March 31,

September 30,

2016

2015

Unsecured facility agreement with an entity whereby, as of June 30, 2015, the Company can borrow up to

$30.4 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 July 31, 2018.

A $1.2 million origination fee was paid and recorded as a debt discount and will be amortized as

interest expense over the term of the loan. The remaining debt discount was $520,270 and

$631,757 at March 31, 2016 and September 30, 2015, respectively.

$

29,879,730

$

29,768,243

The Loan Agreement, whereby the Company can borrow up to $5 million at 8% per annum on borrowed funds maturing on September 30, 2017.

1,399,644

-

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.

-

937,500

Capital leases with effective interest rates that range between 8.51% and 17.44%. Leases mature between June 2015 and November 2016. $154,410 was assumed through the sale of Midwest Monitoring & Surveillance, Inc. to its former owners.

21,383

24,754

Non-interest bearing notes payable to a governmental agency assumed in conjunction with the G2 acquisition.

216,342

254,917

Total debt obligations

31,517,099

30,985,414

Less current portion

(69,672

)

(796,225

)

Long-term portion of related party debt

-

Long-term debt, net of current portion

$

31,447,427

$

30,189,189