Track (TRCK) 10-Q 9 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 08, 2016
Document and Entity Information:
Entity Registrant Name	TRACK GROUP, INC.
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Entity Central Index Key	1,045,942
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		10,261,288
Trading Symbol	TRCK
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash	$ 2,473,025	$ 4,903,045
Accounts receivable, net of allowance for doubtful accounts of $4,356,817 and $4,150,000, respectively	6,700,733	6,044,931
Note receivable, current portion	315,533	306,434
Prepaid expenses and other	1,397,023	1,266,277
Inventory, net of reserves of $173,150 and $225,900, respectively	610,190	741,514
Total current assets	11,496,504	13,262,201
Property and equipment, net of accumulated depreciation of $2,966,034 and $2,822,166, respectively	1,538,395	1,697,630
Monitoring equipment, net of accumulated amortization of $2,553,113 and $2,225,480, respectively	3,358,424	2,784,595
Intangible assets, net of accumulated amortization of $6,253,294 and $5,628,308, respectively	25,663,766	25,884,087
Other assets	2,545,571	2,619,035
Goodwill	7,753,269	7,782,903
Total assets	52,355,929	54,030,451
Current liabilities:
Accounts payable	2,511,156	2,363,441
Accrued liabilities	3,245,008	2,705,403
Current portion of long-term debt, net of discount of $222,973 and $222,973, respectively	224,506	796,225
Total current liabilities	5,980,670	5,865,069
Stock payable - related party	3,501,410	3,501,410
Long-term debt, net of current portion and discount of $353,041 and $408,784, respectively	$ 30,221,765	30,189,188
Other long-term liabilities		106,671
Total liabilities	$ 39,703,845	39,662,338
Stockholders' equity:
Common stock, $0.0001 par value: 15,000,000 shares authorized; 10,261,288 shares outstanding	1,026	1,026
Additional paid-in capital	297,787,148	297,591,034
Accumulated deficit	(282,973,120)	(280,845,882)
Accumulated other comprehensive loss	(2,162,970)	(2,378,065)
Total equity	12,652,084	14,368,113
Total liabilities and stockholders' equity	$ 52,355,929	$ 54,030,451

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Allowance for doubtful accounts	$ 4,356,817	$ 4,150,000
Reserve for damaged or obsolete inventory	173,150	225,900
Property and equipment accumulated depreciation	2,966,034	2,822,166
Monitoring equipment accumulated amortization	2,553,113	2,225,480
Intangible assets accumulated amortization	6,253,294	5,628,308
Current debt, discount		222,973
Long-term debt, discount	$ 353,041	$ 408,784
Series D 8% dividend, convertible, voting - par value	$ .0001
Series D 8% dividend, convertible, voting - shares designated	20,000,000
Series D 8% dividend, convertible, voting - shares outstanding	0
Common stock - par value	$ 0.001
Common stock - shares authorized	15,000,000
Common stock - shares outstanding	10,261,288
Series D Preferred Stock [Member]
Series D 8% dividend, convertible, voting - par value	$ 0.001
Series D 8% dividend, convertible, voting - shares designated	85,000
Series D 8% dividend, convertible, voting - shares outstanding	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Products	$ 90,918	$ 91,589
Monitoring services	5,957,426	4,501,680
Other	269,260	27,350
Total revenues	6,317,604	4,620,619
Cost of revenues:
Products	95,261	21,357
Monitoring and other related services	1,784,951	1,628,180
Depreciation and amortization included in cost of revenues	488,967	340,550
Impairment of monitoring equipment and parts (Note 4)	60,000	55,080
Total cost of revenues	2,429,179	2,045,167
Gross profit	3,888,425	2,575,452
Operating expenses:
General & administrative	3,411,643	2,674,992
Selling & marketing	620,029	422,789
Research & development	547,159	464,178
Depreciation & amortization	700,035	641,900
Loss from operations	(1,390,441)	$ (1,628,407)
Other income (expense):
Loss on disposal of equipment	(33,805)
Interest expense, net	694,508	$ 672,491
Currency exchange rate gain (loss)	(18,149)	80,562
Other income, net	9,665	5,121
Net loss attributable to common stockholders	(2,127,238)	(2,215,215)
Foreign currency translation adjustments	215,095	(626,878)
Comprehensive Loss	$ (1,912,143)	$ (2,842,093)
Net loss per common share, basic and diluted	$ (0.21)	$ (0.22)
Weighted average common shares outstanding, basic and diluted	10,261,288	10,108,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (2,127,238)	$ (2,215,215)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,189,003	982,450
Impairment of monitoring equipment and parts	60,000	$ 55,080
Bad debt expense	199,854
Amortization of debt discount	55,743	$ 89,821
Stock based compensation	159,469
Vesting and re-pricing of stock options	196,114	$ 75,082
Loss on disposal of property and equipment	$ 33,805
Loss on disposal of monitoring equipment included on cost of sales		$ 12,575
Change in assets and liabilities:
Accounts receivable, net	$ (836,330)	(2,041,899)
Notes receivable	(9,099)	(7,667)
Inventories	131,348	(403,794)
Prepaid expenses and other assets	(76,313)	(182,680)
Accounts payable	146,921	694,958
Accrued expenses	$ 418,593	450,615
Deferred revenue		(10,792)
Net cash used in operating activities	$ (458,130)	(2,501,466)
Cash flow from investing activities:
Purchase of property and equipment	(46,970)	$ (2,317)
Capitalized software	(442,578)
Purchase of monitoring equipment and parts	$ (898,500)	$ (837,014)
Payment related to acquisition		(1,937,902)
Net cash used in investing activities	$ (1,388,048)	(2,777,233)
Cash flow from financing activities:
Principal payments on notes payable	(587,608)	(598,251)
Net cash used in financing activities	(587,608)	(598,251)
Effect of exchange rate changes on cash	3,766	(36,290)
Net decrease in cash	(2,430,020)	(5,913,240)
Cash, beginning of period	4,903,045	11,101,822
Cash, end of period	$ 2,473,025	5,188,582
Cash paid for interest		7,519
Supplemental schedule of non-cash investing and financing activities:
Issuance of stock for the acquisition of a subsidiary and milestone achievement		9,427
Series D Preferred stock dividends earned		$ 9,427
Issuance of warrants for accrued Board of Director fees	$ 84,912
Issuance of common shares for the acquisition of a subsidiary	531,900
Issuance of common shares in recognition of certain milestone achievements	$ 616,841

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Basis of Presentation	The unaudited interim condensed consolidated financial information of Track Group, Inc. and subsidiaries (collectively, the “ Company Track Group SEC GAAP

Principles of Consolidation

Principles of Consolidation	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Principles of Consolidation	The condensed consolidated financial statements include the accounts of Track Group and its subsidiaries. All significant inter-company transactions have been eliminated in consolidation. Certain prior year amounts on the consolidated statement of operations have been reclassified to conform to the current period presentation. These reclassifications have no impact on the previously reported net loss.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Recently Issued Accounting Standards	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ ASU 2015-17 In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (“ ASU 2015-16 In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, (“ ASU 2015-11 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, (“ ASU 2015-03 In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ ASU 2014-09

Impairment of Long-lived Assets

Impairment of Long-lived Assets	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Impairment of Long-lived Assets	The Company reviews its long-lived assets for impairment when events or changes in circumstances indicate that the book value of an asset may not be recoverable and in the case of goodwill, at least annually. The Company evaluates whether events and circumstances have occurred which indicate possible impairment as of each balance sheet date. If the carrying amount of an asset exceeds its fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there is an identifiable fair value that is independent of other groups of assets. The Company recorded $60,000 and $55,080 of impairment expenses related to monitoring equipment for the three months ended December 31, 2015 and 2014, respectively.

Business Combinations

Business Combinations	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Business Combinations	The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in ASC 805, Business Combinations, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed, and any non-controlling interest in the acquiree; and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and non-controlling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with ASC 805, the Company recognizes and measures goodwill as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired. Acquired Assets and Assumed Liabilities Pursuant to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the Company retrospectively adjusts the provisional amounts recognized at the acquisition date, by means of adjusting the amount recognized for goodwill. Contingent Consideration In certain acquisitions, the Company agrees to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated future goals, such as targeted earnings levels. The Company records contingent consideration based on its estimated fair value as of the date of the acquisition. The Company evaluates and adjusts the value of contingent consideration, if necessary, at each reporting period based on the progress toward and likely achievement of certain targets on which issuance of the contingent consideration is based. Any differences between the acquisition-date fair value and the changes in fair value of the contingent consideration subsequent to the acquisition date are recognized in current period earnings until the arrangement is settled.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Accumulated Other Comprehensive Loss	Comprehensive loss includes net loss as currently reported under U.S. GAAP and other comprehensive loss. Other comprehensive loss considers the effects of additional economic events, such as foreign currency translation adjustments, that are not required to be recorded in determining net loss, but rather are reported as a separate component of stockholders’ equity. The Chilean Peso, New Israeli Shekel and the Canadian Dollar are used as functional currencies of the following operating subsidiaries: (i) Track Group Chile SpA; (ii) Track Group International Ltd.; and (iii) Track Group Analytics Limited, respectively. The balance sheets of all subsidiaries have been converted into United States Dollars (USD) at the exchange rate prevailing at December 31, 2015.

Net Loss Per Common Share

Net Loss Per Common Share	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Net Loss Per Common Share	Basic net loss per common share (" Basic EPS Diluted net loss per common share (" Diluted EPS Common share equivalents consist of shares issuable upon the exercise of common stock options and warrants, and shares issuable upon conversion of preferred stock. As of December 31, 2015 and 2014, there were 411,390 and 323,251 outstanding common share equivalents, respectively, that were not included in the computation of Diluted EPS for the three months ended December 31, 2015 and 2014, respectively as their effect would be anti-dilutive. The common stock equivalents outstanding as of December 31, 2015 and 2014 consisted of the following: December 31, 2015 December 31, 2014 Exercise of outstanding common stock options and warrants 411,390 281,251 Exercise and conversion of outstanding Series D Preferred warrants – 42,000 Total common stock equivalents 411,390 323,251

Acquisition

Acquisition	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
ACQUISITION	GPS Global On March 12, 2014, the Company entered into a Share Purchase Agreement to purchase from Eli Sabag, a resident of the State of Israel, all of the issued and outstanding shares of GPS Global Tracking and Surveillance System Ltd., an Israeli company (" GPS Global "). Subsequent to the closing, Mr. Sabag and certain key employees of GPS Global entered into employment agreements and continue to operate GPS Global. Subsequently, the Company changed the name of GPS Global to Track Group Interantional Ltd. The purchase price for the issued and outstanding shares of GPS Global was $7,811,404, payable in cash and shares of the Company's common stock as follows: (i) $311,404 in cash to Mr. Sabag; and (ii) shares of the Company common stock valued at $7,500,000 of which common stock valued at $1,600,000 was paid to Mr. Sabag at closing. An additional amount of common stock valued at $2,900,000 was held in escrow for six months from closing before being released to Mr. Sabag. Common stock valued at $3,000,000 could be earned by Mr. Sabag based on specific milestones over a period of two years from the date of closing. The total purchase price for the GPS Global acquisition was allocated to the net tangible and intangible assets based upon their fair values as of June 30, 2014. The excess of the purchase price over the net assets was recorded as goodwill. This acquisition provided the Company with additional research and development capabilities and enhanced technology which benefits current and future products. Track Group Analytics Limited On November 26, 2014, the Company entered into a Share Purchase Agreement to purchase from the shareholders of Track Group Analytics Limited, formerly G2 Research Limited (“ TGA TGA Acquisition During the third quarter of fiscal 2015, the Company received the final valuation report for the TGA Acquisition. The Consolidated Balance Sheet at December 31, 2015 has been retrospectively adjusted to include the effect of the measurement period adjustments as required under ASC 805, Business Combinations, (“ ASC 805 The fair value of patents, developed technology, customer contracts/relationship, tradename and trademarks were capitalized as of the acquisition date and will be subsequently amortized using a straight-line method to depreciation and amortization expense over their estimated useful lives. Summary of Unaudited Pro-Forma Information The unaudited pro-forma information below for the three months ended December 31, 2015 and 2014 gives effect to each of the acquisitions described herein as, if the acquisitions had occurred on October 1, 2013. The pro-forma financial information is not necessarily indicative of the results of operations if the acquisitions had been effective as of this date. Three Months Ended December 31, 2015 2014 Revenues $ 6,317,604 $ 4,976,416 Loss from operations (1,390,441 ) (1,513,379 ) Net loss attributable to the Company (2,127,238 ) (1,944,824 ) Basic income per share (0.21 ) (0.19 ) Diluted income per share (0.21 ) (0.19 ) Net loss attributable to common shareholders (2,127,238 ) (1,924,388 ) Basic income per share (0.21 ) (0.19 ) Diluted income per share (0.21 ) (0.19 )

Prepaid and Other Expenses

Prepaid and Other Expenses	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Prepaid and Other Expenses	The carrying amounts reported in the balance sheets for prepaid expenses and other current assets approximate their fair market value based on the short-term maturity of these instruments. As of December 31, 2015 and September 30, 2015, the outstanding balance of prepaid and other expenses was $1,397,023 and $1,266,277, respectively. The $1,397,023 as of December 31, 2015 is comprised primarily of prepayments toward inventory purchases, deposits and other prepaid expenses.

Inventory

Inventory	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Inventory	Inventory is valued at the lower of the cost or market. Cost is determined using the first-in, first-out (“ FIFO Inventory consists of finished goods that are sold to customers and used for minor repairs of ReliAlert(TM), Shadow, and other tracking devices. Completed ReliAlert(TM), and other tracking devices are reflected in Monitoring Equipment. As of December 31, 2015 and September 30, 2015, respectively, inventory consisted of the following: December 31, September 30, 2015 2015 Finished goods inventory $ 783,340 $ 967,414 Reserve for damaged or obsolete inventory (173,150 ) (225,900 ) Total inventory, net of reserves $ 610,190 $ 741,514

Property and Equipment

Property and Equipment	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Property and Equipment	Property and equipment as of December 31, 2015 and September 30, 2015, were as follows: December 31, September 30, 2015 2015 Equipment, software and tooling $ 2,718,607 $ 2,823,685 Automobiles 33,466 33,466 Leasehold improvements 1,344,283 1,351,017 Furniture and fixtures 408,073 311,628 Total property and equipment before accumulated depreciation 4,504,429 4,519,796 Accumulated depreciation (2,966,034 ) (2,822,166 ) Property and equipment, net of accumulated depreciation $ 1,538,395 $ 1,697,630 Depreciation expense recognized for property and equipment for the three months ended December 31, 2015 and 2014 was $176,088 and $170,907, respectively.

Monitoring Equipment

Monitoring Equipment	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Monitoring Equipment	Monitoring equipment as of December 31, 2015 and September 30, 2015, was as follows: December 31, September 30, 2015 2015 Monitoring equipment $ 5,911,537 $ 5,010,075 Less: accumulated amortization (2,553,113 ) (2,225,480 ) Monitoring equipment, net of accumulated depreciation $ 3,358,424 $ 2,784,595 The Company began leasing monitoring equipment to agencies for offender tracking in April 2006 under operating lease arrangements. The monitoring equipment is amortized using the straight-line method over an estimated useful life of three to five years. Depreciation of monitoring equipment for the three months ended December 31, 2015 and 2014 was $376,467 and $228,050, respectively. These expenses were recognized in cost of revenues.

Intangible Assets

Intangible Assets	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Intangible Assets	The following table summarizes the activity of intangible assets for the first fiscal quarter ended December 31, 2015: December 31, 2015 September 30, 2015 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Technology 7,841,454 7,442,186 Customer relationships 2,516,140 2,538,496 Trade name 310,700 310,762 Website 78,201 50,386 Total intangible assets 31,917,060 31,512,395 Accumulated amortization (6,253,294 ) (5,628,308 ) Intangible assets, net of accumulated amortization $ 25,663,766 $ 25,884,087 The intangible assets summarized above were purchased on various dates from January 2010 through December 2015. The assets have useful lives ranging from three to ten years. Amortization expense for the three months ended December 31, 2015 and 2014 was $523,948 and $470,993, respectively.

Goodwill

Goodwill	3 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The following table summarizes the activity of goodwill at December 31 and September 30, 2015, respectively: December 31, September 30, 2015 2015 Balance - beginning of year $ 7,782,903 $ 6,577,609 Additions resulting from acquisitions: Acquisition of Track Group Analytics Limited - 1,653,815 Effect of foreign currency translation on goodwill (29,634 ) (448,521 ) Balance - end of year $ 7,753,269 $ 7,782,903 Goodwill was recognized in connection to acquisition transactions in accordance with ASC 805. The Company performs an impairment test for goodwill annually or more frequently if indicators of potential impairment exist. No impairment of goodwill had been recognized through December 31, 2015.

Other Assets

Other Assets	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Other Assets	As of December 31, 2015 and September 30, 2015, the outstanding balance of other assets was $2,545,571 and $2,619,035, respectively. The $2,545,571 balance of other assets is comprised largely of a large performance bond for an international customer. The Company anticipates this restricted cash will be unrestricted and available to the Company in March 2018.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Accrued Expenses	Accrued expenses consisted of the following as of December 31, 2015 and September 30, 2015: December 31, September 30, 2015 2015 Accrued royalties $ 7,077 $ 7,077 Accrued payroll, taxes and employee benefits 1,349,882 1,154,168 Accrued consulting 6,570 367,906 Accrued taxes - foreign and domestic 80,530 93,407 Accrued settlement costs 30,000 30,000 Accrued board of directors fees 249,749 248,830 Accrued other expenses 118,563 69,478 Accrued legal costs 58,957 50,000 Accrued cellular costs 43,692 20,000 Accrued outside services 85,057 32,067 Accrued warranty and manufacturing costs - 39,050 Accrued interest 1,214,931 593,420 Total accrued expenses $ 3,245,008 $ 2,705,403

Debt Obligations

Debt Obligations	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Debt Obligations	On July 14, 2015, we entered into an Amended and Restated Facility Agreement (the “ Amended Facility Agreement Conrent On September 25, 2015, the Company entered into a Loan Agreement (the “ Loan Agreement Sapinda Maturity Date Debt obligations as of December 31, 2015 and September 30, 2015, respectively, are comprised of the following: December 31, September 30, 2015 2015 Unsecured facility agreement of up to $30.4 million bearing interest at a rate of 8% per annum, with all principal and accrued and unpaid interest due on July 31, 2018. An orgination fee was paid, recognized as a debt discount and is being amortized as interest expense over the term of the loan. As of December 31, 2015, the remaining debt discount was $576,014. $ 29,823,986 $ 29,768,243 Related party unsecured line of credit whereby the Company can borrow up to $5 million at 8% per annum on borrowed funds maturing on September 30, 2017. - - The Company entered into an agreement whereby the Company was granted a non-exclusive, irrevocable, perpetual and royalty-free license to certain patents with an entity. The Company agreed to pay $4,500,000 over two years or $187,500 per month through February 2016. 375,000 937,500 Capital lease of office equipment maturing in August 2019. 22,679 24,754 Non-interest bearing notes payable to a governmental agency assumed in conjunction with the G2 acquisition. 224,606 254,917 Total debt obligations 30,446,271 30,985,414 Less current portion (224,506 ) (796,225 ) Long-term portion of related party debt - - Long-term debt, net of current portion $ 30,221,765 $ 30,189,189 The following table summarizes the Company’s future maturities of debt obligations, net of the amortization of debt discounts as of December 31, 2015: Fiscal Year Total 2016 431,122 2017 65,428 2018 30,452,787 2019 40,125 2020 31,234 Thereafter 1,589 Debt discount (576,014 ) Total $ 30,446,271 In connection with the TGA Acquisition, as described in Note 8 above, the Company assumed three notes payable to the Atlantic Canada Opportunities Agency (“ ACOA

Related-party Transactions

Related-party Transactions	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Related-party Transactions	Related-Party Loan Agreement On September 25, 2015, the Company entered into a loan agreement with Sapinda Asia, a significant shareholder, to provide the Company with a $5.0 million line of credit that accrues interest at a rate of 3% per annum for undrawn funds and 8% per annum for borrowed funds. Pursuant to the terms and conditions of the loan agreement, available funds may be drawn down at the Company’s request at any time until the loan agreement matures on September 30, 2017, when all borrowed funds, plus all accrued but unpaid interest will become due and payable. The Company, however, may elect to satisfy any outstanding obligations under the loan agreement prior to the maturity date without penalties or fees. Stock Payable – Related Party In connection with the acquisitions in prior years described under Note 8 above, the Company recognized a liability for stock payable to the former owners of the entities acquired. In conjunction with the respective purchase agreements, shares of the Company’s stock are payable based on the achievement of certain milestones. Changes in the stock payable liability are shown below: December 31, September 30, 2015 2015 Beginning balance $ 3,501,410 $ 3,000,000 Stock payable resulting from the acquisition of GPS Global - - Stock payable resulting from the acquisition of Track Group Analytics - 1,170,000 Payment of shares for achieving performance milestones - (668,590 ) Ending balance $ 3,501,410 $ 3,501,410 Each of the foregoing related-party transactions was reviewed and approved by disinterested and independent members of the Company's Board of Directors.

Preferred Stock

Preferred Stock	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Preferred Stock	The Company is authorized to issue up to 20,000,000 shares of preferred stock, $0.0001 par value per share. The Company's Board of Directors has the authority to amend the Company's Articles of Incorporation, without further shareholder approval, to designate and determine, in whole or in part, the preferences, limitations and relative rights of the preferred stock before any issuance of the preferred stock and to create one or more series of preferred stock. As of December 31, 2015, there were no shares of preferred stock outstanding. Series D Preferred Stock Warrants During the year ended September 30, 2015, the Company purchased 42,000 warrants to purchase shares of Series D Preferred for $10,500 in cash. As of December 31, 2015, zero warrants to purchase shares of Series D Preferred were issued and outstanding. During the three months ended December 31, 2015, the Company did not issue any shares common stock.

Stock Options and Warrants

Stock Options and Warrants	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Stock Options and Warrants	Stock Incentive Plan At the annual meeting of shareholders on December 21, 2011, the shareholders approved the 2012 Equity Compensation Plan (the “ 2012 Plan All Options and Warrants The fair value of each stock option and warrant grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company did not grant options or warrants to purchase common or preferred stock during the three months ended December 31, 2014. During the three months ended December 31, 2015, the Company granted 40,261 warrants to purchase shares of common stock. These warrants vested immediately and expire two years from grant date. The Company recorded $95,968 and $75,082 of expense for the three months ended December 31, 2015 and 2014, respectively, related to the issuance and vesting of outstanding stock options and warrants. The option and warrant grants for three months ended December 31, 2015 were valued using the Black-Scholes model with the following weighted-average assumptions: Three Months Ended December 31 2015 2014 Expected stock price volatility 51% N/A (1) Risk-free interest rate 0.64% N/A (1) Expected life of options/warrants 2 years N/A (1) (1) This information was deemed not applicable (N/A) since no options or warrants to purchase common stock were granted during the three months ended December 31, 2014. The expected life of stock options (warrants) represents the period of time that the stock options or warrants are expected to be outstanding based on the simplified method allowed under GAAP. The expected volatility is based on the historical price volatility of the Company’s common stock. The risk-free interest rate represents the U.S. Treasury bill rate for the expected life of the related stock options (warrants). The dividend yield represents the Company’s anticipated cash dividends over the expected life of the stock options (warrants). A summary of stock option activity for the three months ended December 31, 2015 is presented below: Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2015 381,656 $ 15.71 Granted 40,261 $ 11.17 Expired (10,527 ) $ 23.99 Exercised - $ - Outstanding as of December 31, 2015 411,390 $ 11.64 1.28 years $ - Exercisable as of December 31, 2015 411,390 $ 11.64 1.28 years $ - The intrinsic value of options outstanding and exercisable is based on the Company’s share price of $5.95 at December 31, 2015.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies	Legal Matters We are, from time to time, involved in various legal proceedings incidental to the conduct of our business. Historically, the outcome of all such legal proceedings has not, in the aggregate, had a material adverse effect on our business, financial condition, results of operations or liquidity. Other than as set forth below, there are no additional pending or threatened legal proceedings at this time. Lazar Leybovich et al. v. SecureAlert, Inc. Boggs et al. v. Judicial Electronic Monitoring, SecureAlert, Inc. et al.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Subsequent Events	The Company evaluated subsequent events through the date the accompanying consolidated financial statements were issued. Subsequent to December 31, 2015, the following events occurred: The holder of a majority of the Company’s voting stock executed a written consent approving an amendment (the “ Amendment Articles of Incorporation Effective January 1, 2016, Karen Macleod joined the Board of Directors of the Company. As disclosed in the Current Report on Form 8-K filed January 5, 2016, Ms. Macleod is the former President of Tatum LLC, a New York-based professional services firm owned by Randstad, a position she served in from 2011-2014. Prior to her time with Tatum, Ms. Macleod was a co-founder of Resources Connection (NASDAQ:RECN), now known as RGP, a multinational professional services firm founded as a division of Deloitte in June 1996. Ms. Macleod served in several positions for RGP, including as a director from 1999-2009 and President, North America from 2004-2009. Prior to RGP, Ms. Macleod held several positions in the audit department of Deloitte between 1985-1994. Ms. Macleod currently serves as a director for A-Connect (Schweiz) AG, a privately held, Swiss-based global professional services firm and was a director for Overland Solutions from 2006-2013. Ms. Macleod holds a Bachelor of Science in Business/Managerial Economics from the University of California, Santa Barbara. There are no related party transactions between the Company and Ms. Macleod that would require disclosure under Item 404(a) of Regulation S-K, nor are there any arrangements or understandings in connection with Ms. Macleod’s appointment to the Board.

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Dec. 31, 2015
Net Loss Per Common Share Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	December 31, 2015 December 31, 2014 Exercise of outstanding common stock options and warrants 411,390 281,251 Exercise and conversion of outstanding Series D Preferred warrants – 42,000 Total common stock equivalents 411,390 323,251

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Dec. 31, 2015
Acquisitions Tables
Summary of Unaudited Pro-forma Information	Three Months Ended December 31, 2015 2014 Revenues $ 6,317,604 $ 4,976,416 Loss from operations (1,390,441 ) (1,513,379 ) Net loss attributable to the Company (2,127,238 ) (1,944,824 ) Basic income per share (0.21 ) (0.19 ) Diluted income per share (0.21 ) (0.19 ) Net loss attributable to common shareholders (2,127,238 ) (1,924,388 ) Basic income per share (0.21 ) (0.19 ) Diluted income per share (0.21 ) (0.19 )

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Dec. 31, 2015
Inventory Tables
Schedule of Inventory, Current	December 31, September 30, 2015 2015 Finished goods inventory $ 783,340 $ 967,414 Reserve for damaged or obsolete inventory (173,150 ) (225,900 ) Total inventory, net of reserves $ 610,190 $ 741,514

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Schedule of Property and Equipment	December 31, September 30, 2015 2015 Equipment, software and tooling $ 2,718,607 $ 2,823,685 Automobiles 33,466 33,466 Leasehold improvements 1,344,283 1,351,017 Furniture and fixtures 408,073 311,628 Total property and equipment before accumulated depreciation 4,504,429 4,519,796 Accumulated depreciation (2,966,034 ) (2,822,166 ) Property and equipment, net of accumulated depreciation $ 1,538,395 $ 1,697,630

Monitoring Equipment (Tables)

Monitoring Equipment (Tables)	3 Months Ended
	Dec. 31, 2015
Monitoring Equipment Tables
Schedule Of Monitoring Property And Equipment	December 31, September 30, 2015 2015 Monitoring equipment $ 5,911,537 $ 5,010,075 Less: accumulated amortization (2,553,113 ) (2,225,480 ) Monitoring equipment, net of accumulated depreciation $ 3,358,424 $ 2,784,595

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2015
Intangible Assets Tables
Schedule of Intangible Assets	December 31, 2015 September 30, 2015 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Technology 7,841,454 7,442,186 Customer relationships 2,516,140 2,538,496 Trade name 310,700 310,762 Website 78,201 50,386 Total intangible assets 31,917,060 31,512,395 Accumulated amortization (6,253,294 ) (5,628,308 ) Intangible assets, net of accumulated amortization $ 25,663,766 $ 25,884,087

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	December 31, September 30, 2015 2015 Balance - beginning of year $ 7,782,903 $ 6,577,609 Additions resulting from acquisitions: Acquisition of Track Group Analytics Limited - 1,653,815 Effect of foreign currency translation on goodwill (29,634 ) (448,521 ) Balance - end of year $ 7,753,269 $ 7,782,903

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Dec. 31, 2015
Accrued Expenses Tables
Schedule Of Accrued Expenses	December 31, September 30, 2015 2015 Accrued royalties $ 7,077 $ 7,077 Accrued payroll, taxes and employee benefits 1,349,882 1,154,168 Accrued consulting 6,570 367,906 Accrued taxes - foreign and domestic 80,530 93,407 Accrued settlement costs 30,000 30,000 Accrued board of directors fees 249,749 248,830 Accrued other expenses 118,563 69,478 Accrued legal costs 58,957 50,000 Accrued cellular costs 43,692 20,000 Accrued outside services 85,057 32,067 Accrued warranty and manufacturing costs - 39,050 Accrued interest 1,214,931 593,420 Total accrued expenses $ 3,245,008 $ 2,705,403

Debt Obligations (Tables)

Debt Obligations (Tables)	3 Months Ended
	Dec. 31, 2015
Debt Obligations Tables
Schedule of Debt	December 31, September 30, 2015 2015 Unsecured facility agreement of up to $30.4 million bearing interest at a rate of 8% per annum, with all principal and accrued and unpaid interest due on July 31, 2018. An orgination fee was paid, recognized as a debt discount and is being amortized as interest expense over the term of the loan. As of December 31, 2015, the remaining debt discount was $576,014. $ 29,823,986 $ 29,768,243 Related party unsecured line of credit whereby the Company can borrow up to $5 million at 8% per annum on borrowed funds maturing on September 30, 2017. - - The Company entered into an agreement whereby the Company was granted a non-exclusive, irrevocable, perpetual and royalty-free license to certain patents with an entity. The Company agreed to pay $4,500,000 over two years or $187,500 per month through February 2016. 375,000 937,500 Capital lease of office equipment maturing in August 2019. 22,679 24,754 Non-interest bearing notes payable to a governmental agency assumed in conjunction with the G2 acquisition. 224,606 254,917 Total debt obligations 30,446,271 30,985,414 Less current portion (224,506 ) (796,225 ) Long-term portion of related party debt - - Long-term debt, net of current portion $ 30,221,765 $ 30,189,189
Schedule of Maturities of Long-term Debt	Fiscal Year Total 2016 431,122 2017 65,428 2018 30,452,787 2019 40,125 2020 31,234 Thereafter 1,589 Debt discount (576,014 ) Total $ 30,446,271

Related-party Transactions (Tab

Related-party Transactions (Tables)	3 Months Ended
	Dec. 31, 2015
Related-party Transactions Tables
Stock payable - related party	December 31, September 30, 2015 2015 Beginning balance $ 3,501,410 $ 3,000,000 Stock payable resulting from the acquisition of GPS Global - - Stock payable resulting from the acquisition of Track Group Analytics - 1,170,000 Payment of shares for achieving performance milestones - (668,590 ) Ending balance $ 3,501,410 $ 3,501,410

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	3 Months Ended
	Dec. 31, 2015
Stock Options And Warrants Tables
Schedule of Valuation Assumptions	Three Months Ended December 31 2015 2014 Expected stock price volatility 51% N/A (1) Risk-free interest rate 0.64% N/A (1) Expected life of options/warrants 2 years N/A (1)
Schedule of Stock Option activity	Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2015 381,656 $ 15.71 Granted 40,261 $ 11.17 Expired (10,527 ) $ 23.99 Exercised - $ - Outstanding as of December 31, 2015 411,390 $ 11.64 1.28 years $ - Exercisable as of December 31, 2015 411,390 $ 11.64 1.28 years $ -

Impairment Of Long-Lived Asse39

Impairment Of Long-Lived Assets (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Impairment Of Long-lived Assets Details Narrative
Impairment expenses	$ 60,000	$ 55,080

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stock equivalents excluded from computation of Diluted EPS	411,390	323,251
Options and Warrants [Member[
Stock equivalents excluded from computation of Diluted EPS	411,390	42,000
Warrant [Member] | Series D Preferred Stock [Member]
Stock equivalents excluded from computation of Diluted EPS		281,251

Net Loss Per Common Share (De41

Net Loss Per Common Share (Details Narrative) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net Loss Per Common Share Details Narrative
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	411,390	323,251

Acquisitions (Details)

Acquisitions (Details) - Pro Forma [Member] - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pro Forma Information
Revenues	$ 6,317,604	$ 4,976,416
Loss from Operations	(1,390,441)	(1,513,379)
Net loss attributable to the Company	$ (2,127,238)	$ (1,944,824)
Basic income per share	$ (.21)	$ (.19)
Diluted income per share	$ (.21)	$ (.19)
Net loss attributable to common shareholders	$ (2,127,238)	$ (1,924,388)
Basic income per share	$ (.21)	$ (.19)
Diluted income per share	$ (.21)	$ (.19)

Acquisitions (Details Narrative

Acquisitions (Details Narrative) - USD ($)	Mar. 12, 2014	Nov. 26, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Mar. 14, 2015
Revenues			$ 6,317,604	$ 4,620,619
TrackGroup [Member]
Cash to seller		$ 2,000,000
Total common stock		600,000			$ 38,499
Goodwill			1,653,000		1,653,000
Revenues			81,700
TrackGroup [Member] | Scenario Adjustment [Member]
Goodwill			(2,384,000)		(2,384,000)
Other intangibles			$ (1,817,000)		(1,817,000)
TrackGroup [Member] | Shareholder
Total common stock					$ 63,777
TrackGroup [Member] | Maximum [Member]
Purchase price		4,600,000
TrackGroup [Member] | Closing [Member]
Total common stock		$ 38,499
GPS Global [Member]
Purchase price	$ 7,811,404
Total common stock	7,500,000
Common stock delivered to escrow agent						$ 2,900,000
GPS Global [Member] | Sabag [Member]
Cash to seller	311,404
Total common stock	$ 1,600,000
Common stock liability	3,000,000

Prepaid and Other Expenses (Det

Prepaid and Other Expenses (Details Narrative) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Prepaid And Other Expenses Details Narrative
Prepaid expenses and other	$ 1,397,023	$ 1,266,277

Inventory (Details)

Inventory (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Inventory Details
Finished goods inventory	$ 783,340	$ 967,414
Reserve for damaged or obsolete inventory	(173,150)	(225,900)
Total inventory, net of reserves	$ 610,190	$ 741,514

Property And Equipment (Details

Property And Equipment (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Property And Equipment Details
Equipment, software and tooling	$ 2,718,607	$ 2,823,685
Automobiles	33,466	33,466
Leasehold Improvements	1,344,283	1,351,017
Furniture And Fixtures	408,073	311,628
Total property and equipment before accumulated depreciation	4,504,429	4,519,796
Accumulated Depreciation	(2,966,034)	(2,822,166)
Property and equipment, net of accumulated depreciation	$ 1,538,395	$ 1,697,630

Property And Equipment (Detai47

Property And Equipment (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property And Equipment Details
Depreciation	$ 176,088	$ 170,907

Monitoring Equipment (Details)

Monitoring Equipment (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Monitoring Equipment Details
Monitoring equipment	$ 5,911,537	$ 5,010,075
Less: accumulated amortization	(2,553,113)	(2,225,480)
Monitoring equipment, net of accumulated amortization	$ 3,358,424	$ 2,784,595

Monitoring Equipment (Details N

Monitoring Equipment (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Depreciation Expense	$ 376,467	$ 228,050
MinimumMember
Monitoring equipment useful life	3 years
Maximum [Member]
Monitoring equipment useful life	5 years

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Intangible assets:
Intangible assets	$ 31,917,060	$ 31,512,395
Accumulated amortization	(6,253,294)	(5,628,308)
Intangible assets, net of accumulated amortization	25,663,766	25,884,087
Patent & Royalty agreements [Member]
Intangible assets:
Intangible assets	21,170,565	21,170,565
Technology [Member]
Intangible assets:
Intangible assets	7,841,454	7,442,186
Customer Relationships [Member]
Intangible assets:
Intangible assets	2,516,140	2,538,496
Trade Name [Member]
Intangible assets:
Intangible assets	310,700	310,762
Website [Member]
Intangible assets:
Intangible assets	$ 78,201	$ 50,386

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amortization of Intangible Assets	$ 523,948	$ 470,993
MinimumMember
Intangible assets, useful life	3 years
Maximum [Member]
Intangible assets, useful life	10 years

Goodwill - Goodwill (Details)

Goodwill - Goodwill (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 26, 2014	Dec. 31, 2015	Sep. 30, 2015
Balance - beginning of year		$ 7,782,903	$ 6,577,609
Additions resulting from acquisitions:
Effect of foreign currency translation adjustment on goodwill		(29,634)	(448,521)
Ending balance		$ 7,753,269	7,782,903
TrackGroup [Member]
Additions resulting from acquisitions:
Acquisition of Track Group Analytics Limited			$ 1,653,815

Other Assets (Details Narrative

Other Assets (Details Narrative) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Other Assets Details Narrative
Other assets	$ 2,545,571	$ 2,619,035

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Accrued Expenses Details
Accrued royalties	$ 7,077	$ 7,077
Accrued payroll, taxes and employee benefits	1,349,882	1,154,168
Accrued consulting	6,570	367,906
Accrued taxes - foreign and domestic	80,530	93,407
Accrued settlement costs	30,000	30,000
Accrued board of directors fees	249,749	248,830
Accrued other expenses	118,563	69,478
Accrued legal costs	58,957	50,000
Accrued cellular costs	43,692	20,000
Accrued outside services	$ 85,057	32,067
Accrued warranty and manufacturing costs		39,050
Accrued interest	$ 1,214,931	593,420
Total accrued expenses	$ 3,245,008	$ 2,705,403

Debt Obligations (Details)

Debt Obligations (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Total debt obligations	$ 30,446,271	$ 30,985,414
Less current portion	$ (224,506)	$ (796,225)
Long-term portion of related party debt
Long-term debt, net of current portion	$ 30,221,765	$ 30,189,188
Debt discount		222,973
Debt Obligation 1
Total debt obligations	29,823,986	$ 29,768,243
Maximum borrowing capacity	$ 30,400,000
Interest rate	8.00%
Debt discount	$ 576,014
Debt Obligation 2
Total debt obligations
Maximum borrowing capacity	$ 5,000,000
Interest rate	8.00%
Debt Obligation 3
Total debt obligations	$ 375,000	$ 937,500
Royalty agreement	4,500,000
Royalty, periodic payment	187,500
Debt Obligation 4
Total debt obligations	22,679	24,754
Debt Obligation 5
Total debt obligations	$ 224,606	$ 254,917

Debt Obligations (Details 1)

Debt Obligations (Details 1)	Dec. 31, 2015USD ($)
Debt Obligations Details 1
2,016	$ 431,122
2,017	65,428
2,018	30,452,787
2,019	40,125
2,020	31,234
Thereafter	1,589
Debt discount	(576,014)
Long-term Debt and Capital Lease Obligations, Total	$ 30,446,271

Debt Obligations (Details Narra

Debt Obligations (Details Narrative) - USD ($)	Jul. 14, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Monthy note payment		$ 587,608	$ 598,251
Sapinda Asia 1 [Member]
Debt facility		$ 5,000,000
Interest rate		8.00%
Unused Capacity Rate		3.00%
Loan maturity date		Sep. 30, 2017
ACOA [Member] | MinimumMember
Monthy note payment		$ 3,125
ACOA [Member] | Maximum [Member]
Monthy note payment		4,125
Conrent Invest [Mmeber]
Debt facility		$ 25,000,000
Increase to debt facility	$ 5,400,000
Interest rate	8.00%
Arrangement fee	$ 500,000
Accrued and unpaid interest	$ 822,222
Proceeds From Debt				$ 4,080,000
Loan maturity date				Jul. 31, 2018

Related-party Transactions (Det

Related-party Transactions (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Stock payable, beginning balance	$ 3,501,410	$ 3,000,000	$ 3,000,000
Payment of shares for achieving performance milestones			(668,590)
Stock payable, ending balance	$ 3,501,410		$ 3,501,410
GPS Global [Member]
Increase in stock payable
TrackGroup [Member]
Increase in stock payable			1,170,000

Related-party Transactions (D59

Related-party Transactions (Details Narrative) - Sapinda Asia 1 [Member]	3 Months Ended
	Dec. 31, 2015USD ($)
Debt facility	$ 5,000,000
Unused Capacity Rate	3.00%
Interest rate	8.00%
Loan maturity date	Sep. 30, 2017

Preferred Stock (Details Narrat

Preferred Stock (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Preferred stock, par value	$ .0001
Preferred stock, authorized	20,000,000
Preferred stock outstanding	0
Common stock shares issued
Series D Preferred Stock [Member]
Preferred stock, par value	$ 0.001
Preferred stock, authorized	85,000
Preferred stock outstanding	0
Repurchase of Series D shares		$ 10,500
Series D Preferred Stock [Member] | Warrant [Member]
Repurchase of Series D shares	42,000

Stock Options and Warrants (Det

Stock Options and Warrants (Details)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	[1]
Stock Options And Warrants Details
Expected stock price volatility	51.00%
Risk free interest rate	0.64%
Expected life of options/warrants	2 years	2 years
[1]	This information was deemed not applicable (N/A) since no options or warrants to purchase common stock were granted during the three months ended December 31, 2014.

Stock Options and Warrants (D62

Stock Options and Warrants (Details 1) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stock Options And Warrants Details 1
Shares Under Option/ Warrant outstanding, Beginning Balance	381,656
Shares Under Option/ Warrant Granted	40,261
Shares Under Option/ Warrant Expired / Cancelled	10,527
Shares Under Option/ Warrant Exercised
Shares Under Option/ Warrant Outstanding, Ending Balance	411,390
Shares Under Option/ Warrant Exercisable	411,390
Weighted Average Exercise Price Outstanding, Beginging Balance	$ 15.71
Weighted Average Exercise Price Granted	11.17
Weighted Average Exercise Price Expired / Cancelled	$ 23.99
Weighted Average Exercise Price Exercised
Weighted Average Exercise Price Outstanding, Ending Balance	$ 11.64
Weighted Average Exercise Price Exercisable	$ 11.64
Weighted Average Remaining Contractual Life Outstanding	1 year 3 months 10 days
Weighted Average Remaining Contractual Life Exercisable	1 year 3 months 10 days
Aggregate Intrinsic Value Outstanding, end
Aggregate Intrinsic Value Exercisable

Stock Options and Warrants (D63

Stock Options and Warrants (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014		Dec. 21, 2011
Stock Options And Warrants Details Narrative
Shares authorized for issuance under 2012 Plan				90,000
Increase to authorized shares	713,262 increase
Shares available for grant	448,346
Shares Under Option/ Warrant Granted	40,261
Warrant term	2 years	2 years	[1]
Expense Related to the Issuance and Vesting of All Stock Options and Warrants	$ 95,968	$ 75,082
[1]	This information was deemed not applicable (N/A) since no options or warrants to purchase common stock were granted during the three months ended December 31, 2014.

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	3 Months Ended
	Dec. 31, 2015USD ($)
Leybovich [Member]
Loss Contingency, Damages Sought	$ 460,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - shares	1 Months Ended
	Feb. 08, 2016	Dec. 31, 2015
Notes to Financial Statements
Common stock authorized		15,000,000
Subsequent event	The holder of a majority of the Company’s voting stock executed a written consent approving an amendment (the “Amendment“) to the Company’s Amended and Restated Articles of Incorporation (the “Articles of Incorporation“) to increase the total number of shares of the Company’s common stock authorized for issuance thereunder from 15.0 million shares to 30.0 million shares. The Amendment, as approved by the written consent, will not become effective until 20 calendar days after the an information statement is first mailed or otherwise delivered to our stockholders entitled to receive notice thereof. It is currently anticipated that the information statement will be mailed to our stockholders, and the Amendment will be filed with the Utah Secretary of State, prior to the end of the quarter ended March 31, 2016.