Transition report pursuant to Rule 13a-10 or 15d-10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Dec. 31, 2015

Liquidity and Going Concern [Policy Text Block]

Liquidity - The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of December 31, 2015, the Company has an accumulated deficit of $12.8 million. In addition, the Company has working capital deficiencies of $3.6 million and $6.3 million as of December 31, 2015 and September 30, 2015, respectively. Management plans to continue to raise additional funds through the sales of debt or equity securities. Consistent with management’s plans to increase liquidity and enhance capital resources, the Company successfully negotiated an $8 million replacement senior credit facility and retired $3.5 million of senior secured notes and related accrued interest through a tender offer. The Company paid the December 31, 2015 interest payment due on the new senior note, $146,000, on January 20, 2016. However, there is no assurance that additional financing will be available when needed or that management will be able to obtain and close financing, including the aforementioned transaction, on terms acceptable to the Company or whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.

Reclassification, Policy [Policy Text Block]

Reclassifications – Certain prior year balances have been reclassified in order to conform to current year presentation. These reclassifications have no effect on previously reported results of operations or loss per share.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates – The preparation of financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. The Company’s most significant estimates relate to its allowances for receivables, taxes and equity issuances.

Revenue Recognition, Sales of Goods [Policy Text Block]

Revenue and Cost of Goods Sold Recognition – Generally, for the staffing business, revenue is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price to the buyer is fixed or determinable, and (4) collectability is reasonably assured.

Due to the short term nature of the Company’s construction contracts, revenue is recognized once 100% of a contract segment is completed. A contract may have many segments, of which, once a segment is completed, the revenue for the segment is recognized when no further significant performance obligations exists. The Company’s construction contracts or segments of contracts typically range from several days to two to four months. Contract costs may be billed as incurred. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools and repairs. Selling, general and administrative costs are charged to expense as incurred. The Company begins recognizing revenue on a project as project costs are incurred and revenue recognition criteria are met.

Provisions for losses on uncompleted contracts are made in the period such losses are known. Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions, changes in raw material costs, and final contract settlements may result in revisions to revenue, costs and income and are recognized in the period in which the revisions are determined.

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share – Basic earnings per common share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during the period, increased to include the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued using the treasury stock method. Dilutive convertible shares and warrants are excluded from the calculation of weighted average dilutive common shares because they are not currently convertible or because their inclusion would have been anti-dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per common share from continuing operations:

	For the Three Months Ended
	December 31,
	2015		2014
Numerator:
Net income	$	546,171	$	219,654
Preferred stock dividends		(19,890)		(19,890)
Net income attributable to common shareholders	$	526,281	$	199,764
Denominator:
Weighted average number of common shares outstanding - basic		45,765,382		39,987,080

Effect of dilutive securities:
Convertible preferred stock, Series A		-		667,169
Convertible preferred stock, Series A-1		-		393,645
Convertible debt		-		200,000
Convertible preferred stock, Series D		2,131,839		-
Convertible preferred stock, Series F		6,372,623		-
Total dilutive shares		8,504,462		1,260,814
Weighted average number of common shares outstanding - diluted		54,269,845		41,247,894
Earnings per share:
Basic	$	.01	$	-
Diluted	$	.01	$	-

The following securities are excluded from the calculation of weighted average dilutive common shares because they are not currently convertible, or because their inclusion would have been anti-dilutive:

	For the Three Months Ended
	December 31,
		2015		2014
Convertible preferred stock, Series A			667,169		667,169
Convertible preferred stock, Series A-1			393,645		393,645
Convertible preferred stock, Series D ^[1]			797,680,000		755,948,000
Convertible preferred stock, Series F ^[1]			366,984,400		-
Warrants			437,336		797,359
Convertible debt			200,000		200,000
Total potentially dilutive shares			1,166,362,549		758,006,173

^[1]

The Series D and Series F preferred shares are convertible at a rate of 400 pre-split shares of common stock for each share of preferred stock but not until the Company has effected a sufficient increase in the authorized common shares.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk – Financial instruments that potentially expose the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains its cash at one financial institution that management believes is a high-credit, high-quality financial institution and accordingly, subject to minimal credit risk. Deposits held with these financial institutions may be in excess of the amount of insured limits provided on such deposits, if any. The Company is subject to risk of nonpayment of its trade accounts receivable.

The Company’s customer base is highly concentrated. As of September 30, 2015, the Company’s two largest customers, a provider of large scale fiber optic cables (“Customer E”) and a leading provider of wireless infrastructure solutions (“Customer B”) represented 47% and 12% of accounts receivable, respectively. As of December 31, 2015, the Company’s three largest customers, Customer E, Customer H and Customer B, represented 47%, 14%, and 10% of accounts receivable, respectively.

Revenue may significantly decline if the Company were to lose one or more of its significant customers. For the three months ended December 31, 2015 and December 31, 2014, Customer C represented approximately 1% and 89%, respectively, and a corporate staffing customer within the Company’s staffing segment, Customer D, represented 52% and 0%, respectively.

Income Tax, Policy [Policy Text Block]

Deferred taxes – During the three months ended December 31, 2015 and 2014, the difference between the effective tax rate and the statutory tax rate is due to the utilization of fully reserved net operating losses.

Debt, Policy [Policy Text Block]

Amortization of Senior Note Debt Discount and Deferred Financing Costs – The amortization of the senior note debt discount (Note 5. Senior Debt) is calculated monthly using the straight line method, which approximates the interest rate method, over the original term of the note, twenty-four months. The result of this monthly amortization is recognized in amortization of debt discount in the period amortized for the debt discount and interest expense for the deferred finance costs.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

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