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Subsequent Event
3 Months Ended
Dec. 31, 2015
Subsequent Event.  
Subsequent Event

 

7. Subsequent Event

 

In January 2016, the Company negotiated changes to its agreement with a customer whereby $1.3 million of unbilled receivables and our obligations associated with certain product deliverables were cancelled. The bad debt expense related to the impairment of the unbilled receivable was recognized in the Company’s September 30, 2015 audited financial statements. The Company expects that this agreement will result in approximately $1.2 million positive impact to the statement of operations in the quarter ending March 31, 2016 resulting from a reversal of a $1.2 million liability comprised of deferred revenue and a contract loss accrual.