Contingencies	9 Months Ended
Jun. 30, 2013
Contingencies
Contingencies	6. Contingencies On November 29, 2011, AMR Corporation, the parent company of American Airlines, Inc. (“AAI”) and certain of its U.S. based subsidiaries filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy”). For the three and nine months ended June 30, 2013, AAI accounted for 9% and 14%, respectively, of net sales. For the three and nine months ended June 30, 2012, AAI accounted for less than 1% and 6%, respectively, of net sales. AAI continued to purchase products from the Company in the ordinary course of business after November 29, 2011. As of November 29, 2011, the Company had pre-Bankruptcy outstanding accounts receivable of $760,000 from AAI. The Company believes it is probable that the outstanding receivables will be collected in full and, therefore, has not recorded a reserve against these assets as of the balance sheet date. In the 90 days preceding the filing of the Bankruptcy petition, the Company received $828,000 from AAI in the ordinary course of business. Under the U.S. bankruptcy laws, debtors have the right to avoid certain payments made during the 90 days preceding the filing of the bankruptcy petition. No such avoidance action has been asserted or filed, and the Company believes that it would have valid defenses against any such action. On September 26, 2011, Farhad Daghigh, a former employee of the Company, filed a lawsuit against the Company in the Court of Common Pleas of Chester County (“the Court”) alleging breach of contract and violation of the Pennsylvania Wage Payment and Collection Law and claiming unpaid sales commissions, prejudgment interest, and liquidated damages totaling approximately $583,000 for the fiscal years ended 2007, 2008, 2009 and 2010, plus attorneys’ fees and costs. In June 2013, following a trial without a jury, the Court found in favor of the plaintiff awarding him damages of approximately $560,000 for breach of contract, violation of the Pennsylvania Wage Payment and Collection Law and prejudgment interest, as well as finding the Company liable for the plaintiff’s reasonable attorneys’ fees. The Company has appealed the decision. Pending the outcome of the appeal, the Company has recorded an estimated liability of $640,000 (which includes the plaintiff’s estimated attorney’s fees) in the quarter ended June 30, 2013. On January 17, 2007, the Company filed suit in the Court of Common Pleas for Delaware County, Pennsylvania against Strathman Associates, a former software consultant for IS&S, alleging that Strathman had improperly used IS&S trade secrets and proprietary information in assisting J2 and Kollsman in developing the J2/Kollsman Air Data Computer. This case has not been resolved as of the date hereof.

6. Contingencies

On November 29, 2011, AMR Corporation, the parent company of American Airlines, Inc. (“AAI”) and certain of its U.S. based subsidiaries filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy”). For the three and nine months ended June 30, 2013, AAI accounted for 9% and 14%, respectively, of net sales. For the three and nine months ended June 30, 2012, AAI accounted for less than 1% and 6%, respectively, of net sales. AAI continued to purchase products from the Company in the ordinary course of business after November 29, 2011. As of November 29, 2011, the Company had pre-Bankruptcy outstanding accounts receivable of $760,000 from AAI. The Company believes it is probable that the outstanding receivables will be collected in full and, therefore, has not recorded a reserve against these assets as of the balance sheet date. In the 90 days preceding the filing of the Bankruptcy petition, the Company received $828,000 from AAI in the ordinary course of business. Under the U.S. bankruptcy laws, debtors have the right to avoid certain payments made during the 90 days preceding the filing of the bankruptcy petition. No such avoidance action has been asserted or filed, and the Company believes that it would have valid defenses against any such action.

On September 26, 2011, Farhad Daghigh, a former employee of the Company, filed a lawsuit against the Company in the Court of Common Pleas of Chester County (“the Court”) alleging breach of contract and violation of the Pennsylvania Wage Payment and Collection Law and claiming unpaid sales commissions, prejudgment interest, and liquidated damages totaling approximately $583,000 for the fiscal years ended 2007, 2008, 2009 and 2010, plus attorneys’ fees and costs. In June 2013, following a trial without a jury, the Court found in favor of the plaintiff awarding him damages of approximately $560,000 for breach of contract, violation of the Pennsylvania Wage Payment and Collection Law and prejudgment interest, as well as finding the Company liable for the plaintiff’s reasonable attorneys’ fees. The Company has appealed the decision. Pending the outcome of the appeal, the Company has recorded an estimated liability of $640,000 (which includes the plaintiff’s estimated attorney’s fees) in the quarter ended June 30, 2013.

On January 17, 2007, the Company filed suit in the Court of Common Pleas for Delaware County, Pennsylvania against Strathman Associates, a former software consultant for IS&S, alleging that Strathman had improperly used IS&S trade secrets and proprietary information in assisting J2 and Kollsman in developing the J2/Kollsman Air Data Computer. This case has not been resolved as of the date hereof.