Monitoring Equipment

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Monitoring Equipment

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

	June 30,			September 30,
	2016			2015
Monitoring equipment	$	6,878,940		$	5,010,075
Less: accumulated amortization		(3,002,672	)		(2,225,480	)
Monitoring equipment,  net of accumulated depreciation	$	3,876,268		$	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 June 30, 2016 and 2015 was $376,154 and $368,798, respectively. Depreciation of monitoring equipment for the nine months ended June 30, 2016 and 2015 was $1,160,907 and $806,907, respectively. These expenses were recognized in cost of revenues.