American Power 10-Q/A 29 Jun 15 2014 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2013	Feb. 13, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN POWER GROUP Corp
Entity Central Index Key	932,699
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q/A
Document Period End Date	Dec. 31, 2013
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2,014
Document Fiscal Period Focus	Q1
Amendment Flag	true
Amendment Description	We are filing this Amendment No. 1 on Form 10-Q/A to amend and restate in their entirety the following items of our Quarterly Report on Form 10-Q for the quarter ended December 31, 2013 as originally filed with the Securities and Exchange Commission on February 13, 2014 (the “Original Form 10-Q”): (i) Item 1 of Part I “Financial Information,” (ii) Item 2 of Part I, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” (iii) Item 4 of Part I, “Controls and Procedures,” and (iv) Item 6 of Part II, “Exhibits”, and we have also updated the signature page, the certifications of our Chief Executive Officer and Chief Financial Officer in Exhibits 31.1, 31.2, 32.1 and 32.2, and our financial statements formatted in Extensible Business Reporting Language (XBRL) in Exhibits 101. No other sections were affected, but for the convenience of the reader, this report on Form 10-Q/A restates in its entirety, as amended, our Original Form 10-Q. This report on Form 10-Q/A is presented as of the filing date of the Original Form 10-Q and does not reflect events occurring after that date, or modify or update disclosures in any way other than as required to reflect the explanation and restatement described below. Concurrently with the filing of this Form 10-Q/A, we are also filing Amendment No. 1 on Form 10-K/A to our Annual Report on Form 10-K for the year ended September 30, 2014, as originally filed with the SEC on December 22, 2014 (the “Original Form 10-K”), to provide similar updates.
Entity Common Stock, Shares Outstanding		48,619,342

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2013	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 1,295,996	$ 1,684,169
Certificates of deposit, restricted	300,000	300,000
Accounts receivable, trade, less allowance for doubtful accounts of $59,750 and $120,393 as of December 31, 2013 and September 30, 2013, respectively	1,443,129	1,612,280
Inventory	918,282	908,059
Prepaid expenses	139,972	150,816
Other current assets	52,113	48,472
Assets related to discontinued operations	0	66,922
Total current assets	4,149,492	4,770,718
Property, plant and equipment, net	952,446	929,821
Other assets:
Seller's note, related party, non-current	797,387	797,387
Long term contracts, net	279,167	291,667
Purchased technology, net	279,167	291,667
Software development costs, net	3,221,870	3,180,804
Other	145,524	134,469
Total other assets	4,723,115	4,695,994
Total assets	9,825,053	10,396,533
Current liabilities:
Accounts payable	770,718	1,086,347
Accrued expenses	873,750	914,023
Billings in excess of cost	7,533	7,533
Notes payable, current	65,700	106,972
Notes payable, related parties, current	473,500	473,500
Obligations due under lease settlement, current	68,518	68,518
Total current liabilities	2,259,719	2,656,893
Notes payable, non-current	1,594,978	1,490,160
Warrant liability	10,850,223	0
Obligations due under lease settlement, non-current	505,540	505,540
Total liabilities	15,210,460	4,652,593
Stockholders' equity (deficit):
Preferred stock, $1.00 par value, 998,854 shares authorized	0	0
10% Convertible Preferred stock, $1.00 par value, 1,146 shares authorized, 942 shares issued and outstanding at December 31,2013 and September 30, 2013	942	942
Common stock, $.01 par value, 150 million shares authorized, 48,619,342 shares and 48,375,316 issued and outstanding at December 31, 2013 and September 30, 2013	486,193	483,753
Additional paid-in capital	56,171,756	66,570,909
Accumulated deficit	(62,044,298)	(61,311,664)
Total stockholders’ equity (deficit)	(5,385,407)	5,743,940
Total liabilities and stockholders' equity (deficit)	9,825,053	$ 10,396,533
Working Capital	$ 1,889,773

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2013	Sep. 30, 2013
Accounts receivable, trade, allowance for doubtful accounts (in dollars)	$ 59,750	$ 120,393
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	998,854	998,854
10% Convertible preferred stock, par value (in dollars per share)	$ 1	$ 1
10% Convertible preferred stock, shares authorized	1,146	1,146
10% Convertible preferred stock, shares issued	942	942
10% Convertible preferred stock, shares outstanding	942	942
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	48,619,342	48,375,316
Common stock, shares outstanding	48,619,342	48,375,316

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - Scenario, Unspecified [Domain] - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net sales	$ 1,842,521	$ 874,953
Cost of sales	940,909	574,404
Gross profit (loss)	901,612	300,549
Operating expenses:
Selling, general and administrative	991,617	882,882
Operating loss from continuing operations	(90,005)	(582,333)
Non operating income (expense)
Interest and financing costs	(46,107)	(40,591)
Interest income	11,285	12,061
Revaluation of warrants	(324,021)	0
Other, net	(38,747)	(28,923)
Nonoperating Income (Expense), net	(397,590)	(57,453)
Discontinued operations
Net loss	(487,595)	(639,786)
10% Convertible Preferred dividends	(245,039)	(212,704)
Net loss available to common shareholders	$ (732,634)	$ (852,490)
Loss from continuing operations per share - basic and diluted (See Note 5) (in dollars per share)	$ (0.01)	$ (0.01)
Preferred Stock, Dividends Per Share, Declared	(0.01)	(0.01)
Net loss per share - basic and diluted (See Note 5) (in dollars per share)	$ (0.02)	$ (0.02)
Weighted Average Number of Shares Outstanding, Basic	48,394,610	45,609,928

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) - 3 months ended Dec. 31, 2013 - USD ($)	Total	Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital	Accumulated Deficit
Balance at Sep. 30, 2013	$ 5,743,940	$ 942	$ 483,753	$ 66,570,909	$ (61,311,664)
Balance (in shares) at Sep. 30, 2013		942	48,375,316
Increase (Decrease) in Stockholders' Equity
Cumulative effect of a change in accounting principle - adoption of ASU 2012-04				126,338
Cumulative effect of a change in accounting principle - adoption of ASU 2012-04 | Accounting Standards Update 2012-04 [Member]	(10,652,540)			(10,652,540)
Compensation expense associated with stock options	24,783			24,783
Common stock issued upon warrant exercise	5,200		$ 1,070	4,130
Adjustments to Additional Paid in Capital, Warrant Issued	126,338			126,338
Common stock issued upon warrant exercise (in shares)			107,041
Common stock issued for 10% Convertible Preferred stock dividend			$ 1,370	98,136	(99,506)
Common stock issued for 10% Convertible Preferred stock dividend (in shares)			136,985
10% Convertible Preferred stock dividend paid in cash	(145,533)				(145,533)
Net loss for the nine months ended June 30, 2012	(487,595)				(487,595)
Balance at Dec. 31, 2013	$ (5,385,407)	$ 942	$ 486,193	$ 56,171,756	$ (62,044,298)
Balance (in shares) at Dec. 31, 2013		942	48,619,342

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net loss	$ (487,595)	$ (639,786)
Adjustments to reconcile net income to net cash used in operating activities:
Fair Value Adjustment of Warrants	324,021	0
Shares issued for services rendered	0	31,957
Depreciation expense	81,304	49,505
Amortization of deferred financing costs	8,321	0
Stock compensation expense	24,783	38,190
Amortization of software costs	109,488	50,538
Amortization of long term contracts	12,500	12,499
Amortization of purchased technology	12,500	12,499
(Increase) decrease in assets:
Accounts receivable	169,151	(181,120)
Inventory	(10,223)	(294,348)
Costs in excess of billings	0	29,433
Prepaid and other current assets	8,882	(20,974)
Assets related to discontinued operations	66,922	0
Other assets	(11,055)	(899)
(Decrease) increase in liabilities:
Accounts payable	(383,362)	286,566
Accrued expenses	(50,273)	34,725
Net cash used in operating activities	(124,636)	(591,215)
Cash flows from investing activities:
Purchase of property and equipment	(83,939)	(415,472)
Software development costs	(102,811)	(467,486)
Net cash (used in) provided by investing activities	(186,750)	(882,958)
Cash flows from financing activities:
Proceeds from notes payable	115,000	22,050
Repayment of notes payable	(51,454)	(40,889)
Proceeds from Issuance of Preferred Stock and Preference Stock	0	49,000
Proceeds from exercise of stock options	5,200	7,500
Payment of cash dividend on 10% convertible preferred stock	(145,533)	(52,785)
Net cash provided by financing activities	(76,787)	(15,124)
Net decrease in cash and cash equivalents	(388,173)	(1,489,297)
Cash and cash equivalents at beginning of year	1,684,169	4,423,485
Cash and cash equivalents at end of period	1,295,996	2,934,188
Supplemental cash flow information:
Interest paid	41,843	46,246
Income Taxes Paid	0	6,032
Reclassification of the estimated fair value of warrants exercised during the period to additional paid in capital	126,338	0
Shares issued for preferred stock dividend	99,506	159,920
Software development costs included in accounts payable and accrued expenses	47,743	0
Property and equipment included in accounts payable	$ 19,990	$ 0

Nature of Operations, Risks, an

Nature of Operations, Risks, and Uncertainties	3 Months Ended
	Dec. 31, 2013
Nature of Operations, Risks, and Uncertainties Disclosure [Abstract]
Nature of Operations, Risks, and Uncertainties	Nature of Operations, Risks, and Uncertainties Effective August 1, 2012, GreenMan Technologies, Inc. (the “Company”) changed its name to American Power Group Corporation ("APG"). In connection with the corporate name change, the Company’s stock trading symbol on the OTCQB has changed from “GMTI” to “APGI”. APG (together with its subsidiaries “we”, “us” or “our”) was originally founded in 1992 and has operated as a Delaware corporation since 1995. Recent Developments In December 2013, Iowa State Bank agreed to extend the maturity of our $2.25 million credit facility from December 31, 2013 to April 1, 2015, increase our borrowing limit to $2.5 million and expand our collateral base to include certain fixed assets which will provide more working capital availability under the credit facility. Nature of Operations, Risks, and Uncertainties Our patented dual fuel conversion system is a unique external fuel delivery enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility, depending on the circumstances, to run on: • Diesel fuel and compressed natural gas (CNG) or liquefied natural gas (LNG); • Diesel fuel and pipeline gas, well-head gas or approved bio-methane; or • 100% diesel fuel. Our proprietary technology seamlessly displaces up to 75% (average displacement ranges from 40% to 65%) of the normal diesel fuel consumption with various forms of natural gas. Installation requires no engine modification, unlike the more expensive fuel injected alternative fuel systems in the market. By displacing highly polluting and expensive diesel fuel with inexpensive, abundant and cleaner burning natural gas, a user can: • Reduce fuel and operating costs by 15% to 35%; • Reduce toxic emissions such as nitrogen oxide (NOX), carbon monoxide (CO) and fine particulate emissions; and • Enhance the engine’s operating life, since natural gas is a cleaner burning fuel source. Primary end market applications include both primary and back-up diesel generators as well as mid- to heavy-duty vehicular diesel engines. As of December 31, 2013, we had $ 1,595,996 cash, cash equivalents and restricted certificates of deposit and working capital of $ 1,889,773 Based on our fiscal 2014 operating budget, cash on hand at December 31, 2013 and anticipated availability under our bank working capital line, we believe we will be able to satisfy our cash requirements through at least the end of calendar 2014 without the need to materially modify our operating plan.We understand our continued existence is dependent on our ability to generate positive operating cash flow, achieve profitability on a sustained basis and generate improved performance. If we are unable to achieve and sustain profitability and we are unable to obtain additional financing to supplement our cash position, our ability to maintain our current level of operations could be materially and adversely affected. There is no guarantee we will be able to achieve profitability.

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation	3 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis of Presentation [Text Block]	Basis of Presentation The consolidated financial statements include the accounts of APG and our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim financial statements at December 31, 2013 are unaudited and should be read in conjunction with the financial statements and notes thereto for the year ended September 30, 2013 included in our Annual Report on Form 10-K. The balance sheet at September 30, 2013 has been derived from the audited financial statements as of that date; certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the Securities and Exchange Commission rules and regulations, although we believe the disclosures which have been made herein are adequate to ensure that the information presented is not misleading. The results of operations for the interim periods reported are not necessarily indicative of those that may be reported for a full year. In our opinion, all adjustments which are necessary for a fair statement of our financial position as of December 31, 2013 and the operating results for the interim periods ended December 31, 2013 and 2012 have been included.

Correction of An Accounting Err

Correction of An Accounting Error	3 Months Ended
	Dec. 31, 2013
Accounting Changes and Error Corrections [Abstract]
Correction of An Accounting Error	The warrants issued in connection with our 10% Convertible Preferred Stock contain anti-dilution protection provisions including certain reset features (down-round protection) which protects the holders from future issuances of our Common Stock at prices below such warrants' then-in-effect respective exercise prices (See Note 12). This provision, however unlikely to occur, could result in modification of the warrants then-in-effect. In October 2012, the Financial Accounting Standards Board (FASB), issued ASU 2012-04 Technical Corrections and Improvement ("ASU 2012-04") which contained technical corrections to guidance on which we had previously relied upon in forming our initial conclusions regarding the accounting for warrants containing these reset provisions relating to the April 2012 private placement of our 10% Convertible Preferred Stock. Based upon our extensive review of ASU 2012-04, we have concluded these warrants no longer meet the criteria for classification as equity as previously recorded and must be recorded as a liability with the value of the warrants recorded at fair value on the transition/effective date, with subsequent changes in fair value recorded in earnings on a quarterly basis. Based on transition guidance provided, we determined our effective/transition date for implementation of ASU 2012-04 to be October 1, 2013 and the consolidated condensed financial statements contained herein reflect the retroactive impact of this correction of this accounting error as of this date. The restated historical information is as follows: Condensed Consolidated Statements of Operations Three Months Ended December 31, 2013 Originally Reported Adjustments Adjusted Non operating expense: Revaluation of warrants $ — $ (324,021 ) (324,021 ) Non operating expense, net (73,569 ) (324,021 ) (397,590 ) Net loss (163,574 ) (324,021 ) (487,595 ) Net loss available to Common Stockholders (408,613 ) (324,021 ) (732,634 ) Loss from continuing operations per share - basic and diluted $ 0.00 $ (0.01 ) $ (0.01 ) Net loss attributable to Common stockholders per share - basic and diluted $ 0.00 $ (0.02 ) $ (0.02 ) Condensed Consolidated Balance Sheets As of December 31, 2013 Originally Reported Adjustments Adjusted Liabilities: Warrant liability $ — $ 10,850,223 $ 10,850,223 Total liabilities 4,360,237 10,850,223 15,210,460 Stockholders' (deficit) equity: Additional paid-in capital 66,697,958 (10,526,202 ) 56,171,756 Accumulated deficit (61,720,277 ) (324,021 ) (62,044,298 ) Total stockholders' (deficit) equity 5,464,816 (10,850,223 ) (5,385,407 ) $ 9,825,053 $ — $ 9,825,053 Condensed Consolidated Statement of Stockholders' (Deficit) Equity Preferred Stock Common Stock Additional Paid In Accumulated Shares Amount Shares Amount Capital Deficit Total Originally Reported: Balance, December 31, 2013 942 $ 942 48,619,342 $ 486,193 $ 66,697,958 $ (61,720,277 ) $ 5,464,816 Adjustments — — — — (10,526,202 ) (324,021 ) (10,850,223 ) Adjusted: Balance, December 31, 2013 942 $ 942 48,619,342 $ 486,193 $ 56,171,756 $ (62,044,298 ) $ (5,385,407 ) Condensed Consolidated Statements of Cash Flows Three Months Ended December 31, 2013 Originally Reported Adjustments Adjusted Cash flows from operating activities: Net loss $ (163,574 ) $ (324,021 ) $ (487,595 ) Revaluation of warrants — 324,021 324,021 Net cash used in operating activities (124,636 ) — (124,636 )

Certificates of Deposit

Certificates of Deposit	3 Months Ended
	Dec. 31, 2013
Certificates of Deposit [Abstract]
Certificates of Deposit	Certificates of Deposit All certificate of deposit investments have an original maturity of more than three months but less than three years and are stated at original purchase price which approximates fair value. As of December 31, 2013 and September 30, 2013 , we have pledged a $300,000 certificate of deposit as collateral for outstanding loans with Iowa State Bank.

Receivables

Receivables	3 Months Ended
	Dec. 31, 2013
Receivables [Abstract]
Receivables	Receivables Accounts Receivable Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating past due individual customer receivables and considering a customer’s financial condition, credit history, and the current economic conditions. Individual accounts receivable are written off when deemed uncollectible, with any future recoveries recorded as income when received. Seller’s Note Receivable, Related Party In conjunction with the July 2009 acquisition of substantially all the American Power Group operating assets, including the name American Power Group (excluding its dual fuel patent), we acquired a promissory note from the previous owners of American Power Group (renamed M&R Development, Inc.), payable to us, in the principal amount of $797,387 . The note bears interest at the rate of 5.5% per annum and was based on the difference between the assets acquired and the consideration given. In conjunction with the 10% Convertible Preferred Stock financing in April 2012, we amended the note to increase the amount of royalties payable under a technology license (see Note 7) that can be applied to the outstanding principal and interest payments to 50% and defer all interest and principal payments due under the note during calendar 2012 and 2013. Thereafter, the aggregate principal amount due under the note was to be paid in eight equal quarterly payments plus interest. In addition, M&R will not be required to make any payments under the note until such time as we begin to make royalty payments and then, those payments will be limited to a maximum of 50% of any royalty payment due M&R on a quarterly basis. No payments have been made under the amended note as of December 31, 2013. We have classified 100% of the balance as long term. We consider this a related party note as one of the former owners of American Power Group is now an employee of ours.

Inventory

Inventory	3 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]
Inventory	Inventory Raw material inventory primarily consists of dual fuel conversion components. Work in progress includes materials, labor and direct overhead associated with incomplete dual fuel conversion projects. As of December 31, 2013 and September 30, 2013, we recorded an inventory valuation allowance of $44,073 , respectively. All inventory is valued at the lower of cost or market on the first-in first-out (FIFO) method. Inventory consists of the following: December 31, September 30, Raw materials $ 897,817 $ 895,905 Work in progress 19,465 11,423 Finished goods 1,000 731 Total inventory $ 918,282 $ 908,059

Intangible Assets

Intangible Assets	3 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	. Intangible Assets We review intangibles for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our intangible assets below their carrying value. In conjunction with the American Power Group acquisition and license agreement, we recorded intangible assets of $500,000 associated with the execution of a long term technology license agreement and $500,000 associated with the purchase of the dual fuel conversion technology. Both values are being amortized on a straight line basis over an estimated useful life of 120 months. Amortization expenses associated with the long term technology license agreement and the purchased dual fuel conversion technology amounted to $25,000 and $25,000 for the three months ended December 31, 2013 and 2012 , respectively. Accumulated amortization was $441,667 at December 31, 2013 and $416,666 at September 30, 2013 . In conjunction with the 10% Convertible Preferred Stock financing in April 2012, we amended the M&R technology license agreement to modify the calculation and the timing of the royalty payments. Under the provisions of this amendment, effective April 27, 2012, the monthly royalty due is the lesser of 10% of net sales or 30% of pre-royalty EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). No royalties will be earned and due until such time as our cumulative EBITDA commencing April 1, 2012 is positive on a cumulative basis. During the three months ended December 31, 2013 and 2012, we incurred $0 royalties to M&R. A critical component of our dual fuel aftermarket conversion solution is the internally developed software component of our electronic control unit. The software allows us to seamlessly and constantly monitor and control the various gaseous fuels to maximize performance and emission reduction while remaining within all original OEM diesel engine performance parameters. We have developed a base software application and EPA's testing protocol for both our Outside Useful Life ("OUL") and Intermediate Useful Life ("IUL") engine applications, which will be customized for each engine family approved in order to maximize the performance of the respective engine family. As of December 31, 2013 , we have capitalized $3,648,242 of software development costs associated with our OUL ( $1,801,506 ) and IUL ($ 1,846,736 ) applications, which will be amortized on a straight line basis over an estimated useful life of 60 months for OUL applications and 84 months for IUL applications. Amortization costs for the three months ended December 31, 2013 and 2012 were $109,488 and $50,538 , respectively. Amortization expense associated with acquisition related intangibles during the next five years is anticipated to be: Twelve months ending December 31: Contracts Technology Software Development Total 2014 $ 50,000 $ 50,000 $ 577,579 $ 677,579 2015 50,000 50,000 624,121 724,121 2016 50,000 50,000 624,121 724,121 2017 50,000 50,000 573,644 673,644 2018 50,000 50,000 364,962 464,962 2019 and thereafter 29,167 29,167 457,443 515,777 $ 279,167 $ 279,167 $ 3,221,870 $ 3,780,204

Contracts in Progress

Contracts in Progress	3 Months Ended
	Dec. 31, 2013
Contractors [Abstract]
Contracts in Progress	Contracts in Progress Contracts in progress consist of the following: December 31, September 30, 2013 Costs incurred on uncompleted contracts $ 14,572 $ 14,572 Estimated earnings on contracts in progress 25,387 25,387 39,959 39,959 Less billings on contracts in progress 47,492 47,492 $ (7,533 ) $ (7,533 ) Costs and estimated earnings in excess of billings $ — $ — Billings in excess of costs and estimated earnings 7,533 7,533 $ (7,533 ) $ (7,533 )

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment consist of the following: December 31, September 30, 2012 Estimated Useful Lives Leasehold improvements $ 127,087 $ 127,087 5 years Machinery and equipment 1,535,800 1,431,871 3 - 7 years Less accumulated depreciation (710,441 ) (629,137 ) $ 952,446 $ 929,821

Product Warranty Costs

Product Warranty Costs	3 Months Ended
	Dec. 31, 2013
Product Warranties Disclosures [Abstract]
Product Warranty Costs	Product Warranty Costs We provide for the estimated cost of product warranties for our dual fuel products at the time product revenue is recognized. Factors that affect our warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. We assess the adequacy of the warranty provision and we may adjust this provision if necessary. The increase in warranty reserve at December 31, 2013 is attributable to the increase in revenue for the quarter ended December 31, 2013. The following table provides the detail of the change in our product warranty accrual relating to dual fuel products as of: Quarter Ended December 31, 2013 Year Ended September 30, 2013 Warranty accrual at the beginning of the period $ 118,591 $ 18,306 Charged to costs and expenses relating to new sales 34,467 146,594 Costs of product warranty claims (2,226 ) (46,309 ) Warranty accrual at the end of period $ 150,832 $ 118,591

Notes Payable_Credit Facilities

Notes Payable/Credit Facilities	3 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]
Notes Payable/Credit Facilities	Notes Payable/Credit Facilities Credit Facilities We have a $2,500,000 credit facility with Iowa State Bank under which we may borrow up to 50% of the value of eligible inventory, 75% of eligible accounts receivable, 100% of our certificate of deposit and 50% of eligible machinery and equipment. This note is due April 1, 2015 and bears interest of 7% . We have collateralized the obligation by: (i) granting to the lender a security interest in our $300,000 certificate of deposit and certain additional collateral and (ii) pledging to the lender, as additional collateral, 2,000,000 shares of our Common Stock. In addition, two directors and two members of management have each pledged 125,000 shares of our Common Stock owned by them as additional collateral. As of December 31, 2013 , we have $1,560,110 outstanding under the credit facility and had sufficient collateral to borrow an additional $545,419 under the terms of our working capital line. Notes Payable, Related Party In September and October 2010, an officer and former director loaned us a total of $323,500 in connection with a private placement of 12% six-month promissory notes. In October 2011, an officer loaned us $150,000 pursuant to the terms of a 10% promissory note due November 27, 2011. In conjunction with the 10% Convertible Preferred Stock financing in April 2012, these officers and former director agreed to extend the maturity of their notes until April 30, 2014 and reduce their interest rate to 8% . These notes have been classified as short term as of December 31, 2013 .

Warrants to Purchase Common Sto

Warrants to Purchase Common Stock	3 Months Ended
	Dec. 31, 2013
Warrants and Rights Note Disclosure [Abstract]
Warrants to Purchase Common Stock	Warrants to Purchase Common Stock In conjunction with the private placement of our 10% Convertible Preferred stock in April 2012, we issued warrants which contained a "down-round" provision that provides for a reduction in the warrant exercise price if there are subsequent issuances of additional shares of common stock for consideration per share less than the per share warrant exercise prices. In October 2012, the Financial Accounting Standards Board (FASB), issued ASU 2012-04 Technical Corrections and Improvement ("ASU 2012-04") which contained technical corrections to guidance on which we had previously relied upon in forming our initial conclusions regarding the accounting for warrants containing these reset provisions. Pursuant to this guidance and effective commencing October 1, 2013, we have recognized the fair value of these warrants as a liability and will re-measured the fair value of these warrants on a quarterly basis with any increase or decrease in the estimated fair value being recorded in other income or expense for the respective quarterly reporting period. We have historically used the Black-Scholes option pricing model to determine the fair value of options and warrants. We have considered the facts and circumstances in choosing the Black-Scholes model to calculate the fair value of the warrants with a down-round price protection feature as well as the likelihood of triggering the down-round price protection feature, which, as described below, we have concluded is remote. We determined the initial fair value of the warrants as of October 1, 2013 to be $10,652,540 based on a valuation simulation using the Black Scholes option pricing model. We also prepared additional models using a modified Black Scholes option pricing model and a Binomial Tree option pricing model. Both additional simulations included various reset scenarios, different exercise prices, and other assumptions, such as price volatility and interest rates, that were kept consistent with our original Black-Scholes model. The resulting warrant values as determined under the modified Black-Scholes model and the Binomial Tree option model were not materially different from the values generated using the Black-Scholes model. We have therefore determined to use the Black-Scholes model as we believe it provides a reasonable basis for valuation and takes into consideration the relevant factors of the warrants, including the down round provision. During the three months ended December 31, 2013, we recorded warrant valuation expense of $324,021 associated with an increase in the fair value of all warrants containing the down round provision outstanding as of December 31, 2013 and exercised during the three months ended December 31, 2013. During the three months ended December 31, 2013, warrants to purchase 301,024 shares of Common Stock containing the down round provision were exercised on a cashless basis. We reduced our warrant liability on the date of exercise by the fair value of these warrants which was $126,338 and reclassified this amount to Additional paid-in capital. Our warrant liability was $10,850,223 as of December 31, 2013. The warrant liabilities were valued at December 31, 2013 using the Black-Scholes option-pricing model with the following assumptions. 10% Convertible Preferred Stock Financing Warrants Private Placement 1 Private Placement 2 December 31, 2013 December 31, 2013 Closing price per share of common stock $ 0.73 $ 0.73 Exercise price per share 0.50 0.50 Expected volatility 60.0 % 60.0 % Risk-free interest rate 1.3 % 1.8 % Dividend yield — — Remaining expected term of underlying securities (years) 3.8 4.8 Warrants outstanding 19,315,000 6,795,633 Private Placement 1 - April 30, 2012 , sale of 821.6 units of 10% Convertible Preferred Stock Private Placement 2 - March 31, 2013 , additional investment right from Private Placement 1, sale of approximately 274 units of 10% Convertible Preferred Stock

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The carrying amount of our receivables and payables approximate their fair value due to their short maturities. Accounting principles provide guidance for using fair value to measure assets and liabilities. The guidance includes a three level hierarchy of valuation techniques used to measure fair value, defined as follows: • Level 1 - Unadjusted Quoted Prices. The fair value of an asset or liability is based on unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Pricing Models with Significant Observable Inputs. The fair value of an asset or liability is based on information derived from either an active market quoted price, which may require further adjustment based on the attributes of the financial asset or liability being measured, or an inactive market transaction. • Level 3 - Pricing Models with Significant Unobservable Inputs. The fair value of an asset or liability is primarily based on internally derived assumptions surrounding the timing and amount of expected cash flows for the financial instrument. Therefore, these assumptions are unobservable in either an active or inactive market. We consider an active market as one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions of the asset or liability, the prices are not current, or price quotations vary substantially either over time or amount market makers. When appropriate, non-performance risk, or that of a counterparty, is considered in determining the fair values of liabilities and assets, respectively. We have classified certain warrants related to the 10% Convertible Preferred Stock private placements described in Note 12 as a Level 3 Liability. Assumptions used in the calculation require significant judgment. The unobservable inputs in our valuation model includes the probability of additional equity financing and whether the additional equity financing would trigger a reset on the down-round protection. The following table summarizes the financial liabilities measured a fair value on a recurring basis as of September 30, 2013 and December 31, 2013. Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2013 Warrant liability $ — $ — $ — $ — December 31, 2013 Warrant liability $ 10,850,223 $ — $ — $ 10,850,223 Level 3 Valuation The following table provides a summary of the changes in fair value of our financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three month period ended December 31, 2013. Warrant Liability Level 3 Balance at September 30, 2013 $ — Cumulative effect of a change in accounting principle - adoption of ASU 2012-04 10,652,540 Revaluation of warrants recognized in earnings 324,021 Reclassification of the estimated fair value of warrants exercised during the period to additional paid in capital (126,338 ) Balance at December 31, 2013 $ 10,850,223

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Dec. 31, 2013
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock During the three months ended December 31, 2013, holders exercised warrants to purchase an aggregate of 301,024 shares of Common Stock at an exercise price of $0.50 utilizing a cashless exercise feature resulting in the net issuance of 99,041 shares of Common Stock. In addition, another holder exercised warrants to purchase 8,000 shares of Common Stock at an exercise price of $0.65 . 10% Convertible Preferred Stock During the three months ended December 31, 2013, we recorded a dividend on our 10% Convertible Preferred Stock of $245,039 , of which $145,533 was paid in cash. Certain stockholders agreed to accept 136,985 shares of Common Stock (valued at $99,506 ) in lieu of cash dividend payments. During the three months ended December 31, 2012, we recorded a dividend on our 10% Convertible Preferred Stock of $212,704 , of which $52,785 was paid in cash. Certain stockholders agreed to accept 245,575 shares of Common Stock (valued at $159,920 ) in lieu of cash dividend payments. Stock Options Amortization of stock compensation expense was $24,783 and $38,190 for the three months ended December 31, 2013 and 2012, respectively. The unamortized compensation expense at December 31, 2013 was $113,045 and will be amortized over a weighted average remaining life of approximately 2.38 years.

Basis of Presentation Accountin

Basis of Presentation Accounting policies (Policies)	3 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Certificates of Deposit, Policy	All certificate of deposit investments have an original maturity of more than three months but less than three years and are stated at original purchase price which approximates fair value.
Accounts Receivable, Policy	Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating past due individual customer receivables and considering a customer’s financial condition, credit history, and the current economic conditions. Individual accounts receivable are written off when deemed uncollectible, with any future recoveries recorded as income when received.
Inventory, Policy	Raw material inventory primarily consists of dual fuel conversion components. Work in progress includes materials, labor and direct overhead associated with incomplete dual fuel conversion projects. As of December 31, 2013 and September 30, 2013, we recorded an inventory valuation allowance of $44,073 , respectively. All inventory is valued at the lower of cost or market on the first-in first-out (FIFO) method.
Intangible Assets, Policy	We review intangibles for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our intangible assets below their carrying value.
Product Warranty Costs, Policy	We provide for the estimated cost of product warranties for our dual fuel products at the time product revenue is recognized. Factors that affect our warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. We assess the adequacy of the warranty provision and we may adjust this provision if necessary.

Warrants to Purchase Common S22

Warrants to Purchase Common Stock Warrants to Purchase Common Stock (Policies)	3 Months Ended
	Dec. 31, 2013
Other Liabilities Disclosure [Abstract]
Warrants, Policy [Policy Text Block]	In conjunction with the private placement of our 10% Convertible Preferred stock in April 2012, we issued warrants which contained a "down-round" provision that provides for a reduction in the warrant exercise price if there are subsequent issuances of additional shares of common stock for consideration per share less than the per share warrant exercise prices. In October 2012, the Financial Accounting Standards Board (FASB), issued ASU 2012-04 Technical Corrections and Improvement ("ASU 2012-04") which contained technical corrections to guidance on which we had previously relied upon in forming our initial conclusions regarding the accounting for warrants containing these reset provisions. Pursuant to this guidance and effective commencing October 1, 2013, we have recognized the fair value of these warrants as a liability and will re-measured the fair value of these warrants on a quarterly basis with any increase or decrease in the estimated fair value being recorded in other income or expense for the respective quarterly reporting period. We have historically used the Black-Scholes option pricing model to determine the fair value of options and warrants. We have considered the facts and circumstances in choosing the Black-Scholes model to calculate the fair value of the warrants with a down-round price protection feature as well as the likelihood of triggering the down-round price protection feature, which, as described below, we have concluded is remote. We determined the initial fair value of the warrants as of October 1, 2013 to be $10,652,540 based on a valuation simulation using the Black Scholes option pricing model. We also prepared additional models using a modified Black Scholes option pricing model and a Binomial Tree option pricing model. Both additional simulations included various reset scenarios, different exercise prices, and other assumptions, such as price volatility and interest rates, that were kept consistent with our original Black-Scholes model. The resulting warrant values as determined under the modified Black-Scholes model and the Binomial Tree option model were not materially different from the values generated using the Black-Scholes model. We have therefore determined to use the Black-Scholes model as we believe it provides a reasonable basis for valuation and takes into consideration the relevant factors of the warrants, including the down round provision.

Fair Value Measurements Fair Va

Fair Value Measurements Fair Value Measurement Disclosure (Policies)	3 Months Ended
	Dec. 31, 2013
Fair Value Measurement Policy [Abstract]
Fair Value Measurement, Policy [Policy Text Block]	Fair Value Measurements The carrying amount of our receivables and payables approximate their fair value due to their short maturities. Accounting principles provide guidance for using fair value to measure assets and liabilities. The guidance includes a three level hierarchy of valuation techniques used to measure fair value, defined as follows: • Level 1 - Unadjusted Quoted Prices. The fair value of an asset or liability is based on unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Pricing Models with Significant Observable Inputs. The fair value of an asset or liability is based on information derived from either an active market quoted price, which may require further adjustment based on the attributes of the financial asset or liability being measured, or an inactive market transaction. • Level 3 - Pricing Models with Significant Unobservable Inputs. The fair value of an asset or liability is primarily based on internally derived assumptions surrounding the timing and amount of expected cash flows for the financial instrument. Therefore, these assumptions are unobservable in either an active or inactive market. We consider an active market as one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions of the asset or liability, the prices are not current, or price quotations vary substantially either over time or amount market makers. When appropriate, non-performance risk, or that of a counterparty, is considered in determining the fair values of liabilities and assets, respectively. We have classified certain warrants related to the 10% Convertible Preferred Stock private placements described in Note 12 as a Level 3 Liability. Assumptions used in the calculation require significant judgment. The unobservable inputs in our valuation model includes the probability of additional equity financing and whether the additional equity financing would trigger a reset on the down-round protection.

Correction of An Accounting E24

Correction of An Accounting Error (Tables)	3 Months Ended
	Dec. 31, 2013
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	The restated historical information is as follows: Condensed Consolidated Statements of Operations Three Months Ended December 31, 2013 Originally Reported Adjustments Adjusted Non operating expense: Revaluation of warrants $ — $ (324,021 ) (324,021 ) Non operating expense, net (73,569 ) (324,021 ) (397,590 ) Net loss (163,574 ) (324,021 ) (487,595 ) Net loss available to Common Stockholders (408,613 ) (324,021 ) (732,634 ) Loss from continuing operations per share - basic and diluted $ 0.00 $ (0.01 ) $ (0.01 ) Net loss attributable to Common stockholders per share - basic and diluted $ 0.00 $ (0.02 ) $ (0.02 ) Condensed Consolidated Balance Sheets As of December 31, 2013 Originally Reported Adjustments Adjusted Liabilities: Warrant liability $ — $ 10,850,223 $ 10,850,223 Total liabilities 4,360,237 10,850,223 15,210,460 Stockholders' (deficit) equity: Additional paid-in capital 66,697,958 (10,526,202 ) 56,171,756 Accumulated deficit (61,720,277 ) (324,021 ) (62,044,298 ) Total stockholders' (deficit) equity 5,464,816 (10,850,223 ) (5,385,407 ) $ 9,825,053 $ — $ 9,825,053 Condensed Consolidated Statement of Stockholders' (Deficit) Equity Preferred Stock Common Stock Additional Paid In Accumulated Shares Amount Shares Amount Capital Deficit Total Originally Reported: Balance, December 31, 2013 942 $ 942 48,619,342 $ 486,193 $ 66,697,958 $ (61,720,277 ) $ 5,464,816 Adjustments — — — — (10,526,202 ) (324,021 ) (10,850,223 ) Adjusted: Balance, December 31, 2013 942 $ 942 48,619,342 $ 486,193 $ 56,171,756 $ (62,044,298 ) $ (5,385,407 ) Condensed Consolidated Statements of Cash Flows Three Months Ended December 31, 2013 Originally Reported Adjustments Adjusted Cash flows from operating activities: Net loss $ (163,574 ) $ (324,021 ) $ (487,595 ) Revaluation of warrants — 324,021 324,021 Net cash used in operating activities (124,636 ) — (124,636 )

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following: December 31, September 30, Raw materials $ 897,817 $ 895,905 Work in progress 19,465 11,423 Finished goods 1,000 731 Total inventory $ 918,282 $ 908,059

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortization Expense of Intangible Assets During the Next Five Years	Amortization expense associated with acquisition related intangibles during the next five years is anticipated to be: Twelve months ending December 31: Contracts Technology Software Development Total 2014 $ 50,000 $ 50,000 $ 577,579 $ 677,579 2015 50,000 50,000 624,121 724,121 2016 50,000 50,000 624,121 724,121 2017 50,000 50,000 573,644 673,644 2018 50,000 50,000 364,962 464,962 2019 and thereafter 29,167 29,167 457,443 515,777 $ 279,167 $ 279,167 $ 3,221,870 $ 3,780,204

Contracts in Progress (Tables)

Contracts in Progress (Tables)	3 Months Ended
	Dec. 31, 2013
Contractors [Abstract]
Schedule of Contracts in Progress	Contracts in progress consist of the following: December 31, September 30, 2013 Costs incurred on uncompleted contracts $ 14,572 $ 14,572 Estimated earnings on contracts in progress 25,387 25,387 39,959 39,959 Less billings on contracts in progress 47,492 47,492 $ (7,533 ) $ (7,533 ) Costs and estimated earnings in excess of billings $ — $ — Billings in excess of costs and estimated earnings 7,533 7,533 $ (7,533 ) $ (7,533 )

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property, plant and equipment consist of the following: December 31, September 30, 2012 Estimated Useful Lives Leasehold improvements $ 127,087 $ 127,087 5 years Machinery and equipment 1,535,800 1,431,871 3 - 7 years Less accumulated depreciation (710,441 ) (629,137 ) $ 952,446 $ 929,821

Product Warranty Costs (Tables)

Product Warranty Costs (Tables)	3 Months Ended
	Dec. 31, 2013
Product Warranties Disclosures [Abstract]
Schedule of the Change in the Product Warranty Accrual	The following table provides the detail of the change in our product warranty accrual relating to dual fuel products as of: Quarter Ended December 31, 2013 Year Ended September 30, 2013 Warranty accrual at the beginning of the period $ 118,591 $ 18,306 Charged to costs and expenses relating to new sales 34,467 146,594 Costs of product warranty claims (2,226 ) (46,309 ) Warranty accrual at the end of period $ 150,832 $ 118,591

Warrants to Purchase Common S30

Warrants to Purchase Common Stock (Tables)	3 Months Ended
	Dec. 31, 2013
Warrants and Rights Note Disclosure [Abstract]
Assumptions used to value warrant liabilities	The warrant liabilities were valued at December 31, 2013 using the Black-Scholes option-pricing model with the following assumptions. 10% Convertible Preferred Stock Financing Warrants Private Placement 1 Private Placement 2 December 31, 2013 December 31, 2013 Closing price per share of common stock $ 0.73 $ 0.73 Exercise price per share 0.50 0.50 Expected volatility 60.0 % 60.0 % Risk-free interest rate 1.3 % 1.8 % Dividend yield — — Remaining expected term of underlying securities (years) 3.8 4.8 Warrants outstanding 19,315,000 6,795,633

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Summary of financial liabilities measured at fair value on a recurring basis	The following table summarizes the financial liabilities measured a fair value on a recurring basis as of September 30, 2013 and December 31, 2013. Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2013 Warrant liability $ — $ — $ — $ — December 31, 2013 Warrant liability $ 10,850,223 $ — $ — $ 10,850,223
Summary of changes in fair value of financial liabilities measured at fair value on a recurring basis using significant unobservable inputs	The following table provides a summary of the changes in fair value of our financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three month period ended December 31, 2013. Warrant Liability Level 3 Balance at September 30, 2013 $ — Cumulative effect of a change in accounting principle - adoption of ASU 2012-04 10,652,540 Revaluation of warrants recognized in earnings 324,021 Reclassification of the estimated fair value of warrants exercised during the period to additional paid in capital (126,338 ) Balance at December 31, 2013 $ 10,850,223

Fair Value Measurements - Level

Fair Value Measurements - Level 3 Valuation (Details) - Warrant Liability [Member] - Fair Value, Inputs, Level 3 [Member]	3 Months Ended
	Dec. 31, 2013USD ($)
Level 3
Beginning balance	$ 0
Fair value of warrants issued	10,652,540
Revaluation of warrants in recognized in earnings	324,021
Reclassification into additional paid in capital due to waived down-round provision right	(126,338)
Ending balance	$ 10,850,223

Nature of Operations, Risks, 33

Nature of Operations, Risks, and Uncertainties Recent Developments (Details) - Class of Stock [Domain] - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Preferred stock dividend rate percentage	10.00%	10.00%
Preferred Stock, Value, Issued	$ 0		$ 0
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.65
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,500,000		$ 2,250,000

Nature of Operations, Risks, 34

Nature of Operations, Risks, and Uncertainties (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,500,000		$ 2,250,000
Issuance of Stock and Warrants for Services or Claims	0	$ 31,957
Cash and Cash Equivalents, at Carrying Value	1,595,996
Working Capital	$ 1,889,773

Correction of An Accounting E35

Correction of An Accounting Error - Condensed Consolidated Statements of Operations (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Non operating income (expense)
Income (Expense) on Revaluation of Warrants	$ (324,021)	$ 0
Nonoperating Income (Expense), net	(397,590)	(57,453)
Net loss	(487,595)
Net loss available to Common Stockholders	$ (732,634)	$ (852,490)
Income (Loss) from Continuing Operations, per share - basic	$ (0.01)
Earnings Per Share, Basic and Diluted	$ (0.02)	$ (0.02)
As Reported [Member]
Non operating income (expense)
Income (Expense) on Revaluation of Warrants	$ 0
Nonoperating Income (Expense), net	(73,569)
Net loss	(163,574)
Net loss available to Common Stockholders	$ (408,613)
Income (Loss) from Continuing Operations, per share - basic	$ 0
Earnings Per Share, Basic and Diluted	$ 0
Adjustments [Member]
Non operating income (expense)
Income (Expense) on Revaluation of Warrants	$ (324,021)
Nonoperating Income (Expense), net	(324,021)
Net loss	(324,021)
Net loss available to Common Stockholders	$ (324,021)
Income (Loss) from Continuing Operations, per share - basic	$ (0.01)
Earnings Per Share, Basic and Diluted	$ (0.02)

Correction of An Accounting E36

Correction of An Accounting Error - Condensed Consolidated Balance Sheets (Details) - USD ($)	Dec. 31, 2013	Sep. 30, 2013
Liabilities:
Warrant liability	$ 10,850,223	$ 0
Total liabilities	15,210,460	4,652,593
Stockholders' equity:
Additional paid-in capital	56,171,756	66,570,909
Accumulated deficit	(62,044,298)	(61,311,664)
Total stockholders' equity	(5,385,407)	5,743,940
Total liabilities and stockholders' equity	9,825,053	$ 10,396,533
As Reported [Member]
Liabilities:
Warrant liability	0
Total liabilities	4,360,237
Stockholders' equity:
Additional paid-in capital	66,697,958
Accumulated deficit	(61,720,277)
Total stockholders' equity	5,464,816
Total liabilities and stockholders' equity	9,825,053
Adjustments [Member]
Liabilities:
Warrant liability	10,850,223
Total liabilities	10,850,223
Stockholders' equity:
Additional paid-in capital	(10,526,202)
Accumulated deficit	(324,021)
Total stockholders' equity	(10,850,223)
Total liabilities and stockholders' equity	$ 0

Correction of An Accounting E37

Correction of An Accounting Error - Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Nonoperating Income (Expense), net	$ (397,590)	$ (57,453)
Total stockholders’ equity (deficit)	$ (5,385,407)		$ 5,743,940
Preferred Stock [Member] | 10% Convertible Preferred Stock [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Shares outstanding (in shares)	942
Total stockholders’ equity (deficit)	$ 942
Common Stock [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Shares outstanding (in shares)	48,619,342		48,375,316
Total stockholders’ equity (deficit)	$ 486,193		$ 483,753
Additional Paid In Capital [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders’ equity (deficit)	56,171,756		66,570,909
Accumulated Deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders’ equity (deficit)	(62,044,298)		$ (61,311,664)
As Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Nonoperating Income (Expense), net	(73,569)
Total stockholders’ equity (deficit)	$ 5,464,816
As Reported [Member] | Preferred Stock [Member] | 10% Convertible Preferred Stock [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Shares outstanding (in shares)	942
Total stockholders’ equity (deficit)	$ 942
As Reported [Member] | Common Stock [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Shares outstanding (in shares)	48,619,342
Total stockholders’ equity (deficit)	$ 486,193
As Reported [Member] | Additional Paid In Capital [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders’ equity (deficit)	66,697,958
As Reported [Member] | Accumulated Deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders’ equity (deficit)	(61,720,277)
Adjustments [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Nonoperating Income (Expense), net	(324,021)
Total stockholders’ equity (deficit)	(10,850,223)
Adjustments [Member] | Additional Paid In Capital [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders’ equity (deficit)	(10,526,202)
Adjustments [Member] | Accumulated Deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stockholders’ equity (deficit)	$ (324,021)

Correction of An Accounting E38

Correction of An Accounting Error - Condensed Consolidated Statements of Cash Flows (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	$ (487,595)
Fair Value Adjustment of Warrants	324,021	$ 0
Net Cash Provided by (Used in) Operating Ativities	(124,636)	$ (591,215)
As Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	(163,574)
Fair Value Adjustment of Warrants	0
Net Cash Provided by (Used in) Operating Ativities	(124,636)
Adjustments [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	(324,021)
Fair Value Adjustment of Warrants	324,021
Net Cash Provided by (Used in) Operating Ativities	$ 0

Correction of An Accounting E39

Correction of An Accounting Error - Additional Information (Details)	Mar. 31, 2013	Apr. 30, 2012	Dec. 31, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Preferred stock dividend rate percentage			10.00%	10.00%
Preferred Stock [Member] | 10% Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock dividend rate percentage	10.00%	10.00%	10.00%

Certificates of Deposits (Detai

Certificates of Deposits (Details) - USD ($)	Dec. 31, 2013	Sep. 30, 2013
Certificates of Deposit [Abstract]
Certificates of deposit, restricted	$ 300,000	$ 300,000

Receivables Schedule of Related

Receivables Schedule of Related Party Transactions, by Related Party (Details) - American Power Group [Member] - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Related Party Transaction [Line Items]
Note Receivable Related Party, Total Principal Amount Outstanding	$ 797,387
Related Party Transaction, Interest Rate	5.50%
Royalties Due to be Applied Against Outstanding Interest and Principal of Related Party Note Receivable	50.00%	50.00%
Due to Related Parties, Noncurrent	$ 1

Inventory (Details)

Inventory (Details) - USD ($)	Dec. 31, 2013	Sep. 30, 2013
Inventory Disclosure [Abstract]
Inventory Valuation Reserves	$ 44,073	$ 44,073
Raw materials	897,817	895,905
Work in progress	19,465	11,423
Finished goods	1,000	731
Total inventory	$ 918,282	$ 908,059

Intangible Assets - Long Term C

Intangible Assets - Long Term Contracts and Purchased Technology (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Goodwill [Line Items]
Royalty Expense	$ 0	$ 0
Contract Recievable, Amortized	500,000
Purchased Technology, Amortized	$ 500,000
Long Term Contracts, Useful Life	120 months
Amortization of Long Term Contracts and Purchased Technology	$ 25,000	$ 25,000
Purchased Technology, Useful Life	120 months
Long Term Contracts and Purchased Technology, Accumulated Amortization	$ 441,667		$ 416,666

Intangible Assets - Software De

Intangible Assets - Software Development (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Capitalized Software Development Costs [Line Items]
Capitalized Software Development Costs for Software Sold to Customers	$ 3,648,242
Capitalized Computer Software, Amortization	109,488	$ 50,538
OUL [Member]
Capitalized Software Development Costs [Line Items]
Capitalized Software Development Costs for Software Sold to Customers	$ 1,801,506
Software, Useful Life	60 months
IUL [Member]
Capitalized Software Development Costs [Line Items]
Capitalized Software Development Costs for Software Sold to Customers	$ 1,846,736
Software, Useful Life	84 months

Intangible Assets - Finite-Live

Intangible Assets - Finite-Lived Intangible Assets, Future Amortization Expense (Details)	Dec. 31, 2013USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
2,013	$ 677,579
2,014	724,121
2,015	724,121
2,016	673,644
2,017	464,962
2018 and thereafter	515,777
Total	3,780,204
Contracts [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2,013	50,000
2,014	50,000
2,015	50,000
2,016	50,000
2,017	50,000
2018 and thereafter	29,167
Total	279,167
Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2,013	50,000
2,014	50,000
2,015	50,000
2,016	50,000
2,017	50,000
2018 and thereafter	29,167
Total	279,167
Testing Software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2,013	577,579
2,014	624,121
2,015	624,121
2,016	573,644
2,017	364,962
2018 and thereafter	457,443
Total	$ 3,221,870

Intangible Assets - Exclusive P

Intangible Assets - Exclusive Patent License Agreement (Details) - USD ($)	Apr. 27, 2012	Dec. 31, 2013	Dec. 31, 2012
Exclusive patent license agreement [Line Items]
Royalty Expense		$ 0	$ 0
Net Sales Threshold [Member]
Exclusive patent license agreement [Line Items]
Monthly Royalty Amount	10.00%
Pre Royalty EBITDA Threshold [Member]
Exclusive patent license agreement [Line Items]
Monthly Royalty Amount	30.00%

Contracts in Progress (Details)

Contracts in Progress (Details) - USD ($)	Dec. 31, 2013	Sep. 30, 2013
Contractors [Abstract]
Costs incurred on uncompleted contracts	$ 14,572	$ 14,572
Estimated earnings on contracts in progress	25,387	25,387
Estimated revenue on uncompleted contracts	39,959	39,959
Less billings on contracts in progress	47,492	47,492
Net position of all contracts in progress	(7,533)	(7,533)
Costs and estimated earnings in excess of billings	0	0
Billings in excess of costs and estimated earnings	7,533	7,533
Net position of all contracts in progress	$ (7,533)	$ (7,533)

Property, Plant and Equipment48

Property, Plant and Equipment (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Machinery and equipment, net	$ 952,446	$ 929,821
Leaseholds and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	5 years
Machinery and equipment	$ 127,087	127,087
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Machinery and equipment	1,535,800	1,431,871
Less accumulated depreciation	(710,441)	(629,137)
Machinery and equipment, net	$ 952,446	$ 929,821
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	P3Y
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	P7Y

Product Warranty Costs (Details

Product Warranty Costs (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013
Product Warranties Disclosures [Abstract]
Warranty accrual at the beginning of the period	$ 118,591	$ 18,306
Charged to costs and expenses relating to new sales	34,467	146,594
Costs of product warranty claims	(2,226)	(46,309)
Warranty accrual at the end of period	$ 150,832	$ 118,591

Notes Payable_Credit Faciliti50

Notes Payable/Credit Facilities (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Debt Instrument [Line Items]
Stock Issued During Period, Shares, New Issues	136,985	245,575
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,500,000		$ 2,250,000
Line of Credit Facility, Borrowing Capacity, Eligible Inventory	50.00%
Line of Credit Facility, Borrowing Capacity, Eligible Accounts Receivable	75.00%
Line of Credit Facility, Borrowing Capacity, Eligible Certificate of Deposit	100.00%
Line of Credit Facility, Borrowing Capacity, Eligible Property and Equipment	50.00%
Line of Credit Facility, Interest Rate at Period End	7.00%
Restricted Cash and Cash Equivalents, Current	$ 300,000		$ 300,000
Common Shares Held as Collateral, Number of Shares	2,000,000
Common Shares Pledged	125,000
Line of Credit Facility, Amount Outstanding	$ 1,560,110
Line of Credit Facility, Remaining Borrowing Capacity	545,419
Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Stock Issued During Period, Value, New Issues	$ 99,506	$ 159,920

Notes Payable_Credit Faciliti51

Notes Payable/Credit Facilities - Short Term Promissory Notes (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013	Oct. 31, 2011
Short-term Debt [Line Items]
Notes payable, related parties, current	$ 473,500		$ 473,500
Proceeds from Notes Payable	$ 115,000	$ 22,050
Debt Instrument, Interest Rate at Period End	8.00%
Chief Executive Officer [Member]
Short-term Debt [Line Items]
Notes payable, related parties, current	$ 150,000
Director and Officer [Member]
Short-term Debt [Line Items]
Notes payable, related parties, current	$ 323,500
Notes Payable, Other Payables [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				10.00%

Notes Payable_Credit Faciliti52

Notes Payable/Credit Facilities - Convertible Notes Payable (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.65
Amortization of Financing Costs	$ 8,321	$ 0

Warrants to Purchase Common S53

Warrants to Purchase Common Stock - Assumptions Used to Value Warrant Liabilities (Details) - Dec. 31, 2013 - $ / shares	Total
Class of Warrant or Right [Line Items]
Exercise price per share (usd per share)	$ 0.65
Private Placement 1 [Member]
Class of Warrant or Right [Line Items]
Closing price per share of common stock (usd per share)	0.73
Exercise price per share (usd per share)	$ 0.5
Expected volatility	60.00%
Risk-free interest rate	1.30%
Dividend yield	0.00%
Fair Value Assumptions, Expected Term	3 years 9 months 19 days
Warrants outstanding	19,315,000
Private Placement 2 [Member]
Class of Warrant or Right [Line Items]
Closing price per share of common stock (usd per share)	$ 0.73
Exercise price per share (usd per share)	$ 0.50
Expected volatility	60.00%
Risk-free interest rate	1.80%
Dividend yield	0.00%
Fair Value Assumptions, Expected Term	4 years 9 months 18 days
Warrants outstanding	6,795,633

Warrants to Purchase Common S54

Warrants to Purchase Common Stock - Additional Information (Details) - USD ($)	Mar. 31, 2013	Apr. 30, 2012	Dec. 31, 2013	Dec. 31, 2012	Oct. 01, 2013
Class of Warrant or Right [Line Items]
Preferred stock dividend rate percentage			10.00%	10.00%
Warrants			$ 10,850,223		$ 10,652,540
Stock Issued During Period, Shares, New Issues			136,985	245,575
Income (Expense) on Revaluation of Warrants			$ 324,021	$ 0
Preferred Stock [Member] | 10% Convertible Preferred Stock [Member]
Class of Warrant or Right [Line Items]
Preferred stock dividend rate percentage	10.00%	10.00%	10.00%
Common Stock [Member]
Class of Warrant or Right [Line Items]
Number of securities called by warrants			301,024
Additional Paid In Capital [Member]
Class of Warrant or Right [Line Items]
Adjustments to Additional Paid in Capital, Warrant Issued			$ 126,338
Private Placement 1 [Member] | Preferred Stock [Member] | 10% Convertible Preferred Stock [Member]
Class of Warrant or Right [Line Items]
Stock Issued During Period, Shares, New Issues		821.6
Private Placement 2 [Member] | Preferred Stock [Member] | 10% Convertible Preferred Stock [Member]
Class of Warrant or Right [Line Items]
Stock Issued During Period, Shares, New Issues	274

Fair Value Measurements - Liabi

Fair Value Measurements - Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Dec. 31, 2013	Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	$ 10,850,223	$ 0
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	$ 10,850,223	$ 0

Stockholders' Equity - Authoriz

Stockholders' Equity - Authorized Shares (Details) - shares	Dec. 31, 2013	Sep. 30, 2013
Class of Stock [Line Items]
Common stock, shares authorized	150,000,000	150,000,000

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock (Details) - Class of Stock [Domain] - $ / shares	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Incremental Common Shares Attributable to Call Options and Warrants, Immediate	301,024
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.65
Stock Issued During Period, Shares, Issued for Services	8,000
Issuance of Stock and Warrants for Services or Claims	136,985	245,575
Certain Ten Percent Convertible Preferred Stock holders [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.50
Issuance of Stock and Warrants for Services or Claims	99,041

Stockholders' Equity - Ten Perc

Stockholders' Equity - Ten Percent Convertible Preferred Stock (Details) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Class of Stock [Line Items]
Shares issued for preferred stock dividend	$ 99,506	$ 159,920
Preferred stock dividend rate percentage	10.00%	10.00%
Dividends, Preferred Stock	$ 245,039	$ 212,704
Dividends, Preferred Stock, Cash	$ 145,533	$ 52,785
Issuance of Stock and Warrants for Services or Claims	136,985	245,575
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.65
Convertible Preferred Stock, Value, Issued	$ 942		$ 942
Intangibles, Expenditures Incurred but Not yet Paid	47,743	$ 0
Capital Expenditures Incurred but Not yet Paid	19,990	0
Allocated Share-based Compensation Expense	24,783	38,190
Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period, Value, New Issues	$ 99,506	$ 159,920
Certain Ten Percent Convertible Preferred Stock holders [Member]
Class of Stock [Line Items]
Issuance of Stock and Warrants for Services or Claims	99,041
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.50

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options (Details) - Class of Warrant or Right [Domain] - Class of Stock [Domain] - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of Stock and Warrants for Services or Claims	136,985	245,575
Allocated Share-based Compensation Expense	$ 24,783	$ 38,190
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 113,045
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Remaining Vesting Period Years