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Prepaid Expenses
9 Months Ended
Jun. 30, 2011
Prepaid Expenses  
Prepaid Expenses

8. PREPAID EXPENSES

Prepaid expenses increased by an aggregate of $1,500,000 in the quarter ended March 31, 2011 due to amounts paid pursuant to the Company's obligations under a sales contract to a foreign military service to provide repair and maintenance services over an eight year period for products sold under this contract. The total prepaid expense is being amortized on a straight-line basis at an annual rate of $187,500 over this eight year period, and is being recognized as a component of cost of sales. Accordingly, as of June 30, 2011, $187,500 of the total prepayment was classified as a current asset and $1,265,625 was classified as noncurrent.