DEFERRED INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2016

Significant components of the Company’s net deferred income tax assets at September 30, 2016 and 2015, respectively are as follows:

	2016		2015

Amortization and impairment of licensing agreement	$	582,500	$	507,000
Allowance for doubtful account		750		-
Net operating loss carryforward		4,560,033		4,621,000
Net deferred income tax asset		5,143,283		5,128,000
Less: valuation allowance		(5,143,283)		(5,128,000)
Total deferred income tax assets	$	0.00	$	0.00

A reconciliation of the Federal and respective State income tax rate as a percentage of income before taxes is as follows:

	2016		2015

Federal statutory income tax rate		32.13%		32.13%
State taxes, net of federal benefit		5.5%		5.5%
Effective rate for deferred tax asset		37.63%		37.63%
Less: Valuation allowance		(37.63%)		(37.63%)
Effective income tax rate		0.0%		0.0%