PROPERTY AND EQUIPMENT

9 Months Ended

Jun. 30, 2016

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, 2016						September 30, 2015
			Accumulated Depreciation and Amortization						Accumulated Depreciation and Amortization
					Net Book  Value						Net Book  Value		Useful Lives (Yrs)
	Historical Cost						Historical Cost
Equipment and software	$	11,173,227	$	(10,998,690)	$	174,537	$	11,128,003	$	(10,882,859)	$	245,144	1-5
DMSP		6,222,869		(5,954,246)		268,623		6,220,419		(5,859,304)		361,115	5
Other capitalized internal use software		656,721		(620,339)		36,382		654,272		(592,128)		62,144	3-5
Travel video library		1,368,112		(1,368,112)		-		1,368,112		(1,368,112)		-	N/A
Furniture, fixtures and leasehold improvements		629,102		(599,503)		29,599		625,433		(589,011)		36,422	2-7
Totals	$	20,050,031	$	(19,540,890)	$	509,141	$	19,996,239	$	(19,291,414)	$	704,825

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 and although this released SAIC to offer the “Onstream Media Solution” directly or indirectly to third parties, we do not expect this to result in a material adverse impact on future DMSP sales.

As of June 30, 2016 we 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 June 30, 2016, 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. All capitalized development costs in service are being depreciated over five years.

Depreciation and amortization expense for property and equipment was approximately $249,000 and $469,000 for the nine months ended June 30, 2016 and 2015, respectively, and was approximately $78,000 and $142,000 for the three months ended June 30, 2016 and 2015, respectively.