Organization and Description of Business

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

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, 3 patents pending, 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.

Neah Power continues its aggressive efforts to accelerate the commercialization of our proprietary and patented fuel cell technologies that we passionately believe has the potential to revolutionize the energy storage marketplace. The shipment of our PowerChip™  system in the second half of 2012, and PowerPlay™  system in spring of 2013 were milestone events at the Company and we continue to see the fruits of the $50+ million that have gone into the Company with concrete progress of commercialization. We now have an increasing array of committed customers and customer prospects. Our capital constraints have severely limited our ability to execute on our business plan, the funding for which we consistently devote major attention, recent illustrative achievements are listed below.

• We launched PowerPlay™  with a paid shipment to a Fortune 110 consumer company. This company is now expanding its interest and by evaluating the PowerChip™  technology for a range of different applications.
• We entered into a mutually exclusive development contract with Ion Geophysical Corporation to develop a customer-specific product.  The customer has committed to purchase a minimum number of units over a period of time.
• We intend to update on an ongoing basis high levels of interest from a range of other defense, aerospace and automotive customers for the PowerChip™  products, as well as the large India Defense entity.
•  We continue to grow our IP portfolio with new patents awarded and applications submitted, which differentiates us from the competition and enhances our value
•  High potential impact discussions are ongoing with a telecom company for the PowerPlay™  product for consumer cell phone recharging.
• We have recently been able to successfully remove the Depository Trust Clearing Corporation (DTCC) trading restrictions (‘Chill’) that were implemented on the stock.
• On June 26, 2012, we announced an initial order from a Fortune 150, U.S.-based defense supplier, for the PowerChip™ fuel cell, which has reiterated its interest in the Company.
• We have two proposals jointly submitted with the previously mentioned customer for soldier power and unmanned surface vehicle applications, which we believe are impacted by sequestration.