tables)

12 Months Ended

Sep. 30, 2012

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


	2012			2011
	Current	Long Term	Current		Long Term
Deferred assets (liabilities):
Tax effect of net operating loss carry-forward (includes $13,000 of charitable carry-forward)	$ –	$ 2,666,000	$–		$ 3,128,000
Partnership basis difference	–	148,000	–		147,000
Deferred revenue	–	117,000	–		126,000
Property and equipment basis differences	–	387,000	–		339,000
Other accrued liability difference	68,000	57,000	63,000		43,000
Net deferred tax assets	68,000	3,375,000	63,000		3,783,000
Less valuation allowance*	(68,000)	(3,375,000)	(63,000)		(3,783,000)
Net deferred tax assets	$ –	$ –	$ –		$ –

The valuation allowance decreased by $403,000 during the year ended September 30, 2012.

Total Income Tax Expense Computed by Applying US Federal Statutory Tax Rates to Pre-Tax Income

Total income tax expense for the years ended 2012 and 2011 differed from the amounts computed by applying the U.S. Federal statutory tax rates to pre-tax income as follows:


	2012	2011

Total expense (benefit) computed by applying the U.S. Statutory rate (35%)	$ (272,000)	$ (355,000)
State income tax, net of federal tax benefit	(23,000)	(31,000)
Effect of change in valuation allowance	(403,000)	49,000
Permanent differences	13,000	22,000
Expiration of net operating loss carry-forward	680,000	312,000
Other	5,000	3,000

Provision for income taxes	$ –	$ –