Intangible Assets

12 Months Ended

Sep. 30, 2013

Finite-Lived Intangible Assets, Net [Abstract]

Intangible Assets Disclosure [Text Block]

5. Intangible Assets

In December 2008, the Company purchased the PCTV Systems TV tuner business from Avid Technology Inc. Included as part of the purchase were intangible assets relating to customer relationships, value of technology and a covenant not to compete. Pursuant to a valuation analysis done by a third party valuation company, a value of $5,262,229 was assigned to the three intangible asset components. As of September 30, 2012, the intangible assets had gross carrying values of $1,644,353, $1,849,897 and $1,767,979, respectively, with aggregate accumulated amortization of $2,830,635.

In the five years since the purchase, the level of revenue generated from the acquired product line and the number of customers and revenue per customer has fallen to a point where management has evaluated that there has been an impairment in the value of the intangible asset. Due to continued decreases in sales during the second half of the fiscal year and management’s estimate for the future, the Company recorded a $1,676,758 impairment charge in the fourth quarter to fully write off these assets.