Annual report pursuant to section 13 and 15(d)

Note 6: Balance Sheet Information

v2.4.0.8
Note 6: Balance Sheet Information
12 Months Ended
Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Note 6: Balance Sheet Information

Balance sheet information is as follows:

 

    September 30,     September 30,  
    2013     2012  
             
Receivables, current, net:                
Accounts receivable, current   $ 904,197     $ 1,863,067  
Less: Allowance for doubtful accounts     (729,296 )     (1,423,219 )
    $ 174,901     $ 439,848  
Receivables, long term, net:                
Accounts receivable, long term   $ 374,708     $ 510,587  
Less: Allowance for doubtful accounts     (330,069 )     (136,017 )
    $ 44,639     $ 374,570  
Total receivables, net:                
Gross receivables   $ 1,278,905     $ 2,373,654  
Less: Allowance for doubtful accounts     (1,059,365 )     (1,559,236 )
    $ 219,540     $ 814,418  

 

Long term receivables consist of reserves held by LEC processors that are not expected to be settled within 12 months.

 

As of September 30, 2013, approximately 57% of the Company’s allowance for doubtful accounts was an allowance against an outstanding receivable balance that is in dispute. After excluding these reserves from the related accounts receivable balances the allowance for doubtful accounts as a percentage of gross accounts receivable increases to 68%. As of September 30, 2012, approximately 93% of the Company’s allowance for doubtful accounts was an allowance against accounts receivable balances and reserves held by a LEC that is in bankruptcy and an allowance against an outstanding receivable balance that is in dispute. After excluding these reserves from the related accounts receivable balances, the allowance for doubtful accounts as a percentage of gross accounts receivable decreases to 12.6%. See Note 17.

 

Components of allowance for doubtful accounts are as follows:

 

    September 30,     September 30,  
    2013     2012  
             
Allowance for dilution and fees on amounts due from billing aggregators   $ 730,777     $ 1,525,126  
Allowance for customer refunds     6,281       34,111  
    $ 737,058     $ 1,559,237  

 

    September 30,     September 30,  
    2013     2012  
             
Property and equipment, net:                
Furnishings and fixtures   $ 101,611     $ 94,511  
Office, computer equipment and other     404,580       361,685  
      506,191       456,196  
Less: Accumulated depreciation     (435,029 )     (405,670 )
    $ 71,162     $ 50,526  

 

    September 30,     September 30,  
    2013     2012  
             
Intangible assets, net:                
Domain name and marketing related intangibles   $ 1,513,708     $ 1,511,650  
Website and technology related intangibles     2,335,728       1,252,304  
      3,849,436       2,763,954  
Less: Accumulated amortization     (1,001,035 )     (766,283 )
    $ 2,848,401     $ 1,997,671  

 

    September 30,     September 30,  
    2013     2012  
             
Accrued liabilities:                
Deferred revenue   $ 2,829     $ 2,310  
Accrued payroll and bonuses     27,330       28,968  
Accruals under revenue sharing agreements     44,167       67,601  
Accrued expenses - other     225,138       311,225  
    $ 299,464     $ 410,104