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Subsequent Events
9 Months Ended
Jun. 30, 2014
Notes to Financial Statements  
(24) Subsequent Events

 

The Company evaluated subsequent events through the date the accompanying consolidated financial statements were issued.  Subsequent to June 30, 2014, the following events occurred:

 

1)   2,646 shares of common stock were issued to five members of the Board of Directors for services.

2)   8,787 shares of common stock were issued to employees for services rendered under the 2012 stock compensation plan.

3)   Three shares of common stock were issued as payment for a preferred Series D dividend payment.

4)   The Company entered into a lease for a new office location.

5)   Related party notes payable in the amount of $1.5 million and $1.2 million were extended through November 19, 2015 and December 30, 2014, respectively.

6)   On July 2, 2014 the Company purchased, through its subsidiary Emerge Monitoring II, LLC, the remaining 35 percent equity interest of Integrated Monitoring Systems LLC a Colorado limited liability company (“IMS”).  The purchase price was $350,000 paid to Future Technology Partners, LLC.  The Company now controls 100 percent of IMS.

7)   On August 8, 2014, cash proceeds of $1,488,788 held as a bond by an international customer were returned to the Company.

8)   On June 10, 2014 the Company submitted a utilization request under the amended Facility Agreement to Safety requesting the remaining $10,000,000. On August 13, 2014 Safety provided $6,000,000 to the Company. The balance of $4,000,000 is expected to be funded within 30 days. While the funding of this utilization request is a technical default by Safety under the terms of the Facility Agreement; the Company and Safety are working together to remedy the default. The Company is realizing $2,500 per day and an interest benefit which will offset accumulated interest owed to Safety under the Facility Agreement. Management expects this matter to be resolved within 30 days and the delayed funding will not materially affect operations of the Company.

9) On August 6, 2014 the Company’s subsidiary, SecureAlert Chile SpA (“SecureAlert-Chile”) was notified by  Gendarmeria de Chile (the Republic of Chile’s uniformed prison service) the contract between the Gendarmeria and SecureAlert-Chile to provide electronic (GPS and residential) monitoring of offenders and other services to the Chilean government will now proceed to the next phase and devices will be installed on offenders.  The Company expects to begin realizing revenue in the first quarter of its next fiscal year.  As referenced in the formal agreement with the Chilean government, filed as an exhibit to Form 8-K filed by the Company on November 20, 2013, the contract will run for a term of 41 months with revenues of up to approximately $70,000,000.  The performance bond posted by SecureAlert-Chile has been extended to provide for the full 41 months of service under the contract and we expect the performance bond to be returned by September 5, 2018.