Note 9 - Commitments and Contingencies

6 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9.

COMMITMENTS AND CONTINGENCIES

Litigation

The Company

may

at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in management’s estimation, record adequate reserves in the Company’s consolidated financial statements for pending litigation. Currently, there are no pending material legal proceedings to which the Company is a party or to which any of its property is subject.

Bonus Plan

The Company has an incentive bonus plan for fiscal year

2017

designed to motivate its employees to achieve the Company’s financial objectives. All of the Company’s employees are entitled to participate in the incentive plan. Target Bonus Amounts (“Target”) vary based on a percentage of the employee’s base salary which range from

10%

to

75%

of base salary and a bonus payment

may

be made at

three

levels, including at

50%

of Target, at

100%

of Target and at

200%

of Target, depending upon the achievement by the Company of specified performance goals. Performance targets include certain fiscal

2017

metrics, including bookings, net revenues, operating income and operating cash flow, depending on the employee’s position.

Included in such calculation is the cost of the incentive plan. During the

six

months ended

March

31,

2017

and

2016,

the Company accrued

$379,080

and

$0,

respectively, for bonuses and related payroll tax expenses in connection with the bonus plans.