Monitoring Equipment

3 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Monitoring Equipment

Monitoring equipment as of December 31, 2015 and September 30, 2015, was as follows:

	December 31,			September 30,
	2015			2015
Monitoring equipment	$	5,911,537		$	5,010,075
Less: accumulated amortization		(2,553,113	)		(2,225,480	)
Monitoring equipment,  net of accumulated depreciation	$	3,358,424		$	2,784,595

The Company began leasing monitoring equipment to agencies for offender tracking in April 2006 under operating lease arrangements.  The monitoring equipment is amortized using the straight-line method over an estimated useful life of three to five years.

Depreciation of monitoring equipment for the three months ended December 31, 2015 and 2014 was $376,467 and $228,050, respectively. These expenses were recognized in cost of revenues.