10-Q

Table Of Contents

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, 2014

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 13, 2014 the Company had 56,030,068 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, 2014

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			18
Item 4. Controls and Procedures			20
PART II – OTHER INFORMATION
Item 6. Exhibits			20
	Signatures		21

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PART I

Item 1. Consolidated Financial Statements

BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

	June 30,
	2014			September 30,
	(unaudited)			2013
ASSETS
Cash and equivalents	$	97,385		$	89,812
Accounts receivable		323,323			303,565
Inventory		351,460			55,605
Other current assets		193,761			13,649
Total current assets		965,929			462,631
Property, plant and equipment		26,223			92,709
Other assets		2,000			103,295
Total Assets	$	994,152		$	658,635
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	439,420		$	514,892
Accrued expenses		822,548			1,053,267
Current portion of long term debt		5,087,341			2,821,711
Total current liabilities		6,349,309			4,389,870
Shareholder loans		(20,182	)		(22,613	)
Long term debt, net of current portion		464,691			112,629
Total liabilities		6,793,818			4,479,886
Commitments and contingencies		-			-
Shareholders’ deficit:
Preferred stock, $.00001 par, authorized 5,000,000,000 shares; 4,000,000,000 issued and outstanding at June 30, 2014 and September 30, 2013		40,000			40,000
Common stock, $.001 par; authorized 500,000,000 shares; 50,072,004 and 21,001,316 issued and outstanding at June 30, 2014 and September 30, 2013		50,072			21,001
Subscription receivable		(66,000	)		(66,000	)
Additional paid in capital in excess of par		23,418,790			23,174,191
Retained deficit		(29,242,528	)		(26,990,443	)
Total shareholders’ deficit		(5,799,666	)		(3,821,251	)
Total liabilities and shareholders’ equity	$	994,152		$	658,635

See accompanying notes to consolidated financial statements.

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BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED JUNE 30, 2014 AND 2013
(Unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Revenues	$	974,805		$	2,248,509		$	4,212,721		$	5,225,297
Cost of revenues		904,568			1,802,895			3,740,284			4,428,434
Gross profit		70,237			445,614			472,437			796,863
Selling and administrative expense		758,045			512,631			2,218,936			1,694,063
Stock based compensation		5,500			-			88,000			273,182
Depreciation and amortization expense		6,074			160,930			112,685			453,648
Interest expense		109,926			28,743			265,652			513,330
Total expenses		879,545			702,304			2,685,273			2,934,223
Income (loss) from operations		(809,308	)		(256,690	)		(2,212,836	)		(2,137,360	)
Other income (expense)
Other income		(44,250	)		-			(39,249	)		13,317,570
Income (loss) from continuing operations before income taxes		(853,558	)		(256,290	)		(2,252,085	)		11,180,210
Income tax expense		-			-			-			-
Income (loss) from continuing operations		(853,558	)		(256,290	)		(2,252,085	)		11,180,210
Income (loss) from discontinued operations, net of tax		-			-			-			1,309,424
Net Income (loss)	$	(853,558	)	$	(256,290	)	$	(2,252,085	)	$	12,489,634
Basic net income (loss) per share
Income (loss) from continuing operations	$	(.022	)	$	(.013	)	$	(.01	)	$	.66
Income (loss) from discontinued operations		-			-			-			.08
Net income (loss) per share	$	(.022	)	$	(.013	)	$	(.01	)	$	.74
Diluted net income (loss) per share
Income (loss)from continuing operations	$	(.022	)	$	(.013	)	$	(.01	)	$	.34
Income (loss) from discontinued operations		-			-			-			.04
Net income (loss) per share	$	(.022	)	$	(.013	)	$	(.01	)	$	.38
Weighted average shares outstanding
Basic		38,420,517			18,526,316			22,566,851			16,859,849
Diluted		38,420,517			18,526,316			22,566,851			32,611,680

See accompanying notes to consolidated financial statements.

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BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED JUNE 30, 2014 AND 2013
(Unaudited)

	2014			2013
Cash flows from operating activities:
Net Income (loss)	$	(2,252,085	)	$	12,489,634
(Income) Loss from discontinued operations		-			(1,309,424	)
Income (Loss) from continuing operations		(2,252,085	)		11,180,210
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		112,685			453,648
Stock based payment for services		88,000			273,182
Stock based settlement payment		7,700			-
Gain from change in accounting estimate		-			(6,071,700	)
(Gain) from settlement of debt		-			(356,765	)
Loss on sale of note receivable		-			156,710
Loss (Gain) on sale of assets		920			(6,153,177	)
Changes in operating assets and liabilities
Accounts receivable		(19,758	)		112,005
Inventory		(295,855	)		55,404
Prepaid expenses and other assets		(173,487	)		(105,287	)
Accounts payable and accrued expenses		(298,906	)		(143,483	)
Net cash flows from operating activities – continuing operations		(2,830,786	)		(599,253	)
Net cash flows from operating activities – discontinued operations		-			(1,309,424	)
Net cash flows from operating activities		(2,830,786	)		(1,908,677	)
Cash flows from investing activities:
Acquisition of fixed assets		(1,283	)		-
Proceeds from sale of assets		-			9,547,580
Proceeds from sale of note receivable		-			250,000
Principle collections on note receivable		-			3,831
Net cash flows from investing activities – continuing operations		(1,283	)		9,801,411
Net cash flows from investing activities – discontinued operations		-			-
Net cash flows from investing activities		(1,283	)		9,801,411
Cash flows from financing activities:
Proceeds from sale of preferred shares		-			20,000
Proceeds from sale of common shares		142,800			-
Increase (decrease) of Shareholder loans		2,431			(244,488	)
Increases in long term debt		2,764,349			1,623,673
Repayment of long term debt		(69,938	)		(9,277,836	)
Net cash flows from financing activities – continuing operations		2,839,642			(7,878,651	)
Net cash flows from financing activities – discontinued operations		-			-
Net cash flows from financing activities		2,839,642			(7,878,651	)
Increase (decrease) in cash and cash equivalents		7,573			14,083
Cash and cash equivalents, beginning		89,812			29,034
Cash and cash equivalents, ending	$	97,385		$	43,117
Cash paid for interest	$	15,322		$	2,476
Cash paid for taxes	$	-		$	-

Supplemental schedule of non-cash financing and investing activities:

● October 2013, the Company issued 500 000 common shares for services

● November 2013, the Company issued 625,000 common shares for services

● February 2014, the Company issued 1,102,564 common shares in satisfaction of debt

● February 2014, the Company issued 4,000,000 common shares for services

● March 2014, the Company issued 2,356,472 common shares in satisfaction of debt

● May 2014, the Company issued 3,231,118 common shares in satisfaction of debt

● May 2014, The Company issued 1,100,000 warrants for services

● June 2014, the Company issued 4,255,534 common shares in satisfaction of debt

● June 2014, the Company issued 1,000,000 common shares as part of a judgment settlement

See accompanying notes to consolidated financial statements.

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BULOVA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
FOR THE NINE MONTHS ENDED JUNE 30, 2014
(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, 2013		4,000,000,000	$	40,000		21,001,316	$	21,001	$	(66,000	)	$	23,174,191	$	(26,990,443	)	$	(3,821,251	)
Issuance of shares for services						5,125,000		5,125					77,375					82,500
Issuance of shares in satisfaction of debt						3,459,036		3,459					11,041					14.500
Sale of common shares						12,000,000		12,000					130,800					142,800
Issuance of shares in satisfaction of debt						7,486,652		7,487					13,183					20,670
Issuance of shares for settlement						1,000,000		1,000					6,700					7,700
Issuance of warrants for services													5,500					5,500
Net loss for the nine months ended June 30, 2014															(2,252,085	)		(2,252,085	)
Balances, June 30, 2014		4,000,000,000	$	40,000		50,072,004	$	50,072	$	(66,000	)	$	23,418,790	$	(29,242,528	)	$	(5,799,666	)

See accompanying notes to consolidated financial statements.

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BULOVA TECHNOLOGIES GROUP,INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED JUNE 30, 2014 AND 2013
(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 3Si Holdings, Inc. (“3Si”) a private company that was under common control and began operations in Florida.

The headquarters of the Company is located in Tampa, Florida. The Company derives all of its revenues through the operation of its wholly-owned subsidiaries. Through 2012 the Company derived its revenue principally as a Government contractor through its wholly-owned subsidiary, Bulova Technologies Ordnance Systems LLC located in Mayo, Florida. In October 2012, Bulova Technologies Ordnance Systems LLC sold substantially all of its assets to an unrelated party. Subsequently the Company expanded its sources of revenues to include the sales of commercial ammunition through its wholly-owned subsidiary, Bulova Technologies (Europe) LLC, and also sales of Industrial Tool Machines through its wholly-owned subsidiary, Bulova Technologies Machinery LLC, which was launched mid-2013.

2. Principles of consolidation and basis of presentation:

The accompanying consolidated balance sheet as of September 30, 2013, 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). In July of 2013, the Company formed its newest subsidiary, Bulova Technologies Machinery 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. The settlement and disposition of this segment was accomplished during the quarter ended March 31, 2011, with the exception of a note payable, whose final settlement occurred when all of the assets of Ordnance were sold in October 2012.

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 markets and sells commercially ammunition acquired through various suppliers worldwide. The Company leases office space in Frankfurt, Germany to promote and facilitate its programs.

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 under exclusive arrangements with recognized international sources and establish a Distributor/Dealer Network throughout the United States and Canada.

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In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2014 and September 30, 2013, and the results of operations and cash flows for the three and nine months ended June 30, 2014 and 2013.

Subsequent Events

The Company has evaluated subsequent events through August 15, 2014 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 formation of Bulova Technologies Machinery LLC and the expansion into commercial ammunition sales, the Company now operates in two business segments, government contracting and commercial sales.  

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 from sales activities in each of the Company’s business segments. 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.

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 items held for resale and materials and supplies for sale and service.

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The breakdown of inventory at June 30, 2014 and September 30, 2013 is as follows:

	June 30,		September 30,
	2014		2013
Inventory held for resale	$	351,460	$	-
Materials and supplies		-		55,605
Total inventory of continuing operations	$	351,460	$	55,605

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 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, 2014 and September 30, 2013

	June 30,			September 30,
	2014			2013
Funiture, fixtures and equipment		59,089			117,580
		59,089			117,580
Less accumulated depreciation		(32,866	)		(24,871	)
Net property, plant and equipment	$	26,223		$	92,709

Depreciation expense for the nine months ended June 30, 2014 and 2013 was $18,015 and $6,860 respectively.

Loan Costs

The Company account for costs incurred relative to the acquisition of new debt in other assets, and amortizes these costs over the life of the debt. The unamortized balance of loan costs at June 30, 2014 and September 30, 2013 were $0 and $94,670 respectively.

Amortization of loan costs for the nine months ended June 30, 2014 and 2013 was $94,670 and $76,584 respectively.

Impairment of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets at least annually. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are 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 4 “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. A significant portion of the Company’s revenue have been generated under various fixed and variable price contracts as follows:

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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 have been 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 nine months ended June 30, 2014 and 2013.

Shipping Costs

The Company includes shipping costs in cost of revenues.

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 ASC48, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions.

Income (Loss) per Common Share

The Company computes income (loss) per share by dividing net earnings (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the year. Dilutive common stock equivalents may consist of shares issuable upon exercise of the Company's stock warrants and options (calculated using the treasury stock method).  As of June 30, 2014, there were 59,955,515 common stock equivalents that were anti-dilutive and were not included in the calculation. Common stock issuable is considered outstanding as of the original approval date for purposes of earnings per share computations.

Recent Accounting Pronouncements

We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term.  The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.  Reference is made to these recent accounting pronouncements as if they are set forth therein in their entirety.

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3.   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 September 30, 2013 and September 30, 2012 and has segregated its operating results and presented them separately as a discontinued operation for all periods presented.

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

Summarized operating results for discontinued operations is as follows:

	Nine months ended
	June 30,
	2014		2013
Revenue	$	-	$	-
Cost of Sales		-		-
Gross profit		-		-
Operating expenses and interest		-		-
Other income		-		1,309,424
Income (loss) from operations		-		1,309,424
Loss on disposal of discontinued operations		-		-
Income tax benefit		-		-
Income (loss) from discontinued operations, net of tax	$	-	$	1,309,424

The income (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

As of June 30, 2014 and September 30, 2013, there are no remaining assets associated with this discontinued operation.

4.   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 has had certain contracts with the U.S. Government that have been 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. The balances outstanding as of June 30, 2014 and September 30, 2013 are $0 and $0 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, 2014 and September 30, 2013.

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5.   Long Term Debt

Long term debt consisted of the following at:

	June 30, 2014			September 30, 2013
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
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 June 30, 2014. Final payment due upon delivery		700,000			700,000
Convertible Note payable to Asher Enterprises, Inc. dated November 7, 2012 in the original amount of $37,500, bearing interest at 8% with a maturity date of August 9, 2013.		16,830			37,500
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			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			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			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			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			24,552
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		45,000			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			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.		-			8,464
Revolving credit line payable to NFC III LLC bearing interest at 10%, payable on demand		813,819			560,819
Note payable to Ford Credit non-interest bearing payable at $904.34 monthly with a maturity date of September 14, 2018		-			54,261
Note payable to NFC III LLC bearing interest at 10% payable on demand		75,000			75,000
Note payable to an individual dated September 10, 2013, bearing interest at 8% payable on demand		125,000			75,000
Note payable to Shapiro Family Trust dated July 10, 2013, bearing interest at 8% payable on demand		150,000			100,000
Note payable to Craigmore Machinery Company dated August 15, 2013, bearing interest at 8% payable on demand		50,000			50,000
Note payable to Craigmore Machinery Company dated August 15, 2013 bearing interest at 8% payable on demand		49,212			49,212
Note payable to Craigmore Machinery Company dated September 1, 2013 bearing interest at 8% payable on demand		5,000			5,000
Note payable to Craigmore Machinery Company dated September 1, 2013 bearing interest at 8% payable on demand		20,000			-
Note payable to SIII Associates Limited Partnership dated November 8, 2013 with a maximum amount of $1,435,000 bearing interest at 8% with a maturity date of March 31, 2014		1,306,688			-
Note payable to SV Associates Limited Partnership dated January 9, 2014 bearing interest at 8% payable on demand		41,000			-
Note payable to Craigmore Machinery Company dated January 9, 2014 bearing interest at 8% payable on demand		30,000			-
Note payable to an individual dated January 17, 2014 bearing interest at 8% payable on demand		8,000			-
Note payable to Craigmore Machinery Company dated January 24, 2014 bearing interest at 8% payable on demand		20,000			-
Note payable to Craigmore Machinery Company dated January 31, 2014 bearing interest at 8% payable on demand		8,000			-
Note payable to Tropico Equity Partners LLC dated February 3, 2014 bearing interest at 8% payable on demand		68,161			-
Note payable to Rachel E Shapiro Trust dated February 14, 2014 bearing interest at 6% payable on demand		51,500			-
Note payable to Metro Bank dated February 14, 2014 with a maximum amount of $200,000 bearing interest at 4.65% with a maturity date of December 14, 2014		125,000			-
Note payable to Banyan Capital Finance dated March 12, 2014 bearing interest at 8% payable on demand		23,000			-
Note payable to Capital Stack, LLC dated March 24, 2014 in the amount of $35,000 with no stipulated interest rate payable through 83 daily payments of $599		4,977			-
Note payable to Fast Advance Funding dated March 26, 2014 in the amount of $15,000 with no stipulated interest rate, payable through 83 daily payments of $256.45		3,975			-
Note payable to Colleen Stacy Shapiro 2007 Trust, dated April 23, 2014 in the amount of $160,000, bearing interest at 6%, payable on demand		160,000			-
Subordinated Promissory Note payable to The Shapiro Family D1 Trust dated April 29, 2014 in the amount of $400,000, bearing interest at 6%, payable on demand		400,000			-
Note payable to an individual dated May 1, 2014 in the amount of $67,286, bearing interest at 4%, with a maturity date of April 1, 2019		67,286			-
Note payable to SIII Associates Limited Partnership dated May 8, 2014 in the amount of $100,000 bearing interest at 6% payable on demand		100,000			-
		5,552,032			2,934,340
Less current portion pertaining to continuing operations		(5,087,341	)		(2,821,711	)
	$	464,691		$	112,629

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Principal maturities of long term debt for the next five years and thereafter as of June 30, 2014 are as follows:

Period ended June 30,
2015	$	5,087,341
2016		15,933
2017		416,582
2018		17,258
2019		14,918
Thereafter		-
	$	5,552,032

6.   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 a tax free reorganization under the provisions of Section 368A of the Internal Revenue Code. 3SI Holdings had various net operating loss carry over’s. 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. These net operating loss carry-overs are included in the deferred tax asset of the Company.

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The Company has previously recognized an income tax benefit for its operating losses generated since inception through September 30 2013 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, 2013 the Company had federal net operating loss carry forwards of approximately $12,406,000 and Florida net operating loss carry forwards of approximately $11,174,000. The federal net operating loss carry forwards will expire in 2020 through 2033 and state net operating loss carry forwards that will expire in 2028 through 2033.

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

Continuing Operations	6/30/2014			9/30/2013
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		0.00	%		0.00	%

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, 2013, the tax returns for the Company for the years ending 2010 through 2012 remain open to examination by the Internal Revenue Service and Florida Department of Revenue. 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.

7.   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.

In 2010, Bulova Technologies Ordnance Systems LLC (Ordnance), one of the Company’s wholly owned subsidiaries, received a contract termination from the United States government for portions of a weapons contract with the U.S. Army. Ordnance has disputed this termination, and has filed a counter-claim. This dispute is ongoing, and the Company does not believe the outcome will have any material effect on the Company’s financial position or results of operations.

At June 30, 2014 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 leases approximately 6,000 square feet of office, showroom and warehouse space in Sanford, Florida on a month to month basis, and approximately 10,000 square feet of office, showroom and warehouse space in Branchburg, New Jersey for a period of one year, with two, two year options at the same rate. These two locations are to facilitate the commercial sales of Bulova Technologies Machinery LLC. As of June 30, 2014, the Company has vacated the New Jersey location.

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, 2014 and 2013, was approximately $296,600 and $211,000 respectively.

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The Company’s commitments for minimum lease payments under these operating leases for the next five years and thereafter as of June 30, 2014 are as follows:

Period ended June 30,
2015	$	260,448
2016		266,959
2017		273,633
2018		280,474
2019		287,486
Thereafter		2,812,178
	$	4,181,178

8.   Related Party Transactions

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

The Company has received loans from 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. As of June 30, 2014 and September 30, 2013, the only remaining debt associated with these notes is a temporary balance due from Stephen L. Gurba and Evelyn R. Gurba in the amount of $20,182 and $22,613 respectively.

9.   Stockholders’ Equity

Common Shares

On December 30, 2013, the Company affected a 1 for 200 reverse split of its common stock. The financial statements have been retroactively adjusted to reflect the effects of this reverse split. All equity issuances relative to common shares are presented as post reverse quantities (1/200), as compared to filings prior to the reverse.

Concurrently, the Company amended its articles to reduce the amount of authorized common shares from 5,000,000,000 to 500,000,000.

October 2012, the Company issued 754,038 common shares for services

October 2012, the Company issued 4,944,618 common shares as conversion of debt

November 2012, the Company issued 757,500 common shares for services

November 2012, the Company issued 915,150 common shares as conversion of debt

December 2012, the Company issued 496,250 common shares for services

January 2013 – the Company issued 1,237,121 shares of its common stock as conversion of debt

January 2013 – the Company issued 150,000 shares of its common stock in association with new debt

January 2013 – the Company issued 205,000 common shares for services

February 2013 – the Company issued 750,000 common shares of its common stock as conversion of debt

June 2013 – the Company issued 750,000 common shares of its common stock as conversion of debt

July 2013 – the Company issued 750,000 common shares in association with the extension of terms on existing debt

September 2013 – the Company issued 1,000,000 common shares for services

October 2013 - the Company issued 500 000 common shares for services

November 2013 - the Company issued 625,000 common shares for services

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February 2014, the Company issued 1,102,564 common shares as conversion of debt

February 2014, the Company issued 4,000,000 common shares for services

March 2014, the Company issued 2,356,472 common shares as conversion of debt

April 2014, the Company sold 12,000,000 shares of common stock for $142,800

May 2014, the Company issued 3,231,118 common shares as conversion of debt

June 2014, the Company issued 4,255,534 common shares as conversion of debt

June 2014, the Company issued 1,000,000 common shares in conjunction with a judgment settlement

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.

Subscription receivable

In February 2013, the Company issued 20,589,981 warrants in exchange for subscription notes receivable of $66,000.

Warrants and options

In May 2014, the Company issued warrants to purchase 1,100,000 shares of our common stock at $0.02 per share any time prior to May 11, 2024

As of June 30, 2014, the Company had outstanding non-qualified warrants and options to purchase 59,955,515 shares of our common stock at any time prior to various expiration dates, the earliest being February 15, 2022, and the latest being May 11, 2024, all with an exercise price of $0.02 per share.

10. 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.

11. Subsequent Events

July 8, 2014, the Company issued 2,129,032 common shares as conversion of debt.

July 17, 2014, the Company issued 2,129,032 common shares as conversion of debt.

August 1, 2014, the Company issued 1,700,000 common shares as conversion of debt.

12. Segment Information

With Bulova Technologies (Europe) LLC beginning to diversify into product sales to non US Government customers in the quarter ended December 31, 2013 and Bulova Technologies Machinery LLC commencing the sale and service of its products commercially, the Company now operates in two business segments. The Government Contracting segment is focused on the production and procurement of military articles for the U.S. Government and other allied governments throughout the world, and is accounted for through two of the Company’s wholly owned subsidiaries, Bulova Technologies Ordnance Systems LLC and Bulova Technologies (Europe) LLC. The Commercial Sales segment is focused on the sale and service of commercial products to non-government customers consisting of ammunition and industrial business machines, and is accounted for through two of the Company’s wholly owned subsidiaries, Bulova Technologies (Europe) LLC and Bulova Technologies Machinery LLC.

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(UNAUDITED)

SEGMENT INFORMATION FOR THE NINE MONTHS ENDED JUNE 30, 2014 IS AS FOLLOWS:

	Government Contracting			Commercial Sales & Service			Total
Revenue	$	1,580,488		$	2,632,233		$	4,212,721
Cost of Sales		1,570,912			2,169,372			3,740,284
Gross profit		9,576			462,861			472,437
Selling, general and administrative expenses		348			1,035,388			1,035,736
Depreciation and interest expense		62,432			33,443			95,875
Income (loss) from operations		(53,204	)		(605,970	)		(659,174	)
Other income (expense)		4,451			-			4,451
Net Income (loss)	$	(48,753	)	$	(605,970	)	$	(654,723	)
Total Assets	$	1,918		$	972,125		$	974,043

Reconciliation of Segment Amounts Reported to Condensed Consolidated Amounts    

Revenue
Total revenues for reportable segments	$	4,212,721
Total consolidated revenue	$	4,212,721
Net loss
Total loss for reportable segments	$	(654,723	)
Unallocated amounts relating to corporate operations
Selling, general and administrative expenses		(1,183,200	)
Stock based compensation		(88,000	)
Judgment settlement		(43,700	)
Amortization of loan costs		(94,670	)
Depreciation and interest expense		(187,792	)
Total consolidated net loss	$	(2,252,085	)
Assets
Total assets for reportable segments	$	974,043
Corporate investments and other assets		20,109
Total consolidated assets	$	994,152

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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 Governments throughout the world, and is accounted for through two of the Company’s wholly owned subsidiaries, Bulova Technologies Ordnance Systems 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, 2014 compared to the three months ended June 30, 2013.

Discontinued Operations

There is no activity from discontinued operations for the three months ended June 30, 2014 or 2013.

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, 2014 of $974,805 is a decrease of $1,273,704 when compared to the Company’s revenue for the three months ended June 30, 2013 of $2,248,509. This change is comprised of new revenues from ammunition and industrial machines of $807,864 and a reduction in government contract revenue of $2,081,568.

The Company’s cost of sales for continuing operations for the three months ended June 30, 2014 of $904,568 is a decrease of $898,327 when compared to the Company’s cost of sales for the three months ended June 30, 2013 of $1,802,895.

The Company’s gross profit for continuing operations for the three months ended June 30, 2014 of $70,237 is a decrease of $375,377 when compared to the Company’s gross profit for the three months ended June 30, 2013 of $445,614.

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The Company’s expenses for continuing operations consisting of selling, general and administrative, depreciation, amortization of loan costs, and interest for the three months ended June 30, 2014 of $874,045 is an increase of $171,741 when compared to the same expenses of $702,304 for the three months ended June 30, 2013. This is due primarily to the ramp up of the new industrial machine business segment.

The Company had stock based compensation for continuing operations of $5,500 and $0 for the three months ended June 30, 2014 and 2013, respectively.

The Company had other income (expense) of ($44,250) for the three months ended June 30, 2014 which consisted primarily of a negotiated settlement of $43,700. This amount represents a decrease of $44,250 as compared to $0 for the three months ended June 30, 2013.

The Company’s net loss from continuing operations for the three months ended June 30, 2014 of $853,558 is a decrease of $597,268 when compared to the net loss from continuing operations of $256,290 for the three months ended June 30, 2013.

For the nine months ended June 30, 2014 compared to the nine months ended June 30, 2013.

Discontinued Operations

There is no activity from discontinued operations for the nine months ended June 30, 2014. 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.

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, 2014 of $4,212,721 is a decrease of $1,012,576 when compared to the Company’s revenue for the nine months ended June 30, 2013 of $5,225,297. This change is comprised of new revenues from ammunition and industrial machines of $2,632,233 and a reduction in government contract revenues of $3,644,809.

The Company’s cost of sales for continuing operations for the nine months ended June 30, 2014 of $3,740,284 is a decrease of $688,150 when compared to the Company’s cost of sales for the nine months ended June 30, 2013 of $4,428,434.

The Company’s gross profit for continuing operations for the nine months ended June 30, 2014 of $472,437 is a decrease of $324,426 when compared to the Company’s gross profit for the nine months ended June 30, 2013 of $796,863.

The Company’s expenses for continuing operations consisting of selling, general and administrative, depreciation, amortization of loan costs, and interest for the nine months ended June 30, 2014 of $2,597,273 is a decrease of $63,768 when compared to the same expenses of $2,661,041 for the nine months ended June 30, 2013.

The Company’s stock based compensation for continuing operations for the nine months ended June 30, 2014 was $88,000, and represents a decrease of $185,182 as compared to the stock based compensation of $273,182 for the nine months ended June 30, 2013.

The Company’s other income for the nine months ended June 30, 2014 of $(39,249), consists primarily of income of $5,000 from a settlement with a vendor, offset by an expense of $43,700 from a negotiated judgment settlement against the Company. This amount is a decrease of $13,356,819 as compared to $13,317,570 for the nine months ended June 30, 2013. This decrease is comprised primarily of 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.

The Company’s net loss from continuing operations for the nine months ended June 30, 2014 of $2,252,085 is a decrease of $13,432,295 when compared to the net income from continuing operations of $11,180,210 for the nine months ended June 30, 2013, which again relates to the large net gain on the sale of substantially all of the assets of Bulova Technologies Ordnance Systems LLC.

3. Liquidity and capital resources:

As of June 30, 2014, the Company’s sources of liquidity consisted of new debt as well as new sales reported in the commercial sales and service business segment.

As of June 30, 2014, we had $97,385 in cash and cash equivalents.

Cash flows used in operating activities was $2,830,786 for the nine months ended June 30, 2014.

Cash flows used in investing activities was $1,283 for the nine months ended June 30, 2014,

Cash flows provided from financing activities were $2,839,642 for the nine months ended June 30, 2014, and consisted primarily of new debt in the amount of $2,764,349.

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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 and new commercial sales, 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, 2014 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.

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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 19, 2014

21

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 19, 2014

/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 19, 2014

/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, 2014, 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 19, 2014

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, 2014, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, William McMillen, 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 19, 2014

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Note 7 - Commitments and Contingencies (Details) (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Note 7 - Commitments and Contingencies (Details) [Line Items]
Operating Leases, Rent Expense, Net (in Dollars)	$ 296,600	$ 211,000
Tampa, Florida [Member]
Note 7 - Commitments and Contingencies (Details) [Line Items]
Area of Real Estate Property	5,000
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate	2.50%
Sanford, Florida [Member]
Note 7 - Commitments and Contingencies (Details) [Line Items]
Area of Real Estate Property	6,000
Branchburg, New Jersey [Member]
Note 7 - Commitments and Contingencies (Details) [Line Items]
Area of Real Estate Property	10,000
Lessee Leasing Arrangements, Operating Leases, Term of Contract	1 year
Lessee Leasing Arrangements, Operating Leases, Renewal Term	2 years
Number of Units in Real Estate Property	2

XML

Note 12 - Segment Information (Details) - Segment Information (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Revenue	$ 974,805	$ 2,248,509	$ 4,212,721	$ 5,225,297
Cost of Sales	904,568	1,802,895	3,740,284	4,428,434
Gross profit	70,237	445,614	472,437	796,863
Selling, general and administrative expenses	758,045	512,631	2,218,936	1,694,063
Depreciation and interest expense			187,792
Income (loss) from operations	(809,308)	(256,690)	(2,212,836)	(2,137,360)
Other income (expense)	(44,250)		(39,249)	13,317,570
Net Income (loss)			(654,723)
Total Assets	974,043		974,043
Government Contracting [Member]
Segment Reporting Information [Line Items]
Revenue			1,580,488
Cost of Sales			1,570,912
Gross profit			9,576
Selling, general and administrative expenses			348
Depreciation and interest expense			62,432
Income (loss) from operations			(53,204)
Other income (expense)			4,451
Net Income (loss)			(48,753)
Total Assets	1,918		1,918
Commercial Sales & Service [Member]
Segment Reporting Information [Line Items]
Revenue			2,632,233
Cost of Sales			2,169,372
Gross profit			462,861
Selling, general and administrative expenses			1,035,388
Depreciation and interest expense			33,443
Income (loss) from operations			(605,970)
Net Income (loss)			(605,970)
Total Assets	972,125		972,125
Total Segments [Member]
Segment Reporting Information [Line Items]
Revenue			4,212,721
Cost of Sales			3,740,284
Gross profit			472,437
Selling, general and administrative expenses			1,035,736
Depreciation and interest expense			95,875
Income (loss) from operations			(659,174)
Other income (expense)			4,451
Net Income (loss)			(654,723)
Total Assets	$ 974,043		$ 974,043

XML

Note 4 - Advance Payments and Billings in Excess of Cost (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Note 4 - Advance Payments and Billings in Excess of Cost (Details) [Line Items]
Amount of Invoiced Amount Withheld to Repay Debt to US Government	90.00%
United States Government [Member]
Note 4 - Advance Payments and Billings in Excess of Cost (Details) [Line Items]
Notes and Loans Payable	$ 0	$ 0

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Note 7 - Commitments and Contingencies (Tables)

9 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

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

Period ended June 30,
2015	$	260,448
2016		266,959
2017		273,633
2018		280,474
2019		287,486
Thereafter		2,812,178
	$	4,181,178

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Note 9 - Stockholders' Equity (Details) (USD $)	1 Months Ended																9 Months Ended				1 Months Ended
	Jun. 30, 2014	May 31, 2014	Apr. 30, 2014	Mar. 31, 2014	Feb. 28, 2014	Dec. 30, 2013	Nov. 30, 2013	Oct. 31, 2013	Sep. 30, 2013	Jul. 31, 2013	Jun. 30, 2013	Feb. 28, 2013	Jan. 31, 2013	Dec. 31, 2012	Nov. 30, 2012	Oct. 31, 2012	Jun. 30, 2014	Dec. 29, 2013	Sep. 30, 2012	Nov. 30, 2011	Feb. 25, 2013 Preferred Stock [Member]
Note 9 - Stockholders' Equity (Details) [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio						200
Common Stock, Shares Authorized	500,000,000					500,000,000			500,000,000								500,000,000	5,000,000,000
Stock Issued During Period, Shares, Issued for Services					4,000,000		625,000	500,000	1,000,000				205,000	496,250	757,500	754,038
Debt Conversion, Converted Instrument, Shares Issued	4,255,534	3,231,118		2,356,472	1,102,564						750,000	750,000	1,237,121		915,150	4,944,618
Stock Issued During Period, Shares, in Association with New Debt													150,000
Issuance of Shares Associated with Extension of Debt in Shares										750,000
Stock Issued During Period, Shares, New Issues			12,000,000
Proceeds from Issuance of Common Stock (in Dollars)			$ 142,800														$ 142,800
Stock Issued During Period, Shares, Judgment Settlement	1,000,000
Preferred Stock, Shares Authorized	5,000,000,000								5,000,000,000								5,000,000,000		5,000,000,000	2,000,000,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.00001								$ 0.00001								$ 0.00001		$ 0.00001	$ 0.00001
Sale of Stock, Number of Shares Issued in Transaction																					2,000,000,000
Preferred Stock to Common Stock Co-Voting Rights Ratio	1																1
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Warrants Issued												20,589,981
Temporary Equity, Shares Subscribed but Unissued, Subscriptions Receivable (in Dollars)	$ 66,000								$ 66,000			$ 66,000					$ 66,000
Warrants Issued in Period		1,100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)	$ 0.02	$ 0.02															$ 0.02
Class of Warrant or Right, Outstanding	59,955,515																59,955,515

XML

Note 6 - Income Taxes (Details) (USD $)	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 12,406,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 11,174,000

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Note 12 - Segment Information (Details) - Reconciliation of Segment Amounts Reported to Condensed Consolidated Amounts (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2013
Revenue
Total revenues for reportable segments			$ 4,212,721
Total consolidated revenue	974,805	2,248,509	4,212,721	5,225,297
Net loss
Total loss for reportable segments			(654,723)
Unallocated amounts relating to corporate operations
Selling, general and administrative expenses			(1,183,200)
Stock based compensation	(5,500)		(88,000)	(273,182)
Judgment settlement			(43,700)
Amortization of loan costs			(94,670)	(76,584)
Depreciation and interest expense			(187,792)
Total consolidated net loss	(853,558)	(256,290)	(2,252,085)	12,489,634
Assets
Total assets for reportable segments	974,043		974,043
Corporate investments and other assets	20,109		20,109
Total consolidated assets	$ 994,152		$ 994,152		$ 658,635

XML

Note 2 - Principles of Consolidation and Basis of Presentation

9 Months Ended

Jun. 30, 2014

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, 2013, 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). In July of 2013, the Company formed its newest subsidiary, Bulova Technologies Machinery 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. The settlement and disposition of this segment was accomplished during the quarter ended March 31, 2011, with the exception of a note payable, whose final settlement occurred when all of the assets of Ordnance were sold in October 2012.

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 markets and sells commercially ammunition acquired through various suppliers worldwide. The Company leases office space in Frankfurt, Germany to promote and facilitate its programs.

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 under exclusive arrangements with recognized international sources and establish a Distributor/Dealer Network throughout the United States and Canada.

In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2014 and September 30, 2013, and the results of operations and cash flows for the three and nine months ended June 30, 2014 and 2013.

Subsequent Events

The Company has evaluated subsequent events through August 15, 2014 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 formation of Bulova Technologies Machinery LLC and the expansion into commercial ammunition sales, the Company now operates in two business segments, government contracting and commercial sales.  

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 from sales activities in each of the Company’s business segments. 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.

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 items held for resale and materials and supplies for sale and service.

The breakdown of inventory at June 30, 2014 and September 30, 2013 is as follows:

	June 30,		September 30,
	2014		2013
Inventory held for resale	$	351,460	$	-
Materials and supplies		-		55,605
Total inventory of continuing operations	$	351,460	$	55,605

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 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, 2014 and September 30, 2013

	June 30,			September 30,
	2014			2013
Funiture, fixtures and equipment		59,089			117,580
		59,089			117,580
Less accumulated depreciation		(32,866	)		(24,871	)
Net property, plant and equipment	$	26,223		$	92,709

Depreciation expense for the nine months ended June 30, 2014 and 2013 was $18,015 and $6,860 respectively.

Loan Costs

The Company account for costs incurred relative to the acquisition of new debt in other assets, and amortizes these costs over the life of the debt. The unamortized balance of loan costs at June 30, 2014 and September 30, 2013 were $0 and $94,670 respectively.

Amortization of loan costs for the nine months ended June 30, 2014 and 2013 was $94,670 and $76,584 respectively.

Impairment of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets at least annually. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are 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 4 “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. A significant portion of the Company’s revenue have been 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 have been 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 nine months ended June 30, 2014 and 2013.

Shipping Costs

The Company includes shipping costs in cost of revenues.

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 ASC48, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions.

Income (Loss) per Common Share

The Company computes income (loss) per share by dividing net earnings (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the year. Dilutive common stock equivalents may consist of shares issuable upon exercise of the Company's stock warrants and options (calculated using the treasury stock method).  As of June 30, 2014, there were 59,955,515 common stock equivalents that were anti-dilutive and were not included in the calculation. Common stock issuable is considered outstanding as of the original approval date for purposes of earnings per share computations.

Recent Accounting Pronouncements

We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term.  The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.  Reference is made to these recent accounting pronouncements as if they are set forth therein in their entirety.

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Note 10 - Change in Accounting Estimate (Details) (Terminated by Government Before Completion [Member], USD $)	Jun. 30, 2014
Terminated by Government Before Completion [Member]
Note 10 - Change in Accounting Estimate (Details) [Line Items]
Accrued Liabilities	$ 6,071,700

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Note 2 - Principles of Consolidation and Basis of Presentation (Details) - Inventory (USD $)	Jun. 30, 2014	Sep. 30, 2013
Inventory [Abstract]
Inventory held for resale	$ 351,460	$ 0
Materials and supplies	0	55,605
Total inventory of continuing operations	$ 351,460	$ 55,605

XML

Note 2 - Principles of Consolidation and Basis of Presentation (Details) (USD $)	0 Months Ended	9 Months Ended			9 Months Ended		0 Months Ended
	Jan. 02, 2009	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2013	Jun. 30, 2014 Machinery and Equipment [Member] Minimum [Member]	Jun. 30, 2014 Building and Building Improvements [Member] Minimum [Member]	Jan. 02, 2009 3Si [Member]	Mar. 31, 2011 BT Manufacturing Company LLC [Member] sqft	Oct. 31, 2012 Bulova Technologies Ordnance Systems LLC [Member] acre
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
Number of Operating Segments	3	2
Area of Real Estate Property								35,000	261
Property, Plant and Equipment, Useful Life					5 years	10 years
Depreciation		$ 18,015	$ 6,860
Deferred Finance Costs, Gross		0		94,670
Amortization of Financing Costs		94,670	76,584
Amount of Invoiced Amount Withheld to Repay Debt to US Government		90.00%
Advertising Expense		$ 0	$ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares)		59,955,515

XML

Note 11 - Subsequent Events (Details)	1 Months Ended									0 Months Ended		1 Months Ended
	Jun. 30, 2014	May 31, 2014	Mar. 31, 2014	Feb. 28, 2014	Jun. 30, 2013	Feb. 28, 2013	Jan. 31, 2013	Nov. 30, 2012	Oct. 31, 2012	Aug. 01, 2014 Subsequent Event [Member]	Jul. 08, 2014 Subsequent Event [Member]	Jul. 17, 2014 Subsequent Event [Member]
Note 11 - Subsequent Events (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	4,255,534	3,231,118	2,356,472	1,102,564	750,000	750,000	1,237,121	915,150	4,944,618	1,700,000	2,129,032	2,129,032

XML

Note 2 - Principles of Consolidation and Basis of Presentation (Details) - Property, Plant and Equipment (USD $)	Jun. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Funiture, fixtures and equipment	$ 59,089	$ 117,580
	59,089	117,580
Less accumulated depreciation	(32,866)	(24,871)
Net property, plant and equipment	26,223	92,709
Continuing Operations [Member]
Property, Plant and Equipment [Line Items]
Net property, plant and equipment	$ 26,223	$ 92,709

XML

Note 3 - Discontinued Operations (Details) (USD $)	1 Months Ended
	Oct. 31, 2012
Discontinued Operations and Disposal Groups [Abstract]
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 1 - Description of Business

9 Months Ended

Jun. 30, 2014

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 3Si Holdings, Inc. (“3Si”) a private company that was under common control and began operations in Florida.

The headquarters of the Company is located in Tampa, Florida. The Company derives all of its revenues through the operation of its wholly-owned subsidiaries. Through 2012 the Company derived its revenue principally as a Government contractor through its wholly-owned subsidiary, Bulova Technologies Ordnance Systems LLC located in Mayo, Florida. In October 2012, Bulova Technologies Ordnance Systems LLC sold substantially all of its assets to an unrelated party. Subsequently the Company expanded its sources of revenues to include the sales of commercial ammunition through its wholly-owned subsidiary, Bulova Technologies (Europe) LLC, and also sales of Industrial Tool Machines through its wholly-owned subsidiary, Bulova Technologies Machinery LLC, which was launched mid-2013.

XML

Note 3 - Discontinued Operations (Details) - Operating Results For Discontinued Operations (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Operating Results For Discontinued Operations [Abstract]
Revenue	$ 0	$ 0
Cost of Sales	0	0
Gross profit	0	0
Operating expenses and interest	0	0
Other income	0	1,309,424
Income (loss) from operations	0	1,309,424
Loss on disposal of discontinued operations	0	0
Income tax benefit	0	0
Income (loss) from discontinued operations, net of tax	$ 0	$ 1,309,424

XML

Note 7 - Commitments and Contingencies (Details) - Minimum Lease Payments Under Operating Leases (USD $)	Jun. 30, 2014
Minimum Lease Payments Under Operating Leases [Abstract]
2015	$ 260,448
2016	266,959
2017	273,633
2018	280,474
2019	287,486
Thereafter	2,812,178
	$ 4,181,178

XML

Consolidated Balance Sheets (Current Period Unaudited) (USD $)	Jun. 30, 2014	Sep. 30, 2013
ASSETS
Cash and equivalents	$ 97,385	$ 89,812
Accounts receivable	323,323	303,565
Inventory	351,460	55,605
Other current assets	193,761	13,649
Total current assets	965,929	462,631
Property, plant and equipment	26,223	92,709
Other assets	2,000	103,295
Total Assets	994,152	658,635
Accounts payable	439,420	514,892
Accrued expenses	822,548	1,053,267
Current portion of long term debt	5,087,341	2,821,711
Total current liabilities	6,349,309	4,389,870
Shareholder loans	(20,182)	(22,613)
Long term debt, net of current portion	464,691	112,629
Total liabilities	6,793,818	4,479,886
Commitments and contingencies
Shareholders’ deficit:
Preferred stock, $.00001 par, authorized 5,000,000,000 shares; 4,000,000,000 issued and outstanding at June 30, 2014 and September 30, 2013	40,000	40,000
Common stock, $.001 par; authorized 500,000,000 shares; 50,072,004 and 21,001,316 issued and outstanding at June 30, 2014 and September 30, 2013	50,072	21,001
Subscription receivable	(66,000)	(66,000)
Additional paid in capital in excess of par	23,418,790	23,174,191
Retained deficit	(29,242,528)	(26,990,443)
Total shareholders’ deficit	(5,799,666)	(3,821,251)
Total liabilities and shareholders’ equity	$ 994,152	$ 658,635

XML

Note 12 - Segment Information (Details)	0 Months Ended	9 Months Ended
	Jan. 02, 2009	Jun. 30, 2014
Segment Reporting [Abstract]
Number of Operating Segments	3	2

XML

Statement of Changes in Stockholders Equity (Unaudited) (USD $)	Preferred Stock [Member]	Common Stock [Member] Issuance of Shares for Debt 1 [Member]	Common Stock [Member] Issuance of Shares for Debt 2 [Member]	Common Stock [Member]	Subscription Receivable [Member]	Additional Paid-in Capital [Member] Issuance of Shares for Debt 1 [Member]	Additional Paid-in Capital [Member] Issuance of Shares for Debt 2 [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Issuance of Shares for Debt 1 [Member]	Issuance of Shares for Debt 2 [Member]	Total
Stock, Value at Sep. 30, 2013	$ 40,000			$ 21,001	$ (66,000)			$ 23,174,191	$ (26,990,443)			$ (3,821,251)
Stock, Shares (in Shares) at Sep. 30, 2013	4,000,000,000			21,001,316
Issuance of shares for services				5,125				77,375				82,500
Issuance of shares for services (in Shares)				5,125,000
Issuance of shares in satisfaction of debt		3,459	7,487			11,041	13,183			14.500	20,670
Issuance of shares in satisfaction of debt (in Shares)		3,459,036	7,486,652
Issuance of shares for settlement				1,000				6,700				7,700
Issuance of shares for settlement (in Shares)				1,000,000
Issuance of warrants for services								5,500,000,000				5,500,000,000
Net loss for the nine months ended June 30, 2014									(2,252,085)			(2,252,085)
Sale of common shares				12,000				130,800				142,800
Sale of common shares (in Shares)				12,000,000
Stock, Value at Jun. 30, 2014	$ 40,000			$ 50,072	$ (66,000)			$ 23,418,790	$ (29,242,528)			$ (5,799,666)
Stock, Shares (in Shares) at Jun. 30, 2014	4,000,000,000			50,072,004

XML

Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) (USD $)	9 Months Ended	12 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
Convertible Note Payable to Asher Enterprises Inc Dated July 16, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)		$ 14,500
Interest Rate		8.00%
Note Payable to Keehan Trust Funding LLC Dated January 19, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	1,550,000	1,550,000
Interest Rate	10.00%	10.00%
Colateral (in Dollars)	4,700,000	4,700,000
Convertible Note Payable to Asher Enterprises Inc Dated November 7, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	37,500	37,500
Interest Rate	8.00%	8.00%
Note Payable to GovFunding LLC Dated October 24, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	553,763	553,763
Interest Rate	8.00%	8.00%
Principal payments (in Dollars)	69,220.38	69,220.38
Note Payable to Individual Dated December 21, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	60,000	60,000
Interest Rate	8.00%	8.00%
Note Payable to NFC III LLC on February 25, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	400,000	400,000
Interest Rate	10.00%	10.00%
Note Payable to an Individual on January 25, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	50,000	50,000
Interest Rate	7.00%	7.00%
Note Payable to GovFunding LLC on January 1, 2013 for $30,000 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	30,000	30,000
Interest Rate	8.00%	8.00%
Note Payable to GovFunding LLC on January 1, 2013 for $24,552 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	24,552	24,552
Interest Rate	8.00%	8.00%
Note Payable to an Individual Dated April 30, 2013 A [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	60,000	60,000
Note Payable to an Individual Dated April 30, 2013 B[Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	26,269	26,269
Note Payable to Yellowstone Capital Dated June 19, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)		30,000
Principal payments (in Dollars)		500
Number of payments		80
Revolving Credit Line Payable to NFC III LLC [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	10.00%	10.00%
Note Payable to Ford Credit [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Principal payments (in Dollars)	904.34	904.34
Note Payable to NFC III LLC [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	10.00%	10.00%
Note Payable to an Individual on September 10, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%	8.00%
Note Payable to Shapiro Family Trust Dated July 10, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%	8.00%
Note Payable to Craigmore Machinery Company Dated August 15, 2013 A [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%	8.00%
Note Payable to Craigmore Machinery Company Dated August 15, 2013 B [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%	8.00%
Note Payable to Craigmore Machinery Company Dated September 1, 2013 A [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%	8.00%
Note Payable to Craigmore Machinery Company Dated September 1, 2013 B [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to SIII Associates Limited Partnership Dated November 8, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to SIII Associates Limited Partnership Dated November 8, 2013 [Member] | Maximum [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	1,435,000
Note Payable to SV Associates Limited Partnership Dated January 9, 2014[Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to Craigmore Machinery Company Dated January 9, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to an Individual Dated January 17, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to Craigmore Machinery Company Dated January 24, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to Craigmore Machinery Company Dated January 31, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to Tropico Equity Partners LLC Dated February 3, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note payable to Rachel E Shapiro Trust dated February 14, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	6.00%
Note Payable to Metro Bank Dated February 14, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	200,000
Interest Rate	4.65%
Note Payable to Banyan Capital Finance Dated March 12, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Interest Rate	8.00%
Note Payable to Capital Stack, LLC Dated March 24, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	35,000
Principal payments (in Dollars)	599
Number of payments	83
Note Payable to Fast Advance Funding Dated March 26, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	15,000
Principal payments (in Dollars)	256.45
Number of payments	83
Note Payable to Colleen Stacy Shapiro 2007 Trust April 23, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	160,000
Interest Rate	6.00%
Subordinated Promissory Note Payable to The Shapiro Family D1 Trust April 29, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	400,000
Interest Rate	6.00%
Note Payable to an Individual May 1, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	67,286
Interest Rate	4.00%
Note Payable to SIII Associates Limited Partnership May 8, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt (Parentheticals) [Line Items]
Original loan amount (in Dollars)	$ 100,000
Interest Rate	6.00%

XML

Note 3 - Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 2014

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,
	2014		2013
Revenue	$	-	$	-
Cost of Sales		-		-
Gross profit		-		-
Operating expenses and interest		-		-
Other income		-		1,309,424
Income (loss) from operations		-		1,309,424
Loss on disposal of discontinued operations		-		-
Income tax benefit		-		-
Income (loss) from discontinued operations, net of tax	$	-	$	1,309,424

XML

Note 5 - Long Term Debt (Details) - Principal Maturities Of Long Term Debt (USD $)	Jun. 30, 2014
Principal Maturities Of Long Term Debt [Abstract]
2015	$ 5,087,341
2016	15,933
2017	416,582
2018	17,258
2019	14,918
Thereafter	0
	$ 5,552,032

XML

Note 6 - Income Taxes (Tables)

9 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

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

Continuing Operations	6/30/2014			9/30/2013
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		0.00	%		0.00	%

XML

Supplemental Schedule of Non-Cash Financing and Investing Activities

9 Months Ended

Jun. 30, 2014

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Supplemental schedule of non-cash financing and investing activities:

● October 2013, the Company issued 500 000 common shares for services

● November 2013, the Company issued 625,000 common shares for services

● February 2014, the Company issued 1,102,564 common shares in satisfaction of debt

● February 2014, the Company issued 4,000,000 common shares for services

● March 2014, the Company issued 2,356,472 common shares in satisfaction of debt

● May 2014, the Company issued 3,231,118 common shares in satisfaction of debt

● May 2014, The Company issued 1,100,000 warrants for services

● June 2014, the Company issued 4,255,534 common shares in satisfaction of debt

● June 2014, the Company issued 1,000,000 common shares as part of a judgment settlement

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)	Jun. 30, 2014	Sep. 30, 2013
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	4,000,000,000
Preferred stock shares outstanding	4,000,000,000	4,000,000,000
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	500,000,000	500,000,000
Common stock shares issued	50,072,004	21,001,316
Common stock shares outstanding	50,072,004	21,001,316

XML

Note 10 - Change in Accounting Estimate

9 Months Ended

Jun. 30, 2014

Change In Accounting Estimate [Abstract]

Change In Accounting Estimate [Text Block]

10. 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

Document And Entity Information	9 Months Ended
	Jun. 30, 2014	Aug. 13, 2014
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		56,030,068
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, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

XML

Note 11 - Subsequent Events

9 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

11. Subsequent Events

July 8, 2014, the Company issued 2,129,032 common shares as conversion of debt.

July 17, 2014, the Company issued 2,129,032 common shares as conversion of debt.

August 1, 2014, the Company issued 1,700,000 common shares as conversion of debt.

XML

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues	$ 974,805	$ 2,248,509	$ 4,212,721	$ 5,225,297
Cost of revenues	904,568	1,802,895	3,740,284	4,428,434
Gross profit	70,237	445,614	472,437	796,863
Selling and administrative expense	758,045	512,631	2,218,936	1,694,063
Stock based compensation	5,500		88,000	273,182
Depreciation and amortization expense	6,074	160,930	112,685	453,648
Interest expense	109,926	28,743	265,652	513,330
Total expenses	879,545	702,304	2,685,273	2,934,223
Income (loss) from operations	(809,308)	(256,690)	(2,212,836)	(2,137,360)
Other income (expense)
Other income	(44,250)		(39,249)	13,317,570
Income (loss) from continuing operations before income taxes	(853,558)	(256,290)	(2,252,085)	11,180,210
Income tax expense	0	0	0	0
Income (loss) from continuing operations	(853,558)	(256,290)	(2,252,085)	11,180,210
Income (loss) from discontinued operations, net of tax				1,309,424
Net Income (loss)	$ (853,558)	$ (256,290)	$ (2,252,085)	$ 12,489,634
Basic net income (loss) per share
Income (loss) from continuing operations (in Dollars per share)	$ (0.022)	$ (0.013)	$ (0.01)	$ 0.66
Income (loss) from discontinued operations (in Dollars per share)				$ 0.08
Net income (loss) per share (in Dollars per share)	$ (0.022)	$ (0.013)	$ (0.01)	$ 0.74
Diluted net income (loss) per share
Income (loss)from continuing operations (in Dollars per share)	$ (0.022)	$ (0.013)	$ (0.01)	$ 0.34
Income (loss) from discontinued operations (in Dollars per share)	$ 0			$ 0.04
Net income (loss) per share (in Dollars per share)	$ (0.022)	$ (0.013)	$ (0.01)	$ 0.38
Weighted average shares outstanding
Basic (in Shares)	38,420,517	18,526,316	22,566,851	16,859,849
Diluted (in Shares)	38,420,517	18,526,316	22,566,851	32,611,680

XML

Note 5 - Long Term Debt

9 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

5.   Long Term Debt

Long term debt consisted of the following at:

	June 30, 2014			September 30, 2013
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
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 June 30, 2014. Final payment due upon delivery		700,000			700,000
Convertible Note payable to Asher Enterprises, Inc. dated November 7, 2012 in the original amount of $37,500, bearing interest at 8% with a maturity date of August 9, 2013.		16,830			37,500
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			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			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			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			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			24,552
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		45,000			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			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.		-			8,464
Revolving credit line payable to NFC III LLC bearing interest at 10%, payable on demand		813,819			560,819
Note payable to Ford Credit non-interest bearing payable at $904.34 monthly with a maturity date of September 14, 2018		-			54,261
Note payable to NFC III LLC bearing interest at 10% payable on demand		75,000			75,000
Note payable to an individual dated September 10, 2013, bearing interest at 8% payable on demand		125,000			75,000
Note payable to Shapiro Family Trust dated July 10, 2013, bearing interest at 8% payable on demand		150,000			100,000
Note payable to Craigmore Machinery Company dated August 15, 2013, bearing interest at 8% payable on demand		50,000			50,000
Note payable to Craigmore Machinery Company dated August 15, 2013 bearing interest at 8% payable on demand		49,212			49,212
Note payable to Craigmore Machinery Company dated September 1, 2013 bearing interest at 8% payable on demand		5,000			5,000
Note payable to Craigmore Machinery Company dated September 1, 2013 bearing interest at 8% payable on demand		20,000			-
Note payable to SIII Associates Limited Partnership dated November 8, 2013 with a maximum amount of $1,435,000 bearing interest at 8% with a maturity date of March 31, 2014		1,306,688			-
Note payable to SV Associates Limited Partnership dated January 9, 2014 bearing interest at 8% payable on demand		41,000			-
Note payable to Craigmore Machinery Company dated January 9, 2014 bearing interest at 8% payable on demand		30,000			-
Note payable to an individual dated January 17, 2014 bearing interest at 8% payable on demand		8,000			-
Note payable to Craigmore Machinery Company dated January 24, 2014 bearing interest at 8% payable on demand		20,000			-
Note payable to Craigmore Machinery Company dated January 31, 2014 bearing interest at 8% payable on demand		8,000			-
Note payable to Tropico Equity Partners LLC dated February 3, 2014 bearing interest at 8% payable on demand		68,161			-
Note payable to Rachel E Shapiro Trust dated February 14, 2014 bearing interest at 6% payable on demand		51,500			-
Note payable to Metro Bank dated February 14, 2014 with a maximum amount of $200,000 bearing interest at 4.65% with a maturity date of December 14, 2014		125,000			-
Note payable to Banyan Capital Finance dated March 12, 2014 bearing interest at 8% payable on demand		23,000			-
Note payable to Capital Stack, LLC dated March 24, 2014 in the amount of $35,000 with no stipulated interest rate payable through 83 daily payments of $599		4,977			-
Note payable to Fast Advance Funding dated March 26, 2014 in the amount of $15,000 with no stipulated interest rate, payable through 83 daily payments of $256.45		3,975			-
Note payable to Colleen Stacy Shapiro 2007 Trust, dated April 23, 2014 in the amount of $160,000, bearing interest at 6%, payable on demand		160,000			-
Subordinated Promissory Note payable to The Shapiro Family D1 Trust dated April 29, 2014 in the amount of $400,000, bearing interest at 6%, payable on demand		400,000			-
Note payable to an individual dated May 1, 2014 in the amount of $67,286, bearing interest at 4%, with a maturity date of April 1, 2019		67,286			-
Note payable to SIII Associates Limited Partnership dated May 8, 2014 in the amount of $100,000 bearing interest at 6% payable on demand		100,000			-
		5,552,032			2,934,340
Less current portion pertaining to continuing operations		(5,087,341	)		(2,821,711	)
	$	464,691		$	112,629

Principal maturities of long term debt for the next five years and thereafter as of June 30, 2014 are as follows:

Period ended June 30,
2015	$	5,087,341
2016		15,933
2017		416,582
2018		17,258
2019		14,918
Thereafter		-
	$	5,552,032

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Note 4 - Advance Payments and Billings in Excess of Cost

9 Months Ended

Jun. 30, 2014

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

4.   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 has had certain contracts with the U.S. Government that have been 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. The balances outstanding as of June 30, 2014 and September 30, 2013 are $0 and $0 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, 2014 and September 30, 2013.

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Note 5 - Long Term Debt (Tables)

9 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Schedule of Debt [Table Text Block]

	June 30, 2014			September 30, 2013
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
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 June 30, 2014. Final payment due upon delivery		700,000			700,000
Convertible Note payable to Asher Enterprises, Inc. dated November 7, 2012 in the original amount of $37,500, bearing interest at 8% with a maturity date of August 9, 2013.		16,830			37,500
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			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			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			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			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			24,552
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		45,000			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			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.		-			8,464
Revolving credit line payable to NFC III LLC bearing interest at 10%, payable on demand		813,819			560,819
Note payable to Ford Credit non-interest bearing payable at $904.34 monthly with a maturity date of September 14, 2018		-			54,261
Note payable to NFC III LLC bearing interest at 10% payable on demand		75,000			75,000
Note payable to an individual dated September 10, 2013, bearing interest at 8% payable on demand		125,000			75,000
Note payable to Shapiro Family Trust dated July 10, 2013, bearing interest at 8% payable on demand		150,000			100,000
Note payable to Craigmore Machinery Company dated August 15, 2013, bearing interest at 8% payable on demand		50,000			50,000
Note payable to Craigmore Machinery Company dated August 15, 2013 bearing interest at 8% payable on demand		49,212			49,212
Note payable to Craigmore Machinery Company dated September 1, 2013 bearing interest at 8% payable on demand		5,000			5,000
Note payable to Craigmore Machinery Company dated September 1, 2013 bearing interest at 8% payable on demand		20,000			-
Note payable to SIII Associates Limited Partnership dated November 8, 2013 with a maximum amount of $1,435,000 bearing interest at 8% with a maturity date of March 31, 2014		1,306,688			-
Note payable to SV Associates Limited Partnership dated January 9, 2014 bearing interest at 8% payable on demand		41,000			-
Note payable to Craigmore Machinery Company dated January 9, 2014 bearing interest at 8% payable on demand		30,000			-
Note payable to an individual dated January 17, 2014 bearing interest at 8% payable on demand		8,000			-
Note payable to Craigmore Machinery Company dated January 24, 2014 bearing interest at 8% payable on demand		20,000			-
Note payable to Craigmore Machinery Company dated January 31, 2014 bearing interest at 8% payable on demand		8,000			-
Note payable to Tropico Equity Partners LLC dated February 3, 2014 bearing interest at 8% payable on demand		68,161			-
Note payable to Rachel E Shapiro Trust dated February 14, 2014 bearing interest at 6% payable on demand		51,500			-
Note payable to Metro Bank dated February 14, 2014 with a maximum amount of $200,000 bearing interest at 4.65% with a maturity date of December 14, 2014		125,000			-
Note payable to Banyan Capital Finance dated March 12, 2014 bearing interest at 8% payable on demand		23,000			-
Note payable to Capital Stack, LLC dated March 24, 2014 in the amount of $35,000 with no stipulated interest rate payable through 83 daily payments of $599		4,977			-
Note payable to Fast Advance Funding dated March 26, 2014 in the amount of $15,000 with no stipulated interest rate, payable through 83 daily payments of $256.45		3,975			-
Note payable to Colleen Stacy Shapiro 2007 Trust, dated April 23, 2014 in the amount of $160,000, bearing interest at 6%, payable on demand		160,000			-
Subordinated Promissory Note payable to The Shapiro Family D1 Trust dated April 29, 2014 in the amount of $400,000, bearing interest at 6%, payable on demand		400,000			-
Note payable to an individual dated May 1, 2014 in the amount of $67,286, bearing interest at 4%, with a maturity date of April 1, 2019		67,286			-
Note payable to SIII Associates Limited Partnership dated May 8, 2014 in the amount of $100,000 bearing interest at 6% payable on demand		100,000			-
		5,552,032			2,934,340
Less current portion pertaining to continuing operations		(5,087,341	)		(2,821,711	)
	$	464,691		$	112,629

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

Period ended June 30,
2015	$	5,087,341
2016		15,933
2017		416,582
2018		17,258
2019		14,918
Thereafter		-
	$	5,552,032

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Note 12 - Segment Information

9 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

12. Segment Information

With Bulova Technologies (Europe) LLC beginning to diversify into product sales to non US Government customers in the quarter ended December 31, 2013 and Bulova Technologies Machinery LLC commencing the sale and service of its products commercially, the Company now operates in two business segments. The Government Contracting segment is focused on the production and procurement of military articles for the U.S. Government and other allied governments throughout the world, and is accounted for through two of the Company’s wholly owned subsidiaries, Bulova Technologies Ordnance Systems LLC and Bulova Technologies (Europe) LLC. The Commercial Sales segment is focused on the sale and service of commercial products to non-government customers consisting of ammunition and industrial business machines, and is accounted for through two of the Company’s wholly owned subsidiaries, Bulova Technologies (Europe) LLC and Bulova Technologies Machinery LLC.

(UNAUDITED)

SEGMENT INFORMATION FOR THE NINE MONTHS ENDED JUNE 30, 2014 IS AS FOLLOWS:

	Government Contracting			Commercial Sales & Service			Total
Revenue	$	1,580,488		$	2,632,233		$	4,212,721
Cost of Sales		1,570,912			2,169,372			3,740,284
Gross profit		9,576			462,861			472,437
Selling, general and administrative expenses		348			1,035,388			1,035,736
Depreciation and interest expense		62,432			33,443			95,875
Income (loss) from operations		(53,204	)		(605,970	)		(659,174	)
Other income (expense)		4,451			-			4,451
Net Income (loss)	$	(48,753	)	$	(605,970	)	$	(654,723	)
Total Assets	$	1,918		$	972,125		$	974,043

Reconciliation of Segment Amounts Reported to Condensed Consolidated Amounts    

Revenue
Total revenues for reportable segments	$	4,212,721
Total consolidated revenue	$	4,212,721
Net loss
Total loss for reportable segments	$	(654,723	)
Unallocated amounts relating to corporate operations
Selling, general and administrative expenses		(1,183,200	)
Stock based compensation		(88,000	)
Judgment settlement		(43,700	)
Amortization of loan costs		(94,670	)
Depreciation and interest expense		(187,792	)
Total consolidated net loss	$	(2,252,085	)
Assets
Total assets for reportable segments	$	974,043
Corporate investments and other assets		20,109
Total consolidated assets	$	994,152

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Note 8 - Related Party Transactions

9 Months Ended

Jun. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

8.   Related Party Transactions

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

The Company has received loans from 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. As of June 30, 2014 and September 30, 2013, the only remaining debt associated with these notes is a temporary balance due from Stephen L. Gurba and Evelyn R. Gurba in the amount of $20,182 and $22,613 respectively.

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Note 6 - Income Taxes

9 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

6.   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 a tax free reorganization under the provisions of Section 368A of the Internal Revenue Code. 3SI Holdings had various net operating loss carry over’s. 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. These net operating loss carry-overs are included in the deferred tax asset of the Company.

The Company has previously recognized an income tax benefit for its operating losses generated since inception through September 30 2013 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, 2013 the Company had federal net operating loss carry forwards of approximately $12,406,000 and Florida net operating loss carry forwards of approximately $11,174,000. The federal net operating loss carry forwards will expire in 2020 through 2033 and state net operating loss carry forwards that will expire in 2028 through 2033.

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

Continuing Operations	6/30/2014			9/30/2013
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		0.00	%		0.00	%

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, 2013, the tax returns for the Company for the years ending 2010 through 2012 remain open to examination by the Internal Revenue Service and Florida Department of Revenue. 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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Note 7 - Commitments and Contingencies

9 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

7.   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.

In 2010, Bulova Technologies Ordnance Systems LLC (Ordnance), one of the Company’s wholly owned subsidiaries, received a contract termination from the United States government for portions of a weapons contract with the U.S. Army. Ordnance has disputed this termination, and has filed a counter-claim. This dispute is ongoing, and the Company does not believe the outcome will have any material effect on the Company’s financial position or results of operations.

At June 30, 2014 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 leases approximately 6,000 square feet of office, showroom and warehouse space in Sanford, Florida on a month to month basis, and approximately 10,000 square feet of office, showroom and warehouse space in Branchburg, New Jersey for a period of one year, with two, two year options at the same rate. These two locations are to facilitate the commercial sales of Bulova Technologies Machinery LLC. As of June 30, 2014, the Company has vacated the New Jersey location.

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, 2014 and 2013, was approximately $296,600 and $211,000 respectively.

The Company’s commitments for minimum lease payments under these operating leases for the next five years and thereafter as of June 30, 2014 are as follows:

Period ended June 30,
2015	$	260,448
2016		266,959
2017		273,633
2018		280,474
2019		287,486
Thereafter		2,812,178
	$	4,181,178

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Note 9 - Stockholders' Equity

9 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

9.   Stockholders’ Equity

Common Shares

On December 30, 2013, the Company affected a 1 for 200 reverse split of its common stock. The financial statements have been retroactively adjusted to reflect the effects of this reverse split. All equity issuances relative to common shares are presented as post reverse quantities (1/200), as compared to filings prior to the reverse.

Concurrently, the Company amended its articles to reduce the amount of authorized common shares from 5,000,000,000 to 500,000,000.

October 2012, the Company issued 754,038 common shares for services

October 2012, the Company issued 4,944,618 common shares as conversion of debt

November 2012, the Company issued 757,500 common shares for services

November 2012, the Company issued 915,150 common shares as conversion of debt

December 2012, the Company issued 496,250 common shares for services

January 2013 – the Company issued 1,237,121 shares of its common stock as conversion of debt

January 2013 – the Company issued 150,000 shares of its common stock in association with new debt

January 2013 – the Company issued 205,000 common shares for services

February 2013 – the Company issued 750,000 common shares of its common stock as conversion of debt

June 2013 – the Company issued 750,000 common shares of its common stock as conversion of debt

July 2013 – the Company issued 750,000 common shares in association with the extension of terms on existing debt

September 2013 – the Company issued 1,000,000 common shares for services

October 2013 - the Company issued 500 000 common shares for services

November 2013 - the Company issued 625,000 common shares for services

February 2014, the Company issued 1,102,564 common shares as conversion of debt

February 2014, the Company issued 4,000,000 common shares for services

March 2014, the Company issued 2,356,472 common shares as conversion of debt

April 2014, the Company sold 12,000,000 shares of common stock for $142,800

May 2014, the Company issued 3,231,118 common shares as conversion of debt

June 2014, the Company issued 4,255,534 common shares as conversion of debt

June 2014, the Company issued 1,000,000 common shares in conjunction with a judgment settlement

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.

Subscription receivable

In February 2013, the Company issued 20,589,981 warrants in exchange for subscription notes receivable of $66,000.

Warrants and options

In May 2014, the Company issued warrants to purchase 1,100,000 shares of our common stock at $0.02 per share any time prior to May 11, 2024

As of June 30, 2014, the Company had outstanding non-qualified warrants and options to purchase 59,955,515 shares of our common stock at any time prior to various expiration dates, the earliest being February 15, 2022, and the latest being May 11, 2024, all with an exercise price of $0.02 per share.

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Note 5 - Long Term Debt (Details) - Long Term Debt (USD $)	Jun. 30, 2014	Sep. 30, 2013
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	$ 5,552,032	$ 2,934,340
Less current portion pertaining to continuing operations	(5,087,341)	(2,821,711)
	464,691	112,629
Convertible Note Payable to Asher Enterprises Inc Dated July 16, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		14,500
Note Payable to Keehan Trust Funding LLC Dated January 19, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	700,000	700,000
Convertible Note Payable to Asher Enterprises Inc Dated November 7, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	16,830	37,500
Note Payable to GovFunding LLC Dated October 24, 2012 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	553,763	553,763
Note Payable to Individual Dated December 21, 2012 [Member]
Note 5 - 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 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	400,000	400,000
Note Payable to an Individual on January 25, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	50,000	50,000
Note Payable to GovFunding LLC on January 1, 2013 for $30,000 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	30,000	30,000
Note Payable to GovFunding LLC on January 1, 2013 for $24,552 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	24,552	24,552
Note Payable to an Individual Dated April 30, 2013 A [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	45,000	60,000
Note Payable to an Individual Dated April 30, 2013 B[Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	26,269	26,269
Note Payable to Yellowstone Capital Dated June 19, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		8,464
Revolving Credit Line Payable to NFC III LLC [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	813,819	560,819
Note Payable to Ford Credit [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable		54,261
Note Payable to NFC III LLC [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	75,000	75,000
Note Payable to an Individual on September 10, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	125,000	75,000
Note Payable to Shapiro Family Trust Dated July 10, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	150,000	100,000
Note Payable to Craigmore Machinery Company Dated August 15, 2013 A [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	50,000	50,000
Note Payable to Craigmore Machinery Company Dated August 15, 2013 B [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	49,212	49,212
Note Payable to Craigmore Machinery Company Dated September 1, 2013 A [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	5,000	5,000
Note Payable to Craigmore Machinery Company Dated September 1, 2013 B [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	20,000
Note Payable to SIII Associates Limited Partnership Dated November 8, 2013 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	1,306,688
Note Payable to SV Associates Limited Partnership Dated January 9, 2014[Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	41,000
Note Payable to Craigmore Machinery Company Dated January 9, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	30,000
Note Payable to an Individual Dated January 17, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	8,000
Note Payable to Craigmore Machinery Company Dated January 24, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	20,000
Note Payable to Craigmore Machinery Company Dated January 31, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	8,000
Note Payable to Tropico Equity Partners LLC Dated February 3, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	68,161
Note payable to Rachel E Shapiro Trust dated February 14, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	51,500
Note Payable to Metro Bank Dated February 14, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	125,000
Note Payable to Banyan Capital Finance Dated March 12, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	23,000
Note Payable to Capital Stack, LLC Dated March 24, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	4,977
Note Payable to Fast Advance Funding Dated March 26, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	3,975
Note Payable to Colleen Stacy Shapiro 2007 Trust April 23, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	160,000
Subordinated Promissory Note Payable to The Shapiro Family D1 Trust April 29, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	400,000
Note Payable to an Individual May 1, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	67,286
Note Payable to SIII Associates Limited Partnership May 8, 2014 [Member]
Note 5 - Long Term Debt (Details) - Long Term Debt [Line Items]
Note payable	$ 100,000

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Note 2 - Principles of Consolidation and Basis of Presentation (Tables)

9 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Schedule of Inventory, Current [Table Text Block]

	June 30,		September 30,
	2014		2013
Inventory held for resale	$	351,460	$	-
Materials and supplies		-		55,605
Total inventory of continuing operations	$	351,460	$	55,605

Property, Plant and Equipment [Table Text Block]

	June 30,			September 30,
	2014			2013
Funiture, fixtures and equipment		59,089			117,580
		59,089			117,580
Less accumulated depreciation		(32,866	)		(24,871	)
Net property, plant and equipment	$	26,223		$	92,709

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Note 12 - Segment Information (Tables)

9 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Government Contracting			Commercial Sales & Service			Total
Revenue	$	1,580,488		$	2,632,233		$	4,212,721
Cost of Sales		1,570,912			2,169,372			3,740,284
Gross profit		9,576			462,861			472,437
Selling, general and administrative expenses		348			1,035,388			1,035,736
Depreciation and interest expense		62,432			33,443			95,875
Income (loss) from operations		(53,204	)		(605,970	)		(659,174	)
Other income (expense)		4,451			-			4,451
Net Income (loss)	$	(48,753	)	$	(605,970	)	$	(654,723	)
Total Assets	$	1,918		$	972,125		$	974,043

Reconciliation of Revenue, Assets, and Net Loss (Income) from Segment to Consolidated [Table Text Block]

Revenue
Total revenues for reportable segments	$	4,212,721
Total consolidated revenue	$	4,212,721
Net loss
Total loss for reportable segments	$	(654,723	)
Unallocated amounts relating to corporate operations
Selling, general and administrative expenses		(1,183,200	)
Stock based compensation		(88,000	)
Judgment settlement		(43,700	)
Amortization of loan costs		(94,670	)
Depreciation and interest expense		(187,792	)
Total consolidated net loss	$	(2,252,085	)
Assets
Total assets for reportable segments	$	974,043
Corporate investments and other assets		20,109
Total consolidated assets	$	994,152

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Note 8 - Related Party Transactions (Details) (USD $)	9 Months Ended			9 Months Ended
	Jun. 30, 2014	Jun. 30, 2014 Stephen L. Gurba and Evelyn R. Gurba [Member]	Sep. 30, 2013 Stephen L. Gurba and Evelyn R. Gurba [Member]	Jun. 30, 2014 Original Face Amount [Member]	Jun. 30, 2014 Amended Face Amount [Member]
Note 8 - Related Party Transactions (Details) [Line Items]
Related Party Transaction, Rate	5.00%
Related Party Transaction, Amounts of Transaction				$ 1,500,000	$ 5,000,000
Due from Related Parties		$ 20,182	$ 22,613

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net Income (loss)	$ (2,252,085)	$ 12,489,634
(Income) Loss from discontinued operations		(1,309,424)
Income (Loss) from continuing operations	(2,252,085)	11,180,210
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	112,685	453,648
Stock based payment for services	88,000	273,182
Stock based settlement payment	7,700
Gain from change in accounting estimate		(6,071,700)
(Gain) from settlement of debt		(356,765)
Loss on sale of note receivable		156,710
Loss (Gain) on sale of assets	920	(6,153,177)
Changes in operating assets and liabilities
Accounts receivable	(19,758)	112,005
Inventory	(295,855)	55,404
Prepaid expenses and other assets	(173,487)	(105,287)
Accounts payable and accrued expenses	(298,906)	(143,483)
Net cash flows from operating activities – continuing operations	(2,830,786)	(599,253)
Net cash flows from operating activities – discontinued operations		(1,309,424)
Net cash flows from operating activities	(2,830,786)	(1,908,677)
Cash flows from investing activities:
Acquisition of fixed assets	(1,283)
Proceeds from sale of assets		9,547,580
Proceeds from sale of note receivable		250,000
Principle collections on note receivable		3,831
Net cash flows from investing activities – continuing operations	(1,283)	9,801,411
Net cash flows from investing activities	(1,283)	9,801,411
Cash flows from financing activities:
Proceeds from sale of preferred shares		20,000
Proceeds from sale of common shares	142,800
Increase (decrease) of Shareholder loans	2,431	(244,488)
Increases in long term debt	2,764,349	1,623,673
Repayment of long term debt	(69,938)	(9,277,836)
Net cash flows from financing activities – continuing operations	2,839,642	(7,878,651)
Net cash flows from financing activities	2,839,642	(7,878,651)
Increase (decrease) in cash and cash equivalents	7,573	14,083
Cash and cash equivalents, beginning	89,812	29,034
Cash and cash equivalents, ending	97,385	43,117
Cash paid for interest	$ 15,322	$ 2,476

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Note 3 - Discontinued Operations

9 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

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

3.   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 September 30, 2013 and September 30, 2012 and has segregated its operating results and presented them separately as a discontinued operation for all periods presented.

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

Summarized operating results for discontinued operations is as follows:

	Nine months ended
	June 30,
	2014		2013
Revenue	$	-	$	-
Cost of Sales		-		-
Gross profit		-		-
Operating expenses and interest		-		-
Other income		-		1,309,424
Income (loss) from operations		-		1,309,424
Loss on disposal of discontinued operations		-		-
Income tax benefit		-		-
Income (loss) from discontinued operations, net of tax	$	-	$	1,309,424

The income (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

As of June 30, 2014 and September 30, 2013, there are no remaining assets associated with this discontinued operation.

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Supplemental Schedule of Non-Cash Financing and Investing Activities (Details)	1 Months Ended
	Jun. 30, 2014	May 31, 2014	Mar. 31, 2014	Feb. 28, 2014	Nov. 30, 2013	Oct. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Feb. 28, 2013	Jan. 31, 2013	Dec. 31, 2012	Nov. 30, 2012	Oct. 31, 2012
Supplemental Cash Flow Elements [Abstract]
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued					625,000	500,000
Debt Conversion, Converted Instrument, Shares Issued	4,255,534	3,231,118	2,356,472	1,102,564				750,000	750,000	1,237,121		915,150	4,944,618
Stock Issued During Period, Shares, Issued for Services				4,000,000	625,000	500,000	1,000,000			205,000	496,250	757,500	754,038
Warrants Issued in Period		1,100,000
Stock Issued During Period, Shares, Judgment Settlement	1,000,000

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Note 6 - Income Taxes (Details) - Income Tax Reconciliation	9 Months Ended	12 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
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%

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Accounting Policies, by Policy (Policies)

9 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

The Company has evaluated subsequent events through August 15, 2014 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 formation of Bulova Technologies Machinery LLC and the expansion into commercial ammunition sales, the Company now operates in two business segments, government contracting and commercial sales.

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 from sales activities in each of the Company’s business segments. 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.

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 items held for resale and materials and supplies for sale and service.

The breakdown of inventory at June 30, 2014 and September 30, 2013 is as follows:

	June 30,		September 30,
	2014		2013
Inventory held for resale	$	351,460	$	-
Materials and supplies		-		55,605
Total inventory of continuing operations	$	351,460	$	55,605

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 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, 2014 and September 30, 2013

	June 30,			September 30,
	2014			2013
Funiture, fixtures and equipment		59,089			117,580
		59,089			117,580
Less accumulated depreciation		(32,866	)		(24,871	)
Net property, plant and equipment	$	26,223		$	92,709

Depreciation expense for the nine months ended June 30, 2014 and 2013 was $18,015 and $6,860 respectively.

Loans and Leases Receivable, Origination Fees, Discounts or Premiums, and Direct Costs to Acquire Loans Policy [Policy Text Block]

Loan Costs

The Company account for costs incurred relative to the acquisition of new debt in other assets, and amortizes these costs over the life of the debt. The unamortized balance of loan costs at June 30, 2014 and September 30, 2013 were $0 and $94,670 respectively.

Amortization of loan costs for the nine months ended June 30, 2014 and 2013 was $94,670 and $76,584 respectively.

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 are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are 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 4 “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. A significant portion of the Company’s revenue have been 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 have been 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 nine months ended June 30, 2014 and 2013.

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping Costs

The Company includes shipping costs in cost of revenues.

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 ASC48, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions.

Earnings Per Share, Policy [Policy Text Block]

Income (Loss) per Common Share

The Company computes income (loss) per share by dividing net earnings (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the year. Dilutive common stock equivalents may consist of shares issuable upon exercise of the Company's stock warrants and options (calculated using the treasury stock method).  As of June 30, 2014, there were 59,955,515 common stock equivalents that were anti-dilutive and were not included in the calculation. Common stock issuable is considered outstanding as of the original approval date for purposes of earnings per share computations.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term.  The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.  Reference is made to these recent accounting pronouncements as if they are set forth therein in their entirety.