SUBSEQUENT EVENTS

3 Months Ended

Dec. 31, 2013

Note 9. SUBSEQUENT EVENTS

On January 13, 2014, the Company amended its agreement with MCRC as a result of not being in compliance with a covenant in its Note and Warrant Purchase Agreement with MCRC dated March 30, 2012, as amended, as of August 15, 2013. Under the amendment, the Company received a waiver of non-compliance through September 30, 2014. In addition, certain provisions of the Note and Warrant Purchase Agreement with MCRC were amended including that the Company maintain certain interest coverage ratios. Under the terms of the amendment, the Company expects to be compliant with its covenants through September 30, 2014.

On January 23, 2014, the Company entered into a conditional waiver agreement with SVB as a result of not being in compliance with the covenants in its Loan and Security Agreement with SVB dated March 30, 2012, as amended, as of October 31, 2013 and November 30, 2013. Under the conditional waiver agreement, the Company received a conditional waiver of non-compliance through March 15, 2014. Under the terms of the agreement, the Company expects to be compliant with its covenants through March 15, 2014.

Subsequent events have been evaluated through the date the accompanying condensed consolidated financial statements were issued.