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18. INCOME TAXES | 12 Months Ended
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Sep. 30, 2013
Income Tax Disclosure [Abstract] |
18. INCOME TAXES | The Company has incurred losses since inception, which have generated net operating loss carryforwards. The net operating loss carryforwards arise from United States sources. Pretax losses arising from United States operations were approximately $6,200,000 for the year ended September 30, 2013. Pretax losses arising from United States operations were approximately $2,700,000 for the year ended September 30, 2012. The Company has net operating loss carryforwards of approximately $18,000,000, which expire in 2020-2032. Because it is not more likely than not that sufficient tax earnings will be generated to utilize the net operating loss carryforwards, a corresponding valuation allowance of approximately $6,200,000 and $4,100,000 was established as of September 30, 2013 and 2012 respectively. Additionally, under the Tax Reform Act of 1986, the amounts of, and benefits from, net operating losses may be limited in certain circumstances, including a change in control. Section 382 of the Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that may be used to offset taxable income when a corporation has undergone significant changes in its stock ownership. There can be no assurance that the Company will be able to utilize any net operating loss carryforwards in the future. For the year ended September 30, 2013, the Company’s effective tax rate differs from the federal statutory rate principally due to net operating losses and warrants issued for services. The principal components of the Company’s deferred tax assets at September 30, 2013 are as follows:
|  | 2013 |  |  | 2012 |
U.S. operations loss carry forward at statutory rate of 34% |  | $ | (6,154,986 | ) |  | $ | (4,137,426 | )
Non-U.S. operations loss carry forward at statutory rate of 20.5% |  |  | 0 |  |  |  | - |
Total |  |  | (6,154,986 | ) |  |  | (4,137,426 | )
Less Valuation Allowance |  |  | 6,154,986 |  |  |  | 4,137,426 |
Net Deferred Tax Assets |  |  | - |  |  |  | - |
Change in Valuation allowance |  | $ | 6,154,986 |  |  | $ | 4,137,426 |
A reconciliation of the United States Federal Statutory rate to the Company’s effective tax rate for the period ended September 30, 2013 and 2012 is as follows:
|  | 2013 |  |  | 2012 |
Federal Statutory Rate |  |  | -34.0 | % |  |  | -34.0 | %
Increase in Income Taxes Resulting from: |  |  |  |  |  |  |  |
Change in Valuation allowance |  |  | 34.0 | % |  |  | 34.0 | %
Effective Tax Rate |  |  | 0.0 | % |  |  | 0.0 | %

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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