PREFERRED STOCK	12 Months Ended
Sep. 30, 2011
PREFERRED STOCK
PREFERRED STOCK	11. PREFERRED STOCK The Company has 10,000,000 preferred stock authorized of which 2,763,699 shares of $0.50 stated value Series A convertible preferred stock ("Series A Preferred") are issued and outstanding as of September 30, 2011 and 2010. The Series A Preferred have the following characteristics: DIVIDENDS Each holder is entitled to receive preferential quarterly dividends equal to the prime interest rate as quoted in the Wall Street Journal when and if declared by the Board of Directors, out of any assets that are legally available. If the Board of Directors declares that such dividends may only be payable in shares of common stock for any quarter, holders of Series A preferred stock have the option of accepting the dividend paid in shares of common stock of the Company, or letting the dividend accrue for a cash payment. No dividends have been declared, accrued or paid. CONVERSION Each holder has the option to convert each share of Series A Preferred into common stock at a rate of one share of common stock for each share of preferred stock tendered. VOTING The holders have no voting rights. LIQUIDATION PREFERENCE Each holder is entitled to be paid the stated value of their holdings out of the assets of the Company, prior and in preference to any payment or distribution out of the assets of the Company to the holders common stock or any other class or series of capital stock.

PREFERRED STOCK

12 Months Ended

Sep. 30, 2011

11. PREFERRED STOCK

The Company has 10,000,000  preferred stock authorized of which 2,763,699 shares

of  $0.50  stated  value  Series  A  convertible   preferred  stock  ("Series  A

Preferred")  are issued and  outstanding  as of September 30, 2011 and 2010. The

Series A Preferred have the following characteristics:

DIVIDENDS

Each holder is entitled to receive preferential quarterly dividends equal to the

prime interest rate as quoted in the Wall Street Journal when and if declared by

the Board of  Directors,  out of any assets that are legally  available.  If the

Board of Directors declares that such dividends may only be payable in shares of

common  stock for any  quarter,  holders  of Series A  preferred  stock have the

option of accepting  the dividend paid in shares of common stock of the Company,

or letting  the  dividend  accrue for a cash  payment.  No  dividends  have been

declared, accrued or paid.

CONVERSION

Each  holder  has the option to convert  each share of Series A  Preferred  into

common  stock at a rate of one share of common stock for each share of preferred

stock tendered.

VOTING

The holders have no voting rights.

LIQUIDATION PREFERENCE

Each holder is entitled to be paid the stated value of their holdings out of the

assets of the Company,  prior and in preference  to any payment or  distribution

out of the assets of the Company to the holders  common stock or any other class

or series of capital stock.