PROPERTY AND EQUIPMENT

9 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 3:  PROPERTY AND EQUIPMENT

Property and equipment, including equipment acquired under capital leases, consists of:

	June 30, 2013						September 30, 2013
	Historical Cost		Accumulated Depreciation and Amortization		Net Book Value		Historical Cost		Accumulated Depreciation and Amortization		Net Book Value		Useful Lives (Yrs)
Equipment and    software	$	10,971,314	$	(10,338,451)	$	632,863	$	10,533,026	$	(10,133,186)	$	399,840	1-5
DMSP		6,000,514		( 5,458,336)		542,178		5,882,160		( 5,328,649)		553,511	5
Other capitalized    internal use software		3,427,844		( 1,557,429)		1,870,415		3,078,552		( 1,248,519)		1,830,033	3-5
Travel video    library		1,368,112		( 1,368,112)		-		1,368,112		( 1,368,112)		-	N/A
Furniture, fixture    and leasehold improvements		609,421		( 534,418)		75,003		573,196		( 515,465)		57,731	2-7
Totals	$	22,377,205	$	(19,256,746)	$	3,120,459	$	21,435,046	$	(18,593,931)	$	2,841,115

Depreciation and amortization expense for property and equipment was approximately $663,000 and $664,000 for the nine months ended June 30, 2013 and 2012, respectively and approximately $239,000 and $210,000 for the three months ended June 30, 2013 and 2012, respectively.

As part of the Onstream Merger (see note 2), we became obligated under a contract with SAIC, under which SAIC would build a platform that eventually, albeit after further extensive design and re-engineering by us, led to the DMSP. A partially completed version of this platform was the primary asset included in our purchase of Acquired Onstream, and was recorded at an initial amount of approximately $2.7 million. Subsequent to the Onstream Merger, we continued to develop the DMSP, making payments under the SAIC contract and to other vendors, as well as to our own development staff as discussed below, which were recorded as an increase in the DMSP’s carrying cost.

A limited version of the DMSP was first placed in service in November 2005. “Store and Stream” was the first version of the DMSP sold to the general public, starting in October 2006. The SAIC contract terminated by mutual agreement of the parties on June 30, 2008. Although cancellation of the contract released SAIC to offer what was identified as the “Onstream Media Solution” directly or indirectly to third parties, we do not expect this right to result in a material adverse impact on future DMSP sales.

As of June 30, 2013 we have capitalized as part of the DMSP approximately $1.1 million of employee compensation, payments to contract programmers and related costs development of “Streaming Publisher”, a second version of the DMSP with additional functionality. As of June 30, 2013, approximately $827,000 of these costs had been placed in service, including approximately $410,000 for the initial release in September/October 2009 and approximately $231,000 for a subsequent release in May 2010. The remainder of the costs not in service relate primarily to a new release of the DMSP under development. Streaming Publisher is a stand-alone product based on a different architecture than Store and Stream and is a primary building block of the MP365 platform, discussed below.

As of June 30, 2013 we have capitalized as part of other internal use software approximately $1.5 million of employee compensation and payments to contract programmers for development of the MP365 platform, which enables the creation of on-line virtual marketplaces and trade shows utilizing many of our other technologies such as DMSP, webcasting, UGC and conferencing. Approximately $972,000 of these costs have been placed in service, including approximately $297,000 for phase one of MP365 placed in service on August 1, 2010 and approximately $675,000 for phase two of MP365 placed in service on July 1, 2011. The remaining costs, not placed in service, relate primarily to the next phases of MP365 under development. MP365 development costs exclude costs for development of Streaming Publisher, discussed separately above.

As of June 30, 2013 we have capitalized as part of other internal use software approximately $1.4 million of employee compensation and other costs for the development of webcasting applications. Approximately $1,244,000 of these costs have been placed in service, including approximately $444,000 placed in service in December 2009 for the initial release of iEncode software, which runs on a self-administered, webcasting appliance used to produce a live video webcast, and approximately $352,000 placed in service in January 2013 for a new release of our basic webcasting platform. The remaining costs, not placed in service, relate primarily to new features of the webcasting platform under development.

The capitalized software development costs discussed above are summarized as follows:

Period	DMSP	MP365	Webcasting	Totals
Nine months ended June 30, 2013	$          118,000	$          111,000	$          232,000	$          461,000
Year ended September 30, 2012	131,000	289,000	306,000	726,000
Year ended September 30, 2011	99,000	489,000	150,000	738,000
Year ended September 30, 2010	314,000	435,000	180,000	929,000
Year ended September 30, 2009	274,000	148,000	288,000	710,000
Year ended September 30, 2008	186,000	-	213,000	399,000
Totals through June 30, 2013	$       1,122,000	$       1,472,000	$       1,369,000	$       3,963,000

All capitalized development costs placed in service are being depreciated over five years.