Note 7 - Restructuring

9 Months Ended

Jun. 30, 2016

Restructuring and Related Activities Disclosure [Text Block]

7. Restructuring

During the second half of fiscal 2015, the Company’s management approved, committed to and initiated plans to restructure and further improve efficiencies by implementing cost reductions in line with the decreases in revenue. The Company renegotiated three office leases and relocated to smaller space, while also negotiating sub-leases for the original space. In addition, the Company executed a general work-force reduction and recognized costs for severance and termination benefits. A total of $16 and $795 was charged to restructuring expenses in the three and nine months ended June 30, 2016. The remaining restructuring liability at June 30, 2016 is $578.

These restructuring charges and accruals require estimates and assumptions, including contractual rental commitments or lease buy-outs for vacated office space and related costs, and estimated sub-lease income. The Company’s sub-lease assumptions include the rates to be charged to a sub-tenant and the timing of the sub-lease arrangement. All of the vacated lease space is currently contractually occupied by a new sub-tenant for the remaining life of the lease. These estimates and assumptions will be monitored on a quarterly basis for changes in circumstances with the corresponding adjustments reflected in the consolidated statement of operations.

The following table summarizes the restructuring accrual activity for the nine months ended June 30, 2016:

	Employee Severence and Benefits			Facility Related and Other Costs			Total
Balance at beginning of period, October 1, 2015	$	-		$	307		$	307
Charges to operations		505			-			505
Cash disbursements		-			(68	)		(68	)
Changes in estimates		-			-			-
Balance at end of period, December 31, 2015	$	505		$	239		$	744
Charges to operations		-			158			158
Cash disbursements		(110	)		(54	)		(164	)
Changes in estimates		-			-			-
Balance at end of period, March 31, 2016	$	395		$	343		$	738
Charges to operations		-			-			-
Cash disbursements		(101	)		(59	)		(160	)
Changes in estimates		-			-			-
Balance at end of period, June 30, 2016	$	294		$	284		$	578

As of June 30, 2016, $407 was reflected in Accrued Liabilities and $171 in Other Long Term Liabilities in the Condensed Consolidated Balance Sheet. As of September 30, 2015, $114 was reflected in Accrued Liabilities and $193 in Other Long Term Liabilities in the Condensed Consolidated Balance Sheet.