Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

3 Months Ended

Dec. 31, 2013

4. Property and Equipment

Property and equipment, net consisted of the following:

	Useful Lives	December 31,			September 30,
(In thousands)		2013			2013

Computer software	5 years	$	1,447		$	1,447
Office equipment, furniture and fixtures and leasehold improvements	2 to 10 years		2,113			2,325
Total property and equipment, at cost			3,560			3,772
Accumulated depreciation and amortization			(3,055	)		(3,242	)
Property and equipment, net		$	505		$	530

Leasehold improvements are amortized over the term of the lease.

During the year ended September 30, 2013, the Company sold vehicles with a value of approximately $225,000 and leased them back under a 30 month agreement at an interest rate of approximately 23%. At December 31, 2013, approximately $72,000 is current and included in other current liabilities and approximately $81,000 is included in other long term liabilities. The terms are 30 months and the payments remaining totaled approximately $153,000 at December 31, 2013.

Depreciation expense for the three month periods ended December 31, 2013 and 2012 was approximately $44,000 and $42,000, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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