Monitoring Equipment

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Monitoring Equipment

Monitoring equipment as of March 31, 2016 and September 30, 2015, was as follows:

	March 31,			September 30,
	2016			2015
Monitoring equipment	$	6,574,535		$	5,010,075
Less: accumulated amortization		(3,042,341	)		(2,225,480	)
Monitoring equipment,  net of accumulated depreciation	$	3,532,194		$	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 March 31, 2016 and 2015 was $408,285 and $248,495, respectively. Depreciation of monitoring equipment for the six months ended March 31, 2016 and 2015 was $784,753 and $438,109, respectively. These expenses were recognized in cost of revenues.