Debt Obligations

12 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Debt Obligations

Debt obligations as of September 30, 2014 and 2013, consisted of the following:

	September 30,			September 30,
	2014			2013
Unsecured facility agreement with an entity whereby the Company may borrow up to $25 million bearing interest at a rate of 8% per annum, payable in arrears semi-annually, with all principal and accrued and unpaid interest due on January 3, 2016.  A $750,000 origination fee or 3% on the total amount under the agreement was paid and recorded as a debt discount and will be amortized as interest expense over the term of the loan. As of September 30, 2014, the remaining debt discount was $468,750.	$	24,531,250		$	-
The Company entered into an agreement whereby the Company was granted a non-exclusive, irrevocable, perpetual and royalty-free license to certain patents with an entity. The Company agreed to pay $4,500,000 over two years or $187,500 per month through February 2016.		3,187,500			-
Note issued in connection with the acquisition of a subsidiary and matures in December 2014.		9,630			64,111
Capital leases with effective interest rates that range between 8.51% and 17.44%.  Leases mature between June 2015 and November 2015.  $154,410 was assumed through the sale of Midwest Monitoring & Surveillance, Inc. to its former owners.		46,021			59,266
Automobile loan with a financial institution secured by the vehicle.  Interest rate is 7.06%, due June 2014. This loan was paid off in February 2014		-			5,306
Related notes payable for $1.5 million and $1.2 million, due December 31, 2015 and November 19, 2015, respectively		2,700,000			-
Total debt obligations		30,474,401			128,683
Less current portion		(1,906,040	)		(88,095	)
Long-term portion of related party debt		(2,700,000	)		-
Long-term debt, net of current portion	$	25,868,361		$	(40,588	)

The following table summarizes the Company’s future maturities of debt and related party obligations as of September 30, 2014:

Fiscal Year	Total
2015	$	1,906,040
2016		28,548,192
2017		4,444
2018		4,450
2019 & thereafter		11,275
Total	$	30,474,401

The following table summarizes the Company’s capital lease obligations included in the schedules of debt and debt obligations above as of September 30, 2014:

Fiscal Year	Total
2015	$	21,409
2016		4,442
2017		4,444
2018		4,450
Thereafter		11,275
Total minimum lease payments		46,020
Less: amount representing interest		(10,351	)
Present value of net minimum lease payments		35,669
Less: current portion		(4,440	)
Obligation under capital leases - long-term	$	31,229

As of September 30, 2014 and 2013, the Company had total capital lease obligations of $35,669 and $59,266, the current portion being $4,440 and $31,576, respectively. At September 30, 2014 and 2013, accumulated amortization of assets under capital lease was $55,473 and $40,932, respectively.