INCOME TAXES

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

The Company recorded no income tax benefit or expense for the losses for the years ended September 30, 2014 and 2013 since management has determined that the realization is not assured and has created a valuation allowance for the full amount of deferred tax assets.

During the years ended September 30, 2014 and 2013, the provision for income taxes (all deferred) differs from the amounts computed by applying the U.S. Federal income tax rate of 34% to income before provision for income taxes as a result of the following:

	2014			2013
Computed "expected" income tax benefit	$	2,617,000		$	7,265,000
State income taxes, net of federal benefit		190,000			393,000
Permanent differences and other		(1,000,000	)		(3,927,000	)
Valuation allowance		(1,807,000	)		(3,731,000	)
	$	-		$	-

 Significant components of deferred income tax assets are as follows:

	2014			2013
Net operating loss carry-forwards	$	8,689,000		$	7,191,000
Stock compensation		2,309,000			2,001,000
Capital loss carry-forwards		122,000			122,000
Investments		13,000			13,000
Total deferred tax assets		11,133,000			9,327,000
Valuation allowance		(11,133,000	)		(9,327,000	)
Net deferred tax assets	$	-		$	-

The Company has approximately $22,900,000 of Federal and State net operating loss carry-forwards which will expire from 2022 through 2034. Their utilization is limited to future taxable earnings of the Company and may be subject to severe limitations if the Company undergoes an ownership change pursuant to Internal Revenue Code Section 382. The Company also has a capital loss carry-forward of $320,000 which expires in 2015. Its utilization is limited to the Company’s future capital gains.

Due to the uncertain nature of the ultimate realization of the net deferred tax asset, the Company has established a full valuation allowance for the benefits of the net deferred tax asset and will recognize these benefits only as reassessment demonstrates they are more likely than not realizable. Ultimate realization is dependent upon several factors, among which is future earnings. If the allowance is reduced, the tax benefits of the net deferred tax assets will be recorded in future operations as a reduction of the Company’s income tax expense.

The U.S. Federal jurisdiction and Florida are the major tax jurisdictions where the Company files income tax returns.