XML 56 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Accrued expense-fees
9 Months Ended
Jun. 30, 2013
Accounts Payable and Accrued Liabilities [Abstract]  
Accrued Expenses Fees [Text Block]
Note 7. Accrued expense-fees
The Company uses various software and technologies in certain of its products.  In certain cases, the Company purchases or licenses these software and technologies from third parties. The related purchase or license agreements provide for payment of royalty and other fees associated with the Company's sale of the related products. Such fees are estimated and get accrued and reflected as a component of cost of sales when those sales occur.  In certain circumstances, such fees are not specifically covered by contractual arrangements but are nonetheless potentially due to the third party sellers or owners of the software and technologies.  The Company uses all available applicable information in determining these estimates and thus the accrued amounts are subject to change as new information is made available to the Company. Occasionally, third parties audit the Company's historical determination of fees and adjustments are made.  Accrued fees are subject to elimination after three to seven years if not billed by or requested from the third parties.
Based on new information obtained during fiscal 2013, including the completion of a significant third party audit, the Company reduced its accrued expenses - fees balance by $2,214,453. This estimate change resulted in an improved gross margin during fiscal 2013.  As of June 30, 2013 and September 30, 2012, the amount of accrued expense-fees amounted to $12,549,844 and $12,943,022, respectively.