MANAGEMENT'S PLAN

9 Months Ended

Jun. 30, 2015

MANAGEMENT'S PLAN [Abstract]

MANAGEMENT'S PLAN

11. MANAGEMENT'S PLAN

Our long-term strategic objective is to maximize the Company's intrinsic value per share. While we remain focused on reducing our costs through productivity and better processes and a continued emphasis on generating free cash flow, we are dedicated to the strategies that drive our top-line growth.

We recognize that our growth depends upon our ability to continually improve and create new client relationships. In the remainder of fiscal 2015 and beyond, we will continue our focus on sales execution, operational excellence and building strategic partnerships with pharmaceutical and biotechnology companies, to differentiate the Company and create value for our clients and shareholders. We are expanding our marketing efforts by building on the Company's inherent strengths in specialty assay and drug discovery, regulatory excellence, and our Culex® automated sampling system. We continue to visit existing and potential clients in addition to our expanded marketing efforts to increase revenue.

We have taken several steps to strengthen our leadership team in roles that will be vital to helping drive our top line performance. Strengthening the overall leadership team represents an important step forward in the Company's continuing program to build a management team with the depth, experience and dedication to position the Company to deliver profitable growth over the long-term.

In January 2015, we entered into a lease agreement with an initial term of approximately ten years for approximately 51,000 square feet of office, manufacturing and warehouse space located at the Company's headquarters to monetize underutilized space. The lease agreement provides the Company with additional cash of approximately $50 per month during the first year of the initial term to approximately $57 per month during the final year of the initial term. This long term source of cash will help to fund our growth programs. Capital improvements up to approximately $800 have or will be required to relocate manufacturing and update our office and meeting space, of which approximately $300 of the improvements have been completed through June 30, 2015. The relocation and associated improvements will help to create a more lean manufacturing process.

These efforts, combined with the availability of our credit facility with Huntington Bank with substantially more favorable terms than the long-term debt and line of credit it replaced, will enhance our ability to implement our growth plan. We are determined to follow through on the initiatives that support our strategy to strengthen the Company for fiscal 2015 and beyond.