Note 8 - Prepaid Maintenance Agreement

12 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Prepaid Maintenance Agreement Disclosure [Text Block]

8. PREPAID MAINTENANCE AGREEMENT

At March 31, 2011, prepaid expenses included $1,500,000 paid to a third party service provider in connection with the Company’s obligations under a sales contract to a foreign military service to provide repair and maintenance services over an eight year period for products sold thereunder. The total prepaid expense is being amortized on a straight-line basis at an annual rate of $187,500 over the eight-year contract period to correspond with the revenues for these services, and is being recognized as a component of cost of sales. Accordingly, as of September 30, 2015, $187,500 of the total prepayment was classified as a current asset and $468,750 was classified as noncurrent. As of September 30, 2014, $187,500 of the total prepayment was classified as a current asset and $656,250 was classified as noncurrent.