Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v2.4.0.8
Property and Equipment
 12 Months Ended
Sep. 30, 2013
Property and Equipment [Abstract]  
Property and Equipment
3. Property and Equipment

Property and equipment consisted of the following as of September 30:

 
 
Useful Lives
  
September 30,
    
September 30,
  
(In thousands)
 
  
2013
    
2012
  
 
 
  
   
 
Computer software
5 years
  
$
1,447
    
$
1,447
  
Office equipment, furniture and fixtures and leasehold improvements
2 to 10 years
    
2,325
      
2,311
  
Total property and equipment, at cost
 
    
3,772
      
3,758
  
Accumulated depreciation and amortization
 
    
(3,242
)
    
(3,240
)
Property and equipment, net
 
    
530
      
518
  
Less: Property and equipment, net from discontinued operations
 
  
$
-
    
$
(11
)
Property and equipment, net
 
  
$
530
    
$
507
  

Disposals of property and equipment, consisting primarily of fully-depreciated office furniture, a vehicle and equipment, had an original cost of approximately $28,000 and $16,000 in fiscal 2013 and 2012, respectively.  Leasehold improvements are amortized over the term of the lease.

During the year, 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 September 30, 2013, approximately $72,000 is current and included in other current liabilities and approximately $83,000 is included in other long term liabilities.   The terms are 30 months and totaled approximately $155,000 at September 30, 2013 and are as follows: fiscal 2014 - $72,000, fiscal 2015 - $83,000.

Depreciation expense for the year ended September 30, 2013 and 2012 was approximately $165,000 and $152,000, respectively.