Annual report pursuant to Section 13 and 15(d)

Long-Term Liabilities

Long-Term Liabilities
12 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
8. Long-Term Liabilities

In connection with the completion of the sale of shares of common stock to PSQ in fiscal year 2009, the Company's then Chairman, Chief Executive Officer and President (the "former CEO") retired from those positions and his employment agreement with the Company was replaced by a new consulting agreement. Under the consulting agreement, the Company became obligated to pay an annual consulting fee of $180,000 over a five-year period and to issue 50,000 shares of common stock to the former CEO for no additional consideration. During fiscal year 2009, the Company recorded a liability for the net present value of the future payments in the amount of $790,000 and recorded a charge to operations in the amount of $280,000 based on a quoted market price of $5.60 per share on the date of the award. On January 31, 2013, the former CEO retired from all positions with the Company, however he will continue to receive his monthly payments required under his consulting agreement. As of September 30, 2014, the liability for future payments was reflected on the consolidated balance sheet as short term accrued compensation of $60,000. As of September 30, 2015, the liability has been fully paid.


Capital Lease Obligations


The Company leases computer equipment and furniture under various capital leases. The agreements require monthly payments of $7,132, including interest of approximately 6%. Future minimum lease payments are as follows:


Year Ending September 30,      
2016   $ 84,668  
2017     45,912  
2018     26,910  
2019     26,910  
2020     2,093  
Total minimum lease payments     186,493  
Less - Amount representing interest     11,157  
Present value of minimum lease payments     175,336  
Less - Current maturities     84,668  
Included in – Other current liabilities   $ 90,668  


Other than capital lease obligations, other current liabilities, primarily comprised of deferred rent.