Forward Industries (FORD) 10-K 12 Dec 16 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2016	Dec. 09, 2016	Mar. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Registrant Name	FORWARD INDUSTRIES INC
Entity Central Index Key	38,264
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	FORD
Entity Common Stock, Shares Outstanding		8,780,830
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 7,800,000

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 4,760,620	$ 4,042,124
Accounts receivable	4,864,423	5,454,129
Inventories	2,572,980	2,866,464
Prepaid expenses and other current assets	141,421	296,012
Total current assets	12,339,444	12,658,729
Property and equipment, net	43,030	78,733
Other assets	12,843	40,962
Total Assets	12,395,317	12,778,424
Current liabilities:
Accounts payable	62,136	122,803
Due to Forward China	3,519,676	4,168,021
Accrued expenses and other current liabilities	587,741	1,039,085
Total current liabilities	4,169,553	5,329,909
Other liabilities	51,486	115,202
Total Liabilities	4,221,039	5,445,111
Commitments and contingencies
Shareholders' equity:
Common stock, par value $0.01 per share; 40,000,000 shares authorized; 8,780,830 and 8,641,755 shares issued and outstanding at September 30, 2016 and 2015, respectively	87,808	86,418
Additional paid-in capital	17,783,060	17,550,047
Accumulated deficit	(9,674,805)	(10,281,367)
Accumulated other comprehensive loss	(21,785)	(21,785)
Total shareholders' equity	8,174,278	7,333,313
Total liabilities and shareholders' equity	$ 12,395,317	$ 12,778,424

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Common stock, par or stated value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	8,780,830	8,641,755
Common stock, shares outstanding (in shares)	8,780,830	8,641,755

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net sales	$ 27,479,896	$ 30,013,891
Cost of goods sold	22,399,734	24,220,698
Gross profit	5,080,162	5,793,193
Operating expenses
Sales and marketing	1,891,409	2,362,553
General and administrative	2,571,799	4,943,184
Total operating expenses	4,463,208	7,305,737
Income (loss) from operations	616,954	(1,512,544)
Other (income) expense:
Interest income	0	(3,022)
Loss on marketable securities, net	0	110,001
Other expense, net	10,392	13,421
Total other (income) expense, net	10,392	120,400
Loss from continuing operations	606,562	(1,632,944)
Income from discontinued operations, net of tax provision of $0	0	198,963
Net income (loss)	606,562	(1,433,981)
Preferred stock dividends, accretion and beneficial conversion feature	0	(475,580)
Net income (loss) applicable to common equity	606,562	(1,909,561)
Net income (loss)	606,562	(1,433,981)
Other comprehensive loss:
Translation adjustments	0	(1,374)
Comprehensive income (loss)	$ 606,562	$ (1,435,355)
Net Income (loss) per basic common share:
Income (loss) from continuing operations	$ 0.07	$ (0.25)
Income from discontinued operations	0	0.02
Net income (loss) per basic common share	0.07	(0.23)
Net Income (loss) per diluted common share:
Income (loss) from continuing operations	.07	(.25)
Income from discontinued operations	0	.02
Net income (loss) per diluted common share	$ 0.07	$ (0.23)
Weighted average number of common and common equivalent shares outstanding
Basic	8,521,188	8,342,168
Diluted	8,675,583	8,342,168

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Tax effect on loss from discontinued operations (in dollars)	$ 0	$ 0

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total
Balance at Sep. 30, 2014	$ 91,598	$ 18,747,371	$ (8,371,806)	$ (20,411)	$ 10,446,752
Balance (in shares) at Sep. 30, 2014	9,159,796
Restricted stock award issuances	$ 3,250	(3,250)
Restricted stock award issuances (in shares)	325,000
Restricted stock award forfeitures	$ (1,263)	1,263
Restricted stock award forfeitures (in shares)	(126,291)
Restricted stock repurchased and retired	$ (103)	(12,095)			(12,128)
Restricted stock repurchased and retired (in shares)	(10,340)
Treasury Stock Retired	$ (7,064)	(1,252,993)			(1,260,057)
Treasury Stock Retired (in shares)	(706,410)
Share-based compensation		69,751			69,751
Preferred stock dividends			(21,208)		(21,208)
Preferred stock accretion			(454,372)		(454,372)
Foreign currency translation				(1,374)	(1,374)
Net income (loss)			(1,433,981)		(1,433,981)
Balance at Sep. 30, 2015	$ 86,418	17,550,047	(10,281,367)	(21,785)	7,333,313
Balance (in shares) at Sep. 30, 2015	8,641,755
Restricted stock award issuances	$ 1,418	(1,418)
Restricted stock award issuances (in shares)	141,817
Restricted stock award forfeitures	$ (17)	17
Restricted stock award forfeitures (in shares)	(1,666)
Restricted stock repurchased and retired	$ (11)	(1,656)			(1,667)
Restricted stock repurchased and retired (in shares)	(1,076)
Share-based compensation		236,070			236,070
Net income (loss)			606,562		606,562
Balance at Sep. 30, 2016	$ 87,808	$ 17,783,060	$ (9,674,805)	$ (21,785)	$ 8,174,278
Balance (in shares) at Sep. 30, 2016	8,780,830

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities:
Net income (loss)	$ 606,562	$ (1,433,981)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Share-based compensation	236,070	69,751
Depreciation and amortization	52,754	53,445
Loss on disposal of property and equipment	31,070	0
Realized and unrealized loss on marketable securities	0	110,001
Deferred rent	(17,437)	(14,649)
Changes in operating assets and liabilities:
Accounts receivable	589,706	670,742
Inventories	293,484	(491,627)
Prepaid expenses and other current assets	154,591	105,538
Other assets	28,119	0
Accounts payable and due to Forward China	(709,012)	(1,596,344)
Accrued expenses and other current liabilities	(445,880)	505,219
Other liabilities	(51,743)	0
Net cash provided by (used in) operating activities	768,284	(2,021,905)
Cash Flows From Investing Activities:
Proceeds from sales of marketable securities	0	952,127
Purchases of marketable securities	0	(10,898)
Purchases of property and equipment	(48,121)	(33,189)
Net cash provided by (used in) investing activities	(48,121)	908,040
Cash Flows From Financing Activities:
Redemption of 6% Senior Convertible Preferred Stock	0	(1,287,737)
Dividends paid	0	(21,208)
Restricted stock repurchased and retired	(1,667)	(12,198)
Net cash used in financing activities	(1,667)	(1,321,143)
Net decrease in cash and cash equivalents	718,496	(2,435,008)
Cash and cash equivalents at beginning of year	4,042,124	6,477,132
Cash and cash equivalents at end of year	4,760,620	4,042,124
Supplemental disclosure of non-cash financing activity:
Preferred stock accretion	$ 0	$ 454,372

1. OVERVIEW

1. OVERVIEW	12 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
OVERVIEW	Forward Industries, Inc. (“Forward” or the “Company”) designs and distributes carry and protective solutions, primarily for hand held electronic devices. The Company’s principal customer market is original equipment manufacturers, or “OEMs” (or the contract manufacturing firms of these OEM customers), that either package their products as accessories “in box” together with their branded product offerings, or sell them through their retail distribution channels. The Company’s OEM products include carrying cases and other accessories for medical monitoring and diagnostic kits and a variety of other portable electronic and non-electronic products (such as sporting and recreational products, bar code scanners, smartphones, GPS location devices, tablets, and firearms). The Company’s OEM customers are located in: (i) the Asia-Pacific Region, which we refer to as the “APAC Region”; (ii) Europe, the Middle East, and Africa, which we refer to as the “EMEA Region”; and (iii) the Americas. The Company does not manufacture any of its OEM products and sources substantially all of its OEM products from independent suppliers in China, through Forward China (refer to Note 12 – Buying Agency and Supply Agreement). On June 21, 2012, the Company determined to exit its global Retail business and focus solely on growing its OEM business. The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong top line growth and cost rationalizations in the OEM business. The Retail business is presented as discontinued operations.

2. ACCOUNTING POLICIES

2. ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
ACCOUNTING POLICIES	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. Basis of Presentation The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US and Forward Switzerland). All significant intercompany transactions and balances have been eliminated in consolidation. Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit. We hold cash and cash equivalents at major financial institutions in the United States, at which cash amounts may significantly exceed the Federal Deposit Insurance Corporation’s insured limits. At September 30, 2016 and 2015, this amount was approximately $4.5 million (which includes $2.7 million in a foreign bank) and $3.9 million (which includes $2.0 million in a foreign bank), respectively. Historically, we have not experienced any losses due to such cash concentrations. Marketable Securities As of September 30, 2014, the Company had investments in marketable securities that were classified as trading and were recorded at fair value with the corresponding unrealized holding gains or losses recognized in earnings. The fair value of marketable securities was determined based on quoted market prices. The cost of marketable securities sold was determined by the specific identification method. The Company classifies its realized and unrealized gains and losses as non-operating income (expense) in its consolidated statements of operations and comprehensive income (loss). In addition, the Company classified the cash flows from the trading of these marketable securities as investing activities in its consolidated statements of cash flows. During the year ended September 30, 2015, the Company sold its investments in marketable securities. Accounts Receivable Accounts receivable consist of unsecured trade accounts with customers or their contract manufacturers. The Company performs periodic credit evaluations of its customers including an evaluation of days outstanding, payment history, recent payment trends, and perceived creditworthiness, and believes that adequate allowances for any uncollectible receivables are maintained. Credit terms to customers generally range from net thirty (30) days to net one hundred twenty (120) days. The Company has not historically experienced significant credit or collection problems with its OEM customers or their contract manufacturers. At September 30, 2016 and 2015, no allowance for doubtful accounts relating to the Company’s continuing operations was deemed necessary. Inventories Inventories consist primarily of finished goods and are stated at the lower of cost (determined by the first-in, first-out method) or market. Based on management’s estimates, an allowance is made to reduce excess, obsolete, or otherwise un-saleable inventories to net realizable value. The allowance is established through charges to cost of goods sold in the Company’s consolidated statements of operations and comprehensive income (loss). As reserved inventory is disposed of, the Company charges off the associated allowance. In determining the adequacy of the allowance, management’s estimates are based upon several factors, including analyses of inventory levels, historical loss trends, sales history and projections of future sales demand. The Company’s estimates of the allowance may change from time to time based on management’s assessments, and such changes could be material. At September 30, 2016 and 2015, there was no allowance for obsolete inventory. Property and Equipment Property and equipment consist of furniture, fixtures, and equipment and leasehold improvements and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives for furniture, fixtures and equipment ranges from three to ten years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. For each of the fiscal years ended September 30, 2016 and 2015, the Company recorded approximately $53,000 of depreciation and amortization expense from continuing operations. Leases The Company enters into various lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Leases may contain initial periods of free rent and/or periodic escalations. When such items are included in a lease agreement, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a deferred rent liability. The Company expenses any additional payments under its operating leases for taxes, insurance or other operating expenses as incurred. Income Taxes The Company accounts for its income taxes in accordance with accounting principles generally accepted in the United States of America, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carry-forwards to the extent that realization of these benefits is more likely than not. The Company periodically evaluates the realizability of its net deferred tax assets. See Note 9 –Income Taxes. The Company’s policy is to account for interest and penalties relating to income taxes, if any, in “income tax expense” in its consolidated statements of operations and comprehensive income (loss) and include accrued interest and penalties within “accrued liabilities” in its consolidated balance sheets, if applicable. For fiscal years ended September 30, 2016 and 2015, no income tax related interest or penalties were assessed or recorded. 6% Senior Convertible Preferred Stock Warrants In accordance with ASC 815-40 – Derivatives and Hedging – Contracts in Entity’s Own Equity, the Company’s warrants were previously classified as a liability, at fair value, as a result of a related registration rights agreement that contains certain requirements for registering the underlying common shares, but had no provision for penalties upon the failure to register. At each balance sheet date, this liability’s fair value was re-measured and adjusted with the corresponding change in fair value recorded in the consolidated statements of operations and comprehensive income (loss). After the Company met the requirements for registering the underlying common shares in the fiscal year ended September 30, 2014, the fair value of the warrants was reclassified to equity (additional paid-in capital). Preferred Stock Accretion At the date of issuance, the carrying amount of the convertible preferred stock was less than the redemption value. As a result of the Company’s determination that redemption was probable, the carrying value was increased by periodic accretions so that the carrying value was equal to the redemption amount at the earliest redemption date. Such accretion was recorded as a preferred stock dividend. Revenue Recognition The Company generally recognizes revenue from product sales to its customers when: (i) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (ii) persuasive evidence of an arrangement exists; (iii) the Company has no continuing obligations to the customer; and (iv) collection of the related accounts receivable is reasonably assured. The Company defers revenue when it receives consideration before achieving the criterion previously mentioned. Shipping and Handling Costs The Company classifies shipping and handling costs, including inbound and outbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs, as a component of cost of goods sold in the accompanying consolidated statements of operations and comprehensive income (loss). Foreign Currency Transactions Foreign currency transactions may generate receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in “other (income) expense” in the accompanying consolidated statements of operations and comprehensive income (loss). The approximate net losses from foreign currency transactions for continuing operations was approximately $16,000 and $20,000 for the fiscal years ended September 30, 2016 and 2015, respectively. Such foreign currency transaction losses were primarily the result of Euro denominated revenues from certain customers. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, which is included as a component of shareholders’ equity, represents translation adjustments related to the Company’s foreign subsidiaries. Fair Value of Financial Instruments For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments. Share-Based Compensation Expense The Company recognizes employee and director share-based compensation in its consolidated statements of operations and comprehensive income (loss) at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in substance, multiple awards. Refer to Note 8 - Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period. R ecent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605-Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 was further amended and is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-11 will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which applies to the classification of deferred tax assets and liabilities. The update eliminates the requirement to classify deferred tax assets and liabilities as noncurrent or current within a classified statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-17 will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which will require lessees to report most leases as assets and liabilities on the balance sheet, while lessor accounting will remain substantially unchanged. This ASU requires a modified retrospective transition approach for existing leases, whereby the new rules will be applied to the earliest year presented. The new standard is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-09 will have a material impact on its consolidated financial statements.

3. DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS	12 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	On June 21, 2012, the Company determined to exit its global Retail business and focus solely on growing its OEM business. The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong net revenues growth and cost rationalizations in the OEM business. Accordingly, the results of operations for the Retail division have been recorded as discontinued operations in the accompanying consolidated financial statements for the fiscal years presented. The Company has completed its exit of its Retail business. Summarized operating results of discontinued operations are presented in the following table: For the Fiscal Years Ended September 30, 2016 2015 Net revenues $ – $ – Gross loss – – Operating expenses – (1,037 ) Other income – 200,000 Income from discontinued operations, net $ – $ 198,963 As of September 30, 2016 and 2015, the Company did not have assets or liabilities associated with discontinued operations. The Company had $280,000 of accounts receivable relating to overdue payments pursuant to a Settlement Agreement and General Release (“Settlement Agreement”) executed on July 3, 2013 between the Company and G-Form LLC (“G-Form”) in exchange for certain retail inventories, the Company’s cooperation with certain administrative matters, and a mutual general release. Due to the age of the accounts receivable and G-Form’s non-responsiveness to the Company’s communication related to the matter, the Company established a full reserve for this receivable as of September 30, 2014, which was recognized as Operating Expenses in Fiscal 2014. In December 2014, the Company recovered $200,000 from a third party, which was recognized as other income in Fiscal 2015.

4. MARKETABLE SECURITIES

4. MARKETABLE SECURITIES	12 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	In December 2014, the Company closed its investments account and liquidated its investments in marketable securities. Equity securities were carried at fair value, as determined by quoted market prices, which is a Level 1 input, as established by the fair value hierarchy under ASC 820. The corresponding unrealized holding gains or losses of securities classified as trading are recognized in earnings. Net gains and losses on marketable securities for the fiscal year ended September 30, 2015 were $547,000 and $(657,000), respectively, and are included in the accompanying consolidated statements of operations and comprehensive income (loss).

5. PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT	12 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	Property and equipment and related accumulated depreciation and amortization are summarized in the table below: September 30, 2016 2015 Furniture, fixtures and equipment $ 333,748 $ 398,903 Leasehold improvements 42,020 97,107 Property and equipment, cost 375,768 496,010 Less: accumulated depreciation and amortization (332,738 ) (417,277 ) Property and equipment, net $ 43,030 $ 78,733 Depreciation and amortization expense was $52,754 and $53,445 for the fiscal years ended September 30, 2016 and 2015, respectively.

6. ACCRUED EXPENSES AND OTHER C

6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Sep. 30, 2016
Accounts Payable and Accrued Liabilities [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	Accrued expenses and other current liabilities are summarized in the table below: September 30, 2016 2015 Deferred revenue $ 309,571 $ 713,105 Personnel cost 256,144 200,005 Accrued settlements (former CEO and CFO) – 90,572 Other 22,026 35,403 Accrued expenses and other current liabilities $ 587,741 $ 1,039,085

7. SHAREHOLDERS' EQUITY

7. SHAREHOLDERS' EQUITY	12 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	Anti-takeover Provisions Shareholder Rights Plan On April 26, 2013, the Board of Directors (the “Board”) adopted a Shareholder Rights Plan, as set forth in the Rights Agreement between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent. Pursuant to the Rights Agreement, the Board declared a dividend distribution of one Right (a “Right”) for each outstanding share of Company Common Stock, par value $0.01 per share (the “Common Stock”) to shareholders of record at the close of business on May 6, 2013, which date will be the record date, and for each share of Common Stock issued (including shares distributed from treasury) by the Company thereafter and prior to the Distribution Date (as described below and defined in the Rights Agreement). Each Right entitles the registered holder, subject to the terms of the Rights Agreement, to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, $0.01 par value per share (the “Series A Preferred Stock”), at an exercise price of $4.00 per one one-thousandth of a share of Series A Preferred Stock, subject to adjustment. Initially, no separate Rights certificates will be distributed and instead the Rights will attach to all certificates representing shares of outstanding Common Stock. Subject to certain exceptions specified in the Rights Agreement, the Rights will separate from the Common Stock and become exercisable on the distribution date (the “Distribution Date”), which will occur on the earlier of: (i) the 10th business day (or such later date as may be determined by the Board) after the public announcement that an Acquiring Person (as defined in the Rights Agreement) has acquired beneficial ownership of 20% or more of the Common Stock then outstanding; or (ii) the 10th business day (or such later date as may be determined by the Board) after a person or group announces a tender or exchange offer that would result in a person or group of affiliated and associated persons beneficially owning 20% or more of the Common Stock then outstanding. “Blank Check” Preferred Stock The Company is authorized to issue up to 4,000,000 shares of “blank check” preferred stock. The Board has the authority and discretion, without shareholder approval, to issue preferred stock in one or more series for any consideration it deems appropriate, and to fix the relative rights and preferences thereof including their redemption, dividend and conversion rights. Of these shares, 1,500,000 shares have been authorized as the 6% Senior Convertible Preferred Stock and 100,000 shares have been authorized as the Series A Participating Preferred Stock. There were no shares of preferred stock outstanding at September 30, 2016 and 2015. 6% Senior Convertible Preferred Stock As of the 6% Senior Convertible Preferred Stock (the “Convertible Preferred Stock”) issuance date, the carrying amount was less than the redemption value. As a result of the Company’s determination that redemption was probable, the carrying value was being increased by periodic accretions so that the carrying value would equal the redemption amount at the earliest redemption date. Such accretion was recorded as a preferred stock dividend. Dividends on the Convertible Preferred Stock totaled approximately $0 and $21,000 for the fiscal years ended September 30, 2016 and 2015, respectively. These dividends, in addition to the accretion, totaled approximately $0 and $476,000 for the fiscal years ended September 30, 2016 and 2015, respectively. At the December 30, 2014 Annual Meeting, the shareholder vote resulted in the turnover of a majority of the Board members, which represented a Change of Control pursuant to the terms of the Convertible Preferred Stock. On December 31, 2014, the Company determined to recognize the balance of the accretion and bring the Convertible Preferred Stock carrying value up to its redemption value due to the likelihood of the holders requesting redemption. On January 9, 2015, the Company received a notice of deemed liquidation from holders owning a majority of the outstanding Convertible Preferred Stock in which they requested redemption of their Convertible Preferred Stock. On February 23, 2015, the Company paid an aggregate of $1,287,737 to the holders of the Convertible Preferred Stock in order to redeem all of the outstanding shares of Convertible Preferred Stock. Warrants Between June 28, 2013 and August 14, 2013, in connection with the issuance of the 6% Senior Convertible Preferred Stock, the Company issued ten-year warrants to purchase 648,846 shares of common stock with an exercise price of $1.84 per share. During the fiscal year ended September 30, 1999, the Company issued warrants to purchase an aggregate of 75,000 shares of common stock at an exercise price of $1.75 per share. By their terms these warrants expire 90 days after a registration statement registering common stock (other than pursuant to employee benefit plans) is declared effective by the United States Securities and Exchange Commission (the “Commission”). As of September 30, 2016, no such registration statement has been filed with the Commission. Stock Repurchase In September 2002 and January 2004, the Board authorized the repurchase of up to an aggregate of 486,200 shares of outstanding common stock. Under those authorizations, through September 30, 2016, the Company repurchased an aggregate of 224,690 shares at a cost of approximately $487,000. During the fiscal years ended September 30, 2016 and 2015, the Company repurchased and retired an aggregate of 1,076 and 10,340 shares, respectively, of its outstanding restricted common stock at a cost of approximately $2,000 and $12,000, respectively, in connection with the vesting of employee restricted stock awards, wherein certain employees surrendered a portion of their award in order to fund certain tax withholding obligations. Retirement of Treasury Stock On December 5, 2014, the Board of Directors approved the retirement of 706,410 shares of existing treasury stock.

8. SHARE-BASED COMPENSATION

8. SHARE-BASED COMPENSATION	12 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	2011 Long Term Incentive Plan In March 2011, shareholders of the Company approved the 2011 Long Term Incentive Plan (the “2011 Plan”), which authorizes 850,000 shares of common stock for grants of various types of equity awards to officers, directors, employees, consultants, and independent contractors. Forfeited awards are eligible for re-grant under the 2011 Plan. The total shares of common stock available for grants of equity awards under the 2011 Plan was 451,479 as of September 30, 2016. The exercise prices of stock options granted may not be less than the fair market value of the common stock as quoted at the close on the Nasdaq Stock Market on the grant date. The Compensation Committee administers the plan. Options generally expire ten years after the date of grant. 2007 Equity Incentive Plan The 2007 Equity Incentive Plan (the “2007 Plan”), which was approved by shareholders of the Company in May 2007, and, as amended, in February 2010, authorizes an aggregate of 800,000 shares of common stock for grants of restricted common stock and stock options to officers, employees, and non-employee directors of the Company. Forfeited awards are eligible for re-grant under the 2007 Plan. The total shares of common stock available for grants of equity awards under the 2007 Plan was 7,823 as of September 30, 2016. The exercise price of stock options granted may not be less than the fair market value of the common stock as quoted at the close on the Nasdaq Stock Market on the grant date. The Compensation Committee administers the 2007 Plan. Options generally expire ten years after the date of grant. 1996 Stock Incentive Plan The Company’s 1996 Stock Incentive Plan (the “1996 Plan”) expired in accordance with its terms in November 2006. The exercise price of incentive stock options granted under the 1996 Plan to officers, employees, and non-employee directors of the Company was required by 1996 Plan provisions to be equal at least to the fair market value of the common stock at the date of grant. In general, options under this plan expired ten years after the date of grant. Unexercised options granted prior to 1996 Plan expiration remained outstanding until the earlier of exercise or option expiration. Under the 1996 Plan, the remaining 20,000 fully vested common stock options expired unexercised during the year ended September 30, 2016. Stock Option Awards Effective January 15, 2015, in connection with the Company’s former Chief Executive Officer’s voluntary termination, previously outstanding unvested stock options to purchase an aggregate of 83,334 shares of common stock at exercise prices ranging from $1.59 to $5.31 per share that would have been forfeited pursuant to their original terms were modified such that the options vested on January 28, 2015. In connection with the “improbable to probable” modification, the Company recorded a credit of approximately $(31,000) during the fiscal year ended September 30, 2015. See Note 11 for additional details in connection with the termination. On June 25, 2015, the Company granted a ten-year incentive stock option to purchase 50,000 shares of common stock at an exercise price of $0.64 per share to an executive of the Company, pursuant to the 2011 Plan. The option vests as follows: 15,000 shares on the date of grant, 15,000 shares on the two-year anniversary of the date of grant and 20,000 shares on the three-year anniversary of the date of grant. The option had a grant date value of $19,000. On August 4, 2015, the Company granted ten-year incentive stock options to six employees to purchase an aggregate of 32,500 shares of common stock at an exercise price of $0.67 per share, pursuant to the 2011 Plan. The options vest as follows: an aggregate of 10,832 shares on the one year anniversary of the date of grant, an aggregate of 10,832 shares on the two-year anniversary of the date of grant and an aggregate of 10,836 shares on the three-year anniversary of the date of grant. The options had an aggregate grant date value of $13,000. The fair value of each stock option on the date of grant was estimated using a Black-Scholes option-pricing formula applying the following assumptions for each respective period: For the Fiscal Years Ended September 30, 2016 2015 Expected term (years) n/a 5.9 - 6.0 Expected volatility n/a 64.4% - 65.3% Risk free interest rate n/a 1.79% - 1.92% Expected dividends n/a 0% Estimated annual forfeiture rate n/a 10% There were no options granted during the fiscal year ended September 30, 2016. During the fiscal year ended September 30, 2015, the Company granted 82,500 stock options at weighted average grant date fair value per share of $0.39. The expected term represents the period over which the stock option awards are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company based the risk-free interest rate used in its assumptions on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s expected term. The volatility factor used in the Company’s assumptions is based on the historical price of its stock over the most recent period commensurate with the expected term of the award. The Company historically has not paid any dividends on its common stock and had no intention to do so on the date the share-based awards were granted. The Company recognized compensation expense (credit) of approximately $10,000 and $(27,000) during the fiscal years ended September 30, 2016 and 2015, respectively, in continuing operations for stock option awards in its consolidated statements of operations and comprehensive income (loss). As of September 30, 2016, there was approximately $8,000 of total unrecognized compensation cost related to unvested stock option awards, which is expected to be recognized over the remainder of the weighted average vesting period of 1.4 years. The following table summarizes stock option activity during the fiscal years ended September 30, 2016 and 2015: Weighted Weighted Average Average Remaining Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, September 30, 2014 778,500 $ 3.12 Granted 82,500 0.65 Exercised - Forfeited (550,000 ) 3.17 Outstanding, September 30, 2015 311,000 2.39 Granted - Exercised - Forfeited (25,000 ) 0.67 Expired (20,000 ) 6.02 Outstanding, September 30, 2016 266,000 $ 2.27 4.6 $ 53,850 Exercisable, September 30, 2016 225,999 $ 2.56 3.8 $ 19,999 The table below provides additional information regarding stock option awards that were outstanding and exercisable at September 30, 2016: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.64 to $1.99 $ 1.00 97,500 $ 1.25 5.6 57,499 $2.00 to $2.99 2.46 96,000 2.46 2.9 96,000 $3.00 to $3.79 3.74 72,500 3.74 3.8 72,500 266,000 3.8 225,999 Restricted Stock Awards On December 5, 2014, the Company granted an aggregate of 30,000 shares of restricted stock to directors of the Company, pursuant to the 2011 Plan. The shares were scheduled to vest on the one-year anniversary from the date of grant and the aggregate grant date value of $34,800 was scheduled to be recognized proportionate to the vesting period. On January 5, 2015, the aggregate of 30,000 shares of restricted stock were forfeited and retired when the shareholders did not elect these directors. On February 23, 2015, the Company granted an aggregate of 210,000 shares of restricted stock, of which 175,000 shares went to current directors and 35,000 went to a former officer (See Note 11 – Commitments and Contingencies – Former CFO Agreement) of the Company, of which 140,000 shares and 70,000 shares were pursuant to the 2007 Plan and 2011 Plan, respectively. The shares vest as follows: (i) 35,000 shares vest immediately, and (ii) 175,000 shares vest on the one-year anniversary from the date of grant. The aggregate grant date value of $193,200 will be recognized over the vesting period. On June 25, 2015, the Company granted 50,000 shares of restricted stock to an executive of the Company, pursuant to the 2011 Plan. The shares vest as follows: 15,000 shares on the date of grant, 15,000 shares on the two year anniversary of the date of grant and 20,000 shares on the three year anniversary of the date of grant. The grant date value of $32,000 will be recognized proportionate to the vesting period. On August 5, 2015, the Company granted 35,000 shares of restricted stock to a member of the Board, pursuant to the 2011 Plan which vests on the one year anniversary of the date of grant. The grant date value of $23,800 will be recognized over the vesting period. On October 26, 2015, the Company granted 17,500 shares of restricted stock, pursuant to the 2007 Plan, to a former director of the Company. The shares vested on December 31, 2015. The grant date value of $19,775 was recognized over the service period. On October 26, 2015, the Company accelerated the vesting date of 35,000 shares of restricted stock that were previously granted to a director of the Company from February 23, 2016 to December 31, 2015. The Company analyzed the modification as of the modification date and determined that the modification did not result in any incremental compensation expense, however, the remaining unamortized compensation expense attributable to the original award was recognized over the modified remaining service period. On February 23, 2016, the Company granted an aggregate of 124,317 shares of restricted stock to directors of the Company, pursuant to the 2007 Plan. The shares vest on the one-year anniversary from the date of grant. The aggregate grant date value of $182,746 will be recognized ratably over the vesting period. The Company recognized compensation expense of approximately $226,000 and $97,000 in continuing operations for restricted stock awards in its consolidated statements of operations and comprehensive income (loss) for the fiscal years ended September 30, 2016 and 2015, respectively. As of September 30, 2016, there was approximately $85,000 of unrecognized compensation cost related to shares of unvested restricted stock, which is expected to be recognized over the remainder of the weighted average vesting period of 0.5 years. The following table summarizes restricted stock activity during the fiscal years ended September 30, 2016 and 2015: Weighted Average Total Number of Grant Date Grant Date Shares Fair Value Fair Value Non-vested, September 30, 2014 257,581 $ 1.32 $ 340,044 Granted 325,000 0.87 283,800 Vested (192,958 ) 1.21 (234,281 ) Forfeited (126,291 ) 1.26 (159,398 ) Non-vested, September 30, 2015 263,332 0.87 230,165 Granted 141,817 1.43 202,521 Vested (244,166 ) 0.92 (224,758 ) Forfeited (1,666 ) 1.67 (2,782 ) Non-vested, September 30, 2016 159,317 $ 1.29 $ 205,146

9. INCOME TAXES

9. INCOME TAXES	12 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company’s provision (benefit) for income taxes consists of the following United States federal and state, and foreign components: For the Fiscal Years Ended September 30, 2016 2015 Current: Federal $ – $ – State – – Foreign – – Deferred: Federal 74,467 (307,369 ) State 10,951 (45,201 ) Foreign 127,454 14,013 212,872 (338,557 ) Change in valuation allowance (212,872 ) 338,557 Income tax provision (benefit) $ – $ – The deferred tax expense (benefit) is the change in the deferred tax assets and liabilities representing the tax consequences of changes in the amounts of temporary differences, net operating loss carryforwards and changes in tax rates during the fiscal year. The Company’s deferred tax assets and liabilities are comprised of the following: September 30, 2016 2015 Deferred tax assets: Net operating losses $ 3,689,028 $ 3,936,614 Capital loss carryforwards 383,795 383,795 Share-based compensation 155,180 155,432 Alternative minimum tax credit 99,757 99,757 Excess tax over book basis in inventory 85,573 109,175 4,413,333 4,684,773 Valuation allowance (4,340,498 ) (4,553,370 ) Net deferred tax assets 72,835 131,403 Deferred tax liabilities: Prepaid insurance (59,599 ) (118,167 ) Excess book over tax basis in fixed assets (13,236 ) (13,236 ) (72,835 ) (131,403 ) Total $ – $ – As of September 30, 2016 and 2015, the Company has no unrecognized income tax benefits. At September 30, 2016, the Company had available total net operating loss carryforwards for U.S. federal and state income tax purposes of approximately $9,211,000 and $5,533,000, respectively, expiring through 2036, resulting in deferred tax assets in respect of U.S. federal and state income taxes of approximately $3,132,000 and $277,000, respectively. In addition, at September 30, 2016, the Company had total available net operating loss carryforwards for foreign income tax purposes of approximately $3,188,000 resulting in a deferred tax asset of approximately $281,000, expiring through 2023. The Company has capital loss carryovers of approximately $984,000 expiring through 2020, resulting in deferred tax assets in respect of U.S. federal and state income taxes of approximately $384,000. Total net deferred tax assets, before valuation allowances, was $4,413,000 and $4,685,000 at September 30, 2016 and 2015, respectively. Undistributed earnings of the Company’s foreign subsidiaries are considered to be permanently reinvested; therefore, in accordance with U.S. generally accepted accounting principles, no provision for U.S. federal and state income taxes would result. In the fiscal year ended September 30, 2016, Forward Switzerland had net income of approximately $267,000, however, all of the Company’s foreign subsidiaries had accumulated deficits as of September 30, 2016. As of September 30, 2016, as part of its periodic evaluation of the necessity to maintain a valuation allowance against its deferred tax assets, and after consideration of all factors, both positive and negative (including, among others, projections of future taxable income, current year net operating loss carryforward utilization and the extent of the Company’s cumulative losses in recent years), the Company determined that, on a more likely than not basis, it would not be able to use its remaining deferred tax assets (except in respect of United States income taxes in the event the Company elects to effect the repatriation of certain foreign source income of its Swiss subsidiary, which income is currently considered to be permanently reinvested and for which no United States tax liability has been accrued). Accordingly, the Company has determined to maintain a full valuation allowance against its net deferred tax assets. As of September 30, 2016 and 2015, the valuation allowances were approximately $4,340,000 and $4,553,000, respectively. In the future, the utilization of the Company's net operating loss carryfowards may be subject to certain change of control limitations. If the Company determines in a future reporting period that it will be able to use some or all of its deferred tax assets, the adjustment to reduce or eliminate the valuation allowance would reduce its tax expense and increase after-tax income. Changes in deferred tax assets and valuation allowance are reflected in the “Income tax expense” line item of the Company’s consolidated statements of operations and comprehensive income (loss). The significant elements contributing to the difference between the United States federal statutory tax rate and the Company’s effective tax rate are as follows: For the Fiscal Years Ended September 30, 2016 2015 US federal statutory rate 34.0% (34.0% ) State tax rate, net of federal benefit 5.0% (5.0% ) Permanent differences: Share-based compensation (8.3% ) 9.9% Other 0.4% 0.4% Foreign rate differential (13.3% ) (5.3% ) Other 17.3% 10.4% Change in valuation allowance (35.1% ) 23.6% Income tax provision (benefit) 0.0% 0.0% As of September 30, 2016 and 2015, the Company has not accrued any interest and penalties related to uncertain tax positions. It is the Company’s policy to recognize interest and/or penalties, if any, related to income tax matters in income tax expense in the consolidated statements of operations and comprehensive income (loss). For the periods presented in the accompanying consolidated statements of operations and comprehensive income (loss), no material income tax related interest or penalties were assessed or recorded. All fiscal years prior to the fiscal year ended September 30, 2013 are closed to federal and state examination.

10. INCOME (LOSS) PER SHARE

10. INCOME (LOSS) PER SHARE	12 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
LOSS PER SHARE	Basic income (loss) per share data for each period presented is computed using the weighted-average number of shares of common stock outstanding during each such period. Diluted income (loss) per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of: (i) shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method; and (ii) shares of non-vested restricted stock. Net loss from continuing operations per basic and diluted share for the fiscal year ended September 30, 2015 is net of preferred stock cash dividends and accretion. For the fiscal years ended September 30, 2016 and 2015, the Company calculated the potential diluted earnings per share in accordance with ASC 260, as follows: For the Fiscal Years Ended September 30, 2016 2015 Numerator: Net income (loss) $ 606,562 $ (1,433,981 ) Preferred stock dividends and accretion – (475,580 ) Net income (loss) to common equity $ 606,562 $ (1,909,561 ) Denominator: Weighted average shares outstanding - basic 8,521,188 8,342,168 Effects of dilutive securities: Assumed exercise of stock options, treasury stock method 28,289 – Assumed vesting of restricted stock, treasury stock method 126,106 – Weighted average dilutive potential common shares 154,395 – Weighted average shares outstanding - diluted 8,675,583 8,342,168 Basic earnings (loss) per share $ 0.07 $ (0.23 ) Diluted earnings (loss) per share $ 0.07 $ (0.23 ) The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Fiscal Years Ended September 30, 2016 2015 Options 188,500 311,000 Warrants 723,846 723,846 Non-vested restricted stock – 263,332 Total potentially dilutive shares 912,346 1,298,178

11. COMMITMENTS AND CONTINGENCI

11. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Former CEO Agreement Effective January 15, 2015, the Company’s former Chief Executive Officer (“Former CEO”) voluntarily resigned from his position and entered into an agreement with the Company, pursuant to which the Former CEO agreed to waive all payments under his Employment Agreement and all future claims against the Company. Under the agreement, for six months following his termination of active employment, the Former CEO will receive his regular monthly base salary and will remain eligible to participate in medical and dental plans similar to his current coverage level for a period of twelve months. The Former CEO will also receive a cash payment of $7,852 in lieu of shares of restricted stock of the Company that would otherwise vest on November 8, 2015. In addition, the Former CEO will retain certain other ancillary benefits for limited periods. The agreement includes customary confidentiality, non-solicitation, non-competition, non-disparagement and release provisions. As of September 30, 2015, the remaining obligation to the Former CEO of approximately $1,000 is reflected as an accrual in the consolidated balance sheets. As of September 30, 2016, the obligation has been fully paid and there are no further amounts owed to the Former CEO. Former CFO Agreement On February 16, 2015, the Company entered into a settlement agreement and mutual release (the “Agreement”) with James McKenna, the Company’s former Chief Financial Officer (“Former CFO”), in connection with a lawsuit filed by Mr. McKenna on August 26, 2014 in the U.S. District Court for the Southern District of New York against the Company and then-directors Frank LaGrange Johnson, Robert Garrett, John F. Chiste, Timothy Gordon and Owen P.J. King (the “SDNY Lawsuit”), alleging purported claims of retaliation for whistleblowing under the Dodd-Frank Act, breach of contract and breach of the covenant of good faith and fair dealing all as against the Company, and a single claim for tortious interference with contract as against the individual defendants. The complaint sought an unspecified amount of monetary consequential damages and punitive damages. Pursuant to the Agreement, Mr. McKenna and the Company have agreed to settle and release all disputes or claims against the other party related to the SDNY Lawsuit and any such disputes or claims arising out of Mr. McKenna’s employment with the Company, without an admission of liability or wrongdoing. Under the Agreement, Mr. McKenna received: (i) $315,000 (representing 18 months' salary); (ii) approximately $375,000 in legal fees, back pay, prior out-of-pocket benefits, taxes and penalties on Mr. McKenna’s 401(k) loan, and accrued paid time off; and (iii) 35,000 restricted stock units vesting immediately. The Agreement includes customary non-disparagement and release provisions. As of September 30, 2015, the remaining obligation to the Former CFO of approximately $90,000 is reflected as an accrual in the consolidated balance sheet. As of September 30, 2016, the obligation has been fully paid and there are no further amounts owed to the Former CFO. Guarantee Obligation In February 2010, Forward Switzerland and its European logistics provider (freight forwarding and customs agent) entered into a Representation Agreement (the “Representation Agreement”) whereby, among other things, the European logistics provider agreed to act as Forward Switzerland's Fiscal representative in The Netherlands for the purpose of providing services in connection with any value added tax matters. As part of this agreement, Forward Switzerland agreed to provide an undertaking (in the form of a bank letter of guarantee) to the logistics provider with respect to any value added tax liability arising in The Netherlands that the logistics provider is required to pay to Dutch tax authorities on its behalf. As of February 1, 2010, Forward Switzerland entered into a guarantee agreement with a Swiss bank relating to the repayment of any amount up to €75,000 (equal to approximately $84,000 as of September 30, 2016) paid by such bank to the logistics provider in order to satisfy such undertaking pursuant to the bank letter of guarantee. Forward Switzerland would be required to perform under the guarantee agreement only in the event that: (i) a value added tax liability is imposed on the Company's revenues in The Netherlands; (ii) the logistics provider asserts that it has been called upon in its capacity as surety by the Dutch Receiver of Taxes to pay such taxes; (iii) Forward Switzerland or the Company on its behalf fails or refuses to remit the amount of value added tax due to the logistics provider upon its demand; and (iv) the logistics provider makes a drawing under the bank letter of guarantee. Under the Representation Agreement, Forward Switzerland agreed that the letter of guarantee would remain available for drawing for three years following the date that its relationship terminates with the logistics provider to satisfy any value added tax liability arising prior to expiration of the Representation Agreement but asserted by The Netherlands after expiration. The initial term of the bank letter of guarantee expired February 28, 2011, but renews automatically for one-year periods on February 28 of each subsequent year unless Forward Switzerland provides the Swiss bank with written notice of termination at least 60 days prior to the renewal date. It is the intent of Forward Switzerland and the logistics provider that the bank letter of guarantee amount be adjusted annually. In consideration of the issuance of the letter of guarantee, Forward Switzerland has granted the Swiss bank a security interest in all of its assets on deposit with, held by, or credited to Forward Switzerland’s accounts with, the Swiss bank (approximately $1.7 million at September 30, 2016). As of September 30, 2016, the Company had not incurred a liability in connection with this guarantee. Lease Commitments The Company rents its corporate headquarters in Florida under an operating lease expiring in September 2020 and its office in Switzerland on a month-to-month basis. Total rent expense included in continuing operations for the years ended September 30, 2016 and 2015 amounted to approximately $107,000 and $138,000 (net of $168,000 and $185,000 of rental income from a sub-lease), respectively. The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2016: Fiscal Years Ended September 30, Amount 2017 $ 85,000 2018 87,000 2019 90,000 2020 93,000 Total lease commitments $ 355,000

12. RELATED PARTY TRANSACTIONS

12. RELATED PARTY TRANSACTIONS	12 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	New York Office Rent On February 1, 2014, the Company began leasing office space in New York, New York for its former Chief Executive Officer at a rate of $2,500 per month from LaGrange Capital Administration, L.L.C. (“LCA”), an entity owned by a former member of the Company’s Board of Directors. This lease was month-to-month and was cancellable by either the Company or LCA at any time. Effective April 1, 2014, LCA increased the monthly rental charge (inclusive of rent, allocable share of office assistant, and equipment leases) from $2,500 to approximately $12,700 per month. On January 16, 2015, the Company provided notice to LCA that it was immediately terminating the New York Office Services Agreement. During the fiscal year ended September 30, 2015, the Company recognized approximately $51,000 of rent expense related to the New York office. Buying Agency and Supply Agreement On March 12, 2012, the Company entered into a Buying Agency and Supply Agreement (the “Supply Agreement”) with Forward Industries Asia-Pacific Corporation (f/k/a Seaton Global Corporation), a British Virgin Islands corporation (“Forward China”). The Supply Agreement, as amended on March 13, 2014 and March 11, 2015, provides that, upon the terms and subject to the conditions set forth therein, Forward China will act as the Company’s exclusive buying agent and supplier of Products (as defined in the Supply Agreement) in the Asia Pacific region. The Company purchases products at Forward China’s cost and also pays to Forward China a monthly service fee equal to the sum of: (i) $100,000; and (ii) 4% of “Adjusted Gross Profit”, which is defined as the selling price less the cost from Forward China. The amended Supply Agreement was terminated on September 11, 2015 and the Company entered into a new Supply Agreement on substantially similar terms on September 9, 2015 that expires on September 8, 2018, subject to renewal. Terence Bernard Wise, Chief Executive Officer and a director of the Company, is a principal of Forward China. In addition, Jenny P. Yu, a Managing Director of Forward China, beneficially owns more than 5% of the Company’s shares of common stock. The Company recognized approximately $1,466,000 and $1,522,000 during the fiscal years ended September 30, 2016 and 2015, respectively, in service fees paid to Forward China, which are included as a component of costs of goods sold in continuing operations in the accompanying consolidated statements of operations and comprehensive income (loss). Investment Management Agreement On April 16, 2013, the Company entered into an Investment Management Agreement (the “Investment Management Agreement”) with LCA, pursuant to which the Company retained LCA to manage certain investment accounts funded by the Company. The Investment Management Agreement formally terminated effective February 1, 2015. There were no new funds invested with LCA during the fiscal year ended September 30, 2015. During the fiscal year ended September 30, 2015, the Company purchased approximately $11,000 of marketable securities. During the fiscal year ended September 30, 2015, the Company sold approximately $952,000 of marketable securities. As a result of these activities, the Company recognized net investment losses of approximately $110,000 during the fiscal year ended September 30, 2015.

13. LEGAL PROCEEDINGS

13. LEGAL PROCEEDINGS	12 Months Ended
	Sep. 30, 2016
Legal Matters and Contingencies [Abstract]
LEGAL PROCEEDINGS	From time to time, the Company may become a party to other legal actions or proceedings in the ordinary course of its business. As of September 30, 2016, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely to the Company’s interests, the Company believes would be material to its business.

14. 401(K) PLAN

14. 401(K) PLAN	12 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
401(K) PLAN	The Company maintains a 401(k) benefit plan allowing eligible United States-based employees to contribute a portion of their salary in an amount up to the annual maximum amounts as set periodically by the Internal Revenue Service. In accordance with applicable Safe Harbor provisions, the Company made matching contributions related to its continuing operations of approximately $37,000 and $55,000 during the fiscal years ended September 30, 2016 and 2015, respectively, which are reflected in the accompanying consolidated statements of operations and comprehensive income (loss). The Company’s contributions vest immediately.

15. OPERATING SEGMENT INFORMATI

15. OPERATING SEGMENT INFORMATION	12 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
OPERATING SEGMENT INFORMATION	The Company reports and manages its continuing operations based on a single operating segment: the design and distribution of carry and protective solutions, primarily for hand held electronic devices. Products designed and distributed by this segment include carrying cases and other accessories for medical monitoring and diagnostic kits, portable consumer electronic devices (such as smartphones, tablets, personnel computers, notebooks, and GPS devices), and a variety of other portable electronic and non-electronic products (such as firearms, sporting, and other recreational products). This segment operates in geographic regions that include primarily the APAC Region, the EMEA Region and the Americas. Geographic regions are defined by reference primarily to the location of the customer or its contract manufacturer. Revenues from External Customers The following table presents net revenues by geographic region. (dollars in thousands) For the Fiscal Years Ended September 30, 2016 2015 APAC Region: Hong Kong $ 8,322 $ 9,628 Other 1,892 2,293 Total APAC Region 10,214 11,921 EMEA Region: Germany 4,807 5,319 Poland 4,690 3,998 Other 436 996 Total EMEA Region 9,933 10,313 Americas: United States 7,318 7,432 Other 15 348 Total Americas 7,333 7,780 Total Net Revenues $ 27,480 $ 30,014 Long-Lived Assets Identifiable long-lived assets, consisting predominately of property, plant and equipment, are presented net of accumulated depreciation and amortization and segregated by geographic region as follows: (dollars in thousands) September 30, 2016 2015 Americas $ 56 $ 120 APAC Region – – EMEA Region – – Total long-lived assets (net) $ 56 $ 120 Supplier Concentration The Company procures all its supply of carrying solutions products from independent suppliers in China through Forward China. Depending on the product, Forward China may require several different suppliers to furnish component parts or pieces. The Company purchased approximately 100% of its OEM products from Forward China in Fiscal 2016 and 2015. Major Customers The following customers or their affiliates or contract manufacturers accounted for more than ten percent of the Company’s net revenues, by geographic region, and in total. For the Fiscal Year Ended September 30, 2016 APAC Region EMEA Region Americas Total Company Diabetic Products Customer A 81% 2% – 31.0% Diabetic Products Customer B – 45% 31% 24.5% Diabetic Products Customer C 1% 33% 24% 18.7% Diabetic Products Customer D 4% 14% 25% 13.3% Totals 86% 94% 80% 87.5% For the Fiscal Year Ended September 30, 2015 APAC Region EMEA Region Americas Total Company Diabetic Products Customer A 81% 2% – 32.9% Diabetic Products Customer B – 44% 34% 24.1% Diabetic Products Customer C 2% 27% 20% 14.9% Diabetic Products Customer D 2% 12% 20% 10.2% Totals 85% 85% 74% 82.1% Four customers (including their affiliates or contract manufacturers) accounted for approximately 83% and 82% of the Company's accounts receivable at September 30, 2016 and 2015, respectively.

2. ACCOUNTING POLICIES (Policie

2. ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US and Forward Switzerland). All significant intercompany transactions and balances have been eliminated in consolidation.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit. We hold cash and cash equivalents at major financial institutions in the United States, at which cash amounts may significantly exceed the Federal Deposit Insurance Corporation’s insured limits. At September 30, 2016 and 2015, this amount was approximately $4.5 million (which includes $2.7 million in a foreign bank) and $3.9 million (which includes $2.0 million in a foreign bank), respectively. Historically, we have not experienced any losses due to such cash concentrations.
Marketable Securities	Marketable Securities As of September 30, 2014, the Company had investments in marketable securities that were classified as trading and were recorded at fair value with the corresponding unrealized holding gains or losses recognized in earnings. The fair value of marketable securities was determined based on quoted market prices. The cost of marketable securities sold was determined by the specific identification method. The Company classifies its realized and unrealized gains and losses as non-operating income (expense) in its consolidated statements of operations and comprehensive income (loss). In addition, the Company classified the cash flows from the trading of these marketable securities as investing activities in its consolidated statements of cash flows. During the year ended September 30, 2015, the Company sold its investments in marketable securities.
Accounts Receivable	Accounts Receivable Accounts receivable consist of unsecured trade accounts with customers or their contract manufacturers. The Company performs periodic credit evaluations of its customers including an evaluation of days outstanding, payment history, recent payment trends, and perceived creditworthiness, and believes that adequate allowances for any uncollectible receivables are maintained. Credit terms to customers generally range from net thirty (30) days to net one hundred twenty (120) days. The Company has not historically experienced significant credit or collection problems with its OEM customers or their contract manufacturers. At September 30, 2016 and 2015, no allowance for doubtful accounts relating to the Company’s continuing operations was deemed necessary.
Inventories	Inventories Inventories consist primarily of finished goods and are stated at the lower of cost (determined by the first-in, first-out method) or market. Based on management’s estimates, an allowance is made to reduce excess, obsolete, or otherwise un-saleable inventories to net realizable value. The allowance is established through charges to cost of goods sold in the Company’s consolidated statements of operations and comprehensive income (loss). As reserved inventory is disposed of, the Company charges off the associated allowance. In determining the adequacy of the allowance, management’s estimates are based upon several factors, including analyses of inventory levels, historical loss trends, sales history and projections of future sales demand. The Company’s estimates of the allowance may change from time to time based on management’s assessments, and such changes could be material. At September 30, 2016 and 2015, there was no allowance for obsolete inventory.
Property and Equipment	Property and Equipment Property and equipment consist of furniture, fixtures, and equipment and leasehold improvements and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives for furniture, fixtures and equipment ranges from three to ten years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. For each of the fiscal years ended September 30, 2016 and 2015, the Company recorded approximately $53,000 of depreciation and amortization expense from continuing operations.
Leases	Leases The Company enters into various lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Leases may contain initial periods of free rent and/or periodic escalations. When such items are included in a lease agreement, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a deferred rent liability. The Company expenses any additional payments under its operating leases for taxes, insurance or other operating expenses as incurred.
Income Taxes	Income Taxes The Company accounts for its income taxes in accordance with accounting principles generally accepted in the United States of America, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carry-forwards to the extent that realization of these benefits is more likely than not. The Company periodically evaluates the realizability of its net deferred tax assets. See Note 9 –Income Taxes. The Company’s policy is to account for interest and penalties relating to income taxes, if any, in “income tax expense” in its consolidated statements of operations and comprehensive income (loss) and include accrued interest and penalties within “accrued liabilities” in its consolidated balance sheets, if applicable. For fiscal years ended September 30, 2016 and 2015, no income tax related interest or penalties were assessed or recorded.
6% Senior Convertible Preferred Stock	6% Senior Convertible Preferred Stock Warrants In accordance with ASC 815-40 – Derivatives and Hedging – Contracts in Entity’s Own Equity, the Company’s warrants were previously classified as a liability, at fair value, as a result of a related registration rights agreement that contains certain requirements for registering the underlying common shares, but had no provision for penalties upon the failure to register. At each balance sheet date, this liability’s fair value was re-measured and adjusted with the corresponding change in fair value recorded in the consolidated statements of operations and comprehensive income (loss). After the Company met the requirements for registering the underlying common shares in the fiscal year ended September 30, 2014, the fair value of the warrants was reclassified to equity (additional paid-in capital). Preferred Stock Accretion At the date of issuance, the carrying amount of the convertible preferred stock was less than the redemption value. As a result of the Company’s determination that redemption was probable, the carrying value was increased by periodic accretions so that the carrying value was equal to the redemption amount at the earliest redemption date. Such accretion was recorded as a preferred stock dividend.
Revenue Recognition	Revenue Recognition The Company generally recognizes revenue from product sales to its customers when: (i) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (ii) persuasive evidence of an arrangement exists; (iii) the Company has no continuing obligations to the customer; and (iv) collection of the related accounts receivable is reasonably assured. The Company defers revenue when it receives consideration before achieving the criterion previously mentioned.
Shipping and Handling Costs	Shipping and Handling Costs The Company classifies shipping and handling costs, including inbound and outbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs, as a component of cost of goods sold in the accompanying consolidated statements of operations and comprehensive income (loss).
Foreign Currency Transactions	Foreign Currency Transactions Foreign currency transactions may generate receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in “other (income) expense” in the accompanying consolidated statements of operations and comprehensive income (loss). The approximate net losses from foreign currency transactions for continuing operations was approximately $16,000 and $20,000 for the fiscal years ended September 30, 2016 and 2015, respectively. Such foreign currency transaction losses were primarily the result of Euro denominated revenues from certain customers.
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, which is included as a component of shareholders’ equity, represents translation adjustments related to the Company’s foreign subsidiaries.
Fair Value of Financial Instruments	Fair Value of Financial Instruments For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments.
Share-Based Compensation Expense	Share-Based Compensation Expense The Company recognizes employee and director share-based compensation in its consolidated statements of operations and comprehensive income (loss) at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in substance, multiple awards. Refer to Note 8 - Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period.
Recent Accounting Pronouncements	R ecent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605-Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 was further amended and is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-11 will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which applies to the classification of deferred tax assets and liabilities. The update eliminates the requirement to classify deferred tax assets and liabilities as noncurrent or current within a classified statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-17 will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which will require lessees to report most leases as assets and liabilities on the balance sheet, while lessor accounting will remain substantially unchanged. This ASU requires a modified retrospective transition approach for existing leases, whereby the new rules will be applied to the earliest year presented. The new standard is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-09 will have a material impact on its consolidated financial statements.

3. DISCONTINUED OPERATIONS (Tab

3. DISCONTINUED OPERATIONS (Tables)	12 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Schedule of summarized operating results of discontinued operations	For the Fiscal Years Ended September 30, 2016 2015 Net revenues $ – $ – Gross loss – – Operating expenses – (1,037 ) Other income – 200,000 Income from discontinued operations, net $ – $ 198,963

5. PROPERTY AND EQUIPMENT (Tabl

5. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	September 30, 2016 2015 Furniture, fixtures and equipment $ 333,748 $ 398,903 Leasehold improvements 42,020 97,107 Property and equipment, cost 375,768 496,010 Less: accumulated depreciation and amortization (332,738 ) (417,277 ) Property and equipment, net $ 43,030 $ 78,733

6. ACCRUED EXPENSES AND OTHER26

6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Sep. 30, 2016
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	September 30, 2016 2015 Deferred revenue $ 309,571 $ 713,105 Personnel cost 256,144 200,005 Accrued settlements (former CEO and CFO) – 90,572 Other 22,026 35,403 Accrued expenses and other current liabilities $ 587,741 $ 1,039,085

8. SHARE-BASED COMPENSATION (Ta

8. SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock options valuation assumptions	For the Fiscal Years Ended September 30, 2016 2015 Expected term (years) n/a 5.9 - 6.0 Expected volatility n/a 64.4% - 65.3% Risk free interest rate n/a 1.79% - 1.92% Expected dividends n/a 0% Estimated annual forfeiture rate n/a 10%
Schedule of stock option activity	Weighted Weighted Average Average Remaining Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, September 30, 2014 778,500 $ 3.12 Granted 82,500 0.65 Exercised - Forfeited (550,000 ) 3.17 Outstanding, September 30, 2015 311,000 2.39 Granted - Exercised - Forfeited (25,000 ) 0.67 Expired (20,000 ) 6.02 Outstanding, September 30, 2016 266,000 $ 2.27 4.6 $ 53,850 Exercisable, September 30, 2016 225,999 $ 2.56 3.8 $ 19,999
Schedule of option activity by exericse price	Options Outstanding Options Exercisable Weighted Weighted Weighted Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.64 to $1.99 $ 1.00 97,500 $ 1.25 5.6 57,499 $2.00 to $2.99 2.46 96,000 2.46 2.9 96,000 $3.00 to $3.79 3.74 72,500 3.74 3.8 72,500 266,000 3.8 225,999
Schedule restricted stock option activity	Weighted Average Total Number of Grant Date Grant Date Shares Fair Value Fair Value Non-vested, September 30, 2014 257,581 $ 1.32 $ 340,044 Granted 325,000 0.87 283,800 Vested (192,958 ) 1.21 (234,281 ) Forfeited (126,291 ) 1.26 (159,398 ) Non-vested, September 30, 2015 263,332 0.87 230,165 Granted 141,817 1.43 202,521 Vested (244,166 ) 0.92 (224,758 ) Forfeited (1,666 ) 1.67 (2,782 ) Non-vested, September 30, 2016 159,317 $ 1.29 $ 205,146

9. INCOME TAXES (Tables)

9. INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Schedule Of Components Of Income Tax Expense (Benefit)	For the Fiscal Years Ended September 30, 2016 2015 Current: Federal $ – $ – State – – Foreign – – Deferred: Federal 74,467 (307,369 ) State 10,951 (45,201 ) Foreign 127,454 14,013 212,872 (338,557 ) Change in valuation allowance (212,872 ) 338,557 Income tax provision (benefit) $ – $ –
Schedule of Deferred Tax Assets and Liabilities	September 30, 2016 2015 Deferred tax assets: Net operating losses $ 3,689,028 $ 3,936,614 Capital loss carryforwards 383,795 383,795 Share-based compensation 155,180 155,432 Alternative minimum tax credit 99,757 99,757 Excess tax over book basis in inventory 85,573 109,175 4,413,333 4,684,773 Valuation allowance (4,340,498 ) (4,553,370 ) Net deferred tax assets 72,835 131,403 Deferred tax liabilities: Prepaid insurance (59,599 ) (118,167 ) Excess book over tax basis in fixed assets (13,236 ) (13,236 ) (72,835 ) (131,403 ) Total $ – $ –
Schedule of Effective Income Tax Rate Reconciliation	For the Fiscal Years Ended September 30, 2016 2015 US federal statutory rate 34.0% (34.0% ) State tax rate, net of federal benefit 5.0% (5.0% ) Permanent differences: Share-based compensation (8.3% ) 9.9% Other 0.4% 0.4% Foreign rate differential (13.3% ) (5.3% ) Other 17.3% 10.4% Change in valuation allowance (35.1% ) 23.6% Income tax provision (benefit) 0.0% 0.0%

10. INCOME (LOSS) PER SHARE (Ta

10. INCOME (LOSS) PER SHARE (Tables)	12 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of calculated potential diluted earnings per share	For the Fiscal Years Ended September 30, 2016 2015 Numerator: Net income (loss) $ 606,562 $ (1,433,981 ) Preferred stock dividends and accretion – (475,580 ) Net income (loss) to common equity $ 606,562 $ (1,909,561 ) Denominator: Weighted average shares outstanding - basic 8,521,188 8,342,168 Effects of dilutive securities: Assumed exercise of stock options, treasury stock method 28,289 – Assumed vesting of restricted stock, treasury stock method 126,106 – Weighted average dilutive potential common shares 154,395 – Weighted average shares outstanding - diluted 8,675,583 8,342,168 Basic earnings (loss) per share $ 0.07 $ (0.23 ) Diluted earnings (loss) per share $ 0.07 $ (0.23 )
Schedule of securities are excluded from the calculation of weighted average dilutive common shares	For the Fiscal Years Ended September 30, 2016 2015 Options 188,500 311,000 Warrants 723,846 723,846 Non-vested restricted stock – 263,332 Total potentially dilutive shares 912,346 1,298,178

11. COMMITMENTS AND CONTINGEN30

11. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Fiscal Years Ended September 30, Amount 2017 $ 85,000 2018 87,000 2019 90,000 2020 93,000 Total lease commitments $ 355,000

15. OPERATING SEGMENT INFORMA31

15. OPERATING SEGMENT INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule Of Segment Reporting Information, By Segment	(dollars in thousands) For the Fiscal Years Ended September 30, 2016 2015 APAC Region: Hong Kong $ 8,322 $ 9,628 Other 1,892 2,293 Total APAC Region 10,214 11,921 EMEA Region: Germany 4,807 5,319 Poland 4,690 3,998 Other 436 996 Total EMEA Region 9,933 10,313 Americas: United States 7,318 7,432 Other 15 348 Total Americas 7,333 7,780 Total Net Revenues $ 27,480 $ 30,014 Long-Lived Assets
Schedule Of Long Lived Assets	(dollars in thousands) September 30, 2016 2015 Americas $ 56 $ 120 APAC Region – – EMEA Region – – Total long-lived assets (net) $ 56 $ 120
Schedules of Concentration of Risk, by Risk Factor	For the Fiscal Year Ended September 30, 2016 APAC Region EMEA Region Americas Total Company Diabetic Products Customer A 81% 2% – 31.0% Diabetic Products Customer B – 45% 31% 24.5% Diabetic Products Customer C 1% 33% 24% 18.7% Diabetic Products Customer D 4% 14% 25% 13.3% Totals 86% 94% 80% 87.5% For the Fiscal Year Ended September 30, 2015 APAC Region EMEA Region Americas Total Company Diabetic Products Customer A 81% 2% – 32.9% Diabetic Products Customer B – 44% 34% 24.1% Diabetic Products Customer C 2% 27% 20% 14.9% Diabetic Products Customer D 2% 12% 20% 10.2% Totals 85% 85% 74% 82.1%

2. ACCOUNTING POLICIES (Detail

2. ACCOUNTING POLICIES (Detail Narratives) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Cash	$ 4,500,000	$ 3,900,000
Allowance for obsolete inventory	0	0
Depreciation and amortization expense	52,754	53,445
Income tax interest or penalties	0	0
Foreign currency transaction gain (loss)	$ 20,000	16,000
Furniture, fixtures and equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated life	3-10 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated life	Shorter of remaining lease term or the estimated useful lives of the improvements
Foreign Bank [Member]
Property, Plant and Equipment [Line Items]
Cash	$ 2,700,000	$ 2,000,000

3. DISCONTINUED OPERATIONS (Det

3. DISCONTINUED OPERATIONS (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Net sales	$ 0	$ 0
Gross (loss) profit	0	0
Operating expenses	0	(1,037)
Other income	0	200,000
Income (loss) from discontinued operations	$ 0	$ 198,963

3. DISCONTINUED OPERATIONS (D34

3. DISCONTINUED OPERATIONS (Details Narrative)	12 Months Ended
	Sep. 30, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Other income	$ 200,000
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Other income	$ 200,000

4. MARKETABLE SECURITIES (Detai

4. MARKETABLE SECURITIES (Details Narrative)	12 Months Ended
	Sep. 30, 2015USD ($)
Investments, Debt and Equity Securities [Abstract]
Marketable Securities, Realized Gain	$ 547,000
Marketable Securities, Realized Loss	$ (657,000)

5. PROPERTY AND EQUIPMENT (Deta

5. PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 375,768	$ 496,010
Less: accumulated depreciation and amortization	(332,738)	(417,277)
Property and equipment, net	43,030	78,733
Furniture, fixtures and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, cost	333,748	398,903
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 42,020	$ 97,107

6. ACCRUED EXPENSES AND OTHER37

6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Accounts Payable and Accrued Liabilities [Abstract]
Deferred revenue	$ 309,571	$ 713,105
Personnel cost	256,144	200,005
Accrued settlements (former CEO and CFO)	0	90,572
Other	22,026	35,403
Accrued expenses and other current liabilities	$ 587,741	$ 1,039,085

7. SHAREHOLDERS' EQUITY (Detail

7. SHAREHOLDERS' EQUITY (Details Narrative) - USD ($)	12 Months Ended		169 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Temporary Equity [Line Items]
Preferred shares authorized	4,000,000		4,000,000
6% Senior Convertible Preferred Stock [Member]
Temporary Equity [Line Items]
Preferred shares authorized	1,500,000		1,500,000
Dividends accrued		$ 21,000
Dividends including accretion		476,000
Amount paid to convert preferred stock		$ 1,287,737
Series A Participating Preferred Stock [Member]
Temporary Equity [Line Items]
Preferred shares authorized	100,000		100,000
Dividends accrued	$ 0		$ 0
Dividends including accretion	$ 0		$ 0
Common Stock [Member]
Temporary Equity [Line Items]
Stock repurchased, shares	1,076	10,340	224,690
Stock repurchased, amount	$ 2,000	$ 12,000	$ 487,000

8. SHARE-BASED COMPENSATION (De

8. SHARE-BASED COMPENSATION (Details - Assumptions)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility
Risk free interest rate
Expected dividends		0.00%
Estimated annual forfeiture rate		10.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		5 years 10 months 24 days
Expected volatility		64.40%
Risk free interest rate		1.79%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 months
Expected volatility		65.30%
Risk free interest rate		1.92%

8. SHARE-BASED COMPENSATION (40

8. SHARE-BASED COMPENSATION (Details - Option activity) - Options [Member] - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Number of Options
Shares, Outstanding at Beginning	311,000	778,500
Shares, Granted	0	82,500
Shares, Exercised	0	0
Shares, Forfeited	(25,000)	(550,000)
Shares, Expired	(20,000)
Shares, Outstanding at Ending	266,000	311,000
Shares, Exercisable	225,999
Weighted Average Exercise Price
Weighted average exercise price, Outstanding at Beginning	$ 2.39	$ 3.12
Weighted average exercise price, Granted		0.65
Weighted average exercise price, Forfeited	0.67	3.17
Weighted average exercise price, Expired	6.02
Weighted average exercise price, Outstanding at Ending	2.27	$ 2.39
Weighted average exercise price, Exercisable	$ 2.56
Weighted Average Remaining life In Years
Weighted average remaining contractual term (Years), Outstanding	4 years 7 months 6 days
Weighted average remaining contractual term (Years), Exercisable	3 years 9 months 18 days
Intrinsic Value
Aggregate intrinsic value, Outstanding	$ 53,800
Aggregate intrinsic value, Exercisable	$ 19,999

8. SHARE-BASED COMPENSATION (41

8. SHARE-BASED COMPENSATION (Details - Options by exercise price) - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding, Weighted average exercise price	$ 2.27	$ 2.39	$ 3.12
Options Outstanding, Outstanding Number of Options	266,000
Options Exercisable, Exercisable Number of Options	225,999
$0.64 to $1.99 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit	$ 0.64
Exercise price upper limit	1.99
Options Outstanding, Weighted average exercise price	$ 1
Options Outstanding, Outstanding Number of Options	97,500
Options Exercisable, Weighted average exercise price	$ 1.25
Options Exercisable, Weighted Average Remaining Life In Years	5 years 7 months 6 days
Options Exercisable, Exercisable Number of Options	57,499
$2.00 to $2.99 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit	$ 2
Exercise price upper limit	2.99
Options Outstanding, Weighted average exercise price	$ 2.46
Options Outstanding, Outstanding Number of Options	96,000
Options Exercisable, Weighted average exercise price	$ 2.46
Options Exercisable, Weighted Average Remaining Life In Years	2 years 10 months 24 days
Options Exercisable, Exercisable Number of Options	96,000
$3.00 tp $3.79 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit	$ 3
Exercise price upper limit	3.99
Options Outstanding, Weighted average exercise price	$ 3.74
Options Outstanding, Outstanding Number of Options	72,500
Options Exercisable, Weighted average exercise price	$ 3.74
Options Exercisable, Weighted Average Remaining Life In Years	3 years 9 months 18 days
Options Exercisable, Exercisable Number of Options	72,500

8. SHARE-BASED COMPENSATION (42

8. SHARE-BASED COMPENSATION (Details - Restricted stock activity) - Restricted Stock [Member] - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Number of Shares
Shares, Non-vested balance	263,332	257,581
Shares granted	141,817	325,000
Shares vested	(244,166)	(192,958)
Shares forfeited	(1,666)	(126,291)
Shares, Non-vested balance	159,317	263,332
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, Non-vested balance	$ 0.87	$ 1.32
Weighted average grant date fair value, granted	1.43	0.87
Weighted average grant date fair value, vested	0.92	1.21
Weighted average grant date fair value, forfeited	1.67	1.26
Weighted average grant date fair value, Non-vested balance	$ 1.29	$ 0.87
Total Grant Date Fair Value
Total grant date fair value, Non-vested balance	$ 230,165	$ 340,044
Total grant date fair value, granted	202,521	283,800
Total grant date fair value, vested	(224,758)
Total grant date fair value, forfeited	(2,782)	(159,398)
Total grant date fair value, Non-vested balance	$ 205,146	$ 230,165

8. SHARE-BASED COMPENSATION (43

8. SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	$ 236,070	$ 69,751
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options expired	20,000
Options vested		83,334
Options vested, value		$ (31,000)
Options granted	82,500
Weighted average grant date fair value per share	$ 0.39
Share based compensation expense	$ 10,000	(27,000)
Unrecognized compensation cost	$ 8,000
Unrecognized compensation cost weighted average vesting period	1 year 4 months 24 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested, value	$ 224,758
Options granted, fair value at grant date	202,521	283,800
Share based compensation expense	$ 226,000	$ 97,000
Unrecognized compensation cost weighted average vesting period	6 months
Restricted stock options forfeited	1,666	126,291
Restricted stock granted	141,817	325,000
Unrecognized compensation cost, other than options	$ 85,000
Restricted Stock [Member] | February 23, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		210,000
Restricted stock grant date fair value		$ 193,200
Restricted Stock [Member] | Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock options forfeited		30,000
Restricted Stock [Member] | Current Directors [Member] | February 23, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		175,000
Restricted Stock [Member] | Former Director [Member] | February 23, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		35,000
2011 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for grants	850,000
Common stock available for grants of equity awards	451,479
2011 Long Term Incentive Plan [Member] | Executive [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		50,000
Options granted, fair value at grant date		$ 19,000
2011 Long Term Incentive Plan [Member] | Six Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		32,500
Options granted, fair value at grant date		$ 13,000
2011 Long Term Incentive Plan [Member] | Restricted Stock [Member] | February 23, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		70,000
2011 Long Term Incentive Plan [Member] | Restricted Stock [Member] | June 25, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		50,000
Restricted stock grant date fair value		$ 32,000
2011 Long Term Incentive Plan [Member] | Restricted Stock [Member] | August 5, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		35,000
Restricted stock grant date fair value		$ 23,800
2007 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for grants	800,000
Common stock available for grants of equity awards	7,823
1996 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for grants of equity awards	0
Options expired	20,000
Equity Incentive Plan 2007 [Member] | Restricted Stock [Member] | February 23, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		140,000
Equity Incentive Plan 2007 [Member] | Restricted Stock [Member] | October 26, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		17,500
Restricted stock grant date fair value		$ 19,775
Equity Incentive Plan 2007 [Member] | Restricted Stock [Member] | February 23, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		124,317
Restricted stock grant date fair value		$ 182,746

9. INCOME TAXES (Details)

9. INCOME TAXES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Current:
Federal	$ 0	$ 0
State	0	0
Foreign	0	0
Deferred:
Federal	74,467	(307,369)
State	10,951	(45,201)
Foreign	127,454	14,013
Deferred Income Tax Expense (Benefit)	212,872	(338,557)
Change in valuation allowance	(212,872)	338,557
Income tax provision (benefit)	$ 0	$ 0

9. INCOME TAXES (Details - Defe

9. INCOME TAXES (Details - Deferred tax assets) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Deferred tax assets:
Net operating losses	$ 3,689,028	$ 3,936,614
Capital loss carryforwards	383,795	383,795
Share-based compensation	155,180	155,432
Alternative minimum tax credit	99,757	99,757
Excess tax over book basis in inventory	85,573	109,175
Deferred Tax Assets, Gross	4,413,333	4,684,773
Valuation allowance	(4,340,498)	(4,553,370)
Net deferred tax assets	72,835	131,403
Deferred tax liabilities:
Prepaid insurance	(59,599)	(118,167)
Excess book over tax basis in fixed assets	(13,236)	(13,236)
Deferred Tax Liabilities, Net	(72,835)	(131,403)
Total	$ 0	$ 0

9. INCOME TAXES (Details - Reco

9. INCOME TAXES (Details - Reconciliation)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
US federal statutory rate	34.00%	(34.00%)
State tax rate, net of federal benefit	5.00%	(5.00%)
Permanent differences:
Share-based compensation	(8.30%)	9.90%
Other	0.40%	0.40%
Foreign rate differential	(13.30%)	(5.30%)
Other	17.30%	10.40%
Change in valuation allowance	(35.10%)	23.60%
Income tax provision	0.00%	0.00%

9. INCOME TAXES (Details Narrat

9. INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Unrecognized tax benefits	$ 0	$ 0
Net operating loss carryforwards	9,211,000	5,533,000
Deferred income taxes	3,132,000	277,000
Valuation allowances	(4,340,498)	(4,553,370)
Capital loss carryforward	984,000
Capital loss carryforwards	383,795	$ 383,795
Forward Switzerland [Member]
Net income	$ 267,000
Domestic Tax Authority [Member]
Operating Loss Carryforwards, Expiration Date	Sep. 30, 2035
Capital loss carryforward, expiration date	Sep. 30, 2020
Foreign Tax Authority [Member]
Net operating loss carryforwards	$ 3,188,000
Operating Loss Carryforwards, Expiration Date	Sep. 30, 2023
Deferred income taxes	$ 281,000

10. INCOME (LOSS) PER SHARE (De

10. INCOME (LOSS) PER SHARE (Details - Diluted loss per share) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net income (loss)	$ 606,562	$ (1,433,981)
Preferred stock dividends and accretion	0	(475,580)
Net income (loss) to common shareholders	$ 606,562	$ (1,909,561)
Denominator:
Weighted average shares outstanding - basic	8,521,188	8,342,168
Effect of dilutive securities
Assumed exercise of stock options, treasury stock method	28,289	0
Assumed vesting of restricted stock, treasury stock method	126,106	0
Weighted average dilutive potential common shares	154,395	0
Weighted average shares outstanding - diluted	8,675,583	8,342,168
Basic earnings (loss) per share	$ 0.07	$ (0.23)
Diluted earnings (loss) per share	$ 0.07	$ (0.23)

10. INCOME (LOSS) PER SHARE (49

10. INCOME (LOSS) PER SHARE (Details - Antidilutive shares) - shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	912,346	1,298,178
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	188,500	311,000
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	723,846	723,846
Non-vested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	0	263,332

11. COMMITMENTS AND CONTINGEN50

11. COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 85,000
2,018	87,000
2,019	90,000
2,020	93,000
Total lease commitments	$ 355,000

11. COMMITMENTS AND CONTINGEN51

11. COMMITMENTS AND CONTINGENCIES (Details Narratives) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Rent expense	$ 107,000	$ 138,000
Sublease income	168,000	185,000
Forward Switzerland [Member]
Guarantor obligations collateral held directly by third parties	1,700,000
Former CEO [Member]
Account payable, related party	0	1,000
Former CFO [Member]
Account payable, related party	$ 0	$ 90,000

12. RELATED PARTY TRANSACTIONS

12. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Purchase of marketable securities	$ 0	$ 10,898
Proceeds of marketable securities	0	952,127
Loss from sale of marketable securities	0	(110,001)
Forward China [Member]
Related Party Transaction [Line Items]
Cost of services	$ 1,466,000	1,522,000
Former CEO [Member] | New York [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense, Net		51,000
LCA [Member] | Investment Management Agreement [Member]
Related Party Transaction [Line Items]
Purchase of marketable securities		11,000
Proceeds of marketable securities		952,000
Loss from sale of marketable securities		$ (110,000)

14. 401(K) PLAN (Details Narrat

14. 401(K) PLAN (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Postemployment Benefits [Abstract]
Matching contributions by employer	$ 37,000	$ 55,000

15. OPERATING SEGMENT INFORMA54

15. OPERATING SEGMENT INFORMATION (Details - Revenues) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Total Net Sales	$ 27,479,896	$ 30,013,891
APAC Region [Member]
Segment Reporting Information [Line Items]
Total Net Sales	10,214,000	11,921,000
APAC Region [Member] | Hong Kong
Segment Reporting Information [Line Items]
Total Net Sales	8,322,000	9,628,000
APAC Region [Member] | Other [Member]
Segment Reporting Information [Line Items]
Total Net Sales	1,892,000	2,293,000
EMEA Region [Member]
Segment Reporting Information [Line Items]
Total Net Sales	9,933,000	10,313,000
EMEA Region [Member] | Other [Member]
Segment Reporting Information [Line Items]
Total Net Sales	436,000	996,000
EMEA Region [Member] | Germany
Segment Reporting Information [Line Items]
Total Net Sales	4,807,000	5,319,000
EMEA Region [Member] | Poland
Segment Reporting Information [Line Items]
Total Net Sales	4,690,000	3,998,000
Americas [Member]
Segment Reporting Information [Line Items]
Total Net Sales	7,333,000	7,780,000
Americas [Member] | Other [Member]
Segment Reporting Information [Line Items]
Total Net Sales	15,000	348,000
Americas [Member] | United States
Segment Reporting Information [Line Items]
Total Net Sales	$ 7,318,000	$ 7,432,000

15. OPERATING SEGMENT INFORMA55

15. OPERATING SEGMENT INFORMATION (Details - Assets) - Operating Segments [Member] - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Total long-lived assets (net)	$ 56,000	$ 120,000
Americas [Member]
Total long-lived assets (net)	56,000	120,000
EMEA Region [Member]
Total long-lived assets (net)	0	0
APAC Region [Member]
Total long-lived assets (net)	$ 0	$ 0

15. OPERATING SEGMENT INFORMA56

15. OPERATING SEGMENT INFORMATION (Details - Concentration sales) - Sales Revenue, Net [Member]	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenue, Major Customer [Line Items]
Concentration Risk	87.50%	82.10%
Diabetic Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	31.00%	32.90%
Diabetic Customer B [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	24.50%	24.10%
Diabetic Customer C [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	18.70%	14.90%
Diabetic Customer D [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	13.30%	10.20%
APAC Region [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	86.00%	85.00%
APAC Region [Member] | Diabetic Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	81.00%	81.00%
APAC Region [Member] | Diabetic Customer B [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	0.00%	0.00%
APAC Region [Member] | Diabetic Customer C [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	1.00%	2.00%
APAC Region [Member] | Diabetic Customer D [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	4.00%	2.00%
EMEA Region [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	94.00%	85.00%
EMEA Region [Member] | Diabetic Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	30.20%	2.00%
EMEA Region [Member] | Diabetic Customer B [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	45.00%	44.00%
EMEA Region [Member] | Diabetic Customer C [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	33.00%	27.00%
EMEA Region [Member] | Diabetic Customer D [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	14.00%	12.00%
Americas [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	80.00%	74.00%
Americas [Member] | Diabetic Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	0.00%	0.00%
Americas [Member] | Diabetic Customer B [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	31.00%	34.00%
Americas [Member] | Diabetic Customer C [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	24.00%	20.00%
Americas [Member] | Diabetic Customer D [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	25.00%	20.00%