Organization and Description of Business

6 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1.   Organization and Description of Business

Neah Power Systems, Inc. (“the Company”, “we”. “us” or “our”) is engaged in the development and sale of renewable energy solutions using proprietary fuel cell technology. Our fuel cells are designed to replace existing rechargeable and non-rechargeable battery technology in a variety of applications. We have developed solutions specifically targeted for the military, transportation, and portable electronics applications, and are continuing to pursue additional applications for our technology. Our long-lasting, efficient and safe power solutions include devices such as notebook PCs, military radios, and other power-hungry computer, entertainment and communications products.

We are developing two classes of fuel cells, one referred to as the PowerChip™  and the other as the PowerPlay™  product. The PowerChip™  is a silicon based fuel cell that uses traditional computer chip manufacturing to build the fuel cell. The PowerPlay™  product was developed during the last two years using some processing steps of the PowerChip™  technology and using polymeric materials for a lower cost, consumer oriented product. The PowerChip™  is targeted for applications (anaerobic) where the quality of the surrounding air is unpredictable or not available such as diesel-fumes contaminated environments or underwater applications. The PowerPlay™  product uses air from the surrounding environment and is targeted for consumer-oriented and less aggressive applications and typically for lower power ranges. Our technology and its application have been validated both by our own research and customer results. We believe our fuel cells would outperform lithium ion batteries and other similar power sources, with longer run time, shorter recharge time, portability, and other measures of performance. We anticipate that our fuel cell solution will be particularly beneficial in applications requiring the use of more than one battery because the user will only need to use a single fuel cell with a supply of smaller fuel cartridges, resulting in reduced overall size and weight.

We have an intellectual property portfolio consisting of 12 issued patents, 2 patents pending and 1 pending application, and various trade secrets for our proprietary technology.  We use a unique, patented and award winning, silicon-based design for our Powerchip™  micro fuel cells that enable higher power densities, lower cost and compact form-factors. The PowerChip™  technology has been recognized for both its innovativeness and its application potential from noted sources including the 2012 ZINO Green finalist, the 2010 WTIA finalist, 2010 Best of What’s New Popular Science and other awards. Our website is www.neahpower.com.

We have shipped PowerChip™  product to a Fortune 150 Defense Supplier last fiscal year and are in discussions with them regarding follow up business.  We recently announced a sales and purchase agreement with Ion Geophysical Corporation (“the Customer”), whereby the Company is developing fuel cell stacks utilizing the Company’s fuel cells within a mutually agreed to schedule. The agreement also provides for (a) the Company to be the exclusive supplier of the subject product to the Customer for the intended application, and for the Customer to have exclusive use of the Company’s subject product technology for the intended application and (b) the delivery of a minimum of eighty eight (88) units to the Customer, in each case subject to the terms and conditions of the agreement. We have made significant progress on this development program, and continue to meet various milestones and receive payments that have been jointly defined with this customer.

We have shipped our initial unit of the PowerPlay™  product to a Fortune 120 consumer company for evaluation. We have also  received interest from other telecom service providers both domestically and internationally and, as previously announced, the Company intends to launch this product in a limited fashion directly to consumers. The Company will update on an ongoing basis.