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Going Concern
9 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

    The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of obligations in the normal course of business. The Company generated significant net losses in the current and previous fiscal years.  The Company had approximately $146,000 of cash on hand as of June 30, 2013.  The Company’s operating expenses during the quarter ended June 30, 2013 was approximately $4,085,000.  The Company expects that it will need to raise significant additional capital to continue as a going concern.

 

      For the three and nine months ended June 30, 2013, the Company’s loss from continuing operations was $3.7 million and $12.7 million respectively, as compared to the Company’s income from continuing operations for the three months ended July 1, 2012 of $8.3 million and the Company’s loss from continuing operations for the nine months ended July 1, 2012 of $16.5 million.  As of June 30, 2013 the Company had negative working capital and stockholders’ deficit of approximately $26.3 million and $45.7 million respectively, and as of September 30, 2012, the Company had negative working capital and stockholders’ deficit of $10.1 million and $35.4 million, respectively.

 

    Management believes that the Company’s losses in recent years have been primarily the result of increased research and development expenditures related to the cyber technology, and efforts to productize those technologies and bring them to market.  These losses were augmented by insufficient revenue to support the Company’s skilled and diverse technical staff, which is considered necessary to support commercialization of the Company’s technologies.  Unsuccessful commercialization efforts in past fiscal years have contributed to the stockholders’ deficit as of June 30, 2013. Through June 30, 2013, the Company expended substantially all of the cash obtained from the Thermal Imaging Sale, the Revolving Credit Facility (defined below), and 2013 Notes (see Note 7) to fund our operations.

 

    Management is currently focused on seeking additional capital to fund operations and on managing costs in line with estimated future revenues, including contingencies for cost reductions if projected revenues are not fully realized.  However, there can be no assurance that the Company will be able to obtain additional working capital, or that anticipated revenues will be realized.  In the event the Company is unable to raise additional funds to meet its continuing obligations on a timely basis, or at all, or the Company is unable to meet existing debt obligations, a default and acceleration of debt maturity could result, which could materially and adversely affect the Company’s business and financial condition, and ultimately challenge the Company’s ability to continue as a going concern.

 

    The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.