Subsequent Event (Notes)

9 Months Ended

Jun. 30, 2017

Subsequent Event [Line Items]

Subsequent Events [Text Block]

Subsequent Event

On July 27, 2017, the Company entered into an Investment Agreement (the “Investment Agreement”) with NIL Funding Corporation (“NIL”) whereby NIL has agreed to purchase shares of the Company’s common stock in connection with a contemplated rights offering of common stock to the Company’s shareholders. The aggregate commitment by NIL is equal to the lesser of $3.0 million, or $5.0 million minus the aggregate gross proceeds of the rights offering. The price per share to be paid by NIL will be the same price to be paid by other shareholders of the Company in the proposed rights offering. NIL’s purchase of common shares under the Investment Agreement is limited in that NIL may not purchase shares of common stock under the Investment Agreement to the extent that its ownership interest combined with its affiliates would exceed 50% of the Company’s outstanding shares of common stock.

On July 27, 2017, the Company also entered into an amendment to its April 20, 2017 Warrant to Purchase Common Stock held by NIL (the “Warrant”). Pursuant to the amendment, the Company has agreed to file a registration statement to register the resale of the shares of common stock purchased by NIL under the Investment Agreement (in addition to the 1,500,000 shares of common stock under the Warrant which the Company previously agreed to register). NIL is the Company’s secured lender (See Note 12 above) and, together with its affiliates, beneficially owned approximately 17.4% of the Company’s common stock.

NIL’s obligations are subject to certain terms and conditions set forth in the Investment Agreement and will terminate on October 31, 2017, subject to extension as provided in the Investment Agreement.

On August 7, 2017, the Company filed its registration statement on Form S-1 with the Securities and Exchange Commission in connection with the contemplated rights offering. No offer or sale of any securities will be made by the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The rights offering by the Company would be launched only following the effectiveness of the registration statement relating to the offering, and will be made only by means of a prospectus.