Related Party Transactions

12 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

In 2009, the Company entered into an agreement with an entity that was also an investor in the Company. The agreement compensates the entity for customer referrals based on revenues generated by the Company related to those customers. Warrants to purchase 7 and 20 shares of our common stock were issued in the years ended September 30, 2013 and September 30, 2010, respectively, pursuant to the referral agreement. The Company is obligated under the referral agreement to issue to the entity warrants to purchase up to an additional 208 shares of common stock based on the achievement of various milestones. In addition, in 2010 the Company entered into a service agreement with the entity, pursuant to which it was paid $1,000 in advance for software development services to improve software owned by the entity. This payment was deferred and recognized as revenue as development services were provided. The deferred revenue balance accrued interest and was increased by a portion of the referral fees due to this entity (the "Credit Bank"); the remainder of the referral fees due was paid in cash. The Credit Bank balance was $844 as of September 30, 2012 and was classified as long-term deferred revenue, and the Credit Bank balance was $911 as of September 30, 2013. Under the terms of the service agreement, the entity has the right to draw down from the Credit Bank after three years elapse from the effective date of the agreement. As the entity has this right as of September 30, 2013, the Company classified $890 of the Credit Bank as a current liability and $21 as short-term deferred revenue. The amount of $21 in deferred revenue as of September 30, 2013 represents the revenue that the Company will earn from the entity over the next fiscal year.

The Company maintained an operating account at a financial institution that was an investor in the Company. The banking relationship was established prior to the investment in the Company. The Company also held a note payable with the same financial institution. The amount due on the note payable as of September 30, 2013 and 2012; was $10,219, and $10,719, respectively. In September 2013 the financial institution ceased to be an investor in the Company, and in October 2013, the Company repaid the outstanding balance of loan payable of $10,216 (see Note 20 for further details).