Note 9 - Accrued Liabilities And Other Liabilities - Noncurrent

12 Months Ended

Sep. 30, 2013

Current And Noncurrent Accrued Liabilities [Abstract]

Current And Noncurrent Accrued Liabilities [Text Block]

9. ACCRUED AND OTHER LIABILITIES—NONCURRENT

Accrued liabilities consisted of the following:

	September 30,
	2013		2012
Payroll and related	$	650,125	$	272,212
Accrued contract costs		197,034		197,032
Warranty reserve		189,277		154,069
Deferred revenue and other		18,532		429
Total	$	1,054,968	$	623,742
Other liabilities - noncurrent consisted of the following:
Deferred rent	$	122,627	$	43,433
Extended warranty		23,482		50,244
Deferred revenue - noncurrent		-		270,140
Total	$	146,109	$	363,817

Payroll and related

Accrued payroll and related consists primarily of accrued vacation and outside commissions at September 30, 2013 and accrued vacation at September 30, 2012.

Accrued contract costs

Accrued contract costs consist of accrued expenses for contracting a third party service provider to fulfill repair and maintenance obligations required under a contract through 2019 with a foreign military for units sold last year. Payments to the service provider will be made annually upon completion of each year of service. These services are being recorded in cost of revenues to correspond with the revenues for these services.

Warranty Reserve

Details of the estimated warranty reserve were as follows:

Years Ended September 30,	2013			2012
Beginning balance	$	204,313		$	272,261
Warranty provision		19,254			(33,566	)
Warranty settlements		(10,808	)		(34,382	)
Ending balance	$	212,759		$	204,313
Short-term warranty reserve	$	189,277		$	154,069
Long-term warranty reserve		23,482			50,244
	$	212,759		$	204,313

The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenue is recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. In the fiscal year ended September 30, 2013, the Company increased its reserve by $8,446.

Deferred Revenue

Deferred revenue at September 30, 2012 included $270,559 collected from a license agreement in advance of recognized revenue. This license agreement was cancelled in September 2013, so the remaining deferred revenue balance was recorded as other income during the quarter ended September 30, 2013. Deferred revenue at September 30, 2013 included $18,532 which represents prepayments on current orders scheduled for delivery in the quarter ended December 31, 2013.