DISCONTINUED OPERATIONS

6 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 3    DISCONTINUED OPERATIONS

On June 21, 2012, the Company determined to exit its global Retail business and focus solely on growing its OEM business.  The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong top line growth and cost rationalizations in the OEM business. Accordingly, the results of operations for the Retail division have been recorded as discontinued operations in the accompanying consolidated financial statements for the fiscal periods presented. Summarized operating results of discontinued operations are presented in the following table:

	For the Three-Month Periods Ended March 31,		For the Six-Month Periods Ended March 31,
	2013	2012	2013	2012
Net sales...............................................	$14,035	$941,949	$398,231	$1,663,178
Gross profit (loss) ..................................	(54,085)	253,219	98,022	439,443
Operating expenses................................	85,587	1,254,871	279,415	2,457,380
Other income (expense)..........................	3,307	(483)	3,528	(22,113)
Loss from discontinued operations, net of tax of $2,055 and $3,120, $2,975 and $4,979 respectively.......	$(138,419)	$(1,005,256)	$(180,839)	$(2,045,029)

Summarized assets and liabilities of discontinued operations are presented in the following table:

	March 31,	September 30,
	2013	2012
Accounts receivable, net.............................................	$5,838	$26,186
Inventories, net.............................................................	180,320	350,942
Prepaid assets and other current assets....................	260,215	244,751
Total assets of discontinued operations............	$446,373	$621,879
Accounts payable.........................................................	$85,569	$45,874
Accrued liabilities  .......................................................	113,471	215,932
Total liabilities of discontinued operations.....	$199,040	$261,806

The above asset amounts include approximately $385,000 relating to an expected settlement in connection with the June 2012 Memorandum of Understanding entered into with G-Form LLC. The Company has substantially completed its exit of its Retail business as of March 31, 2013. The Company does not expect to have any continuing involvement in the Retail business after this date.