Annual report pursuant to Section 13 and 15(d)

Long-Term Liabilities

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Long-Term Liabilities
12 Months Ended
Sep. 30, 2012
Long-Term Liabilities [Abstract]  
Long-Term Liabilities
11. Long-Term Liabilities

In connection with the completion of the sale of shares of common stock to PSQ in fiscal 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 500,000 shares of common stock to the former CEO for no additional consideration.  During fiscal 2009, the Company recorded a liability for the net present value of the future payments in the amount of $790,000 and recorded additional common stock in the amount of $280,000 based on a quoted market price of $.56 per share on the date of the award.  As of September 30, 2012, the liability for future payments was reflected on the consolidated balance sheet as accrued compensation of $180,000 and long-term liability of $100,000.  As of September 30, 2011, the liability for future payments was reflected on the consolidated balance sheet as accrued compensation of $180,000 and a long-term liability of $280,000.

In November 2010, in conjunction with the purchase of RFFG of Cleveland and DMCC the Company accrued an earn-out liability as discussed in Note 4, which was subsequently reduced by $1,276,000.  There is no longer a remaining long-term earn-out liability on September 30, 2012.