Related-party Transactions

3 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Related-party Transactions

 Related-Party Loan Agreement

On September 25, 2015, the Company entered into a loan agreement with Sapinda Asia, a significant shareholder, to provide the Company with a $5.0 million line of credit that accrues interest at a rate of 3% per annum for undrawn funds and 8% per annum for borrowed funds. Pursuant to the terms and conditions of the loan agreement, available funds may be drawn down at the Company’s request at any time until the loan agreement matures on September 30, 2017, when all borrowed funds, plus all accrued but unpaid interest will become due and payable. The Company, however, may elect to satisfy any outstanding obligations under the loan agreement prior to the maturity date without penalties or fees.

Stock Payable – Related Party

In connection with the acquisitions in prior years described under Note 8 above, the Company recognized a liability for stock payable to the former owners of the entities acquired. In conjunction with the respective purchase agreements, shares of the Company’s stock are payable based on the achievement of certain milestones. Changes in the stock payable liability are shown below:

		December 31,		September 30,
		2015		2015
Beginning balance	$	3,501,410	$	3,000,000
Stock payable resulting from the acquisition of GPS Global		-		-
Stock payable resulting from the acquisition of Track Group Analytics		-		1,170,000
Payment of shares for achieving performance milestones		-		(668,590	)
Ending balance	$	3,501,410	$	3,501,410

Each of the foregoing related-party transactions was reviewed and approved by disinterested and independent members of the Company's Board of Directors.