INCOME TAXES	12 Months Ended
	Sep. 30, 2011
INCOME TAXES
INCOME TAXES	8. INCOME TAXES   The provision for income taxes is comprised of the following for the years ended September 30:                                                 2011           2010                                              -------        ------- Federal                                      $   --         $   -- State                                          (800)          (800)                                              ------         ------ Provision for income taxes                   $ (800)        $ (800)                                              ======         ======   The provision for income taxes differs from the amount  computed by applying the statutory  federal income tax rate to income before  provision for income taxes. The differences  between the federal statutory tax rate of 34% and the effective tax rates are primarily due to state income tax  provisions,  net operating loss ("NOL")  carry  forwards,   deferred  tax  valuation   allowance  and  permanent differences as follows for the years ended September 30:                                                                 2011        2010                                                              ------      ------   Statutory rate                                               (34.0%)     (34.0%) Increase (decrease) in taxes resulting from the following:   State income taxes, net of federal benefit                  5.28%       5.64%   Amortization of debt discount                                0.0%        0.0%   Derivative liability                                        (0.0%)      (0.0%)   Change in valuation allowance                               28.72%      28.36%                                                              ------      ------                                                                 --%         --%                                                              ======      ======   Deferred  income  taxes  reflect  the net tax effects of  temporary  differences between the carrying  value of assets and  liabilities  for financial  reporting purposes and the amounts used for income tax purposes.   Significant  components  of the  Company's  deferred tax assets and  liabilities consist of the following at September 30:                                                 2011                   2010                                           ------------           ------------ Deferred tax assets (liabilities): Current:   Reserves and accruals                   $  1,104,915           $    912,509 Non-current:   Intangible assets                            597,000                597,000   Net operating losses                       7,326,145              7,325,707   Other                                         62,547                 86,960   Valuation allowance                       (9,090,607)            (8,922,176)                                           ------------           ------------                                           $         --           $         --                                           ============           ============   At September 30, 2011 and 2010, the valuation allowance was increased by a total of $168,431 and $449,939  respectively.  At September 30, 2011,  the Company had federal net operating  loss  carryforwards  of  approximately  $24,785,759  that expire  from  2011  through  2031  and  state  net  operating  carryforwards  of $9,781,637  expiring from 2011 through 2016.  These net operating  losses may be suspended or limited due to changes in State and Federal legislation, as well as a possible change in ownership as defined under Section 382of the IRC.   The  Company has not filed its United  States  Federal and State tax returns for the years ended September 30, 2011, 2010, 2009, and 2008.  Management intends to comply with the  requirements  to file the tax  returns  upon  raising  capital. Failure to file the tax returns could result in penalties  assessed  against the Company. The Company has identified the United States Federal tax returns as its "major" tax  jurisdiction.  The United States  Federal return years 2008 through 2011 are still subject to tax examination by the United States Internal  Revenue Service;  however,  we do not currently have any ongoing tax  examinations.  The Company is subject to examination by the California  Franchise Tax Board for the years  ended 2007  through  2010 and  currently  does not have any  ongoing  tax examinations.