Supplemental Disclosure of Cash Flow Information

12 Months Ended

Sep. 30, 2011

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Note 14 – Supplemental Disclosure of Cash Flow Information:

	2011		2010
Cash paid during the year for:
Interest	$	616,516	$	607,080
Income taxes	$	541,219	$	1,510,183

Non-cash investing and financing activities:

Acquisition of Stock of Hilger Crystals, Ltd. on July 19, 2010:

Fair market value of current assets acquired	$	1,670,713
Property, plant and equipment		1,111,728
Goodwill		2,513,054
Fair market value of liabilities assumed		(542,549	)
Total cost of acquisition	$	4,752,946
less contingent consideration		(750,000	)
Net cash paid for Hilger acquisition	$	4,002,946

On November 30, 2009, Dynasil issued an aggregate of 946,431 shares of its Common Stock, $.0005 par value per share, as a result of the exercise of the conversion rights by holders of 710,000 shares of its Series B 10% Cumulative Convertible Preferred Stock (the "Series B Preferred Shares").

On July 9, 2010, Dynasil refinanced its existing debt by obtaining a $9,000,000 loan.  The proceeds were used as follows: (1) repayment of existing bank debt of $6,373,315, (2) payment of the related party note payable of $2,000,000 and (3) the remaining balance of $626,685 was used for working capital purposes.

During the years ended September 30, 2011 and 2010, preferred stock dividends paid are net of $79,770 and $110,000, respectively, for the issuance of common stock in lieu of dividends.