Note 13 - Commitments and Contingencies

12 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

1

3

.   Commitments and Contingencies

The Company leases certain of its buildings under noncancelable lease agreements. Refer to the

Leases

footnote (Note

11

) of the Notes to the Consolidated Financial Statements for additional information.

The Company frequently warrants that the technology solutions it develops for its clients will operate in accordance with the project specifications without defects for a specified warranty period, subject to certain limitations that the Company believes are standard in the industry. In the event that defects are discovered during the warranty period, and

none

of the limitations apply, the Company is obligated to remedy the defects until the solution that the Company provided operates within the project specifications. The Company is

not

typically obligated by contract to provide its clients with any refunds of the fees they have paid, although a small number of its contracts provide for the payment of liquidated damages upon default. The Company has purchased insurance policies covering professional errors and omissions, property damage and general liability that reduce its monetary exposure for warranty-related claims and enable it to recover a portion of any future amounts paid. 

The Company's contracts typically provide for testing and client acceptance procedures that are designed to mitigate the likelihood of warranty-related claims, although there can be

no

assurance that such procedures will be effective for each project.  The Company has

not

paid any material amounts related to warranties for its solutions.  The Company sometimes commits unanticipated levels of effort to projects to remedy defects covered by its warranties.  The Company's estimate of its exposure to warranties on contracts is immaterial as of

September 30, 2020.

The Company's agreements with customers generally require the Company to indemnify the customer against claims in which the Company's products infringe

third

-party patents, copyrights, or trademarks and indemnify against product liability matters. As of

September 30, 2020

and

2019,

the Company has

not

experienced any losses related to the indemnification obligations and

no

significant claims with respect thereto were outstanding.  The Company does

not

expect significant claims related to the indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and

no

related reserves were established.

Litigation

The Company is subject to ordinary routine litigation and claims incidental to its business. As of

September 30, 2020,

the Company was

not

engaged in any material legal proceedings.