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COMMITMENTS AND CONTINGENCIES | 9 Months Ended
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Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | NOTE 10 - COMMITMENTS AND CONTINGENCIES Boomerang is a joint and several guarantor on a twenty-year promissory note owing to Zions Bank in the principal amount of $624,853 as of June 30, 2015, bearing interest at 3.807% per annum and due August 1, 2027. The promissory note is collateralized by the real property that is the subject of the lease from SB&G to Boomerang. The Estate of Gene Mulvihill and Messrs. Checketts and Burton Koffman, are the other joint and several guarantors of the promissory note. In March 2013, we entered into a five year lease on our principal office in New Jersey, which expires in March 2018. In February 2015, we entered into a three year lease on our office in Utah which expires in February 2018. In January 2015, we entered into a three year lease on a research, design, production and testing facility in Fort Pierce, Florida, which expires in March 2018. The aggregate future minimum annual rental payments on these leases, exclusive of escalation payments for taxes and operating costs, are as follows:
Twelve months ended June 30, 2016 |  | $ | 137,195 |
June 30, 2017 |  |  | 178,408 |
June 30, 2018 |  |  | 132,306 |
Total |  | $ | 447,909 |
On March 15, 2013, Crescent Heights R&D, LLC (“Crescent Heights”), filed a complaint against Boomerang in the State of Florida for fraud, breach of contract and specific performance, as well as equitable rescission which alleged an unspecified amount of damages in excess of the purchase price. Boomerang was subsequently granted a motion to remove this matter to federal court. On May 17, 2013, the court entered an order that our motion to compel arbitration and stay proceedings be granted. The parties agreed to arbitrate the matter in front of the American Arbitration Association in November 2014. The dispute arose from a contract to provide a rack and rail automated parking system. On April 21, 2015, the arbitrator issued a Final Arbitration Award. The arbitrator denied Crescent Heights’ claims of fraud in the inducement, equitable rescission based on fraud, and declaratory relief to strike the limitation of liability clause, but found Boomerang in Breach of Contract. Crescent Heights was awarded damages of $1,197,890, plus attorneys’ fees and costs of $319,920, which Boomerang is required to pay in fiscal year 2015. During the nine months ended June 30, 2015, Boomerang paid $1,036,452 of the award, attorneys’ fees and costs related to the arbitration and established a reserve of $481,358 for the remaining fees and costs. On May 15, 2013, Boomerang entered into a Manufacturing and Licensing Agreement (the “Agreement”) with JBT Corporation (“JBT”), pursuant to which JBT would manufacture all Boomerang automated guided vehicles (“AGVs”) and license certain software to us for use in our robotic parking systems, including a non-exclusive, non-transferable, license to sub-license the software to customers for the duration of each customer contract with Boomerang. T he Agreement was terminated by JBT effective May 23, 2014, due to Boomerang not meeting minimum purchase requirements. On June 8, 2015, Boomerang entered into a letter of agreement with JBT, in which JBT committed to complete the BrickellHouse project and three additional identified projects. As part of the letter of agreement, Boomerang agreed to a series of payments in aggregate of $728,518. As of June 30, 2015, $380,875 was paid to JBT with respect to these amounts. The letter of agreement was terminated by JBT effective August 20, 2015, due to Boomerang’s bankruptcy filing and failure to pay a JBT invoice. On June 6, 2013, Boomerang entered into a marketing agreement with BrickellHouse Holding, LLC, whereas BrickellHouse Holding, LLC will allow Boomerang to use its parking system for sales and marketing purposes. Boomerang will pay BrickellHouse Holding, LLC a royalty for each sale of a system equal to 2% of the purchase price of that system, not to exceed an aggregate of $2 million. The agreement shall be in effect until the amount of royalty payments reaches $2 million. As of June 30, 2015, the Company accrued $41,529 of royalty payments under this agreement. On August 18, 2015, the Company and the Subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of Title 11 of the United States Code. The Chapter 11 case is being administered under the caption "In re Boomerang Systems, Inc., et. al," Case No. 15-11729. The Company remains in possession of its assets and continues to operate its business as a debtor-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.

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