Note 9 - Accrued and Other Liabilities - Noncurrent

12 Months Ended

Sep. 30, 2014

Current And Noncurrent Accrued Liabilities [Abstract]

Current And Noncurrent Accrued Liabilities [Text Block]

9. ACCRUED AND OTHER LIABILITIES—NONCURRENT

Accrued liabilities consisted of the following:

	September 30,
	2014		2013
Payroll and related	$	3,033,223	$	650,125
Deferred revenue and other		567,639		18,532
Warranty reserve		288,480		189,277
Accrued contract costs		197,034		197,034
Income tax liability		1,600		-
Total	$	4,087,976	$	1,054,968
Other liabilities - noncurrent consisted of the following:
Deferred rent	$	131,719	$	122,627
Extended warranty		25,831		23,482
Total	$	157,550	$	146,109

Payroll and related

Accrued payroll and related consists primarily of accrued bonus and related taxes, vacation and outside commissions at September 30, 2014 and accrued vacation and outside commissions at September 30, 2013.

Deferred Revenue

Deferred revenue at September 30, 2014 included prepayments on current orders scheduled for delivery in the quarter ended December 31, 2014.

Warranty Reserve

Details of the estimated warranty reserve were as follows:

	Years ended September 30,
	2014			2013
Beginning balance	$	212,759		$	204,313
Warranty provision		157,819			19,254
Warranty settlements		(56,267	)		(10,808	)
Ending balance	$	314,311		$	212,759

	September 30,
	2014		2013
Short-term warranty reserve	$	288,480	$	189,277
Long-term warranty reserve		25,831		23,482
	$	314,311	$	212,759

The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenue is recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. In the fiscal year ended September 30, 2014, the Company increased its reserve by $101,552, primarily due to increased units sold.

Accrued contract costs

Accrued contract costs consist of accrued expenses for contracting a third party service provider to fulfill repair and maintenance obligations required under a contract through 2019 with a foreign military for units sold in the year ended September 30, 2011. Payments to the service provider will be made annually upon completion of each year of service. These services are being recorded in cost of revenues to correspond with the revenues for these services.