|
Note 8: Restructuring Activities
|
12 Months Ended |
|---|---|
|
Sep. 30, 2012
|
|
| Restructuring and Related Activities [Abstract] | |
| Note 8: Restructuring Activities |
On November 30, 2010, our Board of Directors approved a reduction in force that resulted in the termination of 36 employees of the Company, or approximately 60% of the Companys workforce, effective December 1, 2010. The reduction in force was related to the Companys ongoing restructuring and cost reduction efforts and strategy of focusing its resources on the development and expansion of its core InstantProfile product, the successor to the Companys LEC-billed directory product. All terminated employees were involved in the marketing and sale of the Companys InstantPromote product by its subsidiary, Local Marketing Experts, Inc.
The Company incurred expenses of $99,319 in connection with the reduction in force, of which $37,500 was incurred for one-time employee termination benefits payable in cash. The remaining expenses relate to salaries and wages payable in cash to the affected employees which were paid in the first quarter of fiscal 2011.
In May 2011 the Company ceased the Direct Sales business and migrated the remaining customers to Reach Local in exchange for ten and five percent of gross revenues derived from such customers during the first and second year, respectively. The Company recorded $6,053 and $5,773 in revenues for this agreement during the year ended September 30, 2011. In connection with the discontinued Direct Sales business, seven employees were terminated. See Note 3. |