----

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|   |   |                                                                                 |
|--------|--------|--------------------------------------------------------------------------------------|
| þ |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|   |   |                                                                                 |
|   |   | For the fiscal year ended September 30, 2011                                         |

|   |   |                                                                                                                                                                                                                                                                                                               |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o      |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                               |
|   |   | For the transition period from                          to                        |

|                            |   |                |
|---------------------------------|--------|---------------------|
| Florida                         |   | 83-0245581          |
| (State or other jurisdiction of |   | (IRS Employer       |
| incorporation or organization)  |   | Identification No.) |

| Large accelerated filer  o | Accelerated filer  o |  Non-accelerated filer  o(Do not check if a smaller reporting company) | Smaller reporting company  þ |
|---------------------------------|---------------------------|----------------------------------------------------------------------------------|----------------------------------------|

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|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|--------|----------|--------|
|                                                                                                                                                                              |   |                                                                                           |   | Page   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
|                                                                                                                                                                              |   | PART I                                                                                         |   |   |     |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
| Item 1.                                                                                                                                                                      |   | Business                                                                                       |   |   | 4        |   |
| Item 2.                                                                                                                                                                      |   | Properties                                                                                     |   |   | 7        |   |
| Item 3.                                                                                                                                                                      |   | Legal Proceedings                                                                              |   |   | 7        |   |
| Item 4.                                                                                                                                                                      |   | Submission of Matters to a Vote of Security Holders                                            |   |   | 7        |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
|                                                                                                                                                                              |   | PART II                                                                                        |   |   |     |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
| Item 5.                                                                                                                                                                      |   | Market for Registrant’s Common Equity and Related Stockholder Matters                    |   |   | 8        |   |
| Item 7.                                                                                                                                                                      |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations    |   |   | 8        |   |
| Item 8.                                                                                                                                                                      |   | Consolidated Financial Statements                                                              |   |   | 11       |   |
| Item 9.                                                                                                                                                                      |   | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure           |   |   | 22       |   |
| Item 9A.                                                                                                                                                                     |   | Controls and Procedures                                                                        |   |   | 22       |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
|                                                                                                                                                                              |   | PART III                                                                                       |   |   |     |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
| Item 10.                                                                                                                                                                     |   | Directors, Executive Officers and Corporate Governance of the Registrant                       |   |   | 23       |   |
| Item 11.                                                                                                                                                                     |   | Executive Compensation                                                                         |   |   | 24       |   |
| Item 12.                                                                                                                                                                     |   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |   |   | 25       |   |
| Item 13.                                                                                                                                                                     |   | Certain Relationships and Related Transactions and Director Independence                       |   |   | 26       |   |
| Item 14.                                                                                                                                                                     |   | Principal Accountant Fees and Services                                                         |   |   | 26       |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
|                                                                                                                                                                              |   | PART IV                                                                                        |   |   |     |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
| Item 15.                                                                                                                                                                     |   | Exhibits and Financial Statement Schedules                                                     |   |   | 27       |   |
|                                                                                                                                                                              |   |                                                                                           |   |   |     |   |
|                                                                                                                                                                              |   | Signatures                                                                                     |   |   | 27  |   |
|   EX-31.1 Rule 13a-14(a) Certification of President and Principal Executive Officer                                                                                          |
|   EX-31.2 Rule 13a-14(a) Certification of Treasurer and Principal Financial Officer                                                                                          |
|   EX-32.1 Certification of President and Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|   EX-32.2 Certification of Treasurer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

----

----

|   | •curtailment of the U.S. Government’s use of technology or other services and products providers, including curtailment due to government budget reductions and related fiscal matters; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •developments in Iraq, Afghanistan or other geopolitical developments that affect demand for our products and services; |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | •our ability to hire and retain personnel to meet increasing demand for our services; and |
|--------|-------------------------------------------------------------------------------------------------|

|   | •technological developments that impact purchasing decisions or our competitive position. |
|--------|-------------------------------------------------------------------------------------------------|

|   | •suspend us from receiving new contracts pending resolution of alleged violations of procurement laws or regulations; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | •terminate existing contracts; |
|--------|--------------------------------------|

|   | •reduce the value of existing contracts; |
|--------|------------------------------------------------|

|   | •audit our contract-related costs and fees, including allocated indirect costs; and |
|--------|-------------------------------------------------------------------------------------------|

|   | •control and potentially prohibit the export of our products. |
|--------|---------------------------------------------------------------------|

----

|   | •the frequent need to bid on programs in advance of the completion of their design, which may result in unforeseen technological difficulties and/or cost overruns; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •the substantial time, effort and experience required to prepare bids and proposals for competitively awarded contracts that may not be awarded to us; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •design complexity and rapid technological obsolescence; and |
|--------|--------------------------------------------------------------------|

|   | •the constant need for design improvement. |
|--------|--------------------------------------------------|

|   |   |
|--------|--------|

----

|   | •requiring a substantial portion of our net cash flow from operations to be used to pay interest and principal on our debt and therefore be unavailable for other purposes, including acquisitions, capital expenditures, paying dividends to our shareholders, repurchasing shares of our common stock, research and development and other investments; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •limiting our ability to obtain additional financing for acquisitions, working capital, investments or other expenditures, which, in each case, may limit our ability to carry out our acquisition strategy; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •increasing interest expenses due to higher interest rates on our borrowings that have variable interest rates; |
|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | •heightening our vulnerability to downturns in our business or in the general economy and restricting us from making acquisitions, introducing new technologies and products or exploiting business opportunities; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •impacting debt covenants that limit our ability to borrow additional funds, dispose of assets, or repurchase shares of our common stock. Failure to comply with such covenants could result in an event of default which, if not cured or waived, could result in the acceleration of our outstanding indebtedness. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Quarter Ending     |   | High   |   |   | Low    |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| December 31, 2009  |   | $      | 0.70   |   |   | $      | 0.09 |   |
| March 31, 2010     |   |   | 0.25   |   |   |   | 0.06 |   |
| June 30, 2010      |   |   | 0.20   |   |   |   | 0.06 |   |
| September 30, 2010 |   |   | 0.25   |   |   |   | 0.05 |   |
|               |   |   |   |   |   |   |   |   |
| December 31, 2010  |   | $      | 0.08   |   |   | $      | 0.03 |   |
| March 31, 2011     |   |   | 0.14   |   |   |   | 0.04 |   |
| June 30, 2011      |   |   | 0.07   |   |   |   | 0.04 |   |
| September 30, 2011 |   |   | 0.06   |   |   |   | 0.01 |   |

----

----

----

|                                                                                                            |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                            |   | Page   |   |
|                                                                                                            |   |   |   |   |
| Report of Independent Registered Public Accounting Firm                                                         |   |   | 12     |   |
|                                                                                                            |   |   |   |   |
| Consolidated Balance Sheets as of September 30, 2011 and 2010                                                   |   |   | 13     |   |
|                                                                                                            |   |   |   |   |
| Consolidated Statements of Operations for the Years Ended September 30, 2011 and 2010                           |   |   | 14     |   |
|                                                                                                            |   |   |   |   |
| Consolidated Statements of Cash Flows for the Years Ended September 30, 2011 and 2010                           |   |   | 15     |   |
|                                                                                                            |   |   |   |   |
| Consolidated Statement of Changes in Stockholders’ Equity for the Years Ended September 30, 2011 and 2010 |   |   | 17     |   |
|                                                                                                            |   |   |   |   |
| Notes to Consolidated Financial Statements                                                                      |   |   | 19     |   |
|                                                                                                            |   |   |   |   |

----

----

|                                                                                                                                       |   | September 30, |        |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|
|                                                                                                                                       |   | 2011          |        |   | 2010 |   |
|                                                                                                                                       |   |          |        |   |   |   |
| ASSETS                                                                                                                                     |   |          |        |   |   |   |
|                                                                                                                                       |   |          |        |   |   |   |
| Cash and cash equivalents                                                                                                                  |   | $             | 169,499     |   |   | $ | 12,605 |   |
| Accounts receivable                                                                                                                        |   |          | 228,085     |   |   |   | 451,793 |   |
| Contract claim receivable                                                                                                                  |   |          | -           |   |   |   | - |   |
| Inventory                                                                                                                                  |   |          | 685,226     |   |   |   | 1,240,031 |   |
| Other current assets                                                                                                                       |   |          | 130,826     |   |   |   | - |   |
| Current assets from discontinued operations                                                                                                |   |          | -           |   |   |   | 1,305,707 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| Total Current Assets                                                                                                                       |   |          | 1,213,636   |   |   |   | 3,010,136 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| Property, plant and equipment                                                                                                              |   |          | 2,545,258   |   |   |   | 2,501,704 |   |
| Investments                                                                                                                                |   |          | 1,791,855   |   |   |   | 1,766,855 |   |
| Other assets                                                                                                                               |   |          | 107,618     |   |   |   | 548,748 |   |
| Non-current assets from discontinued operations                                                                                            |   |          | -           |   |   |   | 2,594,707 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
|                                                                                                                                       |   | $             | 5,658,367   |   |   | $ | 10,422,150 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT                                                                                                |   |          |        |   |   |   |   |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| Accounts payable                                                                                                                           |   | $             | 203,769     |   |   | $ | 231,365 |   |
| Accrued expenses                                                                                                                           |   |          | 6,416,831   |   |   |   | 6,451,243 |   |
| Advance payments and billings in excess of cost                                                                                            |   |          | 883,504     |   |   |   | 1,451,287 |   |
| Current portion of long term debt                                                                                                          |   |          | 5,365,245   |   |   |   | 2,941,376 |   |
| Current liabilities from discontinued operations                                                                                           |   |          | 1,934,588   |   |   |   | 5,277,590 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| Total current liabilities                                                                                                                  |   |          | 14,803,937  |   |   |   | 16,352,861 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| Shareholder loans and accrued interest                                                                                                     |   |          | 185,392     |   |   |   | 4,409,469 |   |
| Long term debt, net of current portion–                                                                                              |   |          | 1,268,925   |   |   |   | 1,396,022 |   |
| Non-current liabilities associated with assets held for sale                                                                               |   |          | -           |   |   |   | 1,160,000 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
|                                                                                                                                       |   |          | 16,258,254  |   |   |   | 23,318,352 |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| Commitments and contingencies                                                                                                              |   |          | -           |   |   |   | - |   |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
| Shareholders’ deficit                                                                                                                |   |          |        |   |   |   |   |   |
| Common stock, $.001 par; authorized 1,000,000,000 shares, 438,138,975 and 81,902,405 issued and outstanding at September 30, 2011 and 2010 |   |          | 438,139     |   |   |   | 81,902 |   |
| Additional paid in Capital in excess of par                                                                                                |   |          | 18,065,442  |   |   |   | 8,002,412 |   |
| Retained earnings (deficit)                                                                                                                |   |          | (29,103,468 | ) |   |   | (20,980,516 | ) |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
|                                                                                                                                       |   |          | (10,599,887 | ) |   |   | (12,896,202 | ) |
|                                                                                                                                       |   |          |        |   |   |   |   |   |
|                                                                                                                                       |   | $             | 5,658,367   |   |   | $ | 10,422,150 |   |

----

|                                                 |   | Years Ended September 30, |        |
|------------------------------------------------------|--------|---------------------------|-------------|
|                                                 |   | 2011                      |        |   | 2010 |   |
|                                                 |   |                      |        |   |   |   |
| Revenues                                             |   | $                         | 4,903,292   |   |   | $ | 11,669,862 |   |
| Cost of revenues                                     |   |                      | 3,136,389   |   |   |   | 8,576,134 |   |
|                                                 |   |                      |        |   |   |   |   |   |
| Gross profit                                         |   | $                         | 1,766,903   |   |   |   | 3,093,728 |   |
|                                                 |   |                      |        |   |   |   |   |   |
|                                                 |   |                      |        |   |   |   |   |   |
| Selling and administrative expenses                  |   |                      | 5,475,857   |   |   |   | 4,403,871 |   |
| Stock based compensation                             |   |                      | 3,020,055   |   |   |   | 584,046 |   |
| Depreciation and amortization expense                |   |                      | 2,141,931   |   |   |   | 625,729 |   |
| Interest expense                                     |   |                      | 1,012,163   |   |   |   | 731,908 |   |
|                                                 |   |                      |        |   |   |   |   |   |
| Total expenses                                       |   |                      | 11,650,006  |   |   |   | 6,345,554 |   |
|                                                 |   |                      |        |   |   |   |   |   |
| Loss from operations                                 |   |                      | (9,883,103  | ) |   |   | (3,251,826 | ) |
|                                                 |   |                      |        |   |   |   |   |   |
| Other income (expense)                               |   |                      |        |   |   |   |   |   |
| Other income (expense)                               |   |                      | 1,273,735   |   |   |   | (59 | ) |
|                                                 |   |                      |        |   |   |   |   |   |
| Loss from continuing operations before income taxes  |   |                      | (8,609,368  | ) |   |   | (3,251,885 | ) |
|                                                 |   |                      |        |   |   |   |   |   |
| Income tax expense                                   |   |                      | -           |   |   |   | - |   |
|                                                 |   |                      |        |   |   |   |   |   |
| Loss from continuing operations                      |   |                      | (8,609,368  | ) |   |   | (3,251,885 | ) |
| Gain (loss) from discontinued operations, net of tax |   |                      | 486,416     |   |   |   | (7,171,754 | ) |
|                                                 |   |                      |        |   |   |   |   |   |
| Net loss                                             |   | $                         | (8,122,952  | ) |   | $ | (10,423,639 | ) |
|                                                 |   |                      |        |   |   |   |   |   |
|                                                 |   |                      |        |   |   |   |   |   |
| Basic and diluted net loss per common share          |   |                      |        |   |   |   |   |   |
| Loss from continuing operations                      |   | $                         | (.033       | ) |   | $ | (041 | ) |
| Loss from discontinued operations                    |   |                      | .002        |   |   |   | (.091 | ) |
| Net loss                                             |   | $                         | (.031       | ) |   | $ | (.132 | ) |
| Weighted average common shares, basic and diluted    |   |                      | 259,784,348 |   |   |   | 78,530,187 |   |

----

|                                                                                                  |   | Years Ended September 30, |        |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------|-------------|
|                                                                                                  |   | 2011                      |        |   | 2010 |   |
|                                                                                                  |   |                      |        |   |   |   |   |   |
| Cash flows from operating activities:                                                                 |   |                      |        |   |   |   |   |   |
| Net loss                                                                                              |   | $                         | (8,122,952) |   |   | $ | (10,423,639) |   |
| (Gain) loss from discontinued operations                                                              |   |                      | (486,416)   |   |   |   | 7,171,754 |   |
| Loss from continuing operations                                                                       |   |                      | (8,609,368) |   |   |   | (3,251,885) |   |
| Adjustments to reconcile loss from continuing operations to net cash flows from operating activities: |   |                      |        |   |   |   |   |   |
| Depreciation and amortization                                                                         |   |                      | 2,141,931   |   |   |   | 625,729 |   |
| Recognition of deferred revenue                                                                       |   |                      | -           |   |   |   | (136,349) |   |
| Stock based compensation                                                                              |   |                      | 3,020,055   |   |   |   | 584,046 |   |
| Changes in operating assets and liabilities                                                           |   |                      |        |   |   |   |   |   |
| Accounts receivable                                                                                   |   |                      | 223,708     |   |   |   | 61,907 |   |
| Inventory                                                                                             |   |                      | 554,805     |   |   |   | 64,758 |   |
| Prepaid expenses and other assets                                                                     |   |                      | 721,625     |   |   |   | 81,814 |   |
| Accounts payable and accrued expenses                                                                 |   |                      | 275,992     |   |   |   | 4,615,968 |   |
| Advance payments and billings in excess of costs                                                      |   |                      | (567,783)   |   |   |   | (2,876,659) |   |
|                                                                                                  |   |                      |        |   |   |   |
| Net cash flows from operating activities – continuing operations                                |   |                      | (2,239,035) |   |   |   | (230,671) |   |
| Net cash flows from operating activities – discontinued operations                              |   |                      | (116,171)   |   |   |   | (1,716,871) |   |
| Net cash flows from operating activities                                                              |   |                      | (2,355,206) |   |   |   | (1,947,542) |   |
|                                                                                                  |   |                      |        |   |   |   |   |   |
| Cash flows from investing activities:                                                                 |   |                      |        |   |   |   |   |   |
| Cash disposed of in business disposition                                                              |   |                      | -           |   |   |   | (42,853) |   |
| Investments in multiple companies                                                                     |   |                      | (25,000)    |   |   |   | (256,545) |   |
| Purchase of property and equipment                                                                    |   |                      | (209,180)   |   |   |   | (4,573) |   |
| Net cash flows from investing activities – continuing operations                                |   |                      | (234,180)   |   |   |   | (303,971) |   |
| Net cash flows from investing activities – discontinued operations                              |   |                      | -           |   |   |   | (257,057) |   |
| Net cash flows from investing activities                                                              |   |                      | (234,180)   |   |   |   | (561,028) |   |
|                                                                                                  |   |                      |        |   |   |   |   |   |
| Cash flows from financing activities                                                                  |   |                      |        |   |   |   |   |   |
| Shareholder advances                                                                                  |   |                      | 667,154     |   |   |   | 404,126 |   |
| Repayment of Shareholder loans                                                                        |   |                      | (1,205,736) |   |   |   | - |   |
| Increases in long term debt                                                                           |   |                      | 3,581,500   |   |   |   | 2,000,000 |   |
| Repayments of long term debt                                                                          |   |                      | (929,638)   |   |   |   | (111,795) |   |
| Proceeds from sale of stock                                                                           |   |                      | 633,000     |   |   |   |   |   |
|                                                                                                  |   |                      |        |   |   |   |   |   |
| Net cash flows from financing activities – continuing operations                                |   |                      | 2,746,280   |   |   |   | 2,292,331 |   |
| Net cash flows from financing activities – discontinued operations                              |   |                      |        |   |   |   | 159,549 |   |
| Net cash flows from financing activities                                                              |   |                      | 2,746,280   |   |   |   | 2,451,880 |   |
|                                                                                                  |   |                      |        |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                      |   |                      | 156,894     |   |   |   | (56,690) |   |
| Cash and cash equivalents, beginning                                                                  |   |                      | 12,605      |   |   |   | 69,295 |   |
|                                                                                                  |   |                      |        |   |   |   |
| Cash and cash equivalents, ending                                                                     |   | $                         | 169,499     |   |   | $ | 12,605 |   |
| Cash paid for interest                                                                                |   | $                         | 305,312     |   |   | $ | 550,161 |   |
| Cash paid for taxes                                                                                   |   | $                         | -           |   |   | $ | - |   |

----

|   | · | October 16,2009, the Company issued 249,999 shares of common stock to acquire Cybercare |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | November 24, 2009, the Company issued 2,100,000 shares of common stock in satisfaction of debt to unrelated parties |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | December 16, 2009, the Company issued 2,500,000 shares of common stock to securitized debt |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | December 22, 2009, the Company issued warrants to acquire 2,500,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | December 22, 2009, the Company incurred debt in the amount of $1,672,451 to acquire equipment and settle a related party lease |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | January 20, 2010, the Company issued 2,000,000 shares to securitize debt and recorded it as stock based compensation |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | February 8, 2010, the Company issued 850,000 shares to various individuals as stock based compensation |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | June 25, 2010, the Company sold all of its interest in Bulovatech Labs in exchange for 200,000,000 shares of Growth Technologies International, Inc. (GRWT). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During the month of August  2010 – the Company issued 1,849,496 shares to various individuals as stock based compensation |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | October 29, 2010, the Company issued 45,000,000 shares of common stock for interest accrued on related party debt |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | November 5, 2010, the Company issued warrants to acquire 1,600,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | February 4, 2011, the Company issued warrants to acquire 1,000,000 shares of common stock in conjunction with the acquisition of new convertible debt |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | March 22, 2011, the Company issued warrants to acquire 1,300,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | May 25, 2011, the Company issued warrants to acquire 3,000,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | June 23, 2011, the Company issued warrants to acquire 1,800,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | July 14, 2011, the Company issued warrants to acquire 2,300,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | August 1, 2011, the Company issued warrants to acquire 3,000,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | August 9, 2011, the Company issued warrants to acquire 5,850,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | August 30, 2011, the Company issued warrants to acquire 2,574,000 shares of common stock in conjunction with the acquisition of new debt |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                           |   | Common Stock     |       |   |   |   |   |                       |   |   |                  |   |   |           |        |
|------------------------------------------------|--------|------------------|------------|--------|--------|--------|--------|----------------------------|--------|--------|-----------------------|--------|--------|----------------|-------------|
|                                           |   | Number of Shares |       |   | Amount |   |   | Additional Paid in Capital |   |   | Accumulated (deficit) |   |   | Treasury Stock |        |   | Total |   |
| Balances, September 30, 2009                   |   |             | 72,355,910 |   |   | $      | 72,355 |                       |   | $      | 6,407,159             |   |   | $              | (10,556,877 | ) |   | $ | (38,184 | ) |   | $ | (4,115,547 | ) |
| Issuance of shares to acquire Cybercare        |   |             | 249,999    |   |   |   | 250    |                       |   |   | 102,250               |   |   |           |        |   |   |   |   |   |   |   | 102,500 |   |
| Issuance of shares in satisfaction of debt     |   |             | 2,100,000  |   |   |   | 2,100  |                       |   |   | 422,900               |   |   |           |        |   |   |   |   |   |   |   | 425,000 |   |
| Issuance of shares for securitization of debt  |   |             | 2,500,000  |   |   |   | 2,500  |                       |   |   | 272,500               |   |   |           |        |   |   |   |   |   |   |   | 275,000 |   |
| Issuance of warrants associated with new debt  |   |             |       |   |   |   |   |                       |   |   | 256,438               |   |   |           |        |   |   |   |   |   |   |   | 256,438 |   |
| Issuance of shares for securitization of debt  |   |             | 2,000,000  |   |   |   | 2,000  |                       |   |   | 338,000               |   |   |           |        |   |   |   |   |   |   |   | 340,000 |   |
| Issuance of shares as stock based compensation |   |             | 850,000    |   |   |   | 850    |                       |   |   | 92,650                |   |   |           |        |   |   |   |   |   |   |   | 93,500 |   |
| Issuance of shares as stock based compensation |   |             | 1,849,496  |   |   |   | 1,850  |                       |   |   | 148,696               |   |   |           |        |   |   |   |   |   |   |   | 150,546 |   |
| Cancellation of treasury shares                |   |             | (3,000     | )      |   |   | (3     | )                          |   |   | (38,181               | )      |   |           |        |   |   |   | 38,184 |   |   |   | - |   |
| Net loss for the year ended September 30, 2010 |   |             |       |   |   |   |   |                       |   |   |                  |   |   |           | (10,423,639 | ) |   |   |   |   |   |   | (10,423,639 | ) |
| Balances, September 30, 2010                   |   |             | 81,902,405 |   |   | $      | 81,902 |                       |   | $      | 8,002,412             |   |   | $              | (20,980,516 | ) |   | $ | - |   |   | $ | (12,896,202 | ) |

| Issuance of shares for services                       |   |   | 2,328,156   |   |   |   | 2,328   |   |   |   | 124,310    |   |   |   |        |   |   |   |   |   | 126,638   |      |
|-------------------------------------------------------|--------|--------|-------------|--------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------|--------|--------|-----------|-----------|
| Issuance of shares associated with related party debt |   |   | 51,659,181  |   |   |   | 51,659  |   |   |   | 864,590    |   |   |   |        |   |   |   |   |   | 916,249   |      |
| Issuance of shares from sales                         |   |   | 5,379,385   |   |   |   | 5,380   |   |   |   | 384,620    |   |   |   |        |   |   |   |   |   | 390,000   |      |
| Issuance of warrants and convertible debt             |   |   |        |   |   |   |    |   |   |   | 93,730     |   |   |   |        |   |   |   |   |   | 93,730    |      |
| Issuance of shares for services                       |   |   | 5,490,444   |   |   |   | 5,491   |   |   |   | 453,657    |   |   |   |        |   |   |   |   |   | 459,148   |      |
| Issuance of shares in satisfaction of debt            |   |   | 6,000,000   |   |   |   | 6,000   |   |   |   | 119,000    |   |   |   |        |   |   |   |   |   | 125,000   |      |
| Issuance of shares from sales                         |   |   | 13,422,222  |   |   |   | 13,422  |   |   |   | 229,578    |   |   |   |        |   |   |   |   |   | 243,000   |      |
| Issuance of warrants and convertible debt             |   |   |        |   |   |   |    |   |   |   | 645,971    |   |   |   |        |   |   |   |   |   | 645,971   |      |
| Issuance of shares associated with related party debt |   |   | 199,395,376 |   |   |   | 199,395 |   |   |   | 1,794,558  |   |   |   |        |   |   |   |   |   | 1,993,953 |      |
| Issuance of shares for services                       |   |   | 30,766,775  |   |   |   | 30,767  |   |   |   | 1,805,502  |   |   |   |        |   |   |   |   |   |      | 1,836,269 |   |
| Issuance of shares to securitize debt                 |   |   | 10,000,000  |   |   |   | 10,000  |   |   |   | 588,000    |   |   |   |        |   |   |   |   |   |      | 598,000   |   |
| Issuance of shares associated with new debt           |   |   | 9,000,000   |   |   |   | 9,000   |   |   |   | 513,000    |   |   |   |        |   |   |   |   |   |      | 522,000   |   |
| Issuance of warrants and convertible debt             |   |   |        |   |   |   |    |   |   |   | 1,861,329  |   |   |   |        |   |   |   |   |   |      | 1,861,329 |   |
| Issuance of shares associated with related party debt |   |   | 20,000,000  |   |   |   | 20,000  |   |   |   | 180,000    |   |   |   |        |   |   |   |   |   |      |      | 200,000 |   |
| Issuance of shares in satisfaction of debt            |   |   | 2,795,031   |   |   |   | 2,795   |   |   |   | 24,205     |   |   |   |        |   |   |   |   |   |      |      | 27,000 |   |
| Issuance of warrants and convertible debt             |   |   |        |   |   |   |    |   |   |   | 380,980    |   |   |   |        |   |   |   |   |   |      |      | 380,980 |   |
| Net loss for the year ended September 30, 2011        |   |   |        |   |   |   |    |   |   |   |       |   |   |   | (8,122,952  | )      |   |   |   |   |      |      | (8,122,952 | ) |
| Balances, September 30, 2011                          |   |   | 438,138,975 |   |   | $      | 438,139 |   |   | $      | 18,065,442 |   |   | $      | (29,103,468 | )      |   | $      | -      |   |      | $         | (10,599,887 | ) |

----

----

----

|                                                 |   | September 30, |    |   | September 30, |   |
|------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
|                                                 |   | 2011          |    |   | 2010          |   |
| Finished goods                                       |   | $             | -       |   |          | $      | 14,733 |   |
| Work in process                                      |   |          | 96,000  |   |          |   | 106,119 |   |
| Materials and supplies                               |   |          | 589,226 |   |          |   | 2,153,992 |   |
|                                                 |   |          |    |   |          |   |   |   |
| Total inventory                                      |   |          | 685,226 |   |          |   | 2,274,844 |   |
| Less inventory classified as discontinued operations |   |          | -       |   |          |   | (1,034,813 | ) |
|                                                 |   |          |    |   |          |   |   |   |
| Total inventory of continuing operations             |   | $             | 685,226 |   |          | $      | 1,240,031 |   |

|                                                            |   | As of September 30, |      |
|-----------------------------------------------------------------|--------|---------------------|-----------|
|                                                            |   | 2011                |      |   | 2010 |   |
| Land                                                            |   | $                   | 1,225,000 |   |   | $ | 1,225,000 |   |
| Buildings and improvements                                      |   |                | 1,170,194 |   |   |   | 1,170,194 |   |
| Machinery and equipment                                         |   |                | 698,759   |   |   |   | 3,214,054 |   |
| Funiture and fixtures                                           |   |                | 44,735    |   |   |   | 98,081 |   |
| Leasehold improvements                                          |   |                | -         |   |   |   | 234,489 |   |
|                                                            |   |                |      |   |   |   |   |   |
|                                                            |   |                | 3,138,688 |   |   |   | 5,941,818 |   |
| Less accumulated depreciation                                   |   |                | (593,430  | ) |   |   | (1,037,123 | ) |
|                                                            |   |                |      |   |   |   |   |   |
| Net property, plant and equipment                               |   |                | 2,545,258 |   |   |   | 4,904,695 |   |
| Less property, plant and equipment from discontinued operations |   |                | -         |   |   |   | (2,402,991 | ) |
|                                                            |   |                |      |   |   |   |   |   |
| Net property, plant and equipment of continuing operations      |   | $                   | 2,545,258 |   |   | $ | 2,501,704 |   |

----

----

----

|                                                   |   | Year Ended    |     |
|--------------------------------------------------------|--------|---------------|----------|
|                                                   |   | September 30, |     |
|                                                   |   | 2011          |     |   | 2010 |   |
|                                                   |   |          |     |   |   |   |
| Revenue                                                |   | $             | 254,004  |   |   | $ | 1,932,807 |   |
| Cost of Sales                                          |   |          | (152,403 | ) |   |   | (1,734,195 | ) |
| Gross profit                                           |   |          | 101,601  |   |   |   | 198,612 |   |
| Operating expenses                                     |   |          | (542,802 | ) |   |   | (3,892,724 | ) |
| Other income                                           |   |          | 927,617  |   |   |   | 72,358 |   |
| Income (loss) from operations                          |   |          | 486,416  |   |   |   | (3,621,754 | ) |
| Loss on disposal of discontinued operations            |   |          | -        |   |   |   | (3,550,000 | ) |
| Income tax benefit                                     |   |          | -        |   |   |   | - |   |
| Income (loss) from discontinued operations, net of tax |   | $             | 486,416  |   |   | $ | (7,171,754 | ) |

|                                                              |   | September 30, |      |
|-------------------------------------------------------------------|--------|---------------|-----------|
|                                                              |   |          | 2011      |   |   |   | 2010 |   |
|                                                              |   |          |      |   |   |   |   |   |
| Accounts receivable                                               |   | $             | -         |   |   | $ | 232,630 |   |
| Inventory                                                         |   |          | -         |   |   |   | 1,034,813 |   |
| Other current assets                                              |   |          | -         |   |   |   | 38,264 |   |
| Total current assets from discontinued operations                 |   |          | -         |   |   |   | 1,305,707 |   |
| Property plant and equipment - net                                |   |          | -         |   |   |   | 2,402,991 |   |
| Other assets                                                      |   |          | -         |   |   |   | 191,716 |   |
| Total assets from discontinued operations                         |   | $             | -         |   |   | $ | 3,900,414 |   |
|                                                              |   |          |      |   |   |   |   |   |
|                                                              |   |          |      |   |   |   |   |   |
| Accounts payable and accrued expenses                             |   | $             | 273,705   |   |   | $ | 1,055,590 |   |
| Current portion of long-term debt                                 |   |          | 1,660,883 |   |   |   | 672,000 |   |
| Provision for loss on disposal of business segment                |   |          | -         |   |   |   | 3,550,000 |   |
| Total current liabilities associated with discontinued operations |   |          | 1,934,588 |   |   |   | 5,277,590 |   |
| Long term debt, net of current portion                            |   |          | -         |   |   |   | 1,160,000 |   |
| Total liabilities associated with discontinued operations         |   | $             | 1,934,588 |   |   | $ | 6,437,590 |   |

----

| Investments                |   |   |      |   |   |   |   |   |   |   |       |   |
|----------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|                       |   |   |      |   |   |   |   |   |   |   |       |   |
|                       |   | Cost   |      |   | Gain   |   |   | Loss   |   |   | Fair Value |   |
| Level 1 Equity Investments |   | $      | -         |   |   | $      | -      |   |   | $      | -          |   |   | $ | - |   |
| Level 2 Equity Investments |   |   | 184,500   |   |   |   | -      |   |   |   | -          |   |   |   | 184,500 |   |
| Level 2 Loans              |   |   | 1,607,355 |   |   |   | -      |   |   |   | -          |   |   |   | 1,607,355 |   |
|                       |   |   |      |   |   |   |   |   |   |   |       |   |   |   |   |   |
|                       |   | $      | 1,791,855 |   |   | $      | -      |   |   | $      | -          |   |   | $ | 1,791,855 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | September 30, 2011 |      |   | September 30, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
| Promissory note payable to Webster Business Capital Corporation, dated December 16, 2008, in the original amount of $825,000 payable in full on June 30, 2009, with interest at 4.5% annually. This note was not repaid and is still outstanding as of the issuance of these financial statements. This note is secured by a lien on real estate, timber rights and certain equipment with net carrying values of approximately $2,000,000 at June 30, 2011. |   | $                  | 825,000   |   |               | $      | 825,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Mortgage payable to Bank of America, dated March 10, 2006, in the original amount of $840,000 payable in monthly fixed principal payments of $4,667 plus variable interest at 2.5% plus the banks index rate, secured by real estate with carrying values of approximately $1,500,000 at June 30, 2011. Final payment is due on March 10, 2021.                                                                                                              |   |               | 532,000   |   |               |   | 588,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Note payable to Harold L. and Helene M. McCray, dated October 19, 2005, in the original amount of $1,070.000, bearing interest at 8% per annum, payable in monthly installments of $10,225.48 secured by land and buildings with carrying values of approximately $1,500,000 at June 30, 2011. Final payment is due on December 1, 2020.                                                                                                                     |   |               | 799,283   |   |               |   | 860,365 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Note payable to Edward Viola, dated October 19, 2005, in the original amount of $80,000, bearing interest at 8% per annum, payable in monthly installments of $764.52. Final payment is due on December 1, 2020.                                                                                                                                                                                                                                             |   |               | 59,463    |   |               |   | 64,032 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Note payable to PNL Newco II, LLC, dated December 22, 2009, in the original amount of $2,000,000, payable in monthly fixed principal payments of $42,000 plus variable interest at LIBOR plus 5% with a minimum rate of 5.5%, secured by an earn out agreement with the party that acquired all of the personal property of the discontinued operations of BT Manufacturing Company, LLC. Final balloon payment is due December 22, 2011.                    |   |               | 1,660,883 |   |               |   | 1,832,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Note payable to GovFunding, LLC, dated December 22, 2009,in the amount of $2,000,000 bearing interest at 22%., secured by a lock box agreement tied to the proceeds of a single government contract with a carrying value of approximately $2,800,000 at June 30, 2011 On February 4, 2011, this note was refinanced in a new convertible note.                                                                                                              |   |               | -         |   |               |   | 2,000,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Convertible Note payable to GovFunding, LLC, dated February 4, 2011, in the amount of $3,158,000 net of debt discount of $202,354, bearing interest at 18%., secured by a lock box agreement tied to the proceeds of a single government contract with a carrying value of approximately $2,600,000 at June 30, 2011. Final payment is due January 31, 2012.                                                                                                 |   |               | 2,955,646 |   |               |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Convertible Note payable to Asher Enterprises, Inc. dated February 28, 2011 in the original amount of $75,000, current balance net of debt discount of $6,141, bearing interest at 8%. with a maturity date of December 2, 2011.                                                                                                                                                                                                                             |   |               | 41,859    |   |               |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Insurance premium financing agreement with First Insurance Funding Corp. dated January 21, 2011 in the original amount of $75,043, bearing interest at 9.9%, payable in monthly installments of $8,693 per month, final payment due October 21, 2011                                                                                                                                                                                                         |   |               | 7,924     |   |               |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Note payable to The David J Keehan Trust dated June 30, 2011 in the amount of $500,000, bearing interest at the rate of 10% payable interest only through maturity. Final payment due September 30, 2011.                                                                                                                                                                                                                                                    |   |               | 500,000   |   |               |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Convertible Note payable to Asher Enterprises, Inc. dated March 31, 2011 in the amount of $42,500 net of debt discount of $5,703, bearing interest at 8%. with a maturity date of January 4, 2012.                                                                                                                                                                                                                                                           |   |               | 36,797    |   |               |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |      |   |               |   |   |   |
| Convertible Note payable to Asher Enterprises, Inc. dated May 26, 2011 in the amount of $35,000 net of debt discount of $7,459, bearing interest at 8%. with a maturity date of March 1, 2012.                                                                                                                                                                                                                                                               |   |               | 27,541    |   |               |   | - |   |

----

| Convertible Note payable to GovFunding, LLC dated May 25, 2011 in the amount of $220,000 net of debt discount of $73,427, bearing interest at 18%. with a maturity date of April 30, 2012.                                        |   |   | 146,573    |   |   |   | -          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Convertible Note payable to GovFunding LLC dated June 23, 2011 in the amount of $133,000 net of debt discount of $54,054, bearing interest at 18%. with a maturity date of June 30, 2012.                                         |   |   | 78,946     |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Note payable to GovFunding LLC dated July 14, 2011 in the amount of $105,000, bearing interest at 18%. with a maturity date of August 1, 2011.                                                                                    |   |   | 105,000    |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Insurance premium financing agreement with Flat Iron Capital dated July 26, 2011 in the original amount of $14,224, bearing interest at 7.4%, payable in monthly installments of $1,251 per month, final payment due May 26, 2012 |   |   | 9,737      |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Convertible Note payable to GovFunding LLC dated August 1, 2011 in the amount of $128,000 net of debt discount of $65,792, bearing interest at 18%. with a maturity date of April 30, 2012.                                       |   |   | 62,208     |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Convertible Note payable to GovFunding LLC dated August 9, 2011 in the amount of $250,000 net of debt discount of $137,135, bearing interest at 18%. with a maturity date of June 30, 2012.                                       |   |   | 112,865    |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Convertible Note payable to Asher Enterprises, Inc. dated August 19, 2011 in the original amount of $43,000 net of debt discount of $16,416, bearing interest at 8%. with a maturity date of May 22, 2012                         |   |   | 26,584     |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Note payable to The David J Keehan Trust dated July 11, 2011 in the amount of $100,000, bearing interest at the rate of 10% payable interest only through maturity. Final payment due September 30, 2011.                         |   |   | 100,000    |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Note payable to The David J Keehan Trust dated August 5, 2011 in the amount of $100,000, bearing interest at the rate of 10% payable interest only through maturity. Final payment due September 30, 2011.                        |   |   | 100,000    |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Note payable to The David J Keehan Trust dated August 5, 2011 in the amount of $50,000, bearing interest at the rate of 10% payable interest only through maturity. Final payment due September 30, 2011.                         |   |   | 50,000     |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   |       |   |   |   |       |   |
| Convertible Note payable to GovFunding LLC dated August 30, 2011 in the amount of $110,000 net of debt discount of $53,256, bearing interest at 18%. with a maturity date of June 30, 2012.                                       |   |   | 56,744     |   |   |   | -          |   |
|                                                                                                                                                                                                                              |   |   | 8,295,053  |   |   |   | 6,169,398  |   |
| Less current portion pertaining to continuing operations                                                                                                                                                                          |   |   | (5,365,245 | )      |   |   | (2,941,376 | )      |
| Less current portion associated with discontinued operations                                                                                                                                                                      |   |   | (1,660,883 | )      |   |   | (672,000   | )      |
| Less long term portion associated with discontinued operations                                                                                                                                                                    |   |   | -          |   |   |   | (1,160,000 | )      |
|                                                                                                                                                                                                                              |   | $      | 1,268,925  |   |   | $      | 1,396,022  |   |

----

| Period ended September 30, |   |   |      |
|----------------------------|--------|--------|-----------|
| 2012                       |   | $      | 7,026,128 |
| 2013                       |   |   | 127,286   |
| 2014                       |   |   | 133,203   |
| 2015                       |   |   | 139,610   |
| 2016                       |   |   | 146,550   |
| Thereafter                 |   |   | 722,276   |
|                       |   | $      | 8,295,053 |

|                               |   | 9/30/2011 |   |   | 9/30/2010 |   |
|------------------------------------|--------|-----------|--------|--------|-----------|--------|
| Current                            |   |      |   |   |      |   |
| Federal                            |   | $         | -      |   |      | $      | - |   |
| State                              |   |      | -      |   |      |   | - |   |
|                               |   |      |   |   |      |   |   |   |
| Deferred - Continuing Operations   |   |      |   |   |      |   |   |   |
| Federal                            |   |      | -      |   |      |   | - |   |
| State                              |   |      | -      |   |      |   | - |   |
|                               |   | $         | -      |   |      | $      | - |   |
|                               |   |      |   |   |      |   |   |   |
| Deferred - Discontinued Operations |   |      |   |   |      |   |   |   |
| Federal                            |   |      | -      |   |      |   | - |   |
| State                              |   |      | -      |   |      |   | - |   |
|                               |   | $         | -      |   |      | $      | - |   |

----

|                                                |   | Current |      |   | Non-Current |   |
|-----------------------------------------------------|--------|---------|-----------|--------|-------------|--------|
|                                                |   |    |      |   |        |   |
| Deferred tax assets:                                |   |    |      |   |        |   |
| NOL and contribution carry forwards                 |   | $       | -         |   |        | $      | 6,522,961 |   |
| Property & Equipment                            |   |    |      |   |        |   | (33,936 | ) |
| Accrued Comp                                        |   |    | 225,780   |   |        |   |   |   |
| Accrued Interest                                    |   |    | -         |   |        |   |   |   |
| Accrued Marketing Fee                               |   |    | 18,254    |   |        |   |   |   |
| Share based Compensation                            |   |    | -         |   |        |   | 1,548,695 |   |
| Estimated Loss - Segment Disposal                   |   |    | -         |   |        |   |   |   |
|                                                |   |    | 244,034   |   |        |   | 8,037,721 |   |
|                                                |   |    |      |   |        |   |   |   |
| Valuation Allowance                                 |   |    | (244,034  | )      |        |   | (8,037,721 | ) |
| Net Deferred Tax Asset                              |   | $       | -         |   |        | $      | - |   |
|                                                |   |    |      |   |        |   |   |   |
| Deferred tax (liabilities):                         |   |    |      |   |        |   |   |   |
|                                                |   |    | -         |   |        |   | - |   |
| Net Deferred Tax Liability                          |   |    | -         |   |        |   | - |   |
|                                                |   |    |      |   |        |   |   |   |
|                                                |   |    |      |   |        |   |   |   |
| Net deferred tax asset (liability)                  |   | $       | -         |   |        | $      | - |   |
| Less: current net deferred tax asset (liability)    |   |    | -         |   |        |   | - |   |
| Net non-current deferred tax asset (liability)      |   | $       | -         |   |        | $      | - |   |
|                                                |   |    |      |   |        |   |   |   |
| The change in the valuation allowance is as follow: |   |    |      |   |        |   |   |   |
|                                                |   |    |      |   |        |   |   |   |
| September 30, 2010                                  |   | $       | 5,704,014 |   |        |   |   |   |
| September 30, 2011                                  |   |    | 8,281,754 |   |        |   |   |   |
|                                                |   |    |      |   |        |   |   |   |
| Increase in valuation allowance                     |   | $       | 2,577,740 |   |        |   |   |   |

| Continuing Operations                   |   | 9/30/2011 |   |   | 9/30/2010 |   |
|-----------------------------------------|--------|-----------|--------|--------|-----------|--------|
|                                    |   |      |   |   |      |   |
| Expected provision at US statutory rate |   |      | 34.00  | %      |      |   | 34.00 | % |
| State income tax net of federal benefit |   |      | 3.63   | %      |      |   | 3.63 | % |
| Permanent and Other Differences         |   |      | -      |   |      |   | - |   |
| Valuation Allowance                     |   |      | -37.63 | %      |      |   | -37.63 | % |
|                                    |   |      |   |   |      |   |   |   |
| Effective Income Tax Rate               |   |      | 0.00   | %      |      |   | 0.00 | % |

----

| Period ended September 30 |   |   |      |
|---------------------------|--------|--------|-----------|
| 2012                      |   | $      | 254,319   |   |
| 2013                      |   |   | 207,300   |   |
| 2014                      |   |   | 207,300   |   |
| 2015                      |   |   | 207,300   |   |
| 2016                      |   |   | 207,300   |   |
| Thereafter                |   |   | 2,332,125 |   |
|                      |   | $      | 3,415,644 |   |

----

----

----

----

| Name                 |   | Age    |   | Office Held                                                  |
|----------------------|--------|--------|--------|--------------------------------------------------------------|
| Stephen L. Gurba     |   | 55     |   | Chairman of the Board. Chief Executive Officer and President |
|                 |   |   |   |                                                         |
| Frank W. Barker, Jr. |   | 56     |   | Chief Financial Officer                                      |
|                 |   |   |   |                                                         |
| Craig S. Schnee      |   | 63     |   | Secretary and General Counsel                                |

----

| Name and Principal Position               |   | Year   |   | Salary |      |   | Bonus  |   |   | StockAwards (3) |   |   | OptionAwards |   |   | Non-EquityIncentive PlanCompensation |   |   | Change in Pension Valueand non Qualified DeferredCompensation Earnings |   |   | All OtherCompensation |   |   | Total  |   |
|-------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|-----------------|--------|--------|--------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------------|--------|--------|-----------------------|--------|--------|--------|--------|
|                                      |   |   |   |   |      |   |   |   |   |            |   |   |         |   |   |                                 |   |   |                                                                   |   |   |                  |   |   |   |   |
| Stephen L. Gurba, Chairman of the Board,  |   | 2010   |   | $      | 367,362   |   |   | $      | -      |            |   | $      | 2,000        |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 369,362 |   |
| Chief Executive Officer and President (1) |   | 2011   |   | $      | 507,416   |   |   | $      | -      |            |   | $      | 10,000       |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 517,416 |   |
|                                      |   |   |   |   |      |   |   |   |   |            |   |   |         |   |   |                                 |   |   |                                                                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Craig S Schnee                            |   | 2010   |   | $      | 220,000   |   |   | $      | -      |            |   | $      | -            |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 220,000 |   |
| Secretary and General Counsel             |   | 2011   |   | $      | 220,000   |   |   | $      | -      |            |   | $      | 7,000        |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 227,000 |   |
|                                      |   |   |   |   |      |   |   |   |   |            |   |   |         |   |   |                                 |   |   |                                                                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Frank W. Barker, Jr,                      |   | 2010   |   | $      | 89,850    |   |   | $      | -      |            |   | $      | -            |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 89,850 |   |
| Chief Financial Officer (1)               |   | 2011   |   | $      | 156,000   |   |   | $      | -      |            |   | $      | 12,000       |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 168,000 |   |
|                                      |   |   |   |   |      |   |   |   |   |            |   |   |         |   |   |                                 |   |   |                                                                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| John D. Stanton, Chairman of the Board    |   | 2010   |   | $      | 240,000   |   |   | $      | -      |            |   | $      | -            |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 240,000 |   |
| and Principal Financial Officer (1) (2)   |   | 2011   |   | $      | 180,000   |   |   | $      | -      |            |   | $      | -            |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 180,000 |   |
|                                      |   |   |   |   |      |   |   |   |   |            |   |   |         |   |   |                                 |   |   |                                                                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |   |   | $      | 1,980,628 |   |   | $      | -      |            |   | $      | 31,000       |   |   | $                                    | -      |   |                                                                   | $      | -      |                  |   | $      | -      |   |   | $ | - |   |   | $ | 2,011,628 |   |

----

|                 |   | OPTION AWARDS                                                 |   |   | STOCK AWARDS                                                    |   |
|----------------------|--------|---------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
| Name                 |   | Number ofSecuritiesUnderlyingUnexercisedOptions, #Exercisable |   |   | Number ofSecuritiesUnderlyingUnexercisedOptions, #Unexercisable |   |   | Equity IncentivePlan Awards:Number of SecuritiesUnderlying UnexercisedUnearned Options (#) |   |   | OptionExercisePrice ($) |   |   | OptionExpirationDate |   |   | Number ofShares or Unitsof Stock ThatHave NotVested (#) |   |   | Market Value of Sharesor Units of Stock ThatHave Not Vested ($) |   |   | Equity Incentive PlanAwards: Number ofUnearned Shares,Units or Other RightsThat Have NotVested (#) |   |   | Equity Incentive PlanAwards: MarketorPayout Value ofUnearned Shares, Unitsor Other Rights ThatHave Not Vested (#) |   |
|                 |   |                                                          |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stephen L. Gurba     |   |                                                          | -      |   |                                                            |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |
| Frank W. Barker, Jr. |   |                                                          | -      |   |                                                            |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |
| John D. Stanton      |   |                                                          | -      |   |                                                            |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |

| Name and Principal Position |   | Fees Earned or Paidin Cash ($) |   |   | StockAwards |   |   | OptionAwards |   |   | Non-EquityIncentive PlanCompensation |   |   | Change in Pension Valueand non Qualified DeferredCompensation Earnings ($) |   |   | All OtherCompensation ($) |   |   | Total  |   |
|-----------------------------|--------|--------------------------------|--------|--------|-------------|--------|--------|--------------|--------|--------|--------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|--------|--------|
|                        |   |                           |   |   |        |   |   |         |   |   |                                 |   |   |                                                                       |   |   |                      |   |   |   |   |
| John D. Stanton             |   | $                              | -      |   |        |   | -      |         |   |   | -                                    |   |   |                                                                       | -      |   |                      | $      | -      |   |   | $ | - |   |   | $ | - |   |
| Stephen L. Gurba            |   | $                              | -      |   |        |   | -      |         |   |   | -                                    |   |   |                                                                       | -      |   |                      | $      | -      |   |   | $ | - |   |   | $ | - |   |

----

| Title of Class |   | Name and Address of Beneficial Owner |   | Amount and Nature of Beneficial Ownership |            |   | Percent of Class |   |
|----------------|--------|--------------------------------------|--------|-------------------------------------------|-----------------|--------|------------------|--------|
|           |   |                                 |   |                                      |            |   |             |   |
| Common Stock   |   | John D. Stanton                      |   |                                      | 126,193,033 (1) |   |             |   | 28.8% |   |
|           |   | 19337 US Hwy 19, Suite 525.          |   |                                      |            |   |             |   |   |   |
|           |   | Clearwater, Fl 33764                 |   |                                      |            |   |             |   |   |   |
|           |   |                                 |   |                                      |            |   |             |   |   |   |
| Common Stock   |   | Stephen L. and Evelyn Gurba          |   |                                      | 146,052,343 (2) |   |             |   | 33.3% |   |
|           |   | 19337 US Hwy 19, Suite 525           |   |                                      |            |   |             |   |   |   |
|           |   | Clearwater, Fl 33764                 |   |                                      |            |   |             |   |   |   |
|           |   |                                 |   |                                      |            |   |             |   |   |   |
| Common Stock   |   | Craig S. Schnee                      |   |                                      | 7,000,000       |   |             |   | 1.6% |   |
|           |   | 19337 US Hwy 19, Suite 525           |   |                                      |            |   |             |   |   |   |
|           |   | Clearwater, Fl 33764                 |   |                                      |            |   |             |   |   |   |
|           |   |                                 |   |                                      |            |   |             |   |   |   |
| Common Stock   |   | Frank W. Barker, Jr.                 |   |                                      | 12,000,000      |   |             |   | 2.7% |   |
|           |   | 19337 US Hwy 19, Suite 525           |   |                                      |            |   |             |   |   |   |
|           |   | Clearwater, Fl 33764                 |   |                                      |            |   |             |   |   |   |

----

| 2011 |   | $ | 39,200 |   |
|------|--------|---|--------|--------|
| 2010 |   | $ | 56,880 |   |

| 2011 |   | $ | 0.00 |   |
|------|--------|---|------|--------|
| 2010 |   | $ | 0.00 |   |

| 2011 |   | $ | 0.00 |   |
|------|--------|---|------|--------|
| 2010 |   | $ | 0.00 |   |

----

| 2011 |   | $ | 0.00 |   |
|------|--------|---|------|--------|
| 2010 |   | $ | 0.00 |   |

| (a) and (c) |   | The consolidated financial statements are included in Item 8. |
|-------------|--------|--------------------------------------------------------------------|
|        |   |                                                               |   |   |   |   |
| (b)         |   | Exhibits:                                                          |   |   |
|        |   |                                                               | 10.1 |   |   | Acquisition and Exchange Agreement between Bulova Technologies Group, Inc. and the shareholders of 3Si Holdings, Inc., dated January 1, 2009 (*) |
|        |   |                                                               |   |   |   |   |
|        |   |                                                               | 10.2 |   |   | Asset Purchase Agreement between Anuva Manufacturing Services, Incorporated and BT Manufacturing Company LLC, dated December 31, 2010. |
|        |   |                                                               |   |   |   |   |
|        |   |                                                               | 31.1 |   |   | Rule 13a-14(a) Certification of President and Principal Executive Officer |
|        |   |                                                               |   |   |   |   |
|        |   |                                                               | 31.2 |   |   | Rule 13a-14(a) Certification of Treasurer and Principal Financial Officer |
|        |   |                                                               |   |   |   |   |
|        |   |                                                               | 32.1 |   |   | Certification of President and Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|        |   |                                                               |   |   |   |   |
|        |   |                                                               | 32.2 |   |   | Certification of Treasurer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|        |   |                                                               |   |   |   |   |
|        |   |                                                               | * |   |   | Previously filed as Exhibit to, and incorporated by reference from, the Company’s Form 10K for the year ended September 30, 2009, on November 16, 2010. |

----

|   |                                  |                              |   |   |
|--------|---------------------------------------|-----------------------------------|--------|--------|
|   | Bulova Technologies Group, INC.  |                              |
|   | By                          | /s/ Stephen L. Gurba         |   |
|   |                                  | Stephen L. Gurba                  |   |
|   |                                  | Principal Executive Officer  |   |
|   |

|                                       |   |   |   |             |   |         |
|--------------------------------------------|--------|--------|--------|------------------|--------|--------------|
| /s/ Stephen L. Gurba                       |   |   |   | February 3, 2012 |   |         |
| Stephen L. Gurba                           |   |   |   |             |   |    |
| Principal Executive Officer                |   |   |   |             |   |         |
|                                       |   |   |   |             |   |         |
| /s/ Frank W. Barker, Jr.                   |   |   |   | February 3, 2012 |   |         |
| Frank W. Barker, Jr.                       |   |   |   |             |   |         |
| Principal Financial and Accounting Officer |   |   |   |             |   |         |