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Note 6: Balance Sheet Information

12 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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