Tax provision

9 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 6. Tax provision

The Company’s tax provision for the three and nine months ended June 30, 2012 and 2011 is as follows:

	Three months ended June 30,						Nine months ended June 30,
	2012			2011			2012		2011
Current tax expense on international operations	$	25,469		$	29,289		$	77,864	$	108,345
Current state taxes		10,000			10,000			30,000		30,000
Deferred tax (benefit) expense		(116,627	)		(30,830	)		434,211		99,708
Tax (benefit) provision	$	(81,158	)	$	8,459		$	542,075	$	238,053

Deferred tax benefit for the three months ended June 30, 2012 was primarily due to increases in reserves and net operating losses offset somewhat by write-offs for bad debt.

Deferred tax expense for the nine months ended June 30, 2012 was primarily due to the utilization of net operating losses and write-offs of inventory and bad debt.