RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

6 Months Ended

Mar. 31, 2013

RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS [Abstract]

Schedule of Effects of Restatement Adjustments

The following table summarizes the effects of the restatement adjustments, previously discussed, on the consolidated statements of operations and comprehensive income (loss) items for the three months ended March 31:

	2013									2012
	As Reported			Adjustment			Restated			As Reported			Adjustment		Restated
Total revenue	$	5,156		$	-		$	5,156		$	6,966				$	6,966
Total cost of revenue		3,898			-			3,898			5,823					5,823
Gross profit		1,258			-			1,258			1,143			-		1,143
Total operating expenses		1,267			-			1,267			2,784					2,784
Restructuring charges		-			-			-			64			-		64
Operating income (loss)		(9	)		-			(9	)		(1,705	)		-		(1,705	)
Interest expense		(163	)		-			(163	)		(179	)				(179	)
Change in fair value of warrant liability - (increase) decrease		-			(142	)		(142	)		-			56		56
Other income		3			-			3			-			-		-
Income (loss) before income taxes		(169	)		(142	)		(311	)		(1,884	)		56		(1,828	)
Income tax expense		-			-			-			-					-
Net income (loss)		(169	)		(142	)		(311	)		(1,884	)		56		(1,828	)
Other comprehensive income (loss):
Foreign currency translation adjustment		46			-			46			23			-		23
Comprehensive income (loss)	$	(123	)	$	(142	)	$	(265	)	$	(1,861	)	$	56	$	(1,805	)
Basic EPS	$	(0.02	)	$	(0.02	)	$	(0.04	)	$	(0.27	)	$	0.01	$	(0.26	)
Diluted EPS	$	(0.02	)	$	(0.02	)	$	(0.04	)	$	(0.27	)	$	0.01	$	(0.26	)

The following table summarizes the effects of the restatement adjustments, previously discussed, on the consolidated statements of operations items for the six months ended March 31:

	2013
	As Reported			Adjustment			Restated
Total revenue	$	10,960		$	-		$	10,960
Total cost of revenue		7,846			-			7,846
Gross profit		3,114			-			3,114
Total operating expenses		2,820			-			2,820
Restructuring charges		-			-			-
Operating income (loss)		294			-			294
Interest expense		(329	)		-			(329	)
Change in fair value of warrant liability - (increase) decrease		-			(25	)		(25	)
Other income		5			-			5
Income (loss) before income taxes		(30	)		(25	)		(55	)
Income tax expense		-			-			-
Net income (loss)		(30	)		(25	)		(55	)
Other comprehensive income (loss):
Foreign currency translation adjustment		55			-			55
Comprehensive income (loss)	$	25		$	(25	)	$	-
Basic EPS	$	-		$	(0.01	)	$	(0.01	)
Diluted EPS	$	-		$	(0.01	)	$	(0.01	)

The following table summarizes the effects of the restatement adjustments, previously discussed, on the consolidated balance sheet items as of March 31, 2013 and September 30, 2012:

	March 31, 2013									September 30, 2012
	As Reported			Adjustment			Restated			As Reported			Adjustment			Restated
Total assets	$	24,790		$	-		$	24,790		$	26,975					$	26,975
Total other current liabilities		14,392			-			14,392			11,387						11,387
Fair value of warrant liability		-			1,238			1,238			-			1,213			1,213
Total current liabilities		14,392			1,238			15,630			11,387			1,213			12,600
Other long-term debt		607			-			607			5,998						5,998
Total liabilities		14,999			1,238			16,237			17,385			1,213			18,598
Shareholders' equity:
Preferred Shares		1,335			-			1,335			1,335			-			1,335
Common Shares		1,880			-			1,880			1,871			-			1,871
Additional paid-in capital		20,618			(816	)		19,802			20,451			(816	)		19,635
Accumulated deficit		(14,126	)		(422	)		(14,548	)		(14,096	)		(397	)		(14,493	)
Accumulated other comprehensive income		84			-			84			29						29
Total shareholders' equity		9,791			(1,238	)		8,553			9,590			(1,213	)		8,377
Total liabilities and shareholders' equity	$	24,790		$	-		$	24,790		$	26,975		$	-		$	26,975