Track (TRCK) 10-Q 9 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 09, 2016
Document and Entity Information:
Entity Registrant Name	TRACK GROUP, INC.
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Entity Central Index Key	1,045,942
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		10,305,211
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	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash	$ 2,007,852	$ 4,903,045
Accounts receivable, net of allowance for doubtful accounts of $4,618,343 and $4,156,963, respectively	6,719,803	6,044,931
Note receivable, current portion	334,733	306,434
Prepaid expenses and other	548,151	1,266,277
Inventory, net of reserves of $98,150 and $225,900, respectively	580,269	741,514
Total current assets	10,190,808	13,262,201
Property and equipment, net of accumulated depreciation of $3,200,720 and $2,822,166, respectively	1,284,295	1,697,630
Monitoring equipment, net of accumulated amortization of $3,002,672 and $2,225,480, respectively	3,876,268	2,784,595
Intangible assets, net of accumulated amortization of $7,563,174 and $5,628,308, respectively	25,678,740	25,884,087
Other assets	2,741,780	2,619,035
Goodwill	7,875,146	7,782,903
Total assets	51,647,037	54,030,451
Current liabilities:
Accounts payable	2,567,581	2,363,441
Accrued liabilities	3,928,693	2,705,403
Current portion of long-term debt, net of discount of $0 and $222,973, respectively	69,494	796,225
Total current liabilities	6,565,768	5,865,069
Stock payable - related party	3,439,978	3,501,410
Long-term debt, net of current portion and discount of $464,527 and $408,784, respectively	31,485,159	30,189,188
Other long-term liabilities	0	106,671
Total liabilities	41,490,905	39,662,338
Stockholders' equity:
Common stock, $0.0001 par value: 30,000,000 shares authorized; 10,305,211 and 10,261,288, outstanding, respectively	1,031	1,026
Additional paid-in capital	298,520,891	297,591,034
Accumulated deficit	(286,677,661)	(280,845,882)
Accumulated other comprehensive income	(1,688,129)	(2,378,065)
Total equity	10,156,132	14,368,113
Total liabilities and stockholders' equity	$ 51,647,037	$ 54,030,451

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Allowance for doubtful accounts	$ 4,997,938	$ 4,156,963
Reserve for damaged or obsolete inventory	98,150	225,900
Property and equipment accumulated depreciation	3,200,720	2,822,166
Monitoring equipment accumulated amortization	3,002,672	2,225,480
Intangible assets accumulated amortization	7,563,174	5,628,308
Current debt, discount	0	222,973
Long-term debt, discount	$ 520,270	$ 408,784
Common stock - par value	$ 0.001	$ .001
Common stock - shares authorized	30,000,000	30,000,000
Common stock - shares outstanding	10,305,211	10,261,288

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Products	$ 62,125	$ 210,332	$ 316,737	$ 487,482
Monitoring, analytics & other related services	6,692,286	5,231,337	19,347,317	14,390,923
Total revenues	6,754,411	5,441,669	19,664,054	14,878,405
Cost of revenues:
Products	101,228	76,220	249,925	152,497
Monitoring, analytics & other related services	1,907,493	1,427,572	5,531,692	4,622,460
Depreciation and amortization included in cost of revenues	488,655	481,298	1,498,407	1,144,407
Impairment of monitoring equipment and parts (Note 4)	60,000	85,221	180,000	225,522
Total cost of revenues	2,557,376	2,070,311	7,460,024	6,144,886
Gross profit	4,197,035	3,371,358	12,204,030	8,733,519
Operating expenses:
General & administrative	3,612,957	3,983,988	10,448,942	10,122,719
Selling & marketing	470,829	616,395	1,684,130	1,587,802
Research & development	651,952	425,173	1,811,697	1,235,049
Depreciation & amortization	621,311	827,672	2,055,915	2,132,039
Total operating expenses	5,357,049	5,853,228	16,000,684	15,077,609
Loss from operations	(1,160,014)	(2,481,870)	(3,796,654)	(6,344,090)
Other income (expense):
Interest expense, net	(683,482)	(566,992)	(2,009,399)	(1,872,844)
Currency exchange rate gain (loss)	18,438	(145,476)	(66,119)	(519,478)
Disgorgement funds received (Note 18)	0	215,286	0	4,915,286
Other income, net	41,112	72,642	40,393	84,248
Net loss attributable to common stockholders	(1,783,946)	(2,906,410)	(5,831,779)	(3,736,878)
Foreign currency translation adjustments	(280,319)	(449,377)	689,936	(355,397)
Comprehensive loss	$ (2,064,265)	$ (3,355,787)	$ (5,141,843)	$ (4,092,275)
Basic loss per common share	$ (0.17)	$ (0.29)	$ (0.57)	$ (0.37)
Diluted loss per common share	$ (0.17)	$ (0.29)	$ (0.57)	$ (0.37)
Weighted average common shares outstanding, basic	10,302,000	10,149,000	10,278,000	10,149,000
Weighted average common shares outstanding, diluted	10,302,000	10,149,000	10,278,000	10,149,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (5,831,779)	$ (3,736,878)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	3,554,322	3,488,398
Impairment of monitoring equipment and parts	180,000	225,522
Bad debt expense	844,968	347,488
Common stock issued for services	60,001	217,085
Amortization of debt discount	167,230	286,751
Loss on disposal of monitoring equipment included on cost of sales	67,097	184,556
Stock based compensation	539,275	0
Vesting and re-pricing of stock options	437,197	341,905
Loss on disposal of property and equipment	27,419	(334,981)
Change in assets and liabilities:
Accounts receivable, net	(1,430,852)	(2,857,986)
Notes receivable	(28,299)	(23,755)
Inventories	161,159	(746,822)
Prepaid expenses and other assets	581,451	(686,759)
Accounts payable	145,774	1,419,089
Accrued expenses	2,489,900	1,054,190
Deferred revenue	0	(6,881)
Net cash provided by (used in) operating activities	1,964,863	(829,078)
Cash flow from investing activities:
Purchase of property and equipment	(58,271)	(482,343)
Capitalized software	(1,518,800)	0
Purchase of monitoring equipment and parts	(2,315,140)	(1,625,853)
Leasehold improvements	0	(28,662)
Payment related to acquisition	0	(1,782,849)
Net cash used in investing activities	(3,892,211)	(3,919,707)
Cash flow from financing activities:
Principal payments on notes payable	(1,003,976)	(1,768,282)
Repurchase of Series D Convertible Preferred Stock and warrants	0	(10,500)
Net cash used in financing activities	(1,003,976)	(1,778,782)
Effect of exchange rate changes on cash	36,131	(50,787)
Net decrease in cash	(2,895,193)	(6,578,354)
Cash, beginning of period	4,903,045	11,101,822
Cash, end of period	2,007,852	4,523,468
Cash paid for interest	50,614	933,808
Supplemental schedule of non-cash investing and financing activities:
Issuance of warrants for accrued Board of Director fees	133,135	270,016
Payment of interest from an increase in interest bearing debt	1,399,644	0
Common stock issuance for the acquisition of a subsidiary and milestone achievement	$ 61,432	$ 912,404

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2016
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	9 Months Ended
	Jun. 30, 2016
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	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Recently Issued Accounting Standards	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB During May 2016, the FASB issued ASU 2016-12. The amendments in this update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. Management is currently evaluating the impact that this amendment will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, (“ ASU 2016-10 In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This update was intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this update have the same effective date as ASC 606 as discussed above. Management is currently evaluating the impact of the pending adoption of ASU 2016-08 on the Company’s consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The amendments in this update are effective for annual periods beginning after December 31, 2016 and interim periods within those annual periods. Management is currently evaluating the impact that this amendment will have on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 841). For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Management is currently evaluating the impact that this amendment will have on its consolidated financial statements. 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

Impairment of Long-lived Assets

Impairment of Long-lived Assets	9 Months Ended
	Jun. 30, 2016
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 $85,221 of impairment expenses related to monitoring equipment for the three months ended June 30, 2016 and 2015, respectively, and $180,000 and $225,522 and of impairment expenses related to monitoring equipment for the nine months ended June 30, 2016 and 2015, respectively.

Business Combinations

Business Combinations	9 Months Ended
	Jun. 30, 2016
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 has agreed to pay additional amounts to sellers contingent upon achievement by the acquired businesses subject to achievement of certain future goals which may include revenue milestones, new customer accounts, and earnings targets. 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	9 Months Ended
	Jun. 30, 2016
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 prevailing exchange rate at June 30, 2016.

Net Loss Per Common Share

Net Loss Per Common Share	9 Months Ended
	Jun. 30, 2016
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. As of June 30, 2016 and 2015, there were 450,991 and 271,471 outstanding common share equivalents, respectively, that were not included in the computation of Diluted EPS for the three and nine months ended June 30, 2016 and the three and nine months ended June 30, 2015, respectively as their effect would be anti-dilutive. The common stock equivalents outstanding as of June 30, 2016 and 2015 consisted of the following: June 30, June 30, 2016 2015 Exercise of outstanding common stock options and warrants 450,991 271,471 Total common stock equivalents 450,991 271,471

Acquisition

Acquisition	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
ACQUISITION	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 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 and nine months ended June 30, 2016 and 2015 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 Nine Months Ended June 30, June 30, June 30, June 30, 2016 2015 2016 2015 Revenues: 6,754,411 5,441,669 19,664,054 15,243,552 Loss from operations (1,160,014 ) (2,481,870 ) (3,796,654 ) (6,401,970 ) Net income (loss) from continuing operations (1,783,946 ) (2,906,410 ) (5,831,779 ) (1,838,776 ) Basic earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 ) Diluted earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 ) Net income (loss) attributable to common shareholders (1,783,946 ) (2,906,410 ) (5,831,779 ) (1,838,776 ) Basic earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 ) Diluted earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 )

Prepaid and Other Expenses

Prepaid and Other Expenses	9 Months Ended
	Jun. 30, 2016
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 June 30, 2016 and September 30, 2015, the outstanding balance of prepaid and other expenses was $548,151 and $1,266,277, respectively. The $548,151 as of June 30, 2016 is comprised largely of prepayments toward inventory purchases, vendor deposits and other prepaid supplier expenses.

Inventory

Inventory	9 Months Ended
	Jun. 30, 2016
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 ReliAlertTM, Shadow, and other tracking devices. Completed ReliAlertTM, and other tracking devices are reflected in Monitoring Equipment. As of June 30, 2016 and September 30, 2015, respectively, inventory consisted of the following: June 30, September 30, 2016 2015 Finished goods inventory $ 678,419 $ 967,414 Reserve for damaged or obsolete inventory (98,150 ) (225,900 ) Total inventory, net of reserves $ 580,269 $ 741,514

Property and Equipment

Property and Equipment	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Property and Equipment	Property and equipment as of June 30, 2016 and September 30, 2015, were as follows: June 30, September 30, 2016 2015 Equipment, software and tooling $ 2,683,994 $ 2,823,685 Automobiles 86,768 33,466 Leasehold improvements 1,300,413 1,351,017 Furniture and fixtures 413,840 311,628 Total property and equipment before accumulated depreciation 4,485,015 4,519,796 Accumulated depreciation (3,200,720 ) (2,822,166 ) Property and equipment, net of accumulated depreciation $ 1,284,295 $ 1,697,630 Property and equipment depreciation expense for the three months ended June 30, 2016 and 2015 was $93,474 and $97,784, respectively. Depreciation for the nine months ended June 30, 2016 and 2015 was $482,464 and $417,879, respectively.

Monitoring Equipment

Monitoring Equipment	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Monitoring Equipment	Monitoring equipment as of June 30, 2016 and September 30, 2015, was as follows: June 30, September 30, 2016 2015 Monitoring equipment $ 6,878,940 $ 5,010,075 Less: accumulated amortization (3,002,672 ) (2,225,480 ) Monitoring equipment, net of accumulated depreciation $ 3,876,268 $ 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 June 30, 2016 and 2015 was $376,154 and $368,798, respectively. Depreciation of monitoring equipment for the nine months ended June 30, 2016 and 2015 was $1,160,907 and $806,907, respectively. These expenses were recognized in cost of revenues.

Intangible Assets

Intangible Assets	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Intangible Assets	The following table summarizes the activity of intangible assets for the second fiscal quarter ended June 30, 2016: June 30, 2016 September 30, 2015 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Technology 9,118,932 7,442,186 Customer relationships 2,559,757 2,538,496 Trade name 314,459 310,762 Website 78,201 50,386 Total intangible assets 33,241,914 31,512,395 Accumulated amortization (7,563,174 ) (5,628,308 ) Intangible assets, net of accumulated amortization $ 25,678,740 $ 25,884,087 The intangible assets summarized above were purchased on various dates from January 2010 through June 2016. The assets have useful lives ranging from three to ten years. Amortization expense of intangible assets for the three months ended June 30, 2016 and 2015 was $527,838 and $622,265, respectively. Amortization for the nine months ended June 30, 2016 and 2015 was $1,573,451 and $1,561,949, respectively.

Goodwill

Goodwill	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The following table summarizes the activity of goodwill at June 30, 2016 and September 30, 2015, respectively: June 30, September 30, 2016 2015 Balance - beginning of period $ 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 92,243 (448,521 ) Balance - end of period $ 7,875,146 $ 7,782,903 Goodwill is recognized in connection with 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 June 30, 2016.

Other Assets

Other Assets	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Other Assets	As of June 30, 2016 and September 30, 2015, the outstanding balance of other assets was $2,741,780 and $2,619,035, respectively. The balance of other assets is comprised largely of a cash collateralized performance bond for an international customer. The Company anticipates this restricted cash will be unrestricted and available to the Company in March of 2018.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Accrued Expenses	Accrued expenses consisted of the following as of June 30, 2016 and September 30, 2015: June 30, September 30, 2016 2015 Accrued royalties $ 20,711 $ 7,077 Accrued payroll, taxes and employee benefits 1,713,340 1,154,168 Accrued consulting 280,202 367,906 Accrued taxes - foreign and domestic 13,036 93,407 Accrued settlement costs 146,892 30,000 Accrued board of directors fees 104,849 248,830 Accrued other expenses 87,360 69,478 Accrued professional and outside service fees 80,624 82,067 Accrued cellular costs, internet and office expenses 63,247 20,000 Accrued warranty and manufacturing costs 359,076 39,050 Accrued interest 1,059,356 593,420 Total accrued expenses $ 3,928,693 $ 2,705,403

Debt Obligations

Debt Obligations	9 Months Ended
	Jun. 30, 2016
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 On February 8, 2016 the Company submitted, under the terms of the Loan Agreement, to Sapinda a second Notice of Borrowing in the amount of $2.0 million, with a funding date of February 26, 2016. As of June 30, 2016 Sapinda had failed to fund the $2.0 million. Under the terms of the Loan Agreement Sapinda incurs a penalty of $1,000 per day beginning on the third calendar day from the date specified for funding under the Notice of Borrowing. As of June 30, 2016 Sapinda has incurred penalties of $210,000. The penalty has been treated as a gain contingency and has therefore not been reflected in the financial statements as of June 30, 2016. Subsequent to June 30, 2016, the Company received $2.0 million requested under a Related-Party Loan Agreement from Sapinda Asia Limited on July 14, 2016 (See Notes 17 and 18). On May 1, 2016, the Company entered into an unsecured Loan Agreement with Conrent Invest, acting with respect to its Compartment Safety III (the “Conrent Loan Agreement”). Under the Conrent Loan Agreement, the Company can borrow $5.0 million for working capital, repayment of debt, and operating purposes. When funded, the unsecured loan will bear interest at a rate of 8% per annum, payable in arrears semi-annually, with all principal and accrued unpaid interest due on July 31, 2018. In addition, the Company anticipates paying the lender an arrangement fee of $112,500 when it receives proceeds from this loan. As of June 30, 2016, the Company had not received the funds under this Loan Agreement. Table of Contents Debt obligations as of June 30, 2016 and September 30, 2015, respectively, are comprised of the following: June 30, September 30, 2016 2015 Unsecured facility agreement with an entity whereby, as of June 30, 2015, the Company may borrow up to $30.4 million bearing interest at a rate of 8% per annum, payable in arrears semi-annually,with all principal and accrued and unpaid interest due on July 31, 2018. A $1.2M origination fee was paid and recorded as a debt discount and will be amortized as interest expense over the term of the loan. The remaining debt discount was $464,527 and $631,757 at June 30, 2016 and September 30, 2015, respectively. $ 29,935,473 $ 29,768,242 Loan Agreement whereby the Company can borrow up to $5 million at 8% per annum on borrowed funds maturing on September 30, 2017. $ 1,399,644 - 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. - 937,500 Capital leases of office equipment with effective interest rates ranging from 9%-12%. Leases mature on various dates between November 2017 and August 2019. 20,048 24,754 Non-interest bearing notes payable to a governmental agency assumed in conjunction with the G2 acquisition. 199,488 254,917 Total debt obligations $ 31,554,653 $ 30,985,414 Less current portion (69,494 ) (796,225 ) Long-term portion of related party debt - - Long-term debt, net of current portion $ 31,485,159 $ 30,189,188 The following table summarizes the Company’s future maturities of debt obligations, net of the amortization of debt discounts as of June 30, 2016: Fiscal Year Total 2016 $ 22,795 2017 1,469,139 2018 30,453,750 2019 42,503 2020 & thereafter 30,993 Debt discount (464,527 ) Total $ 31,554,653 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	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Related-party Transactions	Disgorgement Funds Received During January 2015, the Company received notice from a shareholder of the Company stating that the shareholder was returning realized profits from their trades of the Company’s common stock during the year ended September 30, 2014. The shareholder also indicated that during this time, the shareholder was subject to Section 16 of the Security Exchange Act of 1934, as amended (the “ Exchange Act During March 2015, the Company received notice from a shareholder stating that it was returning realized profits from trading of the Company’s common stock during fiscal year 2014. During 2014, the shareholder was subject to Section 16 of the Exchange Act because the shareholder owned more than 10% of the shares of the Company's common stock. The shareholder, in compliance with Section 16(b) of the Exchange Act, returned those profits to the Company. The shareholder is also a creditor of the Company. On April 21, 2015, the Company and the shareholder entered into an agreement whereby $215,286, the realized profit recognized by the shareholder, would be deducted from accumulated interest on promissory notes between the shareholder and the Company. During the three months ended June 30, 2015, the Company deducted the amount from accumulated interest due to the shareholder. Related-Party Loan Agreements On September 25, 2015, the Company entered into the Loan Agreement described in Note 17 above with Sapinda, 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. The Company drew $1,399,644 of this line of credit during the nine months ended June 30, 2016. On February 8, 2016, the Company submitted, under the terms of the Loan Agreement, to Sapinda a second Notice of Borrowing in the amount of $2.0 million, with a funding date of February 26, 2016. As of June 30, 2016 Sapinda had failed to fund the $2.0 million. Under the terms of the Loan Agreement Sapinda incurs a penalty of $1,000 per day beginning on the third (3 rd ) calendar day from the date specified for funding under the Notice of Borrowing. As of June 30, 2016 Sapinda has incurred penalties of $210,000. The penalty has been treated as a gain contingency and has therefore not been reflected in the financial statements as of June 30, 2016. Subsequent to June 30, 2016, the Company received $2.0 million requested under a Related-Party Loan Agreement from Sapinda Asia Limited on July 14, 2016 (See Notes 17 and 18). Stock Payable – Related Party In connection with the acquisitions 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 common stock are payable based on the achievement of certain milestones. Changes in the stock payable liability are shown below: June 30, September 30, 2016 2015 Beginning balance $ 3,501,410 $ 3,000,000 Stock payable resulting from the acquisition of Track Group Analytics - 1,170,000 Payment of shares for achieving performance milestones (61,432 ) (668,590 ) Ending balance $ 3,439,978 $ 3,501,410 Shares of common stock valued at $3,000,000 that can be earned by the former owner of GPS Global Tracking and Surveillance System, Ltd., now a wholly-owned subsidiary of the Company, subject to achieving certain milestones, were included in the beginning balance shown above. 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 and Common Stoc

Preferred Stock and Common Stock	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Preferred Stock and Common 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 June 30, 2016, there were no shares of preferred stock outstanding. 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 June 30, 2016, zero warrants to purchase shares of Series D Preferred were issued and outstanding. The Company is authorized to issue up to 30,000,000 shares of common stock, $0.0001 par value per share. During the nine months ended June 30, 2016, the Company issued 7,185 shares of common stock to the former owners of TGA (see Note 8) for achievement of certain earn-out milestones outlined in the Share Purchase Agreement. The Company issued 13,064 shares of stock to individuals for their services as members of the Board of Directors. In addition, 23,674 shares of common stock were issued to employees under a long term incentive program.

Stock Options and Warrants

Stock Options and Warrants	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Stock Options and Warrants	Stock Incentive Plan At the annual meeting of shareholders on March 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. During the nine months ended June 30, 2016 and 2015, the Company granted 229,528 and 23,856 warrants to purchase shares of common stock. These warrants vest immediately and expire two years from grant date. The Company recorded expense of $47,571 and $106,915 for the three months ended June 30, 2016 and 2015 and expense of $160,260 and $341,905 for the nine months ended June 30, 2016 and 2015, respectively, related to the issuance and vesting of outstanding stock options and warrants. The option and warrant grants for nine months ended June 30, 2016 were valued using the Black-Scholes model with the following weighted-average assumptions: 2016 2015 Expected stock price volatility 96 % 73 % Risk-free interest rate 0.98 % 0.53 % Expected life of options 2 Years 2 Years 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 nine months ended June 30, 2016 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 1.05 years Granted 92,362 $ 6.82 Expired (23,027 ) $ 9.63 Exercised - $ - Outstanding as of June 30, 2016 450,991 $ 11.48 1.15 years $ - Exercisable as of June 30, 2016 450,991 $ 11.48 1.15 years $ - The intrinsic value of options outstanding and exercisable is based on the Company’s share price of $5.00 at June 30, 2016.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2016
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. Larry C. Duggan v. Court Programs of Florida, Inc. and SecureAlert, Inc.

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Subsequent Events	The Company evaluated subsequent events through the date the accompanying consolidated financial statements were issued. Subsequent to June 30, 2016, the following events occurred: Subsequent to June 30, 2016, the Company received $2.0 million requested under a Related-Party Loan Agreement from Sapinda Asia Limited on July 14, 2016 (See Notes 17 and 18). The gain referenced in Note 17 was not recognized upon receipt of funds. Consistent with prior practices with Lender, the Company will deduct the penalty gain from the principal and any accrued interest upon repayment of the loan pursuant to the terms of the Loan Agreement.

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
	Jun. 30, 2016
Net Loss Per Common Share Tables
Schedule of common stock equivalents outstanding	June 30, June 30, 2016 2015 Exercise of outstanding common stock options and warrants 450,991 271,471 Total common stock equivalents 450,991 271,471

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Jun. 30, 2016
Acquisitions Tables
Summary of Unaudited Pro-forma Information	Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2016 2015 2016 2015 Revenues: 6,754,411 5,441,669 19,664,054 15,243,552 Loss from operations (1,160,014 ) (2,481,870 ) (3,796,654 ) (6,401,970 ) Net income (loss) from continuing operations (1,783,946 ) (2,906,410 ) (5,831,779 ) (1,838,776 ) Basic earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 ) Diluted earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 ) Net income (loss) attributable to common shareholders (1,783,946 ) (2,906,410 ) (5,831,779 ) (1,838,776 ) Basic earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 ) Diluted earnings (loss) per common share $ (0.17 ) $ (0.29 ) $ (0.57 ) $ (0.18 )

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Jun. 30, 2016
Inventory Tables
Schedule of Inventory, Current	June 30, September 30, 2016 2015 Finished goods inventory $ 678,419 $ 967,414 Reserve for damaged or obsolete inventory (98,150 ) (225,900 ) Total inventory, net of reserves $ 580,269 $ 741,514

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Schedule of Property and Equipment	June 30, September 30, 2016 2015 Equipment, software and tooling $ 2,683,994 $ 2,823,685 Automobiles 86,768 33,466 Leasehold improvements 1,300,413 1,351,017 Furniture and fixtures 413,840 311,628 Total property and equipment before accumulated depreciation 4,485,015 4,519,796 Accumulated depreciation (3,200,720 ) (2,822,166 ) Property and equipment, net of accumulated depreciation $ 1,284,295 $ 1,697,630

Monitoring Equipment (Tables)

Monitoring Equipment (Tables)	9 Months Ended
	Jun. 30, 2016
Monitoring Equipment Tables
Schedule Of Monitoring Property And Equipment	June 30, September 30, 2016 2015 Monitoring equipment $ 6,878,940 $ 5,010,075 Less: accumulated amortization (3,002,672 ) (2,225,480 ) Monitoring equipment, net of accumulated depreciation $ 3,876,268 $ 2,784,595

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 2016
Intangible Assets Tables
Schedule of Intangible Assets	June 30, 2016 September 30, 2015 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Technology 9,118,932 7,442,186 Customer relationships 2,559,757 2,538,496 Trade name 314,459 310,762 Website 78,201 50,386 Total intangible assets 33,241,914 31,512,395 Accumulated amortization (7,563,174 ) (5,628,308 ) Intangible assets, net of accumulated amortization $ 25,678,740 $ 25,884,087

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	June 30, September 30, 2016 2015 Balance - beginning of period $ 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 92,243 (448,521 ) Balance - end of period $ 7,875,146 $ 7,782,903

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Jun. 30, 2016
Accrued Expenses Tables
Schedule Of Accrued Expenses	June 30, September 30, 2016 2015 Accrued royalties $ 20,711 $ 7,077 Accrued payroll, taxes and employee benefits 1,713,340 1,154,168 Accrued consulting 280,202 367,906 Accrued taxes - foreign and domestic 13,036 93,407 Accrued settlement costs 146,892 30,000 Accrued board of directors fees 104,849 248,830 Accrued other expenses 87,360 69,478 Accrued professional and outside service fees 80,624 82,067 Accrued cellular costs, internet and office expenses 63,247 20,000 Accrued warranty and manufacturing costs 359,076 39,050 Accrued interest 1,059,356 593,420 Total accrued expenses $ 3,928,693 $ 2,705,403

Debt Obligations (Tables)

Debt Obligations (Tables)	9 Months Ended
	Jun. 30, 2016
Debt Obligations Tables
Schedule of Debt	June 30, September 30, 2016 2015 Unsecured facility agreement with an entity whereby, as of June 30, 2015, the Company may borrow up to $30.4 million bearing interest at a rate of 8% per annum, payable in arrears semi-annually,with all principal and accrued and unpaid interest due on July 31, 2018. A $1.2M origination fee was paid and recorded as a debt discount and will be amortized as interest expense over the term of the loan. The remaining debt discount was $464,527 and $631,757 at June 30, 2016 and September 30, 2015, respectively. $ 29,935,473 $ 29,768,242 Loan Agreement whereby the Company can borrow up to $5 million at 8% per annum on borrowed funds maturing on September 30, 2017. $ 1,399,644 - 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. - 937,500 Capital leases of office equipment with effective interest rates ranging from 9%-12%. Leases mature on various dates between November 2017 and August 2019. 20,048 24,754 Non-interest bearing notes payable to a governmental agency assumed in conjunction with the G2 acquisition. 199,488 254,917 Total debt obligations $ 31,554,653 $ 30,985,414 Less current portion (69,494 ) (796,225 ) Long-term portion of related party debt - - Long-term debt, net of current portion $ 31,485,159 $ 30,189,188
Schedule of Maturities of Long-term Debt	Fiscal Year Total 2016 $ 22,795 2017 1,469,139 2018 30,453,750 2019 42,503 2020 & thereafter 30,993 Debt discount (464,527 ) Total $ 31,554,653

Related-party Transactions (Tab

Related-party Transactions (Tables)	9 Months Ended
	Jun. 30, 2016
Related-party Transactions Tables
Stock payable - related party	June 30, September 30, 2016 2015 Beginning balance $ 3,501,410 $ 3,000,000 Stock payable resulting from the acquisition of Track Group Analytics - 1,170,000 Payment of shares for achieving performance milestones (61,432 ) (668,590 ) Ending balance $ 3,439,978 $ 3,501,410

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	9 Months Ended
	Jun. 30, 2016
Stock Options And Warrants Tables
Schedule of Valuation Assumptions	2016 2015 Expected stock price volatility 96 % 73 % Risk-free interest rate 0.98 % 0.53 % Expected life of options 2 Years 2 Years
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 1.05 years Granted 92,362 $ 6.82 Expired (23,027 ) $ 9.63 Exercised - $ - Outstanding as of June 30, 2016 450,991 $ 11.48 1.15 years $ - Exercisable as of June 30, 2016 450,991 $ 11.48 1.15 years $ -

Impairment Of Long-Lived Asse39

Impairment Of Long-Lived Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Impairment Of Long-lived Assets Details Narrative
Impairment expenses	$ 60,000	$ 85,221	$ 180,000	$ 225,522

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - shares	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock equivalents excluded from computation of Diluted EPS	450,991	271,471
Options and Warrants [Member[
Stock equivalents excluded from computation of Diluted EPS	450,991	271,471

Net Loss Per Common Share (De41

Net Loss Per Common Share (Details Narrative) - shares	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Net Loss Per Common Share Details Narrative
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	450,991	271,471

Acquisitions (Details)

Acquisitions (Details) - Pro Forma [Member] - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pro Forma Information
Revenues	$ 6,754,411	$ 5,441,669	$ 19,664,054	$ 15,243,552
Loss from Operations	(1,160,014)	(2,481,870)	(3,796,654)	(6,401,970)
Net income (loss) attributable from continuing operations	$ (1,783,946)	$ (2,906,410)	$ (5,831,779)	$ (1,838,776)
Basic earnings (loss) per share	$ (0.17)	$ (0.29)	$ (0.57)	$ (0.18)
Diluted earnings (loss) per share	$ (0.17)	$ (0.29)	$ (0.57)	$ (0.18)
Net income (loss) attributable to common shareholders	$ (1,783,946)	$ (2,906,410)	$ (5,831,779)	$ (1,838,776)
Basic earnings (loss) per share	$ (0.17)	$ (0.29)	$ (0.57)	$ (0.18)
Diluted earnings (loss) per share	$ (0.17)	$ (0.29)	$ (0.57)	$ (0.18)

Prepaid and Other Expenses (Det

Prepaid and Other Expenses (Details Narrative) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Prepaid And Other Expenses Details Narrative
Prepaid expenses and other	$ 548,151	$ 1,266,277

Inventory (Details)

Inventory (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Inventory Details
Finished goods inventory	$ 678,419	$ 967,414
Reserve for damaged or obsolete inventory	(98,150)	(225,900)
Total inventory, net of reserves	$ 580,269	$ 741,514

Property And Equipment (Details

Property And Equipment (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Property And Equipment Details
Equipment, software and tooling	$ 26,839,943	$ 2,823,685
Automobiles	86,768	33,466
Leasehold Improvements	1,300,413	1,351,017
Furniture And Fixtures	413,840	311,628
Total property and equipment before accumulated depreciation	4,485,015	4,519,796
Accumulated Depreciation	(3,200,720)	(2,822,166)
Property and equipment, net of accumulated depreciation	$ 1,284,295	$ 1,697,630

Property And Equipment (Detai46

Property And Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property And Equipment Details
Depreciation	$ 93,474	$ 97,784	$ 482,464	$ 417,879

Monitoring Equipment (Details)

Monitoring Equipment (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Monitoring Equipment Details
Monitoring equipment	$ 6,878,940	$ 5,010,075
Less: accumulated amortization	(3,002,672)	(2,225,480)
Monitoring equipment, net of accumulated amortization	$ 3,876,268	$ 2,784,595

Monitoring Equipment (Details N

Monitoring Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Depreciation Expense	$ 368,798	$ 376,154	$ 1,160,907	$ 806,907
Maximum [Member]
Monitoring equipment useful life			5 years
MinimumMember
Monitoring equipment useful life			3 years

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Intangible assets:
Intangible assets	$ 33,241,904	$ 31,512,395
Accumulated amortization	(7,563,174)	(5,628,308)
Intangible assets, net of accumulated amortization	25,678,740	25,884,087
Trade Name [Member]
Intangible assets:
Intangible assets	314,459	310,762
Customer Relationships [Member]
Intangible assets:
Intangible assets	2,559,757	2,538,496
Technology [Member]
Intangible assets:
Intangible assets	9,118,932	7,442,186
Patent & Royalty agreements [Member]
Intangible assets:
Intangible assets	21,170,565	21,170,565
Website [Member]
Intangible assets:
Intangible assets	$ 78,201	$ 50,386

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Amortization of Intangible Assets	$ 622,265	$ 527,838	$ 1,573,451	$ 1,561,949
Maximum [Member]
Amortization of Intangible Assets			3
MinimumMember
Amortization of Intangible Assets			$ 10

Goodwill - Goodwill (Details)

Goodwill - Goodwill (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Balance - beginning of year	$ 7,782,903	$ 6,577,609
Additions resulting from acquisitions:
Acquisition of Track Group Analytics Limited	0
Effect of foreign currency translation adjustment on goodwill	92,243	(448,521)
Ending balance	$ 7,875,146	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 ($)	Jun. 30, 2016	Sep. 30, 2015
Other Assets Details Narrative
Other assets	$ 2,741,780	$ 2,619,035

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Accrued Expenses Details
Accrued royalties	$ 20,711	$ 7,077
Accrued payroll, taxes and employee benefits	1,713,340	1,154,168
Accrued consulting and professional fees	280,202	367,906
Accrued taxes - foreign and domestic	13,036	93,407
Accrued settlement costs	146,892	30,000
Accrued board of directors fees	104,849	248,830
Accrued rent, office and other expenses	87,360	69,478
Accrued professional and outside service fees	80,624	82,067
Accrued cellular costs	63,247	20,000
Accrued warranty and manufacturing costs	359,076	39,050
Accrued interest	1,059,356	593,420
Total accrued expenses	$ 3,928,693	$ 2,705,403

Debt Obligations (Details)

Debt Obligations (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Total debt obligations	$ 31,554,653	$ 30,985,414
Less current portion	(69,494)	(796,225)
Long-term portion of related party debt	0	0
Long-term debt, net of current portion	31,485,159	30,189,188
Debt discount	0	222,973
Debt Obligation 1
Total debt obligations	29,935,473	29,768,242
Debt discount		631,757
Debt Obligation 2
Total debt obligations	1,399,644
Debt Obligation 3
Total debt obligations	0	937,500
Debt Obligation 4
Total debt obligations	20,048	24,754
Debt Obligation 5
Total debt obligations	$ 199,488	$ 254,917

Debt Obligations (Details 1)

Debt Obligations (Details 1)	Jun. 30, 2016USD ($)
Debt Obligations Details 1
2,016	$ 22,795
2,017	1,469,139
2,018	30,453,750
2,019	42,503
2020 & thereafter	30,993
Debt discount	(464,527)
Long-term Debt and Capital Lease Obligations, Total	$ 31,554,653

Debt Obligations (Details Narra

Debt Obligations (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Monthy note payment	$ 1,003,976	$ 1,768,282
LOC draw	1,399,644
Conrent Invest [Mmeber]
Proceeds From Debt			$ 4,080,000
Loan maturity date			Jul. 31, 2018
Sapinda Asia 1 [Member]
Penalties	$ 210,000

Related-party Transactions (Det

Related-party Transactions (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Stock payable, beginning balance	$ 3,501,410	$ 3,000,000
Payment of shares for achieving performance milestones	(61,432)	(668,590)
Stock payable, ending balance	$ 3,439,978	$ 3,501,410
TrackGroup [Member]
Increase of stock payable	$ 0	$ 1,170,000

Preferred Stock (Details Narrat

Preferred Stock (Details Narrative) - Series D Preferred Stock [Member]	12 Months Ended
	Sep. 30, 2015USD ($)shares
Repurchase of Series D shares | shares	42,000
Repurchase of Series D shares | $	$ 10,500

Stock Options and Warrants (Det

Stock Options and Warrants (Details)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock Options And Warrants Details
Expected stock price volatility	96.00%	73.00%
Risk free interest rate	0.98%	0.53%
Expected life of options/warrants	2 years	2 years

Stock Options and Warrants (D60

Stock Options and Warrants (Details 1)	9 Months Ended
	Jun. 30, 2016$ / sharesshares
Stock Options And Warrants Details 1
Shares Under Option/ Warrant outstanding, Beginning Balance | shares	381,656
Shares Under Option/ Warrant Granted | shares	92,362
Shares Under Option/ Warrant Expired / Cancelled | shares	(23,027)
Shares Under Option/ Warrant Exercised | shares	0
Shares Under Option/ Warrant Outstanding, Ending Balance | shares	450,991
Shares Under Option/ Warrant Exercisable | shares	450,991
Weighted Average Exercise Price Outstanding, Beginging Balance | $ / shares	$ 15.71
Weighted Average Exercise Price Granted | $ / shares	6.82
Weighted Average Exercise Price Expired / Cancelled | $ / shares	9.63
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares	11.48
Weighted Average Exercise Price Exercisable | $ / shares	$ 11.48
Weighted Average Remaining Contractual Life Outstanding	1 year 1 month 24 days
Weighted Average Remaining Contractual Life Exercisable	1 year 1 month 24 days

Stock Options and Warrants (D61

Stock Options and Warrants (Details Narrative) - shares	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock Options And Warrants Details Narrative
Shares Under Option/ Warrant Granted	92,362
Warrant term	2 years	2 years