Commitments And Contingencies

12 Months Ended

Sep. 30, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

15. Commitments and Contingencies:

Operating Leases

The Company only leases office space and certain equipment under short-term operating leases; therefore, the Company does not have future minimum rental commitments under long-term noncancelable operating leases. Rent expense was approximately $10,000, $18,000 and $0.1 million during fiscal years 2011, 2010 and 2009, respectively.

Legal Proceedings

From time to time the Company is a party to what it believes is routine litigation and proceedings that may be considered as part of the ordinary course of its business. Legal expenses related to such matters are expensed as incurred.

On July 8, 2009, the Company received a complaint filed in the United States District Court in Nevada alleging that the Geospace Seismic Recorder ("GSR"), the Company's newly developed wireless data acquisition system, infringes a patent held by Ascend Geo, LLC ("Ascend"). The Company requested and was granted a change in venue to the United States District Court for the Southern District of Texas in Houston (the "Court"). In addition to monetary damages, Ascend requested a preliminary injunction against future sales by the Company of

the GSR nodal system. The Company filed its response with the Court requesting that it deny Ascend's request for a preliminary injunction and, on November 4, 2009, the Court denied Ascend's request for a preliminary injunction. On January 4, 2011, the Court dismissed Ascend's case with prejudice. On April 5, 2011, the U.S. Patent and Trademark Office cancelled all claims of Ascend's patent.