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Contingencies and Commitments
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6 Months Ended | ||
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Mar. 31, 2014
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| Contingencies and Commitments [Abstract] | |||
| Contingencies and Commitments |
On April 22, 2013, the Company finalized an Amendment to the Asset Purchase Agreement by and among DMCC Staffing, LLC, an Ohio limited liability company, RFFG of Cleveland, LLC an Ohio limited liability company (each a “Seller” and together, “Sellers”), the Company, and Triad Personnel Services, Inc., an Illinois corporation and wholly owned subsidiary of the Company (“Buyer”).
The Company agreed to pay Sellers additional cash consideration of between $550,000 and $650,000 depending on the length of payments and 1,100,000 shares of common stock, in full satisfaction of all amounts owed to Seller, related to the Asset Purchase Agreement. The Company issued 1,100,000 shares of common stock on July 2, 2013, which was valued at approximately $330,000. The Company elected to pay the cash amount due over two years. To date, the Company paid $294,000 of the cash consideration noted above. The Company has approximately $263,000 recorded in other current liabilities on the condensed consolidated balance sheet at March 31, 2014. There was approximately $20,000 and $46,000 of interest recorded for the three and six month periods ended March 31, 2014.
Lease
The Company leases space for all of its branch offices, which are located either in downtown or suburban business centers, and for its corporate headquarters. Branch offices are generally leased over periods from three to five years. The corporate office lease expires in 2015. The leases generally provide for payment of basic rent plus a share of building real estate taxes, maintenance costs and utilities.
Rent expense was approximately $220,000 and $457,000 and $278,000 and $555,000 for the three and six month periods ended March 31, 2014 and March 31, 2013, respectively. As of March 31, 2014, future minimum lease payments due under non-cancelable lease agreements having initial terms in excess of one year, including certain closed offices, totaled approximately $1,118,000, as follows: fiscal 2014 - $340,000, fiscal 2015 - $398,000, fiscal 2016 - $232,000, fiscal 2017 - $123,000 and thereafter - $25,000.
The Company entered into a settlement with the owners of the Oak Brook facility, our former headquarters on April 2, 2014. Pursuant to the terms of the agreement, the Company will pay a termination fee of $125,000. Upon execution of the agreement, the Company paid $100,000 and an additional $25,000 within 30 days of executing the agreement. The remaining $25,000 was paid on May 2, 2014 representing settlement in full.
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