PROPERTY AND EQUIPMENT

12 Months Ended

Sep. 30, 2015

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:

	September 30, 2015						September 30, 2014
			Accumulated  Depreciation and  Amortization						Accumulated  Depreciation and  Amortization
											Net Book  Value		Useful  Lives (Yrs)
	Historical  Cost				Net Book  Value		Historical  Cost
Equipment and software	$	11,128,003	$	(10,882,859)	$	245,144	$	11,086,319	$	(10,687,925)	$	398,394	1-5
DMSP		6,220,419		(5,859,304)		361,115		6,212,019		(5,702,817)		509,202	5
Other capitalized internal use software		654,272		(592,128)		62,144		2,302,688		(1,475,840)		826,848	3-5
Travel video   library		1,368,112		(1,368,112)		-		1,368,112		(1,368,112)		-	N/A
Furniture, fixtures and leasehold improvements		625,433		(589,011)		36,422		623,443		(567,389)		56,054	2-7
Totals	$	19,996,239	$	(19,291,414)	$	704,825	$	21,592,581	$	(19,802,083)	$	1,790,498

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. Subsequently, 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. In connection with our purchase of Auction Video in March 2007 (see note 2), $600,000 of the purchase price was attributed to a video ingestion and flash transcoder and added to the DMSP’s carrying cost.

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 September 30, 2015 we have capitalized as part of the DMSP approximately $1.3 million of employee compensation, payments to contract programmers and related costs for development of “Streaming Publisher”, a second version of the DMSP with additional functionality although it also is a stand-alone product based on a different architecture than Store and Stream. As of September 30, 2015, substantially all of these costs had been placed in service, including approximately $410,000 for the initial release in September/October 2009, approximately $231,000 for an April/May 2010 release, approximately $109,000 for storefront applications placed in service between August 2013 and January 2014, approximately $52,000 for a January 2014 release and approximately $125,000 for a May 2014 release.

As of September 30, 2015 we have capitalized as part of other internal use software approximately $2.0 million of employee compensation and other costs for the development of webcasting applications. As of September 30, 2015, substantially all 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, approximately $352,000 placed in service in January 2013 for a new release of our basic webcasting platform and approximately $99,000, $251,000 and $96,000 placed in service in October 2013, July 2014 and July 2015, respectively, for enhancements to that new release. As of September 30, 2015, the approximately $262,000 of the total capitalized costs not yet placed in service relate to our development during the period from July 2013 through September 2015 of a “do it yourself” large audience webcasting product that can be run from the customer’s desktop and will be available on a fixed cost monthly subscription basis that can be purchased on-line. We expect to release this product in the fourth quarter of fiscal 2016. As part of our annual review of the carrying values of our long-lived assets for impairment as of September 30, 2015, we evaluated the remaining carrying value of the webcasting division’s assets, primarily the unamortized software development costs, for impairment. We performed such an analysis by comparing the carrying value of those assets to the projected undiscounted future cash flows from the webcasting operations, as prescribed by applicable accounting literature for evaluating impairment of a depreciable asset with a fixed life. These projected future cash flows took into account (i) the webcasting revenues during fiscal 2015, which in spite of an increase for the nine months ended June 30, 2015 versus the corresponding prior year period, declined for the three months ended June 30, 2015, versus the corresponding prior year period, and were generally flat for the three months ended September 30, 2015, versus the corresponding prior year period (and which trend has continued through June 30, 2016) and (ii) information available to us with respect to backlog and potential future revenues as of September 30, 2015. Based on this information, we determined that it would not be appropriate to project growth in webcasting revenues for these purposes as of September 30, 2015. The initial decline in webcasting revenues that occurred for the quarter ended June 30, 2015 was not considered a “triggering event” that might require an interim evaluation, since we were unable to determine that such decline represented a trend that might result in impairment until we saw additional results for the quarter ended September 30, 2015, as well as evaluated the backlog and potential future revenues as of that date. Since there was a significant level of recently capitalized software development costs for webcasting products as of September 30, 2015, and we did not project growth in webcasting revenues for this purpose, as a result of our analysis, we recognized a net impairment loss of $800,000 for the year ended September 30, 2015. After the impairment loss, the carrying cost of the webcasting division’s capitalized internal software was reduced to approximately $35,000, which will be depreciated over the twelve months ending September 30, 2016. We will continue to evaluate any webcasting division development costs capitalized by us after September 30, 2015 for impairment on the same basis.

All capitalized development costs placed in service are being depreciated over five years. Depreciation and amortization expense for property and equipment was approximately $606,000 and $813,000 for the years ended September 30, 2015 and 2014, respectively.