Note 9 - Other Long Term Liabilities

9 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block]

9

.   Other Long Term

Liabilities

Deferred Rent

In connection with the lease in Massachusetts, the Company made an investment in leasehold improvements at this location of approximately

$1.4

million, of which approximately

$657

was funded by the landlord. The capitalized leasehold improvements were being amortized over the initial life of the lease. The improvements funded by the landlord were treated as lease incentives. Accordingly, the funding received from the landlord was recorded as a fixed asset addition and a deferred rent liability on the Condensed Consolidated Balance Sheets. The Company terminated this lease effective

March 1, 2018

and reversed the remaining deferred rent liability of

$118.

As of

June 30, 2018,

deferred rent of

$7

was reflected in Accrued Liabilities on the Condensed Consolidated Balance Sheet related to the Company’s Chicago office. As of

September 30, 2017,

deferred rent of

$154

was reflected in Accrued Liabilities and

$43

was reflected in Other long term liabilities on the Condensed Consolidated Balance Sheet.

Warrant Liability

The warrant issued to Montage Capital is included in Other Long Term Liabilities in the Condensed Consolidated Balance Sheet. The fair value of the warrant was valued at the loan execution date in the amount of

$341

and is revalued at the end of each reporting period to fair value. The fair value at

June 30, 2018

was

$185,

a reduction of

$156.

Changes in fair value are recorded as expense in the period the change occurs.