SHAREHOLDERS' EQUITY

3 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 4     SHAREHOLDERS’ EQUITY

6% Senior Convertible Preferred Stock

As of the 6% Senior Convertible Preferred Stock issuance date, the carrying amount was less than the redemption value. As a result of the Company’s determination that redemption was probable, the carrying value was being increased by periodic accretions so that the carrying value would equal the redemption amount at the earliest redemption date. Such accretion is recorded as a preferred stock dividend.

Dividends on the 6% Senior Convertible Preferred Stock totaled approximately $0 and $19,000 for the three months ended December 31, 2015 and 2014, respectively. These dividends, in addition to the accretion, totaled approximately $0 and $474,000 for the three months ended December 31, 2015 and 2014, respectively. At the December 30, 2014 Annual Meeting, the shareholder vote resulted in the turnover of a majority of the Board members, which represented a Change of Control pursuant to the terms of the Convertible Preferred Stock. On December 31, 2014, the Company determined to recognize the balance of the accretion and bring the Convertible Preferred Stock carrying value up to its redemption value due to the likelihood of the holders requesting redemption. On January 9, 2015, the Company received a notice of deemed liquidation from a majority of the outstanding Convertible Preferred Stockholders in which they requested redemption of their Convertible Preferred Stock. On February 23, 2015 the Company paid an aggregate of $1,287,737 to the Convertible Preferred Stockholders, in order to redeem all of the outstanding shares of Convertible Preferred Stock.

Stock Repurchase

In September 2002 and January 2004, the Board authorized the repurchase of up to an aggregate of 486,200 shares of outstanding common stock. Under those authorizations, through December 31, 2015, the Company repurchased an aggregate of 224,690 shares at a cost of approximately $487,000. During the three months ended December 31, 2015, the Company repurchased and retired an aggregate of 1,076 shares of its outstanding restricted common stock at a cost of approximately $2,000 in connection with the vesting of employee restricted stock awards, wherein certain employees surrendered a portion of their award in order to fund certain tax withholding obligations.

Changes in Shareholders’ Equity

Changes in shareholders’ equity for the three months ended December 31, 2015 are summarized below:

									Accumulated
					Additional				Other
	Common Stock				Paid-In		Accumulated		Comprehensive
	Shares		Amount		Capital		Deficit		Loss		Total
Balance - September 30, 2015	8,641,755	$	86,418	$	17,550,047	$	(10,281,367 )	$	(21,785 )	$	7,333,313
Restricted stock award issuances	17,500		175		(175)		-		-		-
Restricted stock repurchased and retired	(1,076)		(11)		(1,656)		-		-		(1,667)
Share-based compensation	-		-		81,593		-		-		81,593
Foreign currency translation	-		-		-		-		(436)		(436)
Net loss	-		-		-		244,080		-		244,080
Balance - December 31, 2015	8,658,179	$	86,582	$	17,629,809	$	(10,037,287)	$	(22,221)	$	7,656,883

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.