Subsequent Events

12 Months Ended

Sep. 30, 2013

Note 18 – Subsequent Events

The Company has evaluated subsequent events through the date the financial statements were released.

On or about October 1, 2013, Dynasil Biomedical formed Xcede, a joint venture with Mayo Clinic, to spin out and separately fund the development of its tissue sealant technology. Xcede has initiated financing efforts and has received funding from internal sources and outside investors. To date, Xcede is 90% owned by Dynasil Biomedical and Dynasil Biomedical holds a majority of the seats on Xcede’s board of directors.

On November 7, 2013, the Company sold its Lead Paint detector business to Protec Instrument Corporation, a Delaware corporation (“Protec”), which is a wholly owned subsidiary of Laboratoires Protec S.A., a French corporation and former European distributor of the lead paint detector products. The sales price totaled approximately $1.4 million including the assumption of certain liabilities by Protec. The transaction also resulted in payment of approximately $0.4 million in satisfaction of outstanding accounts receivable. Concurrently with the sale, the Company and Protec entered into a transition services agreement pursuant to which the Company will provide certain transitional services to Protec for up to five months after closing. The Company used $1.25 million of the proceeds to repay amounts owed to Santander.

The Company expects to record no material gain or loss in connection with the transaction in the first quarter of fiscal 2014. Substantially all the proceeds were used to repay bank indebtedness.