Notes Receivable

9 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Notes Receivable

On June 21, 2013, the Company sold assets associated with the discontinued Government Business (see Note 15) and received as consideration a one-year note for $200,000 payable quarterly at an interest rate of prime plus 2% per annum. The first quarterly payment of the note is due on September 30, 2013. Under the terms of the Senior Revolving Credit Facility with PFG, the proceeds from this note receivable will be used to reduce the outstanding balance under the Senior Revolving Credit Facility.  This note is entered into with Irvine Sensors Corporation, whose Chief Executive Officer is ISC8’s former Vice Chairman and Chief Strategist, John Carson.

On January 31, 2012, the Company sold its Thermal Imaging Business (see Note 1) and as of September 30, 2013, had a balance of $1.2 million as the final receivable associated with the sale. On February 1, 2013, the final payment against this receivable was received.