Retirement Plans

12 Months Ended

Sep. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Note 12 – Retirement Plans

401(k) Plans

The Company has retirement savings plans available to substantially all full time employees which are intended to qualify as deferred compensation plans under Section 401(k) of the Internal Revenue Code (the “401k Plans”). Pursuant to the 401k Plans, employees may contribute up to the maximum amount allowed by the 401k Plans or by law. The Company at its sole discretion may from time to time make discretionary matching contributions as it deems advisable. The Company made contributions to the plans during the years ended September 30, 2012 and 2011 of $71,012 and $75,042, respectively.

Defined Benefit Pension Plan

Pension Obligations

EMF has a defined benefit pension plan covering hourly employees. The plan provides defined benefits based on years of service and final average salary. As of September 30, 2006, the plan was frozen.

The changes in benefit obligations and plan assets under the pension plan were as follows as of and for the year ended September 30, 2012: 

Change in benefit obligation:
Benefit obligation at beginning of fiscal year	$	397,760
Service costs		-
Interest costs		20,659
Benefits paid		(8,621	)
Actuarial loss		231,002
Benefit obligation at end of fiscal year	$	640,800
Change in plan assets:
Fair value of plan assets at beginning of fiscal year	$	308,089
Actual return on plan assets		(38,532	)
Employer contribution		34,421
Benefits paid		(8,621	)
Fair value of plan assets at end of year	$	295,357
Funded status at end of year	$	(345,443	)

Amounts recognized in the consolidated balance sheets consist of the following as of September 30, 2012 and 2011:

	2012			2011
Long-term liabilities	$	(345,443	)	$	(113,344	)

Amounts recognized in accumulated other comprehensive income as of September 30, 2012 consist of the following:

Net loss/(gain)	$	243,262
Prior service cost		102,181
	$	345,443

The following table summarizes the pension plan, which has a projected benefit obligation that exceeds plan assets:

	2012		2011
Projected benefit obligation in excess of plan assets:
Projected benefit obligation	$	640,800	$	397,760
Fair value of plan assets		295,357		308,089

At September 30, 2012 the accumulated benefit obligation was the same as the projected benefit obligation.

The following table summarizes the components of the net periodic pension cost at September 30, 2012: 

Interest costs	$	20,659
Expected return on assets		(15,189	)
Amortization of net loss		17,788
Net periodic pension cost	$	23,258

Assumptions

Weighted-average assumptions used to determine benefit obligations at September 30, 2012 were: 

Discount rate	3.75	%
Expected return on plan assets	2.60	%
Rate of compensation increase	not applicable

The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the long-term capital market assumptions. The overall return for each asset class was developed by combining a long-term inflation component and the associated expected real rates. The development of the capital market assumptions utilized a variety of methodologies, including, but not limited to, historical analysis, stock valuation models such as dividend discount models and earnings yields’ models, expected economic growth outlook, and market yields analysis.

Plan Assets

The primary investment objective of the Pension Plan is to ensure, over the long-term life of the plan, an adequate pool of assets to support the benefit obligations to participants, retirees and beneficiaries. A secondary objective of the plan is to achieve a level of investment return consistent with a prudent level of portfolio risk that will minimize the financial effect of the Pension Plan on the Company. The Company utilizes the service of an investment manager to manage the assets of the Pension Plan and the Company has established investment guidelines with the investment manager. The Company believes that the selected investment portfolio will enable the Company to maintain the asset value of the Plan given that benefit accruals have been frozen. As of September 30, 2012 and 2011, the assets of the Pension Plan were invested entirely in short-term fixed income securities.

Investment securities, in general, are exposed to various risks such as interest rate, credit and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported.

The following table presents the pension plan assets financial instruments carried at fair value as of September 30, 3012 and 2011 in accordance with the fair value hierarchy:

	Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)
September 30, 2012
Money Market Separate
Account	$	-	$	295,357	$	-
Total plan assets	$	-	$	295,357	$	-
September 30, 2011
Money Market Separate
Account	$	-	$	308,089	$	-
Total plan assets	$	-	$	308,089	$	-

Cash Flows

Benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter are as follows: 

2013	$	12,000
2014		14,000
2015		16,000
2016		21,000
2017		21,000
2018-2022		140,000
	$	224,000

The contributions expected to be paid to the plan during the next fiscal year are $58,147. The measurement date used to determine pension benefits for the plan was September 30, 2012.