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Note 12. Income Taxes | 12 Months Ended
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Sep. 30, 2012
Income Tax Disclosure [Text Block] | 12. Income Taxes The provisions of ASC 740-10 “Accounting for Uncertain Income Tax Positions”, requires that the impact of tax positions be recognized in the financial statements if they are more likely than not of being sustained upon examination, based on the technical merits of the position. There was no impact to the Company as a result of adopting ASC 740-10 as the Company’s management has determined that the Company has no uncertain tax positions requiring recognition under ASC 740-10 as of September 30, 2012 and 2011. The Company’s income tax provision was computed based on the federal statutory rate and average state statutory rates, net of related federal benefit. The provision differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources, all domestic, and tax effects of the differences are as follows:
|  | Year Ended September 30, |
|  | 2012 |  |  | 2011 |
Income tax benefit at the federal statutory rate of 34% |  | $ | (356 | ) |  | $ | (239 | )
Permanent differences, net |  |  | 204 |  |  |  | 341 |
State income tax expense (benefit) |  |  | (51 | ) |  |  | (34 | )
Change in valuation allowance attributable to operations |  |  | 227 |  |  |  | (54 | )
Foreign Taxes |  |  | 46 |  |  |  | - |
Other |  |  | (2 | ) |  |  | 10 |
Total |  | $ | 68 |  |  | $ | 24 |
As of September 30, 2012, the Company has a federal net operating loss (NOL) carryforward of approximately $6 million that expires on various dates through 2032. Internal Revenue Code Section 382 places a limitation on the amount of taxable income which can be offset by NOL carryforwards after a change in control of a loss corporation. Generally, after a change in control, a loss corporation cannot deduct NOL carryforwards in excess of the Section 382 Limitation. Due to these “change of ownership” provisions, utilization of NOL carryforwards may be subject to an annual limitation regarding their utilization against taxable income in future periods. The Company has not performed a Section 382 analysis. However, if performed, Section 382 may be found to limit potential future utilization of the Company’s NOL carryforwards. The Company has net operating loss carryforwards and other deferred tax benefits that are available to offset future taxable income. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. Accordingly, the Company has established a full valuation allowance against its deferred tax asset at September 30, 2012 and 2011. For the year ended September 30, 2012 the valuation allowance for deferred tax assets increased $1,205 which was mainly due to the increase in the net operating loss. For the year ended September 30, 2011, the valuation allowance for deferred tax assets increased $227 thousand which was mainly due to the decreases in certain allowances, intangibles and reserves. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense. Penalties, if incurred, are recognized as a component of tax expense. The Company is subject to U.S. federal income tax as well as income tax of certain state jurisdictions. The Company has not been audited by the Internal Revenue Service (IRS) or any states in connection with income taxes. The tax periods from 2009 – 2012 generally remain open to examination by the IRS and state authorities. Significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | September 30, |
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |
Current: |  |  |  |  |  |
Bad debt reserve |  | $ | 76 |  |  | $ | 112 |
Deferred revenue |  |  | 332 |  |  |  | 454 |
Long-term |  |  |  |  |  |  |  |
AMT carryforward |  |  | 9 |  |  |  | 15 |
Net operating loss carryforwards |  |  | 2,618 |  |  |  | 1,741 |
Intangibles |  |  | 104 |  |  |  | - |
Total deferred tax assets |  |  | 3,139 |  |  |  | 2,322 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Long-term: |  |  |  |  |  |  |  |
Intangibles |  |  | - |  |  |  | (396 | )
Depreciation |  |  | (259 | ) |  |  | (251 | )
Total deferred tax liabilities |  |  | (259 | ) |  |  | (647 | )
Total deferred tax assets, net, before valuation allowance |  |  | 2,880 |  |  |  | 1,675 |
Valuation allowance |  |  | (2,880 | ) |  |  | (1,675 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
Undistributed earnings of the Company’s foreign subsidiary amounted to approximately $492 thousand and $474 thousand at September 30, 2012 and 2011, respectively. These earnings are considered to be indefinitely reinvested; accordingly, no provision for US federal and state income taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends of otherwise, the Company would be subject to both US income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the applicable foreign tax authority. Determination of the amount of unrecognized deferred US income tax liability is not material and the detailed calculations have not been performed. As of September 30, 2012, there would be minimal withholding taxes upon remittance of all previously unremitted earnings.

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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=6881521&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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: 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 8: 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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