10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended June 30, 2013

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the transition period from                                             to                                            

Commission File Number 000-09358

BULOVA TECHNOLOGIES GROUP, INC.

(Exact name of registrant as specified in its charter)

Florida
(State or other jurisdiction of
incorporation or organization) 83-0245581
(IRS Employer
Identification No.)

2409 N Falkenburg Road
Tampa, Florida 33619
(Address of principal executive offices) (Zip Code)

(727) 536-6666
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, $.001 par value

(Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑  No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ☐ Accelerated filer  ☐ Non-accelerated filer  ☐
(Do not check if a smaller reporting company) Smaller reporting company  ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐   No  ☑

As of August 2, 2013 the Company had 4,000,263,290 shares of Common Stock and 4,000,000,000 shares of Preferred Stock issued and outstanding.

BULOVA TECHNOLOGIES GROUP, INC.
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2013

TABLE OF CONTENTS

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 4.	Controls and Procedures	24
	PART II – OTHER INFORMATION
Item 6.	Exhibits	24
	Signatures	25

2

PART I

Item 1. Consolidated Financial Statements

BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

	June 30,
	2013			September 30,
	(unaudited)			2012
ASSETS
Cash and equivalents	$	43,117		$	29,034
Accounts receivable		-			112,005
Contract claim receivable		-			0
Inventory		-			1,023,980
Other current assets		153,621			48,334
Total current assets		196,738			1,213,353
Property, plant and equipment		24,633			2,474,928
Other assets		240,617			27,461
Total Assets	$	461,988		$	3,715,742
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	397,463		$	423,102
Accrued expenses		355,707			7,202,905
Advance payments and billings in excess of cost		-			666,490
Current portion of long term debt		2,181,152			8,386,675
Current liabilities associated with discontinued operations		-			2,011,937
Total current liabilities		2,934,322			18,691,109
Shareholder loans and accrued interest		202,035			185,195
Long term debt, net of current portion		138,441			1,144,074
Total liabilities		3,274,798			20,020,378
Commitments and contingencies		-			-
Shareholders’ deficit:
Preferred stock, $.00001 par, authorized 5,000,000,000 shares; 4,000,000,000 and 2,000,000,000 issued and outstanding at June 30, 2013 and September 30, 2012		40,000			20,000
Common stock, $.001 par; authorized 5,000,000,000 shares; 3,850,263,290 and 1,658,327,831 issued and outstanding at June 30, 2013 and September 30, 2012		3,850,263			1,658,328
Subscription receivable - warrants		(66,000	)
Additional paid in capital in excess of par		19,079,929			20,223,672
Retained deficit		(25,717,002	)		(38,206,636	)
Total shareholders’ deficit		(2,812,810	)		(16,304,636	)
Total liabilities and shareholders’ equity	$	461,988		$	3,715,742

See accompanying notes to consolidated financial statements.

3

BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 2013 AND 2012
(Unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Revenues	$	2,248,509		$	616,871		$	5,225,297		$	2,538,613
Cost of revenues		1,802,895			404,509			4,428,434			1,564,947
Gross profit		445,614			212,362			796,863			973,666
Selling and administrative expense		512,631			852,256			1,694,063			2,781,151
Stock based compensation		-			738,255			273,182			2,265,939
Depreciation and amortization expense		160,930			489,308			453,648			1,676,065
Interest expense		28,743			89,084			513,330			728,892
Total expenses		702,304			2,168,903			2,934,223			7,452,047
Income (loss) from operations		(256,690	)		(1,956,541	)		(2,137,360	)		(6,478,381	)
Other income (expense)
Other income		-			106			13,317,570			525,264
Income (loss) from continuing operations before income taxes		(256,690	)		(1,956,435	)		11,180,210			(5,953,117	)
Income tax expense		-			-			-			-
Income (loss) from continuing operations		(256,690	)		(1,956,435	)		11,180,210			(5,953,117	)
Income (loss) from discontinued operations, net of tax		-			(22,837	)		1,309,424			(68,511	)
Net Income (loss)	$	(256,690	)	$	(1,979,272	)	$	12,489,634		$	(6,021,628	)
Basic net income (loss) per share
Income (loss) from continuing operations	$	-		$	(.002	)	$	.003		$	(.008	)
Income (loss) from discontinued operations		-			-			-			-
Net income (loss) per share	$	-		$	(.002	)	$	.003		$	(.008	)
Diluted net income (loss) per share
Income (loss)from continuing operations	$	-		$	(.002	)	$	.0017		$	(.008	)
Income (loss) from discontinued operations		-			-			-			-
Net income (loss) per share	$	-		$	(.002	)	$	.0017		$	(.008	)
Weighted average shares outstanding
Basic		3,705,263,290			966,737,758			3,371,969,803			756,066,512
Diluted		3,705,263,290			966,737,758			6,522,336,001			756,066,512

See accompanying notes to consolidated financial statements.

 

4

BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED JUNE 30, 2013 AND 2012
(Unaudited)

	2013			2012
Cash flows from operating activities:
Net Income (loss)	$	12,489,634		$	(6,021,628	)
(Income) Loss from discontinued operations		(1,309,424	)		68,511
Income (Loss) from continuing operations		11,180,210			(5,953,117	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		453,648			1,676,065
Stock based payment for services		273,182			2,265,939
Gain from change in accounting estimate		(6,071,700	)		-
(Gain) from settlement of debt		(356,765	)		-
Loss on sale of note receivable		156,710			-
(Gain) on sale of assets		(6,153,177	)		-
Changes in operating assets and liabilities
Accounts receivable		112,005			85,201
Inventory		55,404			(275,424	)
Prepaid expenses and other assets		(105,287	)		79,810
Accounts payable and accrued expenses		(143,483	)		271,608
Advance payments and billings in excess of costs		-			(370,980	)
Net cash flows from operating activities – continuing operations		(599,253	)		(2,220,898	)
Net cash flows from operating activities – discontinued operations		(1,309,424	)		-
Net cash flows from operating activities		(1,908,677	)		(2,220,898	)
Cash flows from investing activities:
Proceeds from sale of assets		9,547,580			-
Proceeds from sale of note receivable		250,000			-
Purchase of property and equipment		-			(1,000	)
Principle collections on note receivable		3,831			-
Net cash flows from investing activities – continuing operations		9,801,411			(1,000	)
Net cash flows from investing activities – discontinued operations		-			-
Net cash flows from investing activities		9,801,411			(1,000	)
Cash flows from financing activities:
Proceeds from sale of preferred shares		20,000			-
Repayment of Shareholder loans		(244,488	)		(146,063	)
Increases in long term debt		1,623,673			2,355,000
Repayment of long term debt		(9,277,836	)		(122,575	)
Net cash flows from financing activities – continuing operations		(7,878,651	)		2,086,362
Net cash flows from financing activities – discontinued operations		-			-
Net cash flows from financing activities		(7,878,651	)		2,086,362
Increase (decrease) in cash and cash equivalents		14,083			(135,536	)
Cash and cash equivalents, beginning		29,034			169,499
Cash and cash equivalents, ending	$	43,117		$	33,963
Cash paid for interest	$	2,476		$	72,094
Cash paid for taxes	$	-		$	-

5

Supplemental schedule of non-cash financing and investing activities:

● October 2011, the Company issued 8,896,394 common shares issued as conversion of debt

● October 2011, the Company issued 500,000 common shares for services

● November 2011, the Company issued 10,268,342 common shares to various individuals

● November 2011, the Company issued 5,352,941 common shares as conversion of debt

● December 2011, the Company issued 12,831,591 common shares as conversion of debt

● December 2011, the Company issued 90,000,000 common shares and authorized the issuance of an additional 60,000,000 shares as conversion of related party debt.

● October 2012, the Company issued 150,807,692 common shares for services

● October 2012, the Company issued 988,923,568 common shares as conversion of debt

● November 2012, the Company issued 151,500,000 common shares for services

● November 2012, the Company issued 183,029,958 common shares as conversion of debt

● December 2012, the Company issued 99,249,999 common shares for services

● January 2013, the Company issued 247,424,242 common shares as conversion of debt

● January 2013, the Company issued 30,000,000 common shares associated with new debt

● January 2013, the Company issued 41,000,000 common shares for services

● February 2013, the Company issued 150,000,000 common shares as conversion of debt

● February 2013, the Company issued 4,260,102,343 warrants associated with new debt

● February 2013, the Company issued 4,117,996,250 warrants in exchange for subscription notes receivable of $66,000

● February 2013, the Company issued 1,073,000,000 warrants for services

● June 2013, the Company issued 150,000,000 common shares as conversion of debt

See accompanying notes to consolidated financial statements.

6

BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
NINE MONTHS ENDED JUNE30, 2013
(Unaudited)

	Preferred Stock				Common Stock
	Number of Shares		Amount		Number of Shares		Amount		Subscription Receivable			Additional Paid in Capital			Accumulated (deficit)			Total
Balances, October 1, 2012		2,000,000,000	$	20,000		1,658,327,831	$	1,658,328				$	20,223,672		$	(38,206,636	)	$	(16,304,636	)
Issuance of shares in satisfaction of debt						1,171,953,526		1,171,954					(966,954	)					205,000
Issuance of convertible debt													31,500						31,500
Issuance of shares for services						401,557,691		401,557					(243,875	)					157,682
Issuance of Warrants										(66,000	)		66,000						-
Sale of Stock		2,000,000,000		20,000															20,000
Issuance of shares in satisfaction of debt						547,424,242		547,424					(506,924	)					40,500
Issuance of shares for new debt						30,000,000		30,000					(24,000	)					6,000
Issuance of shares for services						41,000,000		41,000					(32,800	)					8,200
Issuance of warrants associated with new debt													426,010						426,010
Issuance of warrants for services													107,300						107,300
Net income for the nine months ended June 30, 2013																12,489,634			12,489,634
Balances, June 30, 2013		4,000,000,000	$	40,000		3,850,263,290	$	3,850,263	$	(66,000	)	$	19,079,929		$	(25,717,002	)	$	(2,812,810	)

See accompanying notes to consolidated financial statements.

7

BULOVA TECHNOLOGIES GROUP,INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED JUNE 30, 2013 AND 2012
(Unaudited)

1.     Description of business:

Bulova Technologies Group, Inc. ("BLVT" or the "Company") was originally incorporated in Wyoming in 1979 as “Tyrex Oil Company”. During 2007, the Company divested itself of all assets and previous operations.  During 2008, the Company filed for domestication to the State of Florida, and changed its name to Bulova Technologies Group, Inc. and changed its fiscal year from June 30 to September 30. On January 1, 2009 the Company acquired the stock of a private company that was under common control and began operations in Florida. The Company operates as a government contractor in the United States. Headquarter facilities are in Tampa, Florida and its operating facilities were located in Mayo, Florida until the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC in October 2012.

2.     Principles of consolidation and basis of presentation:

The accompanying consolidated balance sheet as of September 30, 2012, has been derived from audited financial statements. 

The unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s latest Form 10-K. 

On January 1, 2009, the Company acquired the stock of 3Si Holdings, Inc. (“3Si”) a privately held Florida corporation controlled by the majority stockholder of the Company in exchange for 40,000,000 shares of its  common stock. The assets and operations of 3Si have been accounted for in three operating subsidiaries, BT Manufacturing Company LLC, Bulova Technologies Ordnance Systems LLC, and Bulova Technologies (Europe) LLC (formerly Bulova Technologies Combat Systems LLC). 

BT Manufacturing Company LLC – prior to discontinuance, its operations were located in Melbourne, Florida, in a 35,000 square foot facility where it assembled a wide range of printed circuit board products. In June 2010, the Company determined to dispose of BT Manufacturing Company LLC, and as such has accounted for this business segment as a discontinued operation. Final settlement and disposition of this segment was accomplished during the quarter ended March 31, 2011.

Bulova Technologies Ordnance Systems LLC. – located on 261 acres in Mayo, Florida is a load, assembly, and pack facility specializing in fuzes, safe and arming devices and explosive simulators. Bulova Technologies Ordnance Systems LLC is registered with the United States Department of State Directorate of Defense Trade Controls (DDTC). It produces a variety of pyrotechnic devices, ammunition and other energetic materials for the U. S. Government and other allied governments throughout the world. In October 2012, the Company sold substantially all of the assets of this subsidiary to an unrelated party.

Bulova Technologies (Europe) LLC – located in the Company’s corporate headquarters in Tampa, Florida, this subsidiary was originally formed to administer an acquisition contract that Bulova Technologies Ordnance Systems LLC was awarded from the U.S. Department of Defense in January 2009. The Company has since changed the name to Bulova Technologies (Europe) LLC. It markets the Mortar Exchange program, which it helped develop, to facilitate the needs of NATO members and allied countries. It leases office space in Frankfurt, Germany to promote this program. The subsidiary is also looking to take advantage of the offset opportunities around the world through a joint venture, focusing, initially in the UAE and is administering non-standard ammo and non-standard weapons contracts through its blanket purchase agreements  with the U.S. Government

Bulova Technologies Machinery LLC – formed in July of 2013, Bulova Technologies Machinery LLC represents the Company’s entree into the machine tool business, and will import industrial machine tools and related equipment from recognized international sources, and establish a Distributor / Dealer network throughout the United States and Canada. This subsidiary has not yet begun its operations as of the date of this report.

8

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2013 and the results of operations and cash flows for the three and nine months ended June 30, 2013 and 2012.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Subsequent Events

The Company has evaluated subsequent events through August 7, 2013, to assess the need for potential recognition or disclosure in this report.  Based upon this evaluation, management determined that all subsequent events that require recognition in the financial statements have been included.

Business Segments

Commencing with the Company’s acquisition of 3Si Holdings, Inc. in January of 2009, the Company operated in two business segments, government contracting and contract manufacturing.  With the Company’s disposal of BT Manufacturing Company LLC, the Company is no longer operating more than one business segment as all efforts of the company are now focused on Department of Defense contracting

Use of Estimates

The preparation of the Company's financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.

Financial Instruments

The carrying amounts of cash, receivables and current liabilities approximated fair value due to the short-term maturity of the instruments. Debt obligations were carried at cost, which approximated fair value due to the prevailing market rate for similar instruments.

Fair Value Measurement

All financial and nonfinancial assets and liabilities were recognized or disclosed at fair value in the financial statements. This value was evaluated on a recurring basis (at least annually). Generally accepted accounting principles in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on a measurement date. The accounting principles also established a fair value hierarchy which required an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs were used to measure fair value.

Level 1: Quotes market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that were corroborated by market data.

Level 3: Unobservable inputs that were not corroborated by market data.

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains its cash deposits in major financial institutions in the United States. At times deposits within a bank may exceed the amount of insurance provided on such deposits. Generally, these deposits are redeemed upon demand and, therefore, are considered by management to bear minimal risk.

Accounts receivable

Accounts receivable represent amounts due from customers in the ordinary course of business. The Company considers accounts more than 90 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. The Company generally does not require collateral for its accounts receivable.The Company considers all accounts receivable to be collectable and consequently has provided no allowance for doubtful accounts.

The majority of the Company’s revenues and accounts receivable pertain to contracts with the US Government.

9

Inventory

Inventory is stated at the lower of cost (first-in, first-out) or market. Market was generally considered to be net realizable value. Inventory consisted of materials used to manufacture the Company’s products work in process and finished goods ready for sale.

The breakdown of inventory at June 30, 2013 and September 30, 2012 is as follows:

	June 30,		September 30,
	2013		2012
Finished goods	$	-	$	-
Work in process		-		-
Materials and supplies		-		1,023,980
Total inventory		-		1,023,980
Less inventory classified as discontinued operations		-		-
Total inventory of continuing operations	$	-	$	1,023,980

Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed by applying principally the straight-line method to the estimated useful lives of the related assets. Useful lives range from 10 to 20 years for buildings and improvements and 5 to 10 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. When property or equipment is retired or otherwise disposed of, the net book value of the asset is removed from the Company’s balance sheet and the net gain or loss is included in the determination of operating income. Property, plant and equipment acquired as part of a business acquisition are valued at fair value.

Property, plant and equipment are comprised of the following at June 30, 2013 and September 30, 2012

	June 30,			September 30,
	2013			2012
Land	$	-		$	1,225,000
Buildings and improvements		-			1,170,194
Machinery and equipment		-			752,554
Funiture, fixtures and leasehold improvements		45,735			45,735
		45,735			3,193,483
Less accumulated depreciation		(21,102	)		(718,555	)
Net Property, plant and equipment		24,633			2,474,928
Less property, plant and equipment from discontinued operations		-			-
Net property, plant and equipment of continuing operations	$	24,633		$	2,474,928

Impairment of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets at least annually. Impairment losses were recorded on long-lived assets used in operations when indicators of impairment were present and the undiscounted future cash flows estimated to be generated by those assets were less than the assets’ carrying amount. If such assets were impaired, the impairment to be recognized was measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of were reported at the lower of the carrying value or fair value, less costs to sell.

Discontinued Operations

In accordance with ASC 205-20, Presentation of Financial Statements-Discontinued Operations (“ASC 205-20”), we reported the results of BT Manufacturing Company LLC, our contract manufacturing segment as a discontinued operation. The application of ASC 205-20 is discussed in Note 5 “Discontinued Operations”

10

Revenue Recognition

Sales revenue is generally recognized upon the shipment of product to customers or the acceptance by customers of the product. Allowances for sales returns, rebates and discounts are recorded as a component of net sales in the period the allowances were recognized. The majority of the Company’s revenue is generated under various fixed and variable price contracts as follows:

Revenues on fixed-price type contracts are recognized using the Percentage-Of-Completion (POC) method of accounting as specified in government contract accounting standards and the particular contract. Revenues earned on fixed-price production contracts under which units are produced and delivered in a continuous or sequential process are recognized as units are delivered based on their contractual selling prices (the “Units-of-Delivery” basis of determination). Sales and profits on each fixed-price production contract under which units are not produced in a continuous or sequential process are recorded based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract revenue, less cumulative sales recognized in prior periods (the “Cost-to-Cost” basis of determination). Under both types of basis for determining revenue earned, a single estimated total profit margin is used to recognize profit for each contract over its entire period of performance, which can exceed one year. The estimated total profit margin is evaluated on a periodic basis by management throughout the term of an individual contract to determine if the estimated total profit margin should be adjusted.

The Company has certain contracts with the U.S. Government that are funded through “Performance-Based-Payments”. Performance-based-payments are a method of financing designed by the Government to facilitate the accomplishment of the terms of the contract, and are not payments for accepted items. These financing payments are designed as a funding mechanism to facilitate production and may be made based on performance measured by objective, the accomplishment of defined events, or other quantifiable measures of results. As units are delivered and invoiced, the U.S. Government withholds 90% of the invoiced amount as repayment of the contract financing advances.

Cost of Revenues

The costs of revenues include direct materials and labor costs, and indirect labor associated with production and shipping costs.

Advertising Costs

The costs of advertising are expensed as incurred and are included in the Company’s operating expenses. The Company did not incur any advertising expenses for the three and nine months ended June 30, 2013 and 2012.

Shipping Costs

The Company includes shipping costs in cost of goods sold.

Income Taxes

Income tax benefits or provisions are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities were recovered or settled. Deferred tax assets were also recognized for operating losses that were available to offset future taxable income and tax credits that were available to offset future federal income taxes, less the effect of any allowances considered necessary. The Company follows the guidance provided by FIN 48, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions.

Loss per Common Share

Basic net loss per share includes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. As of June 30, 2013, there were 9,671,098,593 common stock equivalents that were anti-dilutive and were not included in the calculaton for the three months ended June 30, 2013.

Effect of Recent Accounting Pronouncements

The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to June 30, 2013 through the date these financial statements were issued.

11

3.     Contract Claim Receivable

The acquisition of 3Si Holdings, Inc. included the membership interest in Bulova Technologies Ordnance Systems LLC which had certain obligations to perform on then existing contracts with the US Government. Bulova Technologies Ordnance Systems, LLC had received advance funding under these contracts by the US Government through Performance-Based-Payments, a method of financing designed by the government to provide working capital to small business contractors so they can purchase the materials needed to fulfill the contract. At the time of the acquisition, the US Government had provided advance financing on the assumed contracts in the amount of $3,200,597.

In accordance with the provisions of Section 9-610 of the Uniform Commercial Code as enacted in the state of New York these cash funds amounting to $3,200,597 were retained by Webster Business Capital Corporation, the secured lender that had acquired the assets pursuant to the Section 9 foreclosure proceedings. The Company has fully performed all of its obligations under these contracts.

On October 24, 2012, as a part of the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC, the Company negotiated and settled this dispute with Webster Business Credit Corporation. 

4.     Discontinued Operations

In June of 2010, because of continuing losses in our contract manufacturing business segment, the Company announced management’s decision to market BT Manufacturing Company LLC for sale. BT Manufacturing Company LLC, a wholly owned subsidiary of the Company represented our contract manufacturing segment. As a result of the decision to sell this business segment, the Company has identified the assets and liabilities of BT Manufacturing Company LLC as pertaining to discontinued operations at June 30 31, 2013 and September 30, 2012 and has segregated its operating results and presented them separately as a discontinued operation for all periods presented. 

In September 2010, the Company estimated a loss in the amount of $2,650,000 to be realized upon completion of the disposal of this business segment, as well as an estimated operating loss of $900,000 to be incurred during the phase-out period. During March 2011, the Company finalized its negotiations relative to the disposition of the assets of this operation with an effective date of December 31, 2010. As a part of this settlement, the buyer that acquired the operations has provided an earn out agreement to PNL Newco II LLC to assist in the payment of the remaining obligation on the note payable to them. 

In October of 2012, the Company negotiated a settlement with PNL Newco II LLC for complete satisfaction of this debt for $625,000. The transaction resulted in a gain of $1,309,424.

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Summarized operating resultes for discontinued operations is as follows:

	NIne Months Ended
	June 30,
	2013		2012
Revenue	$	-	$	-
Cost of Sales		-		-
Gross profit		-		-
Operating expenses		-		(68,511	)
Other		1,309,424		-
Gain (Loss) to be recognized from discontinued operations		1,309,424		(68,511	)
Income tax benefit		-		-
Gain (loss) to be recognized from discontinued operations, net of tax	$	1,309,424	$	(68,511	)

The gain (loss) from discontinued operations above do not include any income tax effect as the Company was not in a taxable position due to its continued losses and a full valuation allowance

Summary of assets and liabilities of discontinued operations is as follows:

	June 30,		September 30,
	2013		2012
Accounts receivable	$	-	$	-
Inventory		-		-
Other current assets		-		-
Total current assets held for sale		-		-
Property plant and equipment - net		-		-
Other assets		-		-
Total assets from discontinued operations	$	-	$	-
Accounts payable and accrued expenses	$	-	$	351,054
Current portion of long-term debt		-		1,660,883
Provision for loss on disposal of business segment		-		-
Total current liabilities associated with discontinued operations		-		2,011,937
Long term debt, net of current portion		-		-
Total liabilities associated with discontinued operations	$	-	$	2,011,937

5.     Advance Payments and Billings in Excess of Cost

Advance payments and billings in excess of costs represents liabilities of the Company associated with contracts in process as of the balance sheet date, and consist of the following:

Advance Payments - The Company had certain contracts with the U.S. Government that were funded through “Performance-Based-Payments”. Performance-based-payments are a method of financing designed by the Government to facilitate the accomplishment of the terms of the contract, and are not payments for accepted items. These financing payments are designed as a funding mechanism to facilitate production and may be made based on performance measured by objective, the accomplishment of defined events, or other quantifiable measures of results. As units are delivered and invoiced, the U.S. Government withholds 90% of the invoiced amount as repayment of the contract financing advances. On January 1, 2009, with the acquisition of 3Si Holdings, Inc. and membership interest of Bulova Technologies Ordnance Systems LLC, the Company assumed certain obligations to perform contracts with the US Government with an outstanding balance at the date of acquisition of $3,200,597. The balances outstanding as of June 30, 2013 and September 30, 2012 are $0 and $666,490 respectively.

Billings in Excess of Cost plus Earnings on Uncompleted Contracts – The Company accounts for fixed-price production contracts under which units are not produced in a continuous or sequential process based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract price. The Company did not have any billings on uncompleted contracts in excess of the costs incurred plus estimated earnings calculated on this percentage of completion method as of June 30, 2013 and September 30, 2012.

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6.     Long Term Debt

Long term debt consisted of the following at:

	June 30, 2013		September 30, 2012
Promissory note payable to Webster Business Capital Corporation, dated December 16, 2008, in the original amount of $825,000 payable in full on June 30, 2009, with interest at 4.5% annually. This note was not repaid and is still outstanding as of the issuance of these financial statements. This note is secured by a lien on real estate, timber rights and certain equipment with net carrying values of approximately $2,000,000 at September 30, 2012.	$	-	$	825,000
Mortgage payable to Bank of America, dated March 10, 2006, in the original amount of $840,000 payable in monthly fixed principal payments of $4,667 plus variable interest at 2.5% plus the banks index rate, secured by real estate with carrying values of approximately $1,500,000 at September 30, 2012. Final payment is due on March 10, 2021.		-		480,666
Note payable to Harold L. and Helene M. McCray, dated October 19, 2005, in the original amount of $1,070.000, bearing interest at 8% per annum, payable in monthly installments of $10,225.48 secured by land and buildings with carrying values of approximately $1,500,000 at September 30, 2012. Final payment is due on December 1, 2020.		-		776,116
Note payable to Edward Viola, dated October 19, 2005, in the original amount of $80,000, bearing interest at 8% per annum, payable in monthly installments of $764.52. Final payment is due on December 1, 2020.		-		54,880
Note payable to PNL Newco II, LLC, dated December 22, 2009, in the original amount of $2,000,000, payable in monthly fixed principal payments of $42,000 plus variable interest at LIBOR plus 5% with a minimum rate of 5.5%, secured by an earn out agreement with the party that acquired all of the personal property of the discontinued operations of BT Manufacturing Company, LLC. Final balloon payment is due December 22, 2011.		-		1,660,883
Convertible Note payable to GovFunding, LLC, dated February 4, 2011, in the amount of $3,158,000 bearing interest at 18%., secured by a lock box agreement tied to the proceeds of a single government contract with a carrying value of approximately $2,600,000 at September 30, 2012. Final payment is due January 31, 2012.		-		3,158,000
Convertible Note payable to GovFunding, LLC dated May 25, 2011 in the amount of $220,000, bearing interest at 18%. with a maturity date of April 30, 2012.		-		220,000
Convertible Note payable to GovFunding LLC dated June 23, 2011 in the amount of $133,000, bearing interest at 18%. with a maturity date of June 30, 2012.		-		133,000

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Note payable to GovFunding LLC dated July 14, 2011 in the amount of $105,000, bearing interest at 18%. with a maturity date of August 1, 2011.	-	105,000
Convertible Note payable to GovFunding LLC dated August 1, 2011 in the amount of $128,000, bearing interest at 18%. with a maturity date of April 30, 2012.	-	128,000
Convertible Note payable to GovFunding LLC dated August 9, 2011 in the amount of $250,000, bearing interest at 18%. with a maturity date of June 30, 2012.	-	250,000
Convertible Note payable to GovFunding LLC dated August 30, 2011 in the amount of $110,000, bearing interest at 18%. with a maturity date of June 30, 2012.	-	110,000
Convertible Note payable to Asher Enterprises, Inc. dated May 15, 2012 in the original amount of $22,500 net of discount of $0, bearing interest at 8% with a maturity date of February 21, 2013.	-	25,032
Convertible Note payable to Asher Enterprises, Inc. dated July 16, 2012 in the original amount of $14,500 , bearing interest at 8% with a maturity date of April 19, 2013.	14,500	21,888
Note payable to Keehan Trust Funding, LLC dated January 19, 2012 in the amount of $1,550,000, bearing interest at the rate of 10%. This note is secured by the assignment of the proceeds of a government contract with a value in excess of $4,700,000 as of December 31, 2012. Final payment due upon delivery	700,000	1,550,000
Note payable to GovFunding LLC dated March 30, 2012 in the amount of $100,000, bearing interest at 18%. Final payment was due June 1, 2012	-	100,000
Note payable to Keehan Trust Funding, LLC dated March 30, 2012 with a maximum amount of $653,731, bearing interest as the rate of 10%. This note is secured by the assignment of the proceeds of certain government contracts with a value in excess of $850,000 as of December 31, 2012	-	285,000
Convertible Note payable to an individual dated May 4, 2012 in the amount of $25,000, bearing interest at 18% with a maturity date of July 31, 2012.	-	25,000
Convertible Note payable to an individual dated May 4, 2012 in the amount of $25,000, bearing interest at 18% with a maturity date of July 31, 2012.	-	25,000
Note payable to GovFunding LLC dated May 11, 2012 in the amount of $200,000, bearing interest at 12% with a maturity date of July 31, 2012	-	200,000

15

Convertible Note payable to an individual dated May 25, 2012 in the amount of $100,000, bearing interest at 18% with a maturity date of August 25, 2012.	-	100,000
Note payable to Keehan Trust Funding, LLC, dated June 1, 2012 in the amount of $700,000, bearing interest at the rate of 10%. This note is secured by the assignment of the proceeds of certain government contracts with a value in excess of $2,400,000 as of December 31, 2012. Final payment due November 30, 2012.	-	700,000
Convertible Note payable to an individual dated August 15, 2012 in the amount of $5,000 net of discount of $568, bearing interest at 18% with a maturity date of October 31, 2012.	-	4,432
Convertible Note payable to an individual dated May 25, 2012 in the amount of $10,000 net of discount of $1,265, bearing interest at 18% with a maturity date of October 31, 2012.	-	8,735
Note payable to GovFunding LLC dated August 7, 2012 in the amount of $245,000, bearing interest at 18%. Final payment due October 15, 2012	-	245,000
Convertible Note payable to Asher Enterprises, Inc. dated November 7, 2012 in the original amount of $37,500 net of discount of $2,455, bearing interest at 8% with a maturity date of August 9, 2013.	35,045	-
Note payable to GovFunding, LLC dated October 24, 2012 in the amount of $553,763, bearing interest at 8%, payable quarterly principal of $69,220.38 plus accrued interest, with a maturity of October 24, 2014.	553,763	-
Note payable to an individual dated December 21, 2012 in the amount of $60,000, bearing interest at 8%, with a maturity date of February 1, 2013	60,000	-
Note payable to NFC III LLC dated February 25, 2013 in the amount of $400,000 bearing interest at 10%, with a maturity date of November 25, 2013	400,000	-
Note payable to an individual dated January 25, 2013 in the amount of $50,000 bearing interest at 7%, with a maturity of June 30, 2013	50,000	-
Note payable to GovFunding LLC dated January 1, 2013 in the amount of $30,000, bearing interest at 8%, with a maturity date of December 31, 2013.	30,000	-
Note payable to GovFunding LLC dated January 1, 2013 in the amount of $24,552 bearing interest at 8%, with a maturity of December 31, 2013	24,552	-
Convertible Note payable to Asher Enterprises, Inc. dated February 28, 2013 in the original amount of $32,500 net of discount of $9,839, bearing interest at 8% with a maturity date of December 4, 2013	22,661	-
Note payable to an individual dated April 30, 2013 in the amount of $60,000 non-interest bearing with a maturity of December 31, 2013	60,000	-

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Note payable to an individual dated April 30, 2013 in the amount of $26,269, non-interest bearing with a maturity of July 31, 2013		26,269			-
Note payable to Yellowstone Capital dated June 19, 2013 in the amount of $30,000 with no stipulated interest rate, payable through 80 daily payments of $500.		30,000			-
Revolving credit line payable to NFC III LLC bearing interest at 10%, payable on demand		312,803			-
		2,319,593			11,191,632
Less current portion pertaining to continuing operations		(2,181,152	)		(8,386,675	)
Less current portion associated with discontinued operations		-			(1,660,883	)
	$	138,441		$	1,144,074

Principal maturities of long term debt for the next five years and thereafter as of June 30, 2013 are as follows:

Period ended June 30,
2014	$	2,181,152
2015		138,441
2016		-
2017		-
2018		-
Thereafter		-
	$	2,319,593

7.     Income Taxes

Deferred income taxes are the result of timing differences between book and tax basis of certain assets and liabilities, timing of income and expense recognition of certain items and net operating loss carry forwards. The Company evaluates temporary differences resulting from the different treatment of items for tax and accounting purposes and records deferred tax assets and liabilities on the balance sheet using the tax rates expected when the temporary differences reverse.

On January 1, 2009 the Company acquired for stock of 3SI Holdings in exchange for shares of the Company's common stock. For income tax purposes this transaction has been treated as tax free reorganization under the provisions of Section 368A of the Internal Revenue Code. 3SI Holdings had various net operating loss carryovers. Because of the change in ownership of 3SI Holdings, the net operating loss carry-overs will transfer to the Company. The transferred net operating losses are subject to an annual limitation under the provisions of Section 382 of the Internal Revenue Code to offset future taxable income of the Company. 

The Company has previously recognized an income tax benefit for its operating losses generated since inception through September 30 2012 based on uncertainties concerning its ability to generate taxable income in future periods. Based on current events management has re-assessed the valuation allowance and the recognition of the deferred tax assets attributable to the net operating losses and other assets. Based on the Company’s history of losses and other negative evidence, the Company has determined that the valuation allowance should be increased accordingly to offset the entire deferred tax asset. 

As of September 30, 2012 the Company had federal net operating loss carry forwards of approximately $24,160,000 and Florida net operating loss carry forwards of approximately $23,926,000. The federal net operating loss carry forwards will expire in 2020 through 2032 and state net operating loss carry forwards that will expire in 2028 through 2032. 

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The income tax rate computed using the federal statutory rates is reconciled to the reported effective income tax rate as follows: 

Continuing Operations	6/30/13			9/30/2012
Expected provision at US statutory rate		34.00	%		34.00	%
State income tax net of federal benefit		3.63	%		3.63	%
Permanent and Other Differences		-			-
Valuation Allowance		(37.63	)%		(37.63	%)
Effective Income Tax Rate	$	-		$	-

The Company files income tax returns on a consolidated basis in the United States federal jurisdiction and the State of Florida. As of September 30, 2012, the tax returns for the Company for the years ending 2009 through 2011remain open to examination by the Internal Revenue Service and Florida Department of Revenue. In addition the tax returns related to 3SI remain open to federal and state examination for the periods ending June 2005 through 2008. The Company and its subsidiaries are not currently under examination for any period.

The Company has adopted a policy to recognize interest and penalties accrued related to unrecognized tax benefits in its income tax provision. The Company has evaluated its unrecognized tax benefits and determined that due to the NOL carry forwards, that no accrual of interest and penalties is required in the current period.

8.     Commitments and Contingencies

From time to time the Company may be a party to litigation matters involving claims against the Company.  Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.

U.S. Government agencies, including the Defense Contract Audit Agency and various agency Inspectors General routinely audit and investigate costs and performance on contracts, as well as accounting and general business practices of contractors Based on the results of such audits, the U.S. Government may adjust contract related costs and fees, including allocated indirect costs. None of the Company’s contracts are currently the subject of any government audits.

At June 30, 2013 the Company operated corporate and administrative offices in a facility leased from a non-affiliate in Tampa, Florida, approximating 5,000 square feet. The Tampa location is leased for a base monthly rental increased by a minimum of 2.5% each year through the expiration date of December 21, 2027. The Company also leases on a month to month basis, an office in Frankfurt, Germany to facilitate its European program.

Total rent expense for the nine months ended June 30, 2013, was approximately $211,000.

The Company’s commitments for minimum lease payments under these operating leases for the next five years and thereafter as of June 30, 2013 are as follows:

Period ended June 30,
2014	$	254,096
2015		260,448
2016		266,959
2017		273,633
2018		280,474
Thereafter		3,099,663
	$	4,435,273

 

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9.     Related Party Transactions

The following related party transactions not disclosed elsewhere in this document are as follows:

The Company has received loans from two (2) major shareholders which were supported by notes bearing interest at 5% annually with restricted conversion features and no repayment schedule. The notes were originally issued for $1,500,000 for each shareholder then subsequently raised them to a maximum of $5,000,000. All shareholder interest is accruing interest. As of June 30, 2013, the only remaining debt associated with these notes is a balance due to Stephen L. Gurba and Evelyn R. Gurba in the amount of $202,035.

10.   Stockholders’ Equity 

Common Shares

In October 2011, the Company issued 8,896,394 shares issued as conversion of debt in the amount of $48,000

In October 2011, the Company issued 500,000 shares issued for services

In November 2011, the Company issued 10,268,342 shares to various individuals

In November 2011, the Company issued 5,352,941 shares as conversion of debt in the amount of $27,000

In December 2011, the Company issued 12,831,591 shares as conversion of debt in the amount of $50,000

In December 2011, the Company issued 90,000,000 shares and authorized an additional 60,000,000 shares issued as conversion of related party debt in the amount of $682,500

In November 2011, the Company amended its Articles of Incorporation to create a class of Preferred Stock with an authorization of 2,000,000,000 shares, all of which were issued to our Chairman of the Board.

In November 2011, the Company increased its authorization of common shares to 2,000,000,000.

In January 2012, the Company issued 151,500,000 common shares for services

In February 2012 , the Company issued 750,000 common shares for services

In February 2012, the Company issued 95,000,000 common shares in association with new debt

In February 2012, the Company issued 2,400,000 common shares as conversion of debt in the amount of $12,000.

In February 2012 the Company issued ten year warrants to purchase 100,000,000 shares of its common stock with an exercise price of $.05 per share.

In March 2012, the Company issued 3,142,857 common shares as conversion of debt in the amount of $11,000.

In April 2012, the Company issued 3,461,538 common shares as conversion of debt in the amount of $9,000.

In April 2012 – the Company filed and S-8 registration for 80,000,000 common shares to be issued as the Company determines pursuant to the terms of its 2012 Equity Incentive Plan 

In April 2012, the Company issued 20,000,000 common shares for services

In May 2012, the Company issued ten year warrants to purchase 170,000,000 shares of its common stock with an exercise price of $.01 per share.

In May 2012, the Company issued 25,412,821 common shares for services

In May 2012, the Company issued 6,360,000 common shares as conversion of debt in the amount of $11,000.

In May 2012, the Company issued 35,000,000 common shares in association with new debt

In June 2012, the Company issued 75,000,000 common shares in association with new debt

19

In June 2012, the Company issued 14,084,507 common shares as conversion of debt in the amount of $10,000.

In June 2012, the Company issued 30,878,777 common shares for services

In June 2012, the Company issued 21,830,956 common shares as conversion of related party debt

July 2012, the Company issued 168,289,206 common shares in association with new debt

August 2012, the Company issued 18,380,744 common shares as payment for interest on debt

August 2012, the Company issued 193,846,154 common shares in association with new debt

September 2012, the Company issued 177,002,028 common shares in association with new debt

On September 26, 2012 the Company amended its Articles of Incorporation to increase its authorization to issue its common shares to 5,000,000,000 at a par value of $.001, and to increase its authorization to issue its preferred shares to 5,000,000,000 at a par value of $.00001.

October 2012, the Company issued 150,807,692 common shares for services

October 2012, the Company issued 988,923,568 common shares as conversion of debt

November 2012, the Company issued 151,500,000 common shares for services

November 2012, the Company issued 183,029,958 common shares as conversion of debt

December 2012, the Company issued 99,249,999 common shares for services

January 2013 – the Company issued 247,424,242 shares of its common stock as conversion of debt

January 2013 – the Company issued 30,000,000 shares of its common stock in association with new debt

January 2013 – the Company issued 41,000,000 common shares for services

February 2013 – the Company issued 150,000,000 common shares of its common stock as conversion of debt

June 2013 – the Company issued 150,000,000 common shares of its common stock as conversion of debt

Preferred Shares

In November 2011, the Company amended its Articles of Incorporation to create a Preferred Shares class of stock, initially authorizing the Company to issue up to 2,000,000,000 preferred shares, with a par value of $.00001 per share, all of which were issued to our Chairman of the Board.

In September 2012, the Company amended its Articles of Incorporation to increase its authorization to issue preferred shares to 5,000,000,000 at a par value of $.00001.

February 25, 2013, the Company sold 2,000,000,000 preferred shares

The preferred shares have co-voting rights with the outstanding common shares on a one to one basis, so that the common shares and the preferred shares shall vote as though, together they were a single class of stock. The shares are redeemable by the Corporation at any time, with the permission of the Preferred Shareholders, at 1/1,000,000 of a cent per preferred share. These preferred shares have no conversion rights, no dividend rights, nor any liquidation preferences. These shares are not listed on any exchange.

11.   Change in Accounting Estimate

The Company had previously included an amount of $6,071,700 in accrued expenses that was a result of percentage of completion accounting on a single contract that was terminated by the US Government before completion. The Company is disputing the termination, and has maintained this balance in anticipation of a resolution. In October 2012, The Company sold substantially all of the assets of Bulova Technologies Ordnance Systems LLC, the subsidiary that was a party to that specific contract, and has determined that the contract will never be completed. Therefore, the Company is recognizing in other income the full amount previously deferred. This change is a change in the way the revenue on this contract was estimated to be realized.

20

12.   Subsequent Event

On July 11, 2013 the Company issued 150,000,000 common shares in association with current debt

21

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD LOOKING STATEMENTS

Certain portions of this report, and particularly the Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Notes to Consolidated Financial Statements, contain forward-looking statements which represent the Company’s expectations or beliefs concerning future events. The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements.

1 .   Overview:

Since January 1, 2009, Bulova Technologies Group, Inc. has operated in two business segments. The Government Contracting segment is focused on the production and procurement of military articles for the US. Government and other Allied Governmentsthroughout the world, and is accounted for through two of the Company’s wholly owned subsidiaries, Bulova Technologies OrdnanceSystems LLC., and Bulova Technologies (Europe) LLC. The Contract Manufacturing segment produced cable assemblies, circuit boards as well as complete systems, and was accounted for through BT Manufacturing Company, LLC, another of its wholly owned subsidiaries. In June of 2010, because of continuing losses in our contract manufacturing business segment, the Company announced management’s decision to market BT Manufacturing Company LLC for sale.  During the quarter ended March 31, 2011, the Company accomplished this disposition. For reporting purposes, the Company has identified the assets and liabilities of BT Manufacturing Company LLC as pertaining to discontinued operations and has segregated its operating results and presented them separately as a discontinued operation for all periods.

Application of critical accounting policies:

Management’s Discussion and Analysis of our Financial Condition and Results of Operations is based on the Company’s unaudited Consolidated Financial Statements, which have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The preparation of financial statements in accordance with GAAP requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and corresponding disclosures at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we continue to evaluate our estimates which in large part are based on historical experience and on various assumptions that we believe to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates under different assumptions or conditions.

2 .   Results of operations:

For the three months ended June 30, 2013 compared to the three months ended June 30, 2012.

Discontinued Operations

There is no activity to report from discontinued operations for the three months ended June 30, 2013. The only activity for the three months ended June 30, 2012 was the accrual of interest expense on this debt in the amount of $22,837. 

Continuing Operations

With the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC, the contracts that were being performed at the Mayo, Florida location are in the process of being novated to the buyer of the facilities. This process conveys the rights to the contracts conveyed, and also releases our Company from the obligation to perform. Until this process is completed, the contracts remain in the name of Bulova Technologies Ordnance Systems LLC, and our Company is still legally responsible for their fulfillment. As a consequence, the Company is subcontracting the performance to the buyer of the facilities, and passing all monies on those specific contracts straight through. The effect on our financial statements will be to show revenue with very little gross profit as pertaining only to those contracts that are in the process of novation.

The Company’s revenue for continuing operations for the three months ended June 30, 2013 of $2,248,509 is an increase of $1,631,638 when compared to the Company’s revenue for the three months ended June 30, 2012 of $616,871.

The Company’s cost of sales for continuing operations for the three months ended June 30, 2013 of $1,802,895 is an increase of $1,398,386 when compared to the Company’s cost of sales for the three months ended June 30, 2012 of $404,509.

The Company’s gross profit for continuing operations for the three months ended June 30, 2013 of $445,614 is an incecrease of $233,252 when compared to the Company’s gross profit for the three months ended June 30, 2012 of $212,362.

22

The Company’s operating expenses for continuing operations consisting of selling, general and administrative, depreciation, amortization, and interest for the three months ended June 30, 2013 of $702,304 is a decrease of $698,344 when compared to the same expenses of $1,400,648 for the three months ended June 30, 2012. This is due primarily to the elimination of costs associated with the operations that have been sold.

The Company’s did not have any stock based compensation for continuing operations for the three months ended June 30, 2013  as compared to the stock based compensation of $738,255 for the three months ended June 30, 2012.

The Company did not have any other income for the three months ended June 30, 2013 as compared to other income of $106 for the three months ended June 30, 2012.

The Company’s net loss  from continuing operations for the three months ended June 30, 2013 of $256,690 is a decrease of $1,699,745 when compared to the Company’s net loss for continuing operations for the three months ended June 30, 2012 of $1,956,435.

For the nine months ended June 30, 2013 compared to the nine months ended June 30, 2012.

Discontinued Operations

The only activity to reflect as results from our discontinued operations for the nine months ended June 30, 2013 is the final settlement of the note balance that carried over after the disposition of all of the assets of BT Manufacturing Company LLC. The Company negotiated a substantial discount of approximately $1.3 million in settling almost $2 million of guaranteed debt and accrued interest. The only activity for the nine months ended June 30, 2012 was the accrual of interest expense on this debt in the amount of $68,511.

Continuing Operations

With the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC, the contracts that were being performed at the Mayo, Florida location are in the process of being novated to the buyer of the facilities. This process conveys the rights to the contracts conveyed, and also releases our Company from the obligation to perform. Until this process is completed, the contracts remain in the name of Bulova Technologies Ordnance Systems LLC, and our Company is still legally responsible for their fulfillment. As a consequence, the Company is subcontracting the performance to the buyer of the facilities, and passing all monies on those specific contracts straight through. The effect on our financial statements will be to show revenue with very little gross profit as pertaining only to those contracts that are in the process of novation.

The Company’s revenue for continuing operations for the nine months ended June 30, 2013 of $5,225,297 is an increase of $2,686,684 when compared to the Company’s revenue for the nine months ended June 30, 2012 of $2,538,613.

The Company’s cost of sales for continuing operations for the nine months ended June 30, 2013 of $4,428,434 is an increase of $2,863,487 when compared to the Company’s cost of sales for the nine months ended June 30, 2012 of $1,564,947.

The Company’s gross profit for continuing operations for the nine months ended June 30, 2013 of $796,863 is a decrease of $176,803 when compared to the Company’s gross profit for the nine months ended June 30, 2012 of $973,666.

The Company’s operating expenses for continuing operations consisting of selling, general and administrative, depreciation, amortization, and interest for the nine months ended June 30, 2013 of $2,661,041 is a decrease of $2,525,067 when compared to the same expenses of $5,186,108 for the nine months ended June 30, 2012. This is due primarily to the elimination of costs associated with the operations that have been sold. T

The Company’s stock based compensation for continuing operations for the nine months ended June 30, 2013 was $273,182, and represents a decrease of $1,992,757 as compared to the stock based compensation of $2,265,939 for the nine months ended June 30, 2012.

The Company’s other income for the nine months ended June 30, 2013 of $13,317,570 represents an increase of $12,792,306 as compared to $525,264 for the nine months ended June 30, 2012. This increase is comprised of two major events. The first is the net gain on the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC in the amount of $7,257,719 which occurred on October 24, 2012. With the sale on October 24, 2012, the Company has determined effective January 1, 2013 to recognize $6,071,700 as a change in accounting estimate. This amount was derived through a percentage of completion accounting on a contract prior to it being terminated by the US Government. The Company has disputed this termination, and is pursuing a course to have the termination for default changed to a termination for convenience. Since the contracting entity in this matter is the subsidiary which sold substantially all of its assets, the Company has determined that the opportunity to perform under this contract is past, and is therefore changing the estimate of revenue to be recognized to take into income the full amount that had previously been reserved.

The Company’s net income from continuing operations for the nine months ended June 30, 2013 of $11,180,210 is an increase of $17,133,327 when compared to the Company’s net loss for continuing operations for the nine months ended June 30, 2012 of $5,953,117.

3.   Liquidity and capital resources:

As of June 30, 2013, the Company’s sources of liquidity consisted of the proceeds from the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC, as well as new debt and the current active contracts with the U.S. Army.

As of June 30, 2013, we had $43,1174 in cash and cash equivalents. 

Cash flows used in operating activities was $1,908,677 for the nine months ended June 30, 2013. 

23

Cash flows from investing activities were $9,801,411, and consisted primarily of the proceeds from the sale of assets for the nine months ended June 30, 2013,

Cash flows used in financing activities were $7,878,651 for the nine months ended June 30, 2013, and consisted primarily of the repayment of long term debt afforded by the sale of assets.

The Company’s ability to cover its operating and capital expenses, and make required debt service payments will depend primarily on its ability to generate operating cash flows.

The Company“s business may not generate cash flows at sufficient levels, and it is possible that currently anticipated contract awards may not be achieved. If we are unable to generate sufficient cash flow from operations to service our debt, we may be required to reduce costs and expenses, sell assets, reduce capital expenditures, refinance all or a portion of our existing debt as well as our operating needs, or obtain additional financing and we may not be able to do so on a timely basis, on satisfactory terms, or at all. Our ability to make scheduled principal payments or to pay interest on or to refinance our indebtedness depends on our future performance and financial results, which, to a certain extent, are subject to general conditions in or affecting the U.S. defense industry and to general economic, political, financial, competitive, legislative and regulatory factors beyond our control.

While the Company believes that anticipated revenues resulting from additional contract awards accompanied by its efforts will be sufficient to bring profitability and a positive cash flow to the Company, it is uncertain that these results can be achieved. Accordingly, the Company will, in all likelihood have to raise additional capital to operate. There can be no assurance that such capital will be available when needed, or that it will be available on satisfactory terms.

There are no off-balance sheet arrangements.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this report. This evaluation was carried out under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and the Company’s principal officer.

Based upon that evaluation, the principal executive officer and the principal financial officer concluded that the Company’s disclosure controls and procedures were effective at June 30, 2013 to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms. The Company’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the most recently completed fiscal quarter that have materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting.   

PART II – OTHER INFORMATION

Item 6. Exhibits

(b) Exhibits:

31.1	Rule 13a-14(a) Certification of Principal Executive Officer
31.2	Rule 13a-14(a) Certification of Principal Financial Officer
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*	XBRL Instance
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation
101.DEF*	XBRL Taxonomy Extension Definition
101.LAB*	XBRL Taxonomy Extension Labels
101.PRE*	XBRL Taxonomy Extension Presentation

* XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

24

SIGNATURE

In accordance with the requirements of the Exchange Act, the Issuer caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BULOVA TECHNOLOGIES GROUP, INC.
By	/s/ Stephen L Gurba
	Stephen L Gurba
	Principal Executive Officer
By	/s/ William McMillen
	William McMillen
	Principal Financial and Accounting Officer

     DATED: August 14, 2013

EX-31

Exhibit 31.1

BULOVA TECHNOLOGIES GROUP, INC.
Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

I, Stephen L Gurba, Principal Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Bulova Technologies Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that was materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

/s/ Stephen L Gurba  

Stephen L Gurba 

Principal Executive Officer 

EX-31

Exhibit 31.2

BULOVA TECHNOLOGIES GROUP, INC.
Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

I, William McMillen, Principal Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Bulova Technologies Group, Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant’s as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that was materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

/s/ William McMillen 

William McMillen 

Principal Financial Officer 

EX-32

Exhibit 32.1

BULOVA TECHNOLOGIES GROUP, INC.
Certification Pursuant to
18 U.S.C. Section 1350,
as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Bulova Technologies Group, Inc. (the Company) on Form 10-Q for the quarterly period ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the Report), I Stephen L Gurba, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Stephen L Gurba  

Stephen L Gurba 

Principal Executive Officer
August 14, 2013 

EX-32

Exhibit 32.2

BULOVA TECHNOLOGIES GROUP, INC.
Certification Pursuant to
18 U.S.C. Section 1350,
as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Bulova Technologies Group, Inc. (the Company) on Form 10-Q for the quarterly period ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, C.W. Colburn III, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William McMillen  

William McMillen

Principal Financial Officer
August 14, 2013 

XML

Note 10 - Stockholders' Equity

9 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

10.   Stockholders’ Equity 

Common Shares

In October 2011, the Company issued 8,896,394 shares issued as conversion of debt in the amount of $48,000

In October 2011, the Company issued 500,000 shares issued for services

In November 2011, the Company issued 10,268,342 shares to various individuals

In November 2011, the Company issued 5,352,941 shares as conversion of debt in the amount of $27,000

In December 2011, the Company issued 12,831,591 shares as conversion of debt in the amount of $50,000

In December 2011, the Company issued 90,000,000 shares and authorized an additional 60,000,000 shares issued as conversion of related party debt in the amount of $682,500

In November 2011, the Company amended its Articles of Incorporation to create a class of Preferred Stock with an authorization of 2,000,000,000 shares, all of which were issued to our Chairman of the Board.

In November 2011, the Company increased its authorization of common shares to 2,000,000,000.

In January 2012, the Company issued 151,500,000 common shares for services

In February 2012 , the Company issued 750,000 common shares for services

In February 2012, the Company issued 95,000,000 common shares in association with new debt

In February 2012, the Company issued 2,400,000 common shares as conversion of debt in the amount of $12,000.

In February 2012 the Company issued ten year warrants to purchase 100,000,000 shares of its common stock with an exercise price of $.05 per share.

In March 2012, the Company issued 3,142,857 common shares as conversion of debt in the amount of $11,000.

In April 2012, the Company issued 3,461,538 common shares as conversion of debt in the amount of $9,000.

In April 2012 – the Company filed and S-8 registration for 80,000,000 common shares to be issued as the Company determines pursuant to the terms of its 2012 Equity Incentive Plan 

In April 2012, the Company issued 20,000,000 common shares for services

In May 2012, the Company issued ten year warrants to purchase 170,000,000 shares of its common stock with an exercise price of $.01 per share.

In May 2012, the Company issued 25,412,821 common shares for services

In May 2012, the Company issued 6,360,000 common shares as conversion of debt in the amount of $11,000.

In May 2012, the Company issued 35,000,000 common shares in association with new debt

In June 2012, the Company issued 75,000,000 common shares in association with new debt

In June 2012, the Company issued 14,084,507 common shares as conversion of debt in the amount of $10,000.

In June 2012, the Company issued 30,878,777 common shares for services

In June 2012, the Company issued 21,830,956 common shares as conversion of related party debt

July 2012, the Company issued 168,289,206 common shares in association with new debt

August 2012, the Company issued 18,380,744 common shares as payment for interest on debt

August 2012, the Company issued 193,846,154 common shares in association with new debt

September 2012, the Company issued 177,002,028 common shares in association with new debt

On September 26, 2012 the Company amended its Articles of Incorporation to increase its authorization to issue its common shares to 5,000,000,000 at a par value of $.001, and to increase its authorization to issue its preferred shares to 5,000,000,000 at a par value of $.00001.

October 2012, the Company issued 150,807,692 common shares for services

October 2012, the Company issued 988,923,568 common shares as conversion of debt

November 2012, the Company issued 151,500,000 common shares for services

November 2012, the Company issued 183,029,958 common shares as conversion of debt

December 2012, the Company issued 99,249,999 common shares for services

January 2013 – the Company issued 247,424,242 shares of its common stock as conversion of debt

January 2013 – the Company issued 30,000,000 shares of its common stock in association with new debt

January 2013 – the Company issued 41,000,000 common shares for services

February 2013 – the Company issued 150,000,000 common shares of its common stock as conversion of debt

June 2013 – the Company issued 150,000,000 common shares of its common stock as conversion of debt

Preferred Shares

In November 2011, the Company amended its Articles of Incorporation to create a Preferred Shares class of stock, initially authorizing the Company to issue up to 2,000,000,000 preferred shares, with a par value of $.00001 per share, all of which were issued to our Chairman of the Board.

In September 2012, the Company amended its Articles of Incorporation to increase its authorization to issue preferred shares to 5,000,000,000 at a par value of $.00001.

February 25, 2013, the Company sold 2,000,000,000 preferred shares

The preferred shares have co-voting rights with the outstanding common shares on a one to one basis, so that the common shares and the preferred shares shall vote as though, together they were a single class of stock. The shares are redeemable by the Corporation at any time, with the permission of the Preferred Shareholders, at 1/1,000,000 of a cent per preferred share. These preferred shares have no conversion rights, no dividend rights, nor any liquidation preferences. These shares are not listed on any exchange.

XML

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues	$ 2,248,509	$ 616,871	$ 5,225,297	$ 2,538,613
Cost of revenues	1,802,895	404,509	4,428,434	1,564,947
Gross profit	445,614	212,362	796,863	973,666
Selling and administrative expense	512,631	852,256	1,694,063	2,781,151
Stock based compensation		738,255	273,182	2,265,939
Depreciation and amortization expense	160,930	489,308	453,648	1,676,065
Interest expense	28,743	89,084	513,330	728,892
Total expenses	702,304	2,168,903	2,934,223	7,452,047
Income (loss) from operations	(256,690)	(1,956,541)	(2,137,360)	(6,478,381)
Other income (expense)
Other income		106	13,317,570	525,264
Income (loss) from continuing operations before income taxes	(256,690)	(1,956,435)	11,180,210	(5,953,117)
Income tax expense	0	0
Income (loss) from continuing operations	(256,690)	(1,956,435)	11,180,210	(5,953,117)
Income (loss) from discontinued operations, net of tax		(22,837)	1,309,424	(68,511)
Net Income (loss)	$ (256,690)	$ (1,979,272)	$ 12,489,634	$ (6,021,628)
Basic net income (loss) per share
Income (loss) from continuing operations (in Dollars per share)		$ (0.002)	$ 0.003	$ (0.008)
Income (loss) from discontinued operations (in Dollars per share)	$ 0	$ 0	$ 0	$ 0
Net income (loss) per share (in Dollars per share)		$ (0.002)	$ 0.003	$ (0.008)
Diluted net income (loss) per share
Income (loss)from continuing operations (in Dollars per share)		$ (0.002)	$ 0.0017	$ (0.008)
Income (loss) from discontinued operations (in Dollars per share)	$ 0	$ 0	$ 0	$ 0
Net income (loss) per share (in Dollars per share)		$ (0.002)	$ 0.0017	$ (0.008)
Weighted average shares outstanding
Basic (in Shares)	3,705,263,290	966,737,758	3,371,969,803	756,066,512
Diluted (in Shares)	3,705,263,290	966,737,758	6,522,336,001	756,066,512

XML

Note 3 - Contract Claim Receivable

9 Months Ended

Jun. 30, 2013

Disclosure Text Block Supplement [Abstract]

Legal Matters and Contingencies [Text Block]

3.     Contract Claim Receivable

The acquisition of 3Si Holdings, Inc. included the membership interest in Bulova Technologies Ordnance Systems LLC which had certain obligations to perform on then existing contracts with the US Government. Bulova Technologies Ordnance Systems, LLC had received advance funding under these contracts by the US Government through Performance-Based-Payments, a method of financing designed by the government to provide working capital to small business contractors so they can purchase the materials needed to fulfill the contract. At the time of the acquisition, the US Government had provided advance financing on the assumed contracts in the amount of $3,200,597.

In accordance with the provisions of Section 9-610 of the Uniform Commercial Code as enacted in the state of New York these cash funds amounting to $3,200,597 were retained by Webster Business Capital Corporation, the secured lender that had acquired the assets pursuant to the Section 9 foreclosure proceedings. The Company has fully performed all of its obligations under these contracts.

On October 24, 2012, as a part of the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC, the Company negotiated and settled this dispute with Webster Business Credit Corporation. 

XML

Note 7 - Income Taxes (Tables)

9 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Continuing Operations	6/30/13			9/30/2012
Expected provision at US statutory rate		34.00	%		34.00	%
State income tax net of federal benefit		3.63	%		3.63	%
Permanent and Other Differences		-			-
Valuation Allowance		(37.63	)%		(37.63	%)
Effective Income Tax Rate	$	-		$	-

XML

Note 11 - Change in Accounting Estimate

9 Months Ended

Jun. 30, 2013

Change in Accounting Estimate [Abstract]

Change In Accounting Estimate

11.   Change in Accounting Estimate

The Company had previously included an amount of $6,071,700 in accrued expenses that was a result of percentage of completion accounting on a single contract that was terminated by the US Government before completion. The Company is disputing the termination, and has maintained this balance in anticipation of a resolution. In October 2012, The Company sold substantially all of the assets of Bulova Technologies Ordnance Systems LLC, the subsidiary that was a party to that specific contract, and has determined that the contract will never be completed. Therefore, the Company is recognizing in other income the full amount previously deferred. This change is a change in the way the revenue on this contract was estimated to be realized.

XML

Note 7 - Income Taxes (Details) (USD $)	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 24,160,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 23,926,000

XML

Note 2 - Principles of consolidation and basis of presentation: (Details)	0 Months Ended
	Jan. 02, 2009	Jun. 30, 2013 sqft	Mar. 31, 2013
Note 2 - Principles of consolidation and basis of presentation: (Details) [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares)	40,000,000
Area of Real Estate Property (in Square Feet)		5,000
Area of Real Estate Property (in Acres)		5,000
Amount of Invoiced Amount Withheld to Repay Debt to US Government		90.00%	90.00%
BT Manufacturing Company LLC [Member]
Note 2 - Principles of consolidation and basis of presentation: (Details) [Line Items]
Area of Real Estate Property (in Square Feet)		35,000
Area of Real Estate Property (in Acres)		35,000
Bulova Technologies Ordnance Systems LLC [Member]
Note 2 - Principles of consolidation and basis of presentation: (Details) [Line Items]
Area of Real Estate Property (in Square Feet)		261
Area of Real Estate Property (in Acres)		261

XML

Supplemental Schedule of Non-Cash Financing and Investing Activities (Details) (USD $)	1 Months Ended
	Jun. 30, 2013	Feb. 28, 2013	Jan. 31, 2013	Dec. 31, 2012	Nov. 30, 2012	Oct. 31, 2012	Sep. 30, 2012	Aug. 31, 2012	Jul. 31, 2012	Jun. 30, 2012	May 31, 2012	Apr. 30, 2012	Mar. 31, 2012	Feb. 28, 2012	Jan. 31, 2012	Dec. 31, 2011	Nov. 30, 2011	Oct. 31, 2011	Sep. 26, 2012
Supplemental Schedule of Non-Cash Financing and Investing Activities (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	150,000,000	150,000,000	247,424,242		183,029,958	988,923,568				14,084,507	6,360,000	3,461,538	3,142,857	2,400,000		12,831,591	5,352,941	8,896,394
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued				99,249,999	151,500,000	150,807,692												500,000
Stock Issued During Period, Shares, New Issues																90,000,000	10,268,342
Common Stock, Shares Authorized	5,000,000,000						5,000,000,000					80,000,000					2,000,000,000		5,000,000,000
Stock Issued During Period, Shares, in Association with New Debt			30,000,000				177,002,028	193,846,154	168,289,206	75,000,000	35,000,000			95,000,000
Stock Issued During Period, Shares, Issued for Services			41,000,000	99,249,999	151,500,000	150,807,692				30,878,777	25,412,821	20,000,000		750,000	151,500,000
Warrants Issued Associated with New Debt		4,260,102,343
Warrants Issued in Exchange for Subscription Notes Receivable		4,117,996,250
Temporary Equity, Shares Subscribed but Unissued, Subscriptions Receivable (in Dollars)	$ 66,000	$ 66,000
Warrants Issued for Services		1,073,000,000
Conversion of Related Party Debt [Member]
Supplemental Schedule of Non-Cash Financing and Investing Activities (Details) [Line Items]
Common Stock, Shares Authorized																60,000,000

XML

Note 5 - Advance Payments and Billings in Excess of Cost (Details) (USD $)	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2013 United States Government [Member]	Sep. 30, 2012 United States Government [Member]	Jan. 02, 2009 United States Government [Member]
Note 5 - Advance Payments and Billings in Excess of Cost (Details) [Line Items]
Amount of Invoiced Amount Withheld to Repay Debt to US Government	90.00%	90.00%
Notes and Loans Payable			$ 0	$ 666,490	$ 3,200,597

XML

Note 8 - Commitments and Contingencies (Details) (USD $)	9 Months Ended
	Jun. 30, 2013 sqft
Commitments and Contingencies Disclosure [Abstract]
Area of Real Estate Property (in Square Feet)	5,000
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate	2.50%
Operating Leases, Rent Expense, Net (in Dollars)	$ 211,000

XML

Note 4 - Discontinued Operations (Details) (USD $)	1 Months Ended		3 Months Ended	9 Months Ended
	Oct. 31, 2012	Sep. 30, 2010	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax		$ (2,650,000)		$ 1,309,424	$ (68,511)
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax		(900,000)	(22,837)	1,309,424	(68,511)
Bankruptcy Claims, Amount Paid to Settle Claims	625,000
Debtor Reorganization Items, Gain (Loss) on Settlement of Other Claims, Net	$ 1,309,424

XML

Note 10 - Stockholders' Equity (Details) (USD $)	1 Months Ended																		9 Months Ended
	Jun. 30, 2013	Feb. 28, 2013	Jan. 31, 2013	Dec. 31, 2012	Nov. 30, 2012	Oct. 31, 2012	Sep. 30, 2012	Aug. 31, 2012	Jul. 31, 2012	Jun. 30, 2012	May 31, 2012	Apr. 30, 2012	Mar. 31, 2012	Feb. 28, 2012	Jan. 31, 2012	Dec. 31, 2011	Nov. 30, 2011	Oct. 31, 2011	Jun. 30, 2013	Feb. 25, 2013	Sep. 26, 2012
Note 10 - Stockholders' Equity (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	150,000,000	150,000,000	247,424,242		183,029,958	988,923,568				14,084,507	6,360,000	3,461,538	3,142,857	2,400,000		12,831,591	5,352,941	8,896,394
Debt Conversion, Converted Instrument, Amount (in Dollars)										$ 10,000	$ 11,000	$ 9,000	$ 11,000	$ 12,000		$ 50,000	$ 27,000	$ 48,000
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued				99,249,999	151,500,000	150,807,692												500,000
Stock Issued During Period, Shares, New Issues																90,000,000	10,268,342
Common Stock, Shares Authorized	5,000,000,000						5,000,000,000					80,000,000					2,000,000,000		5,000,000,000		5,000,000,000
Preferred Stock, Shares Authorized	5,000,000,000						5,000,000,000										2,000,000,000		5,000,000,000		5,000,000,000
Stock Issued During Period, Shares, Issued for Services			41,000,000	99,249,999	151,500,000	150,807,692				30,878,777	25,412,821	20,000,000		750,000	151,500,000
Stock Issued During Period, Shares, in Association with New Debt			30,000,000				177,002,028	193,846,154	168,289,206	75,000,000	35,000,000			95,000,000
Term of Warrant											10			10
Class of Warrant or Right, Number of Securities Called by Warrants or Rights											170,000,000			100,000,000
Debt Conversion, Converted Instrument Related Party, Shares Issued										21,830,956
Stock Issued During Period, Shares, Issued as Payment for Interest on Debt								18,380,744
Preferred Stock, Shares Issued	4,000,000,000						2,000,000,000												4,000,000,000	2,000,000,000
Preferred Stock, Voting Rights																			one
Conversion of Related Party Debt [Member]
Note 10 - Stockholders' Equity (Details) [Line Items]
Debt Conversion, Converted Instrument, Amount (in Dollars)																$ 682,500
Common Stock, Shares Authorized																60,000,000

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Note 8 - Commitments and Contingencies (Tables)

9 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Period ended June 30,
2014	$	254,096
2015		260,448
2016		266,959
2017		273,633
2018		280,474
Thereafter		3,099,663
	$	4,435,273

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Statement of Changes in Stockholders Equity (Unaudited) (USD $)	Preferred Stock [Member]	Common Stock [Member]	Subscription Receivable [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balances, October 1, 2012 at Sep. 30, 2012	$ 20,000	$ 1,658,328		$ 20,223,672		$ (16,304,636)
Balances, October 1, 2012 (in Shares) at Sep. 30, 2012	2,000,000,000	1,658,327,831
Issuance of shares in satisfaction of debt		1,171,954		(966,954)		205,000
Issuance of shares in satisfaction of debt (in Shares)		1,171,953,526
Issuance of convertible debt				31,500		31,500
Issuance of shares for services		401,557		(243,875)		157,682
Issuance of shares for services (in Shares)		401,557,691
Issuance of Warrants			(66,000)	66,000
Sale of Stock	20,000					20,000
Sale of Stock (in Shares)	2,000,000,000
Balances, June 30, 2013 at Dec. 31, 2012
Balances, October 1, 2012 at Sep. 30, 2012					(38,206,636)	(16,304,636)
Net income for the nine months ended June 30, 2013					12,489,634	12,489,634
Sale of Stock						40,000
Balances, June 30, 2013 at Jun. 30, 2013	40,000		(66,000)		(25,717,002)	(2,812,810)
Balances, June 30, 2013 (in Shares) at Jun. 30, 2013	4,000,000,000
Balances, October 1, 2012 at Dec. 31, 2012
Issuance of shares in satisfaction of debt		547,424		(506,924)		40,500
Issuance of shares in satisfaction of debt (in Shares)		547,424,242
Issuance of shares for new debt		30,000		(24,000)		6,000
Issuance of shares for new debt (in Shares)		30,000,000
Issuance of shares for services		41,000		(32,800)		8,200
Issuance of shares for services (in Shares)		41,000,000
Issuance of warrants associated with new debt				426,010		426,010
Issuance of warrants for services				107,300		107,300
Sale of Stock						40,000
Balances, June 30, 2013 at Jun. 30, 2013	$ 40,000	$ 3,850,263	$ (66,000)	$ 19,079,929		$ (2,812,810)
Balances, June 30, 2013 (in Shares) at Jun. 30, 2013	4,000,000,000	3,850,263,290

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Note 1 - Description of Business

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Business Description and Basis of Presentation [Text Block]

1.     Description of business:

Bulova Technologies Group, Inc. ("BLVT" or the "Company") was originally incorporated in Wyoming in 1979 as “Tyrex Oil Company”. During 2007, the Company divested itself of all assets and previous operations.  During 2008, the Company filed for domestication to the State of Florida, and changed its name to Bulova Technologies Group, Inc. and changed its fiscal year from June 30 to September 30. On January 1, 2009 the Company acquired the stock of a private company that was under common control and began operations in Florida. The Company operates as a government contractor in the United States. Headquarter facilities are in Tampa, Florida and its operating facilities were located in Mayo, Florida until the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC in October 2012.

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Note 4 - Discontinued Operations

9 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4.     Discontinued Operations

In June of 2010, because of continuing losses in our contract manufacturing business segment, the Company announced management’s decision to market BT Manufacturing Company LLC for sale. BT Manufacturing Company LLC, a wholly owned subsidiary of the Company represented our contract manufacturing segment. As a result of the decision to sell this business segment, the Company has identified the assets and liabilities of BT Manufacturing Company LLC as pertaining to discontinued operations at June 30 31, 2013 and September 30, 2012 and has segregated its operating results and presented them separately as a discontinued operation for all periods presented. 

In September 2010, the Company estimated a loss in the amount of $2,650,000 to be realized upon completion of the disposal of this business segment, as well as an estimated operating loss of $900,000 to be incurred during the phase-out period. During March 2011, the Company finalized its negotiations relative to the disposition of the assets of this operation with an effective date of December 31, 2010. As a part of this settlement, the buyer that acquired the operations has provided an earn out agreement to PNL Newco II LLC to assist in the payment of the remaining obligation on the note payable to them. 

In October of 2012, the Company negotiated a settlement with PNL Newco II LLC for complete satisfaction of this debt for $625,000. The transaction resulted in a gain of $1,309,424.

Summarized operating resultes for discontinued operations is as follows:

	NIne Months Ended
	June 30,
	2013		2012
Revenue	$	-	$	-
Cost of Sales		-		-
Gross profit		-		-
Operating expenses		-		(68,511	)
Other		1,309,424		-
Gain (Loss) to be recognized from discontinued operations		1,309,424		(68,511	)
Income tax benefit		-		-
Gain (loss) to be recognized from discontinued operations, net of tax	$	1,309,424	$	(68,511	)

The gain (loss) from discontinued operations above do not include any income tax effect as the Company was not in a taxable position due to its continued losses and a full valuation allowance

Summary of assets and liabilities of discontinued operations is as follows:

	June 30,		September 30,
	2013		2012
Accounts receivable	$	-	$	-
Inventory		-		-
Other current assets		-		-
Total current assets held for sale		-		-
Property plant and equipment - net		-		-
Other assets		-		-
Total assets from discontinued operations	$	-	$	-
Accounts payable and accrued expenses	$	-	$	351,054
Current portion of long-term debt		-		1,660,883
Provision for loss on disposal of business segment		-		-
Total current liabilities associated with discontinued operations		-		2,011,937
Long term debt, net of current portion		-		-
Total liabilities associated with discontinued operations	$	-	$	2,011,937

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Note 2 - Principles of consolidation and basis of presentation:

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

2.     Principles of consolidation and basis of presentation:

The accompanying consolidated balance sheet as of September 30, 2012, has been derived from audited financial statements. 

The unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s latest Form 10-K. 

On January 1, 2009, the Company acquired the stock of 3Si Holdings, Inc. (“3Si”) a privately held Florida corporation controlled by the majority stockholder of the Company in exchange for 40,000,000 shares of its  common stock. The assets and operations of 3Si have been accounted for in three operating subsidiaries, BT Manufacturing Company LLC, Bulova Technologies Ordnance Systems LLC, and Bulova Technologies (Europe) LLC (formerly Bulova Technologies Combat Systems LLC). 

BT Manufacturing Company LLC – prior to discontinuance, its operations were located in Melbourne, Florida, in a 35,000 square foot facility where it assembled a wide range of printed circuit board products. In June 2010, the Company determined to dispose of BT Manufacturing Company LLC, and as such has accounted for this business segment as a discontinued operation. Final settlement and disposition of this segment was accomplished during the quarter ended March 31, 2011.

Bulova Technologies Ordnance Systems LLC. – located on 261 acres in Mayo, Florida is a load, assembly, and pack facility specializing in fuzes, safe and arming devices and explosive simulators. Bulova Technologies Ordnance Systems LLC is registered with the United States Department of State Directorate of Defense Trade Controls (DDTC). It produces a variety of pyrotechnic devices, ammunition and other energetic materials for the U. S. Government and other allied governments throughout the world. In October 2012, the Company sold substantially all of the assets of this subsidiary to an unrelated party.

Bulova Technologies (Europe) LLC – located in the Company’s corporate headquarters in Tampa, Florida, this subsidiary was originally formed to administer an acquisition contract that Bulova Technologies Ordnance Systems LLC was awarded from the U.S. Department of Defense in January 2009. The Company has since changed the name to Bulova Technologies (Europe) LLC. It markets the Mortar Exchange program, which it helped develop, to facilitate the needs of NATO members and allied countries. It leases office space in Frankfurt, Germany to promote this program. The subsidiary is also looking to take advantage of the offset opportunities around the world through a joint venture, focusing, initially in the UAE and is administering non-standard ammo and non-standard weapons contracts through its blanket purchase agreements  with the U.S. Government

Bulova Technologies Machinery LLC – formed in July of 2013, Bulova Technologies Machinery LLC represents the Company’s entree into the machine tool business, and will import industrial machine tools and related equipment from recognized international sources, and establish a Distributor / Dealer network throughout the United States and Canada. This subsidiary has not yet begun its operations as of the date of this report.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2013 and the results of operations and cash flows for the three and nine months ended June 30, 2013 and 2012.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Subsequent Events

The Company has evaluated subsequent events through August 7, 2013, to assess the need for potential recognition or disclosure in this report.  Based upon this evaluation, management determined that all subsequent events that require recognition in the financial statements have been included.

Business Segments

Commencing with the Company’s acquisition of 3Si Holdings, Inc. in January of 2009, the Company operated in two business segments, government contracting and contract manufacturing.  With the Company’s disposal of BT Manufacturing Company LLC, the Company is no longer operating more than one business segment as all efforts of the company are now focused on Department of Defense contracting

Use of Estimates

The preparation of the Company's financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.

Financial Instruments

The carrying amounts of cash, receivables and current liabilities approximated fair value due to the short-term maturity of the instruments. Debt obligations were carried at cost, which approximated fair value due to the prevailing market rate for similar instruments.

Fair Value Measurement

All financial and nonfinancial assets and liabilities were recognized or disclosed at fair value in the financial statements. This value was evaluated on a recurring basis (at least annually). Generally accepted accounting principles in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on a measurement date. The accounting principles also established a fair value hierarchy which required an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs were used to measure fair value.

Level 1: Quotes market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that were corroborated by market data.

Level 3: Unobservable inputs that were not corroborated by market data.

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains its cash deposits in major financial institutions in the United States. At times deposits within a bank may exceed the amount of insurance provided on such deposits. Generally, these deposits are redeemed upon demand and, therefore, are considered by management to bear minimal risk.

Accounts receivable

Accounts receivable represent amounts due from customers in the ordinary course of business. The Company considers accounts more than 90 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. The Company generally does not require collateral for its accounts receivable.The Company considers all accounts receivable to be collectable and consequently has provided no allowance for doubtful accounts.

The majority of the Company’s revenues and accounts receivable pertain to contracts with the US Government.

Inventory

Inventory is stated at the lower of cost (first-in, first-out) or market. Market was generally considered to be net realizable value. Inventory consisted of materials used to manufacture the Company’s products work in process and finished goods ready for sale.

The breakdown of inventory at June 30, 2013 and September 30, 2012 is as follows:

	June 30,		September 30,
	2013		2012
Finished goods	$	-	$	-
Work in process		-		-
Materials and supplies		-		1,023,980
Total inventory		-		1,023,980
Less inventory classified as discontinued operations		-		-
Total inventory of continuing operations	$	-	$	1,023,980

Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed by applying principally the straight-line method to the estimated useful lives of the related assets. Useful lives range from 10 to 20 years for buildings and improvements and 5 to 10 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. When property or equipment is retired or otherwise disposed of, the net book value of the asset is removed from the Company’s balance sheet and the net gain or loss is included in the determination of operating income. Property, plant and equipment acquired as part of a business acquisition are valued at fair value.

Property, plant and equipment are comprised of the following at June 30, 2013 and September 30, 2012

	June 30,			September 30,
	2013			2012
Land	$	-		$	1,225,000
Buildings and improvements		-			1,170,194
Machinery and equipment		-			752,554
Funiture, fixtures and leasehold improvements		45,735			45,735
		45,735			3,193,483
Less accumulated depreciation		(21,102	)		(718,555	)
Net Property, plant and equipment		24,633			2,474,928
Less property, plant and equipment from discontinued operations		-			-
Net property, plant and equipment of continuing operations	$	24,633		$	2,474,928

Impairment of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets at least annually. Impairment losses were recorded on long-lived assets used in operations when indicators of impairment were present and the undiscounted future cash flows estimated to be generated by those assets were less than the assets’ carrying amount. If such assets were impaired, the impairment to be recognized was measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of were reported at the lower of the carrying value or fair value, less costs to sell.

Discontinued Operations

In accordance with ASC 205-20, Presentation of Financial Statements-Discontinued Operations (“ASC 205-20”), we reported the results of BT Manufacturing Company LLC, our contract manufacturing segment as a discontinued operation. The application of ASC 205-20 is discussed in Note 5 “Discontinued Operations”

Revenue Recognition

Sales revenue is generally recognized upon the shipment of product to customers or the acceptance by customers of the product. Allowances for sales returns, rebates and discounts are recorded as a component of net sales in the period the allowances were recognized. The majority of the Company’s revenue is generated under various fixed and variable price contracts as follows:

Revenues on fixed-price type contracts are recognized using the Percentage-Of-Completion (POC) method of accounting as specified in government contract accounting standards and the particular contract. Revenues earned on fixed-price production contracts under which units are produced and delivered in a continuous or sequential process are recognized as units are delivered based on their contractual selling prices (the “Units-of-Delivery” basis of determination). Sales and profits on each fixed-price production contract under which units are not produced in a continuous or sequential process are recorded based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract revenue, less cumulative sales recognized in prior periods (the “Cost-to-Cost” basis of determination). Under both types of basis for determining revenue earned, a single estimated total profit margin is used to recognize profit for each contract over its entire period of performance, which can exceed one year. The estimated total profit margin is evaluated on a periodic basis by management throughout the term of an individual contract to determine if the estimated total profit margin should be adjusted.

The Company has certain contracts with the U.S. Government that are funded through “Performance-Based-Payments”. Performance-based-payments are a method of financing designed by the Government to facilitate the accomplishment of the terms of the contract, and are not payments for accepted items. These financing payments are designed as a funding mechanism to facilitate production and may be made based on performance measured by objective, the accomplishment of defined events, or other quantifiable measures of results. As units are delivered and invoiced, the U.S. Government withholds 90% of the invoiced amount as repayment of the contract financing advances.

Cost of Revenues

The costs of revenues include direct materials and labor costs, and indirect labor associated with production and shipping costs.

Advertising Costs

The costs of advertising are expensed as incurred and are included in the Company’s operating expenses. The Company did not incur any advertising expenses for the three and nine months ended June 30, 2013 and 2012.

Shipping Costs

The Company includes shipping costs in cost of goods sold.

Income Taxes

Income tax benefits or provisions are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities were recovered or settled. Deferred tax assets were also recognized for operating losses that were available to offset future taxable income and tax credits that were available to offset future federal income taxes, less the effect of any allowances considered necessary. The Company follows the guidance provided by FIN 48, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions.

Loss per Common Share

Basic net loss per share includes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. As of March 31, 2013, there were 9,581,098,593 common stock equivalents that were anti-dilutive and were not included in the calculaton.

Effect of Recent Accounting Pronouncements

The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to June 30, 2013 through the date these financial statements were issued.

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Note 8 - Commitments and Contingencies (Details) - The Company’s commitments for minimum lease payments under these operating leases for the next five (USD $) In Millions, unless otherwise specified	Jun. 30, 2013
The Company’s commitments for minimum lease payments under these operating leases for the next five [Abstract]
2014	$ 254,096
2015	260,448
2016	266,959
2017	273,633
2018	280,474
Thereafter	3,099,663
	$ 4,435,273

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Note 2 - Principles of consolidation and basis of presentation: (Details) - Inventory (USD $)	Jun. 30, 2013	Sep. 30, 2012
Inventory [Abstract]
Finished goods	$ 0	$ 0
Materials and supplies		1,023,980
Total inventory		1,023,980
Less inventory classified as discontinued operations	0	0
Total inventory of continuing operations		$ 1,023,980

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Note 4 - Discontinued Operations (Details) - Operating Results For Discontinued Operations (USD $)	1 Months Ended	9 Months Ended
	Sep. 30, 2010	Jun. 30, 2013	Jun. 30, 2012
Operating Results For Discontinued Operations [Abstract]
Operating expenses			$ (68,511)
Other		1,309,424
Gain (Loss) to be recognized from discontinued operations		1,309,424	(68,511)
Income tax benefit		0	0
Gain (loss) to be recognized from discontinued operations, net of tax	$ (2,650,000)	$ 1,309,424	$ (68,511)

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Note 6 - Long Term Debt (Details) - Principal Maturities Of Long Term Debt (USD $)	Jun. 30, 2013
Principal Maturities Of Long Term Debt [Abstract]
2014	$ 2,181,152
2015	138,441
	$ 2,319,593

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Note 12 - Subsequent Events (Details)	1 Months Ended		0 Months Ended
	Dec. 31, 2011	Nov. 30, 2011	Jul. 11, 2013 Subsequent Event [Member]
Note 12 - Subsequent Events (Details) [Line Items]
Stock Issued During Period, Shares, New Issues	90,000,000	10,268,342	150,000,000

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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Preferred stock par value (in Dollars per share)	$ 0.00001	$ 0.00001
Preferred stock shares authorized	5,000,000,000	5,000,000,000
Preferred stock shares issued	4,000,000,000	2,000,000,000
Preferred stock shares outstanding	4,000,000,000	2,000,000,000
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	5,000,000,000	5,000,000,000
Common stock shares issued	3,850,263,290	1,658,327,831
Common stock shares outstanding	3,850,263,290	1,658,327,831

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Note 7 - Income Taxes

9 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

7.     Income Taxes

Deferred income taxes are the result of timing differences between book and tax basis of certain assets and liabilities, timing of income and expense recognition of certain items and net operating loss carry forwards. The Company evaluates temporary differences resulting from the different treatment of items for tax and accounting purposes and records deferred tax assets and liabilities on the balance sheet using the tax rates expected when the temporary differences reverse.

On January 1, 2009 the Company acquired for stock of 3SI Holdings in exchange for shares of the Company's common stock. For income tax purposes this transaction has been treated as tax free reorganization under the provisions of Section 368A of the Internal Revenue Code. 3SI Holdings had various net operating loss carryovers. Because of the change in ownership of 3SI Holdings, the net operating loss carry-overs will transfer to the Company. The transferred net operating losses are subject to an annual limitation under the provisions of Section 382 of the Internal Revenue Code to offset future taxable income of the Company. 

The Company has previously recognized an income tax benefit for its operating losses generated since inception through September 30 2012 based on uncertainties concerning its ability to generate taxable income in future periods. Based on current events management has re-assessed the valuation allowance and the recognition of the deferred tax assets attributable to the net operating losses and other assets. Based on the Company’s history of losses and other negative evidence, the Company has determined that the valuation allowance should be increased accordingly to offset the entire deferred tax asset. 

As of September 30, 2012 the Company had federal net operating loss carry forwards of approximately $24,160,000 and Florida net operating loss carry forwards of approximately $23,926,000. The federal net operating loss carry forwards will expire in 2020 through 2032 and state net operating loss carry forwards that will expire in 2028 through 2032. 

The income tax rate computed using the federal statutory rates is reconciled to the reported effective income tax rate as follows: 

Continuing Operations	6/30/13			9/30/2012
Expected provision at US statutory rate		34.00	%		34.00	%
State income tax net of federal benefit		3.63	%		3.63	%
Permanent and Other Differences		-			-
Valuation Allowance		(37.63	)%		(37.63	%)
Effective Income Tax Rate	$	-		$	-

The Company files income tax returns on a consolidated basis in the United States federal jurisdiction and the State of Florida. As of September 30, 2012, the tax returns for the Company for the years ending 2009 through 2011remain open to examination by the Internal Revenue Service and Florida Department of Revenue. In addition the tax returns related to 3SI remain open to federal and state examination for the periods ending June 2005 through 2008. The Company and its subsidiaries are not currently under examination for any period.

The Company has adopted a policy to recognize interest and penalties accrued related to unrecognized tax benefits in its income tax provision. The Company has evaluated its unrecognized tax benefits and determined that due to the NOL carry forwards, that no accrual of interest and penalties is required in the current period.

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net Income (loss)	$ 12,489,634	$ (6,021,628)
(Income) Loss from discontinued operations	(1,309,424)	68,511
Income (Loss) from continuing operations	11,180,210	(5,953,117)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	453,648	1,676,065
Stock based payment for services	273,182	2,265,939
Gain from change in accounting estimate	(6,071,700)
(Gain) from settlement of debt	(356,765)
Loss on sale of note receivable	156,710
(Gain) on sale of assets	(6,153,177)
Changes in operating assets and liabilities
Accounts receivable	112,005	85,201
Inventory	55,404	(275,424)
Prepaid expenses and other assets	(105,287)	79,810
Accounts payable and accrued expenses	(143,483)	271,608
Advance payments and billings in excess of costs		(370,980)
Net cash flows from operating activities – continuing operations	(599,253)	(2,220,898)
Net cash flows from operating activities – discontinued operations	(1,309,424)
Net cash flows from operating activities	(1,908,677)	(2,220,898)
Cash flows from investing activities:
Proceeds from sale of assets	9,547,580
Proceeds from sale of note receivable	250,000
Purchase of property and equipment		(1,000)
Principle collections on note receivable	3,831
Net cash flows from investing activities – continuing operations	9,801,411	(1,000)
Net cash flows from investing activities – discontinued operations	0	0
Net cash flows from investing activities	9,801,411	(1,000)
Cash flows from financing activities:
Proceeds from sale of preferred shares	20,000
Repayment of Shareholder loans	(244,488)	(146,063)
Increases in long term debt	1,623,673	2,355,000
Repayment of long term debt	(9,277,836)	(122,575)
Net cash flows from financing activities – continuing operations	(7,878,651)	2,086,362
Net cash flows from financing activities – discontinued operations	0	0
Net cash flows from financing activities	(7,878,651)	2,086,362
Increase (decrease) in cash and cash equivalents	14,083	(135,536)
Cash and cash equivalents, beginning	29,034	169,499
Cash and cash equivalents, ending	43,117	33,963
Cash paid for interest	2,476	72,094
Cash paid for taxes	$ 0	$ 0

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Consolidated Balance Sheets (Current Period Unaudited) (USD $)	Jun. 30, 2013	Sep. 30, 2012
ASSETS
Cash and equivalents	$ 43,117	$ 29,034
Accounts receivable		112,005
Contract claim receivable	0	0
Inventory		1,023,980
Other current assets	153,621	48,334
Total current assets	196,738	1,213,353
Property, plant and equipment	24,633	2,474,928
Other assets	240,617	27,461
Total Assets	461,988	3,715,742
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	397,463	423,102
Accrued expenses	355,707	7,202,905
Advance payments and billings in excess of cost		666,490
Current portion of long term debt	2,181,152	8,386,675
Current liabilities associated with discontinued operations		2,011,937
Total current liabilities	2,934,322	18,691,109
Shareholder loans and accrued interest	202,035	185,195
Long term debt, net of current portion	138,441	1,144,074
Total liabilities	3,274,798	20,020,378
Shareholders’ deficit:
Preferred stock, $.00001 par, authorized 5,000,000,000 shares; 4,000,000,000 and 2,000,000,000 issued and outstanding at June 30, 2013 and September 30, 2012	40,000	20,000
Common stock, $.001 par; authorized 5,000,000,000 shares; 3,850,263,290 and 1,658,327,831 issued and outstanding at June 30, 2013 and September 30, 2012	3,850,263	1,658,328
Subscription receivable - warrants	(66,000)
Additional paid in capital in excess of par	19,079,929	20,223,672
Retained deficit	(25,717,002)	(38,206,636)
Total shareholders’ deficit	(2,812,810)	(16,304,636)
Total liabilities and shareholders’ equity	$ 461,988	$ 3,715,742

XML

Note 2 - Principles of consolidation and basis of presentation: (Details) - Property, Plant and Equipment (USD $)	Jun. 30, 2013	Sep. 30, 2012
Property, Plant and Equipment [Line Items]
Land		$ 1,225,000
Buildings and improvements		1,170,194
Machinery and equipment		752,554
Funiture, fixtures and leasehold improvements	45,735	45,735
	45,735	3,193,483
Less accumulated depreciation	(21,102)	(718,555)
Net Property, plant and equipment	24,633	2,474,928
Less property, plant and equipment from discontinued operations	0	0
Net property, plant and equipment of continuing operations	24,633	2,474,928
Total Operations [Member]
Property, Plant and Equipment [Line Items]
Net Property, plant and equipment	24,633	2,474,928
Net property, plant and equipment of continuing operations	24,633	2,474,928
Continuing Operations [Member]
Property, Plant and Equipment [Line Items]
Net Property, plant and equipment	24,633	2,474,928
Net property, plant and equipment of continuing operations	$ 24,633	$ 2,474,928

XML

Note 6 - Long Term Debt (Tables)

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Schedule of Debt [Table Text Block]

	June 30, 2013		September 30, 2012
Promissory note payable to Webster Business Capital Corporation, dated December 16, 2008, in the original amount of $825,000 payable in full on June 30, 2009, with interest at 4.5% annually. This note was not repaid and is still outstanding as of the issuance of these financial statements. This note is secured by a lien on real estate, timber rights and certain equipment with net carrying values of approximately $2,000,000 at September 30, 2012.	$	-	$	825,000
Mortgage payable to Bank of America, dated March 10, 2006, in the original amount of $840,000 payable in monthly fixed principal payments of $4,667 plus variable interest at 2.5% plus the banks index rate, secured by real estate with carrying values of approximately $1,500,000 at September 30, 2012. Final payment is due on March 10, 2021.		-		480,666
Note payable to Harold L. and Helene M. McCray, dated October 19, 2005, in the original amount of $1,070.000, bearing interest at 8% per annum, payable in monthly installments of $10,225.48 secured by land and buildings with carrying values of approximately $1,500,000 at September 30, 2012. Final payment is due on December 1, 2020.		-		776,116
Note payable to Edward Viola, dated October 19, 2005, in the original amount of $80,000, bearing interest at 8% per annum, payable in monthly installments of $764.52. Final payment is due on December 1, 2020.		-		54,880
Note payable to PNL Newco II, LLC, dated December 22, 2009, in the original amount of $2,000,000, payable in monthly fixed principal payments of $42,000 plus variable interest at LIBOR plus 5% with a minimum rate of 5.5%, secured by an earn out agreement with the party that acquired all of the personal property of the discontinued operations of BT Manufacturing Company, LLC. Final balloon payment is due December 22, 2011.		-		1,660,883
Convertible Note payable to GovFunding, LLC, dated February 4, 2011, in the amount of $3,158,000 bearing interest at 18%., secured by a lock box agreement tied to the proceeds of a single government contract with a carrying value of approximately $2,600,000 at September 30, 2012. Final payment is due January 31, 2012.		-		3,158,000
Convertible Note payable to GovFunding, LLC dated May 25, 2011 in the amount of $220,000, bearing interest at 18%. with a maturity date of April 30, 2012.		-		220,000
Convertible Note payable to GovFunding LLC dated June 23, 2011 in the amount of $133,000, bearing interest at 18%. with a maturity date of June 30, 2012.		-		133,000

Note payable to GovFunding LLC dated July 14, 2011 in the amount of $105,000, bearing interest at 18%. with a maturity date of August 1, 2011.	-	105,000
Convertible Note payable to GovFunding LLC dated August 1, 2011 in the amount of $128,000, bearing interest at 18%. with a maturity date of April 30, 2012.	-	128,000
Convertible Note payable to GovFunding LLC dated August 9, 2011 in the amount of $250,000, bearing interest at 18%. with a maturity date of June 30, 2012.	-	250,000
Convertible Note payable to GovFunding LLC dated August 30, 2011 in the amount of $110,000, bearing interest at 18%. with a maturity date of June 30, 2012.	-	110,000
Convertible Note payable to Asher Enterprises, Inc. dated May 15, 2012 in the original amount of $22,500 net of discount of $0, bearing interest at 8% with a maturity date of February 21, 2013.	-	25,032
Convertible Note payable to Asher Enterprises, Inc. dated July 16, 2012 in the original amount of $14,500 , bearing interest at 8% with a maturity date of April 19, 2013.	14,500	21,888
Note payable to Keehan Trust Funding, LLC dated January 19, 2012 in the amount of $1,550,000, bearing interest at the rate of 10%. This note is secured by the assignment of the proceeds of a government contract with a value in excess of $4,700,000 as of December 31, 2012. Final payment due upon delivery	700,000	1,550,000
Note payable to GovFunding LLC dated March 30, 2012 in the amount of $100,000, bearing interest at 18%. Final payment was due June 1, 2012	-	100,000
Note payable to Keehan Trust Funding, LLC dated March 30, 2012 with a maximum amount of $653,731, bearing interest as the rate of 10%. This note is secured by the assignment of the proceeds of certain government contracts with a value in excess of $850,000 as of December 31, 2012	-	285,000
Convertible Note payable to an individual dated May 4, 2012 in the amount of $25,000, bearing interest at 18% with a maturity date of July 31, 2012.	-	25,000
Convertible Note payable to an individual dated May 4, 2012 in the amount of $25,000, bearing interest at 18% with a maturity date of July 31, 2012.	-	25,000
Note payable to GovFunding LLC dated May 11, 2012 in the amount of $200,000, bearing interest at 12% with a maturity date of July 31, 2012	-	200,000

Convertible Note payable to an individual dated May 25, 2012 in the amount of $100,000, bearing interest at 18% with a maturity date of August 25, 2012.	-	100,000
Note payable to Keehan Trust Funding, LLC, dated June 1, 2012 in the amount of $700,000, bearing interest at the rate of 10%. This note is secured by the assignment of the proceeds of certain government contracts with a value in excess of $2,400,000 as of December 31, 2012. Final payment due November 30, 2012.	-	700,000
Convertible Note payable to an individual dated August 15, 2012 in the amount of $5,000 net of discount of $568, bearing interest at 18% with a maturity date of October 31, 2012.	-	4,432
Convertible Note payable to an individual dated May 25, 2012 in the amount of $10,000 net of discount of $1,265, bearing interest at 18% with a maturity date of October 31, 2012.	-	8,735
Note payable to GovFunding LLC dated August 7, 2012 in the amount of $245,000, bearing interest at 18%. Final payment due October 15, 2012	-	245,000
Convertible Note payable to Asher Enterprises, Inc. dated November 7, 2012 in the original amount of $37,500 net of discount of $2,455, bearing interest at 8% with a maturity date of August 9, 2013.	35,045	-
Note payable to GovFunding, LLC dated October 24, 2012 in the amount of $553,763, bearing interest at 8%, payable quarterly principal of $69,220.38 plus accrued interest, with a maturity of October 24, 2014.	553,763	-
Note payable to an individual dated December 21, 2012 in the amount of $60,000, bearing interest at 8%, with a maturity date of February 1, 2013	60,000	-
Note payable to NFC III LLC dated February 25, 2013 in the amount of $400,000 bearing interest at 10%, with a maturity date of November 25, 2013	400,000	-
Note payable to an individual dated January 25, 2013 in the amount of $50,000 bearing interest at 7%, with a maturity of June 30, 2013	50,000	-
Note payable to GovFunding LLC dated January 1, 2013 in the amount of $30,000, bearing interest at 8%, with a maturity date of December 31, 2013.	30,000	-
Note payable to GovFunding LLC dated January 1, 2013 in the amount of $24,552 bearing interest at 8%, with a maturity of December 31, 2013	24,552	-
Convertible Note payable to Asher Enterprises, Inc. dated February 28, 2013 in the original amount of $32,500 net of discount of $9,839, bearing interest at 8% with a maturity date of December 4, 2013	22,661	-
Note payable to an individual dated April 30, 2013 in the amount of $60,000 non-interest bearing with a maturity of December 31, 2013	60,000	-

Note payable to an individual dated April 30, 2013 in the amount of $26,269, non-interest bearing with a maturity of July 31, 2013		26,269			-
Note payable to Yellowstone Capital dated June 19, 2013 in the amount of $30,000 with no stipulated interest rate, payable through 80 daily payments of $500.		30,000			-
Revolving credit line payable to NFC III LLC bearing interest at 10%, payable on demand		312,803			-
		2,319,593			11,191,632
Less current portion pertaining to continuing operations		(2,181,152	)		(8,386,675	)
Less current portion associated with discontinued operations		-			(1,660,883	)
	$	138,441		$	1,144,074

Schedule of Maturities of Long-term Debt [Table Text Block]

Period ended June 30,
2014	$	2,181,152
2015		138,441
2016		-
2017		-
2018		-
Thereafter		-
	$	2,319,593

XML

Note 11 - Change in Accounting Estimate (Details) (Terminated by Government Before Completion [Member], USD $)	Jun. 30, 2013
Terminated by Government Before Completion [Member]
Note 11 - Change in Accounting Estimate (Details) [Line Items]
Accrued Liabilities	$ 6,071,700

XML

Note 7 - Income Taxes (Details) - Income Tax Reconciliation	9 Months Ended	12 Months Ended
	Jun. 30, 2013	Sep. 30, 2012
Income Tax Reconciliation [Abstract]
Expected provision at US statutory rate	34.00%	34.00%
State income tax net of federal benefit	3.63%	3.63%
Permanent and Other Differences	0.00%	0.00%
Valuation Allowance	(37.63%)	(37.63%)
Effective Income Tax Rate	0.00%	0.00%

XML

Note 6 - Long Term Debt (Details) - Long Term Debt (USD $)	Jun. 30, 2013	Sep. 30, 2012
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	$ 2,319,593	$ 11,191,632
Less current portion pertaining to continuing operations	(2,181,152)	(8,386,675)
Less current portion associated with discontinued operations		(1,660,883)
	138,441	1,144,074
Promissory note payable to Webster Business Capital Corporation dated December 16, 2008 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		825,000
Mortgage payable to Bank of America dated March 10, 2006 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		480,666
Note payable to Harold L. and Helene M. McCray dated October 19, 2005 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		776,116
Note payable to Edward Viola dated October 19, 2005 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		54,880
Note payable to PNL Newco II, LLC dated December 22, 2009 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		1,660,883
Note payable to GovFunding, LLC dated February 4, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		3,158,000
Convertible note payable to GovFunding, LLC dated May 25, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		220,000
Convertible note payable to GovFunding LLC dated June 23, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		133,000
Note Payable to GovFunding LLC Dated July 14, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		105,000
Convertible Note Payable to GovFunding LLC Dated August 1, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		128,000
Convertible Note Payable to GovFunding LLC Dated August 9, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		250,000
Convertible Note Payable to GovFunding LLC Dated August 30, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		110,000
Convertible Note Payable to Asher Enterprises Inc Dated May 15, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		25,032
Convertible Note Payable to Asher Enterprises Inc Dated July 16, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	14,500	21,888
Note Payable to Keehan Trust Funding LLC Dated January 19, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	700,000	1,550,000
Note Payable to GovFunding LLC Dated March 30, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		100,000
Note Payable to Keehan Trust Funding LLC Dated March 30, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		285,000
Convertible Note Payable Dated May 4, 2012 for $25,000 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		25,000
Note Payable to GovFunding LLC Dated May 11, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		200,000
Convertible Note Payable to Individual Dated May 25, 2012 for $100,000 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		100,000
Note Payable to Keehan Trust Funding LLC Dated June 1, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		700,000
Convertible Note Payable to Individual Dated August 15, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		4,432
Convertible Note Payable to Individual Dated May 25, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		8,735
Note Payable to GovFunding LLC Dated August 7, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		245,000
Convertible Note Payable to Asher Enterprises Inc Dated November 7, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	35,045
Note Payable to GovFunding LLC Dated October 24, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	553,763
Note Payable to Individual Dated December 21, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	60,000
Note Payable to NFC III LLC on February 25, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	400,000
Note Payable to an Individual on January 25, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	50,000
Note Payable to GovFunding LLC on January 1, 2013 for $30,000 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	30,000
Note Payable to GovFunding LLC on January 1, 2013 for $24,552 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	24,552
Convertible Note Payable to Asher Enterprises Dated February 28, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	22,661
Note Payable to an Individual Maturity of December 31, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	60,000
Note Payable to an Individual Maturity of July 31, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	26,269
Note Payable to Yellowstone Capital Dated June 19, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	30,000
Revolving Credit Line Payable to NFC III LLC [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	$ 312,803

XML

Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) (USD $)	9 Months Ended	12 Months Ended
	Jun. 30, 2013	Sep. 30, 2012
Promissory note payable to Webster Business Capital Corporation dated December 16, 2008 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	4.50%	4.50%
Security		$2,000,000
Original loan amount	$ 825,000	$ 825,000
Mortgage payable to Bank of America dated March 10, 2006 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Security		$1,500,000
Original loan amount	840,000	840,000
Monthly principal payments	4,667	4,667
Note payable to Harold L. and Helene M. McCray dated October 19, 2005 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%	8.00%
Security		$1,500,000
Original loan amount	1,070,000	1,070,000
Monthly payments	10,225.48	10,225.48
Note payable to Edward Viola dated October 19, 2005 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%	8.00%
Original loan amount	80,000	80,000
Monthly payments	764.52	764.52
Note payable to PNL Newco II, LLC dated December 22, 2009 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	5.50%	5.50%
Original loan amount	2,000,000	2,000,000
Monthly principal payments	42,000	42,000
Note payable to GovFunding, LLC dated February 4, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Security		$2,600,000
Original loan amount	3,158,000
Convertible note payable to GovFunding, LLC dated May 25, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%	18.00%
Original loan amount	220,000	220,000
Convertible note payable to GovFunding LLC dated June 23, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Original loan amount	133,000	133,000
Note Payable to GovFunding LLC Dated July 14, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%	18.00%
Original loan amount	105,000	105,000
Convertible Note Payable to GovFunding LLC Dated August 1, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%	18.00%
Original loan amount	128,000	128,000
Convertible Note Payable to GovFunding LLC Dated August 9, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%	18.00%
Original loan amount	250,000	250,000
Convertible Note Payable to GovFunding LLC Dated August 30, 2011 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%	18.00%
Original loan amount	110,000	110,000
Convertible Note Payable to Asher Enterprises Inc Dated May 15, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	22,500
Debt discount	0
Convertible Note Payable to Asher Enterprises Inc Dated July 16, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	14,500
Note Payable to Keehan Trust Funding LLC Dated January 19, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	10.00%
Original loan amount	1,550,000
Colateral	4,700,000
Note Payable to GovFunding LLC Dated March 30, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Original loan amount	100,000
Note Payable to Keehan Trust Funding LLC Dated March 30, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	10.00%
Original loan amount	653,731
Colateral	850,000
Convertible Note Payable Dated May 4, 2012 for $25,000 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Original loan amount	25,000
Note Payable to GovFunding LLC Dated May 11, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	12.00%
Original loan amount	200,000
Convertible Note Payable to Individual Dated May 25, 2012 for $100,000 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Original loan amount	100,000
Note Payable to Keehan Trust Funding LLC Dated June 1, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	10.00%
Original loan amount	700,000
Colateral	2,400,000
Convertible Note Payable to Individual Dated August 15, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Original loan amount	5,000
Debt discount	568
Convertible Note Payable to Individual Dated May 25, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Original loan amount	10,000
Debt discount	1,265
Note Payable to GovFunding LLC Dated August 7, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	18.00%
Original loan amount	245,000
Convertible Note Payable to Asher Enterprises Inc Dated November 7, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	37,500
Debt discount	2,455
Note Payable to GovFunding LLC Dated October 24, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	553,763
Monthly principal payments	69,220.38
Note Payable to Individual Dated December 21, 2012 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	60,000
Note Payable to NFC III LLC on February 25, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	10.00%
Original loan amount	400,000
Note Payable to an Individual on January 25, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	7.00%
Original loan amount	50,000
Note Payable to GovFunding LLC on January 1, 2013 for $30,000 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	30,000
Note Payable to GovFunding LLC on January 1, 2013 for $24,552 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	24,552
Convertible Note Payable to Asher Enterprises Dated February 28, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Original loan amount	32,500
Debt discount	9,839
Note Payable to an Individual Maturity of December 31, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount	60,000
Note Payable to an Individual Maturity of July 31, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount	26,269
Note Payable to Yellowstone Capital Dated June 19, 2013 [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount	30,000
Monthly payments	$ 500
Revolving Credit Line Payable to NFC III LLC [Member]
Note 6 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	10.00%

XML

Note 6 - Long Term Debt

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

6.     Long Term Debt

Long term debt consisted of the following at:

	June 30, 2013		September 30, 2012
Promissory note payable to Webster Business Capital Corporation, dated December 16, 2008, in the original amount of $825,000 payable in full on June 30, 2009, with interest at 4.5% annually. This note was not repaid and is still outstanding as of the issuance of these financial statements. This note is secured by a lien on real estate, timber rights and certain equipment with net carrying values of approximately $2,000,000 at September 30, 2012.	$	-	$	825,000
Mortgage payable to Bank of America, dated March 10, 2006, in the original amount of $840,000 payable in monthly fixed principal payments of $4,667 plus variable interest at 2.5% plus the banks index rate, secured by real estate with carrying values of approximately $1,500,000 at September 30, 2012. Final payment is due on March 10, 2021.		-		480,666
Note payable to Harold L. and Helene M. McCray, dated October 19, 2005, in the original amount of $1,070.000, bearing interest at 8% per annum, payable in monthly installments of $10,225.48 secured by land and buildings with carrying values of approximately $1,500,000 at September 30, 2012. Final payment is due on December 1, 2020.		-		776,116
Note payable to Edward Viola, dated October 19, 2005, in the original amount of $80,000, bearing interest at 8% per annum, payable in monthly installments of $764.52. Final payment is due on December 1, 2020.		-		54,880
Note payable to PNL Newco II, LLC, dated December 22, 2009, in the original amount of $2,000,000, payable in monthly fixed principal payments of $42,000 plus variable interest at LIBOR plus 5% with a minimum rate of 5.5%, secured by an earn out agreement with the party that acquired all of the personal property of the discontinued operations of BT Manufacturing Company, LLC. Final balloon payment is due December 22, 2011.		-		1,660,883
Convertible Note payable to GovFunding, LLC, dated February 4, 2011, in the amount of $3,158,000 bearing interest at 18%., secured by a lock box agreement tied to the proceeds of a single government contract with a carrying value of approximately $2,600,000 at September 30, 2012. Final payment is due January 31, 2012.		-		3,158,000
Convertible Note payable to GovFunding, LLC dated May 25, 2011 in the amount of $220,000, bearing interest at 18%. with a maturity date of April 30, 2012.		-		220,000
Convertible Note payable to GovFunding LLC dated June 23, 2011 in the amount of $133,000, bearing interest at 18%. with a maturity date of June 30, 2012.		-		133,000

Note payable to GovFunding LLC dated July 14, 2011 in the amount of $105,000, bearing interest at 18%. with a maturity date of August 1, 2011.	-	105,000
Convertible Note payable to GovFunding LLC dated August 1, 2011 in the amount of $128,000, bearing interest at 18%. with a maturity date of April 30, 2012.	-	128,000
Convertible Note payable to GovFunding LLC dated August 9, 2011 in the amount of $250,000, bearing interest at 18%. with a maturity date of June 30, 2012.	-	250,000
Convertible Note payable to GovFunding LLC dated August 30, 2011 in the amount of $110,000, bearing interest at 18%. with a maturity date of June 30, 2012.	-	110,000
Convertible Note payable to Asher Enterprises, Inc. dated May 15, 2012 in the original amount of $22,500 net of discount of $0, bearing interest at 8% with a maturity date of February 21, 2013.	-	25,032
Convertible Note payable to Asher Enterprises, Inc. dated July 16, 2012 in the original amount of $14,500 , bearing interest at 8% with a maturity date of April 19, 2013.	14,500	21,888
Note payable to Keehan Trust Funding, LLC dated January 19, 2012 in the amount of $1,550,000, bearing interest at the rate of 10%. This note is secured by the assignment of the proceeds of a government contract with a value in excess of $4,700,000 as of December 31, 2012. Final payment due upon delivery	700,000	1,550,000
Note payable to GovFunding LLC dated March 30, 2012 in the amount of $100,000, bearing interest at 18%. Final payment was due June 1, 2012	-	100,000
Note payable to Keehan Trust Funding, LLC dated March 30, 2012 with a maximum amount of $653,731, bearing interest as the rate of 10%. This note is secured by the assignment of the proceeds of certain government contracts with a value in excess of $850,000 as of December 31, 2012	-	285,000
Convertible Note payable to an individual dated May 4, 2012 in the amount of $25,000, bearing interest at 18% with a maturity date of July 31, 2012.	-	25,000
Convertible Note payable to an individual dated May 4, 2012 in the amount of $25,000, bearing interest at 18% with a maturity date of July 31, 2012.	-	25,000
Note payable to GovFunding LLC dated May 11, 2012 in the amount of $200,000, bearing interest at 12% with a maturity date of July 31, 2012	-	200,000

Convertible Note payable to an individual dated May 25, 2012 in the amount of $100,000, bearing interest at 18% with a maturity date of August 25, 2012.	-	100,000
Note payable to Keehan Trust Funding, LLC, dated June 1, 2012 in the amount of $700,000, bearing interest at the rate of 10%. This note is secured by the assignment of the proceeds of certain government contracts with a value in excess of $2,400,000 as of December 31, 2012. Final payment due November 30, 2012.	-	700,000
Convertible Note payable to an individual dated August 15, 2012 in the amount of $5,000 net of discount of $568, bearing interest at 18% with a maturity date of October 31, 2012.	-	4,432
Convertible Note payable to an individual dated May 25, 2012 in the amount of $10,000 net of discount of $1,265, bearing interest at 18% with a maturity date of October 31, 2012.	-	8,735
Note payable to GovFunding LLC dated August 7, 2012 in the amount of $245,000, bearing interest at 18%. Final payment due October 15, 2012	-	245,000
Convertible Note payable to Asher Enterprises, Inc. dated November 7, 2012 in the original amount of $37,500 net of discount of $2,455, bearing interest at 8% with a maturity date of August 9, 2013.	35,045	-
Note payable to GovFunding, LLC dated October 24, 2012 in the amount of $553,763, bearing interest at 8%, payable quarterly principal of $69,220.38 plus accrued interest, with a maturity of October 24, 2014.	553,763	-
Note payable to an individual dated December 21, 2012 in the amount of $60,000, bearing interest at 8%, with a maturity date of February 1, 2013	60,000	-
Note payable to NFC III LLC dated February 25, 2013 in the amount of $400,000 bearing interest at 10%, with a maturity date of November 25, 2013	400,000	-
Note payable to an individual dated January 25, 2013 in the amount of $50,000 bearing interest at 7%, with a maturity of June 30, 2013	50,000	-
Note payable to GovFunding LLC dated January 1, 2013 in the amount of $30,000, bearing interest at 8%, with a maturity date of December 31, 2013.	30,000	-
Note payable to GovFunding LLC dated January 1, 2013 in the amount of $24,552 bearing interest at 8%, with a maturity of December 31, 2013	24,552	-
Convertible Note payable to Asher Enterprises, Inc. dated February 28, 2013 in the original amount of $32,500 net of discount of $9,839, bearing interest at 8% with a maturity date of December 4, 2013	22,661	-
Note payable to an individual dated April 30, 2013 in the amount of $60,000 non-interest bearing with a maturity of December 31, 2013	60,000	-

Note payable to an individual dated April 30, 2013 in the amount of $26,269, non-interest bearing with a maturity of July 31, 2013		26,269			-
Note payable to Yellowstone Capital dated June 19, 2013 in the amount of $30,000 with no stipulated interest rate, payable through 80 daily payments of $500.		30,000			-
Revolving credit line payable to NFC III LLC bearing interest at 10%, payable on demand		312,803			-
		2,319,593			11,191,632
Less current portion pertaining to continuing operations		(2,181,152	)		(8,386,675	)
Less current portion associated with discontinued operations		-			(1,660,883	)
	$	138,441		$	1,144,074

Principal maturities of long term debt for the next five years and thereafter as of June 30, 2013 are as follows:

Period ended June 30,
2014	$	2,181,152
2015		138,441
2016		-
2017		-
2018		-
Thereafter		-
	$	2,319,593

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Note 3 - Contract Claim Receivable (Details) (USD $)	Jun. 30, 2013	Sep. 30, 2012	Jan. 02, 2009
Note 3 - Contract Claim Receivable (Details) [Line Items]
Billed Contracts Receivable			$ 3,200,597
United States Government [Member]
Note 3 - Contract Claim Receivable (Details) [Line Items]
Notes and Loans Payable	$ 0	$ 666,490	$ 3,200,597

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Note 9 - Related Party Transactions (Details) (USD $)	9 Months Ended
	Jun. 30, 2013
Note 9 - Related Party Transactions (Details) [Line Items]
Related Party Transaction, Rate	5.00%
Stephen L. Gurba and Evelyn R. Gurba [Member]
Note 9 - Related Party Transactions (Details) [Line Items]
Due to Related Parties	$ 202,035
Original Face Amount [Member]
Note 9 - Related Party Transactions (Details) [Line Items]
Related Party Transaction, Amounts of Transaction	1,500,000
Amended Face Amount [Member]
Note 9 - Related Party Transactions (Details) [Line Items]
Related Party Transaction, Amounts of Transaction	$ 5,000,000

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Note 9 - Related Party Transactions

9 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

9.     Related Party Transactions

The following related party transactions not disclosed elsewhere in this document are as follows:

The Company has received loans from two (2) major shareholders which were supported by notes bearing interest at 5% annually with restricted conversion features and no repayment schedule. The notes were originally issued for $1,500,000 for each shareholder then subsequently raised them to a maximum of $5,000,000. All shareholder interest is accruing interest. As of June 30, 2013, the only remaining debt associated with these notes is a balance due to Stephen L. Gurba and Evelyn R. Gurba in the amount of $202,035.

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Note 5 - Advance Payments and Billings in Excess of Cost

9 Months Ended

Jun. 30, 2013

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

5.     Advance Payments and Billings in Excess of Cost

Advance payments and billings in excess of costs represents liabilities of the Company associated with contracts in process as of the balance sheet date, and consist of the following:

Advance Payments - The Company had certain contracts with the U.S. Government that were funded through “Performance-Based-Payments”. Performance-based-payments are a method of financing designed by the Government to facilitate the accomplishment of the terms of the contract, and are not payments for accepted items. These financing payments are designed as a funding mechanism to facilitate production and may be made based on performance measured by objective, the accomplishment of defined events, or other quantifiable measures of results. As units are delivered and invoiced, the U.S. Government withholds 90% of the invoiced amount as repayment of the contract financing advances. On January 1, 2009, with the acquisition of 3Si Holdings, Inc. and membership interest of Bulova Technologies Ordnance Systems LLC, the Company assumed certain obligations to perform contracts with the US Government with an outstanding balance at the date of acquisition of $3,200,597. The balances outstanding as of June 30, 2013 and September 30, 2012 are $0 and $666,490 respectively.

Billings in Excess of Cost plus Earnings on Uncompleted Contracts – The Company accounts for fixed-price production contracts under which units are not produced in a continuous or sequential process based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract price. The Company did not have any billings on uncompleted contracts in excess of the costs incurred plus estimated earnings calculated on this percentage of completion method as of June 30, 2013 and September 30, 2012.

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Supplemental Schedule of Non-Cash Financing and Investing Activities

9 Months Ended

Jun. 30, 2013

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Supplemental schedule of non-cash financing and investing activities:

● October 2011, the Company issued 8,896,394 common shares issued as conversion of debt

● October 2011, the Company issued 500,000 common shares for services

● November 2011, the Company issued 10,268,342 common shares to various individuals

● November 2011, the Company issued 5,352,941 common shares as conversion of debt

● December 2011, the Company issued 12,831,591 common shares as conversion of debt

● December 2011, the Company issued 90,000,000 common shares and authorized the issuance of an additional 60,000,000 shares as conversion of related party debt.

● October 2012, the Company issued 150,807,692 common shares for services

● October 2012, the Company issued 988,923,568 common shares as conversion of debt

● November 2012, the Company issued 151,500,000 common shares for services

● November 2012, the Company issued 183,029,958 common shares as conversion of debt

● December 2012, the Company issued 99,249,999 common shares for services

● January 2013, the Company issued 247,424,242 common shares as conversion of debt

● January 2013, the Company issued 30,000,000 common shares associated with new debt

● January 2013, the Company issued 41,000,000 common shares for services

● February 2013, the Company issued 150,000,000 common shares as conversion of debt

● February 2013, the Company issued 4,260,102,343 warrants associated with new debt

● February 2013, the Company issued 4,117,996,250 warrants in exchange for subscription notes receivable of $66,000

● February 2013, the Company issued 1,073,000,000 warrants for services

● June 2013, the Company issued 150,000,000 common shares as conversion of debt

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Note 4 - Discontinued Operations (Details) - Assets And Liabilities Of Discontinued Operations (USD $)	9 Months Ended
	Jun. 30, 2013	Sep. 30, 2012
Assets And Liabilities Of Discontinued Operations [Abstract]
Accounts receivable	$ 0
Inventory	0	0
Other current assets	0
Total current assets held for sale	0
Property plant and equipment - net	0	0
Other assets	0
Total assets from discontinued operations	0
Accounts payable and accrued expenses		351,054
Current portion of long-term debt		1,660,883
Provision for loss on disposal of business segment	0
Total current liabilities associated with discontinued operations		2,011,937
Total liabilities associated with discontinued operations		$ 2,011,937

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Note 12 - Subsequent Events

9 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

12.   Subsequent EventOn July 11, 2013 the Company issued 150,000,000 common shares in association with current debt

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Note 8 - Commitments and Contingencies

9 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

8.     Commitments and Contingencies

From time to time the Company may be a party to litigation matters involving claims against the Company.  Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.

U.S. Government agencies, including the Defense Contract Audit Agency and various agency Inspectors General routinely audit and investigate costs and performance on contracts, as well as accounting and general business practices of contractors Based on the results of such audits, the U.S. Government may adjust contract related costs and fees, including allocated indirect costs. None of the Company’s contracts are currently the subject of any government audits.

At June 30, 2013 the Company operated corporate and administrative offices in a facility leased from a non-affiliate in Tampa, Florida, approximating 5,000 square feet. The Tampa location is leased for a base monthly rental increased by a minimum of 2.5% each year through the expiration date of December 21, 2027. The Company also leases on a month to month basis, an office in Frankfurt, Germany to facilitate its European program.

Total rent expense for the nine months ended June 30, 2013, was approximately $211,000.

The Company’s commitments for minimum lease payments under these operating leases for the next five years and thereafter as of June 30, 2013 are as follows:

Period ended June 30,
2014	$	254,096
2015		260,448
2016		266,959
2017		273,633
2018		280,474
Thereafter		3,099,663
	$	4,435,273

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Note 4 - Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

	NIne Months Ended
	June 30,
	2013		2012
Revenue	$	-	$	-
Cost of Sales		-		-
Gross profit		-		-
Operating expenses		-		(68,511	)
Other		1,309,424		-
Gain (Loss) to be recognized from discontinued operations		1,309,424		(68,511	)
Income tax benefit		-		-
Gain (loss) to be recognized from discontinued operations, net of tax	$	1,309,424	$	(68,511	)

Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

	June 30,		September 30,
	2013		2012
Accounts receivable	$	-	$	-
Inventory		-		-
Other current assets		-		-
Total current assets held for sale		-		-
Property plant and equipment - net		-		-
Other assets		-		-
Total assets from discontinued operations	$	-	$	-
Accounts payable and accrued expenses	$	-	$	351,054
Current portion of long-term debt		-		1,660,883
Provision for loss on disposal of business segment		-		-
Total current liabilities associated with discontinued operations		-		2,011,937
Long term debt, net of current portion		-		-
Total liabilities associated with discontinued operations	$	-	$	2,011,937

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Accounting Policies, by Policy (Policies)

9 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

The Company has evaluated subsequent events through August 7, 2013, to assess the need for potential recognition or disclosure in this report.  Based upon this evaluation, management determined that all subsequent events that require recognition in the financial statements have been included.

Segment Reporting, Policy [Policy Text Block]

Business Segments

Commencing with the Company’s acquisition of 3Si Holdings, Inc. in January of 2009, the Company operated in two business segments, government contracting and contract manufacturing.  With the Company’s disposal of BT Manufacturing Company LLC, the Company is no longer operating more than one business segment as all efforts of the company are now focused on Department of Defense contracting

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the Company's financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments

The carrying amounts of cash, receivables and current liabilities approximated fair value due to the short-term maturity of the instruments. Debt obligations were carried at cost, which approximated fair value due to the prevailing market rate for similar instruments.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurement

All financial and nonfinancial assets and liabilities were recognized or disclosed at fair value in the financial statements. This value was evaluated on a recurring basis (at least annually). Generally accepted accounting principles in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on a measurement date. The accounting principles also established a fair value hierarchy which required an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs were used to measure fair value.

Level 1: Quotes market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that were corroborated by market data.

Level 3: Unobservable inputs that were not corroborated by market data.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains its cash deposits in major financial institutions in the United States. At times deposits within a bank may exceed the amount of insurance provided on such deposits. Generally, these deposits are redeemed upon demand and, therefore, are considered by management to bear minimal risk.

Receivables, Policy [Policy Text Block]

Accounts receivable

Accounts receivable represent amounts due from customers in the ordinary course of business. The Company considers accounts more than 90 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. The Company generally does not require collateral for its accounts receivable.The Company considers all accounts receivable to be collectable and consequently has provided no allowance for doubtful accounts.

The majority of the Company’s revenues and accounts receivable pertain to contracts with the US Government.

Inventory, Policy [Policy Text Block]

Inventory

Inventory is stated at the lower of cost (first-in, first-out) or market. Market was generally considered to be net realizable value. Inventory consisted of materials used to manufacture the Company’s products work in process and finished goods ready for sale.

The breakdown of inventory at June 30, 2013 and September 30, 2012 is as follows:

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed by applying principally the straight-line method to the estimated useful lives of the related assets. Useful lives range from 10 to 20 years for buildings and improvements and 5 to 10 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. When property or equipment is retired or otherwise disposed of, the net book value of the asset is removed from the Company’s balance sheet and the net gain or loss is included in the determination of operating income. Property, plant and equipment acquired as part of a business acquisition are valued at fair value.

Property, plant and equipment are comprised of the following at June 30, 2013 and September 30, 2012

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets at least annually. Impairment losses were recorded on long-lived assets used in operations when indicators of impairment were present and the undiscounted future cash flows estimated to be generated by those assets were less than the assets’ carrying amount. If such assets were impaired, the impairment to be recognized was measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of were reported at the lower of the carrying value or fair value, less costs to sell.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

In accordance with ASC 205-20, Presentation of Financial Statements-Discontinued Operations (“ASC 205-20”), we reported the results of BT Manufacturing Company LLC, our contract manufacturing segment as a discontinued operation. The application of ASC 205-20 is discussed in Note 5 “Discontinued Operations”

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Sales revenue is generally recognized upon the shipment of product to customers or the acceptance by customers of the product. Allowances for sales returns, rebates and discounts are recorded as a component of net sales in the period the allowances were recognized. The majority of the Company’s revenue is generated under various fixed and variable price contracts as follows:

Revenues on fixed-price type contracts are recognized using the Percentage-Of-Completion (POC) method of accounting as specified in government contract accounting standards and the particular contract. Revenues earned on fixed-price production contracts under which units are produced and delivered in a continuous or sequential process are recognized as units are delivered based on their contractual selling prices (the “Units-of-Delivery” basis of determination). Sales and profits on each fixed-price production contract under which units are not produced in a continuous or sequential process are recorded based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract revenue, less cumulative sales recognized in prior periods (the “Cost-to-Cost” basis of determination). Under both types of basis for determining revenue earned, a single estimated total profit margin is used to recognize profit for each contract over its entire period of performance, which can exceed one year. The estimated total profit margin is evaluated on a periodic basis by management throughout the term of an individual contract to determine if the estimated total profit margin should be adjusted.

The Company has certain contracts with the U.S. Government that are funded through “Performance-Based-Payments”. Performance-based-payments are a method of financing designed by the Government to facilitate the accomplishment of the terms of the contract, and are not payments for accepted items. These financing payments are designed as a funding mechanism to facilitate production and may be made based on performance measured by objective, the accomplishment of defined events, or other quantifiable measures of results. As units are delivered and invoiced, the U.S. Government withholds 90% of the invoiced amount as repayment of the contract financing advances.

Cost of Sales, Policy [Policy Text Block]

Cost of Revenues

The costs of revenues include direct materials and labor costs, and indirect labor associated with production and shipping costs.

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

The costs of advertising are expensed as incurred and are included in the Company’s operating expenses. The Company did not incur any advertising expenses for the three and nine months ended June 30, 2013 and 2012.

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping Costs

The Company includes shipping costs in cost of goods sold.

Income Tax, Policy [Policy Text Block]

Income Taxes

Income tax benefits or provisions are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities were recovered or settled. Deferred tax assets were also recognized for operating losses that were available to offset future taxable income and tax credits that were available to offset future federal income taxes, less the effect of any allowances considered necessary. The Company follows the guidance provided by FIN 48, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions.

Earnings Per Share, Policy [Policy Text Block]

Loss per Common Share

Basic net loss per share includes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. As of March 31, 2013, there were 9,581,098,593 common stock equivalents that were anti-dilutive and were not included in the calculaton.

New Accounting Pronouncements, Policy [Policy Text Block]

Effect of Recent Accounting Pronouncements

The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to June 30, 2013 through the date these financial statements were issued.

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Document And Entity Information	9 Months Ended
	Jun. 30, 2013	Aug. 02, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	Bulova Technologies Group, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		4,000,263,290
Amendment Flag	false
Entity Central Index Key	0000317889
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

XML

Note 2 - Principles of consolidation and basis of presentation: (Tables)

9 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Schedule of Inventory, Current [Table Text Block]

	June 30,		September 30,
	2013		2012
Finished goods	$	-	$	-
Work in process		-		-
Materials and supplies		-		1,023,980
Total inventory		-		1,023,980
Less inventory classified as discontinued operations		-		-
Total inventory of continuing operations	$	-	$	1,023,980

Property, Plant and Equipment [Table Text Block]

	June 30,			September 30,
	2013			2012
Land	$	-		$	1,225,000
Buildings and improvements		-			1,170,194
Machinery and equipment		-			752,554
Funiture, fixtures and leasehold improvements		45,735			45,735
		45,735			3,193,483
Less accumulated depreciation		(21,102	)		(718,555	)
Net Property, plant and equipment		24,633			2,474,928
Less property, plant and equipment from discontinued operations		-			-
Net property, plant and equipment of continuing operations	$	24,633		$	2,474,928