XML 33 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
Mar. 31, 2014
Sep. 30, 2013
Current assets:    
Cash and cash equivalents $ 147,000 $ 136,000 [1]
Accounts receivable, net    119,000 [1]
Deposit on PFG Credit Line 523,000 1,000,000 [1]
Prepaid expenses and other current assets 335,000 561,000 [1]
Total current assets 1,005,000 1,816,000 [1]
Restricted cash 75,000 75,000 [1]
Property and equipment, net 553,000 753,000 [1]
Goodwill 393,000 393,000 [1]
Intangible assets, net 727,000 790,000 [1]
Deferred financing costs 51,000 715,000 [1]
Other assets 32,000 126,000 [1]
Non-current assets from discontinued operations 290,000 297,000 [1]
Total assets 3,126,000 4,965,000 [1]
Current liabilities:    
Accounts payable 1,331,000 1,024,000 [1]
Accrued expenses 1,837,000 3,066,000 [1]
Deferred revenue 17,000 221,000 [1]
Senior secured revolving credit facility loan, net of discount 3,054,000 4,908,000 [1]
Senior subordinated secured convertible promissory notes, net of discount 1,623,000 15,793,000 [1]
Senior subordinated secured convertible bridge notes, net of discount 1,155,000    [1]
Subordinated secured convertible promissory notes, net of discount 843,000    [1]
Senior subordinated secured promissory notes    5,392,000 [1]
Capital lease obligations, current portion 329,000 447,000 [1]
Other current liabilities 75,000    [1]
Current liabilities from discontinued operations 624,000 678,000 [1]
Total current liabilities 10,888,000 31,529,000 [1]
Subordinated secured convertible promissory notes, net of discount    8,570,000 [1]
Capital lease obligations, less current portion 67,000 77,000 [1]
Derivative liability 797,000 19,245,000 [1]
Executive Salary Continuation Plan liability 910,000 957,000 [1]
Other liabilities    139,000 [1]
Total liabilities 12,662,000 60,517,000 [1]
Stockholders' deficit    
Convertible preferred stock, $0.01 par value, 1,000,000 shares authorized, 900 shares of Series B Convertible Cumulative Preferred Stock issued and outstanding as of March 31, 2014 and September 30, 2013, liquidation preference of $866,000, and 2,800 and 0 shares of Series D Convertible Preferred Stock issued and outstanding, liquidation preference of $27,820,000 and $0, as of March 31, 2014 and September 30, 2013, respectively(2)    [2]    [1],[2]
Common stock, $0.01 par value, 2,000,000,000 and 800,000,000 shares authorized; 255,080,000 and 205,581,000 shares issued and outstanding at March 31, 2014 and September 30, 2013, respectively (3) 2,551,000 [3] 2,056,000 [1],[3]
Paid-in capital 231,910,000 181,443,000 [1]
Accumulated other comprehensive income (loss) 46,000 (123,000) [1]
Accumulated deficit (244,367,000) (239,252,000) [1]
ISC8 stockholders' deficit (9,860,000) (55,876,000) [1]
Noncontrolling interest 324,000 324,000 [1]
Total stockholders' deficit (9,536,000) (55,552,000) [1]
Total liabilities, non-controlling interest, and stockholders' deficit $ 3,126,000 $ 4,965,000 [1]
[1] The condensed consolidated balance sheet as of September 30, 2013 was derived from the audited consolidated financial statement included in the Company's 2013 Annual Report on Form 10-K, filed with the SEC on December 24, 2013 adjusted to reflect discontinued operations. In March 2013, the Company ceased operations of its government focused business, including Secure Memory Systems, Cognitive Systems and Microsystems business units (the "Government Business"). In accordance with the provisions of the Presentation of Financial Statements Topic 205 of the Accounting Standards Codification ("ASC"), the assets and liabilities related to the Government Business are now presented as discontinued operations for all periods presented in the consolidated financial statements.
[2] The number of shares of Convertible Preferred Stock issued and outstanding has been rounded to the nearest one hundred (100).
[3] The number of shares of common stock issued and outstanding has been rounded to the nearest one thousand (1000).