COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jun. 30, 2016

Commitments and Contingencies [Abstract]

Commitments and Contingencies

NOTE 6.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 2022. The lease agreements generally provide for the payment of minimum annual rentals and pro-rata share of taxes and maintenance expenses. Rental expense for all operating leases was $0.3 million for both the three months ended June 30, 2016 and 2015, and $0.8 million for both the nine months ended June 30, 2016 and 2015.    

On June 23, 2015, the Company entered into a facility lease in Bedford, MA for a new corporate headquarters.  The lease is for 20,360 square feet and has a term of 84 months which commenced in January 2016 when the Company moved in.  The monthly rent expense is $42,000.  In conjunction with entering into the lease, the Company was required to deposit $0.2 million into a restricted cash account as collateral for a Letter of Credit, which is included under the caption “Other long-term assets” in our consolidated balance sheets, at June 30, 2016.  Deferred rent of $0.2 million is included under the caption “Other long-term liabilities” in our consolidated balance sheets, at June 30, 2016.  There was no deferred rent at September 30, 2015.  Certain of the Company's facility leases include options to renew.

Royalties

Royalty expense included in cost of software license was $0.3 million and $0.2 million for the three months ended June 30, 2016 and 2015, respectively, and was $0.4 million for both the nine months ended June 30, 2016 and 2015.  Minimum royalty obligations were insignificant for the three and nine months ended June 30, 2016 and 2015.

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.