COMMITMENTS AND CONTINGENCIES

6 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 5. COMMITMENTS AND CONTINGENCIES

Leases  

The Company leases various facilities and equipment in the U.S. and overseas under non-cancelable operating leases which expire at various dates through 2016. The lease agreements generally provide for the payment of minimum annual rentals, pro-rata share of taxes and maintenance expenses. Rental expense for all operating leases was approximately $243,000 and $126,000 for the three months ended March 31, 2014 and 2013, respectively, and approximately $478,000 and $269,000 for the six months ended March 31, 2014 and 2013, respectively. Certain of the Company's facility leases include options to renew. 

As of March 31, 2014, future minimum rental commitments under non-cancelable operating leases are as follows (in thousands): 

Years Ending September 30,
Remaining in 2014	$	275
2015		276
2016		207
Total future minimum lease payments	$	758

Royalties

Royalty expense included in cost of software licenses was approximately $79,000 and $32,000 for the three months ended March 31, 2014 and 2013, respectively, and approximately $157,000 and $67,000 for the six months ended March 31, 2014 and 2013, respectively, primarily driven by a new OEM partnership. Minimum royalty obligations were insignificant for the three and six months ended March 31, 2014 and 2013.

Contingencies 

From time to time, the Company is subject to claims and may be party to actions that arise in the normal course of business. The Company is not party to any litigation that management believes will have a material adverse effect on the Company's consolidated financial condition or results of operations.