Note 7 - Restructuring

6 Months Ended

Mar. 31, 2016

Restructuring and Related Activities Disclosure [Text Block]

7. Restructuring

During the second half of fiscal 2015, the Company’s management approved, committed to and initiated plans to restructure and further improve efficiencies by implementing cost reductions in line with the decreases in revenue. The Company renegotiated three office leases and relocated to smaller space, while also negotiating sub-leases for the original space. In addition, the Company executed a general work-force reduction and recognized costs for severance and termination benefits. In the three and six months ended March 31, 2016, the Company recorded an additional liability of $158 and $744 related to severance and termination benefits and lease terminations. A total of $194 and $780 was charged to restructuring expenses in the three and six months ended March 31, 2016.

These restructuring charges and accruals require estimates and assumptions, including contractual rental commitments or lease buy-outs for vacated office space and related costs, and estimated sub-lease income. The Company’s sub-lease assumptions include the rates to be charged to a sub-tenant and the timing of the sub-lease arrangement. All of the vacated lease space is currently contractually occupied by a new sub-tenant for the remaining life of the lease. These estimates and assumptions will be monitored on a quarterly basis for changes in circumstances with the corresponding adjustments reflected in the consolidated statement of operations.

The following table summarizes the restructuring activity for the six months ended March 31, 2016:

	As of		As of
	March 31, 2016		September 30, 2015
Facilities and related	$	279	$	259
Employee related		395		-
Other		64		48
Total	$	738	$	307

The components of the accrued restructuring liabilities is as follows:

	Employee Severenc e and Benefits			Facility Related and Other Costs			Total
Balance at beginning of period, October 1, 2015	$	-		$	307		$	307
Charges to operations		586			-			586
Cash disbursements		-			(149	)		(149	)
Changes in estimates		-			-			-
Balance at end of period, December 31, 2015	$	586		$	158		$	744
Charges to operations		-			158			158
Cash disbursements		(110	)		(54	)		(164	)
Changes in estimates		-			-			-
Balance at end of period, March 31, 2016	$	476		$	262		$	738

As of March 31, 2016, $528 was reflected in Accrued Liabilities and $210 in Other Long Term Liabilities in the Condensed Consolidated Balance Sheet. As of September 30, 2015, $114 was reflected in Accrued Liabilities and $193 in Other Long Term Liabilities in the Condensed Consolidated Balance Sheet.