COMMITMENTS AND CONTINGENCIES

12 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

5. COMMITMENTS AND CONTINGENCIES

Leases

The Company leases various facilities and equipment in the U.S. and overseas under non-cancelable operating leases which expire through 2016. The lease agreements generally provide for the payment of minimum annual rentals, pro-rata share of taxes, and maintenance expenses. Rental expense for all operating leases was approximately $545,000, $454,000, and $352,000 for the years ended September 30, 2013, 2012 and 2011, respectively. Certain of the Company's facility leases include options to renew. 

As of September 30, 2013, minimum rental commitments under non-cancelable operating leases are as follows (in thousands): 

Years Ending September 30,
2014	$	452
2015		209
2016		152
Total future minimum lease payments	$	813

Royalties

Prior to the acquisition of intellectual property underlying its Datawatch Modeler and Datawatch Automator products disclosed above to the accompanying consolidated financial statements, the Company was obligated to pay royalties up to 50% on revenue generated by the sale of certain licensed software products. Royalty expense included in cost of software licenses was approximately $194,000, $1,161,000 and $1,630,000 for the years ended September 30, 2013, 2012 and 2011, respectively. Minimum royalty obligations were insignificant for fiscal years 2013, 2012 and 2011. As a result of the acquisition of the intellectual property, the Company is no longer required to pay royalties related to its Datawatch Modeler and Datawatch Automator products.

Contingencies

From time to time, the Company is subject to claims and may be party to actions that arise in the normal course of business. The Company is not party to any litigation that management believes will have a material adverse effect on the Company's consolidated financial condition or results of operations.