Note 13—DEFERRED GRANTS

The Company received grants for certain facility improvements and equipment from state and local agencies in which the Company operates. These grants reimbursed the Company for a portion of the actual cost or provided in kind services in support of capital projects. There were no deferred grants recorded during fiscal 2015 and a deferred grant of $0.7 million was recorded during the year ended September 30, 2014.

One of the Company’s grants is a loan to grant agreement. The Company signed a promissory note, which will be forgiven if certain employment targets are met at specified future dates. If the employment targets are not met, the Company is obligated to repay the loan with interest. As the Company intends to comply with this agreement, the Company has recorded the funds received as a deferred amount within other long-term liabilities on the balance sheet.

The Company received a government grant for the purchase of equipment upgrades to accommodate existing and anticipated business growth. Required employment targets for this grant were met as of September 30, 2014.

The Company is also the recipient of matching grants from two local governmental agencies related to certain renovations for one of its operating locations. One agency is contributing in kind services and property of $0.1 million while the other is contributing cash of $0.1 million to match expenditures by the Company of at least the same amount.

The grants are amortized over the useful lives of the related fixed assets when there is reasonable assurance that the Company will meet the employment targets.

Grant amortization during the years ended September 30, 2015 and 2014 follows:



	Years Ended
	September 30, 2015		September 30, 2014
(in thousands)
Grant amortization	$	165	$	158