Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Sep. 30, 2013	Nov. 22, 2013	Mar. 31, 2013
Document And Entity Information
Entity Registrant Name	Parametric Sound Corp
Entity Central Index Key	0001493761
Document Type	10-K
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 103,992,700
Entity Common Stock, Shares Outstanding		7,218,400
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2013

Consolidated Balance Sheets (USD $) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Current assets:
Cash and cash equivalents	$ 1,597,879	$ 5,527,647
Accounts receivable	177,453	39,371
Inventories, net	723,420	443,704
Prepaid expenses and other assets	95,932	62,828
Total current assets	2,594,684	6,073,550
Property and equipment, net	219,369	176,912
Intangible assets, net	1,451,298	1,314,861
Total assets	4,265,351	7,565,323
Current liabilities:
Accounts payable	862,522	173,337
Accrued liabilities	183,716	139,875
Capital lease obligation - current portion	37,486	0
Total current liabilities	1,083,724	313,212
Capital lease obligation - long term	94,611	0
Total liabilities	1,178,335	313,212
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $0.001 par value, authorized 1,000,000 shares, none issued and outstanding	0	0
Common stock, $0.001 par value, authorized 50,000,000 shares, 6,835,321 and 6,408,151 shares issued and outstanding, respectively	6,835	6,408
Additional paid-in capital	17,383,196	13,878,294
Accumulated deficit	(14,303,015)	(6,632,591)
Total stockholders' equity	3,087,016	7,252,111
Total liabilities and stockholders' equity	$ 4,265,351	$ 7,565,323

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Statement of Financial Position [Abstract]
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	1,000,000	1,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	6,835,321	6,408,151
Common stock shares outstanding	6,835,321	6,408,151

Consolidated Statements of Operations (USD $)

12 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Revenues:

Product sales

$ 545,905

$ 222,016

Other revenue

16,997

11,633

Total revenues

562,902

233,649

Cost of revenues

292,329

120,142

Gross profit

270,573

113,507

Operating expenses:

Selling, general and administrative

4,602,344

3,247,698

Research and development

2,056,364

1,340,054

Business transaction

1,280,273

Total operating expenses

7,938,981

4,587,752

Loss from operations

(7,668,408)

(4,474,245)

Other income (expense):

Interest income

8,508

15,027

Interest expense

(4,559)

Other

(5,965)

(2,964)

Total other income (expense)

(2,016)

12,063

Net loss

$ (7,670,424)

$ (4,462,182)

Net loss per basic and diluted common share (1)

$ (1.16)

^[1]

$ (0.85)

^[1]

Weighted average common shares used to compute net loss per basic and diluted common share (1)

6,587,337

^[1]

5,258,020

^[1]

[1]	Net loss per share and weighted average common shares outstanding for all periods reflect the 1-for-5 reverse stock split that was effective March 21, 2012 (see Note 1).

Consolidated Statements of Stockholders' Equity (USD $)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, value at Sep. 30, 2011	$ 3,904	$ 2,886,960	$ (2,170,409)	$ 720,455
Beginning balance, shares at Sep. 30, 2011	3,903,784
Common shares issued upon exericse of stock options, shares	119,856
Common shares issued upon exericse of stock options, value	120	192,218		192,338
Common shares issued upon exercise of warrants for cash, value				0
Warrants issued to vendor for services				0
Common shares issued for assignment of patents and intellectual property from related party, shares	300,000
Common shares issued for assignment of patents and intellectual property from related party, value	300	974,700		975,000
Issuance of common shares and underwriter warrants in secondary public offering, net of issuance costs, shares	2,053,400
Issuance of common shares and underwriter warrants in secondary public offering, net of issuance costs, value	2,053	7,997,538		7,999,591
Common shares issued to officers for deferred compensation, shares	31,111
Common shares issued to officers for deferred compensation, value	31	139,969		140,000
Share-based compensation expense		1,686,909		1,686,909
Net loss for the period			(4,462,182)	(4,462,182)
Ending balance, value at Sep. 30, 2012	6,408	13,878,294	(6,632,591)	7,252,111
Ending balance, shares at Sep. 30, 2012	6,408,151
Common shares issued upon exericse of stock options, shares	61,521
Common shares issued upon exericse of stock options, value	61	232,026		232,087
Common shares issued upon cashless exercise of stock options, shares	96
Common shares issued upon exercise of warrants for cash, shares	300,000
Common shares issued upon exercise of warrants for cash, value	300	1,124,700		1,125,000
Common shares issued upon cashless exercise of warrants, shares	65,553
Common shares issued upon cashless exercise of warrants, value	66	(66)
Warrants issued to vendor for services		25,000		25,000
Share-based compensation expense		2,123,242		2,123,242
Net loss for the period			(7,670,424)	(7,670,424)
Ending balance, value at Sep. 30, 2013	$ 6,835	$ 17,383,196	$ (14,303,015)	$ 3,087,016
Ending balance, shares at Sep. 30, 2013	6,835,321

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2013	Sep. 30, 2012
Cash Flows From Operating Activities:
Net loss	$ (7,670,424)	$ (4,462,182)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	256,670	180,900
Warranty provision	15,997	10,612
Non-cash inventory reserve	(51,078)	(7,604)
Share-based compensation	2,106,373	1,686,909
Warrants issued for services	25,000	0
Non-cash research and development supplies	16,163	0
Accounts receivable	(138,082)	(39,371)
Prepaid expenses and other current assets	(16,235)	2,143
Inventories	(228,638)	(162,832)
Accounts payable	689,185	9,147
Accrued liabilities	37,943	122,417
Deferred officer compensation	0	(84,400)
Warranty settlements	(10,099)	(7,904)
Net cash used in operating activities	(4,967,225)	(2,752,165)
Cash Flows From Investing Activities:
Capital expenditures for property and equipment	(35,501)	(108,785)
Patent costs paid	(260,096)	(295,096)
Net cash used in investing activities	(295,597)	(403,881)
Cash Flows From Financing Activities:
Proceeds from sale of common stock and warrants	0	9,240,304
Offering costs paid	0	(1,240,713)
Proceeds from exercise of warrants	1,125,000	0
Proceeds from exercise of stock options	232,087	192,338
Payments on capital lease obligation	(24,033)	0
Net cash provided by financing activities	1,333,054	8,191,929
Net (decrease) increase in cash	(3,929,768)	5,035,883
Cash and cash equivalents, beginning of period	5,527,647	491,764
Cash and cash equivalents, end of period	1,597,879	5,527,647
Supplemental Disclosure of Non-Cash Investing and Financing Information:
Interest paid	4,559	0
Income taxes paid	800	800
Common stock issued for technology purchased from related party	0	975,000
Equipment acquired with capital lease	139,967	0
Deferred officer compensation paid in common shares	0	140,000
Issuance costs relating to warrants issued to underwriter	$ 0	$ 622,729

1. Organization and Significant Accounting Policies

12 Months Ended

Sep. 30, 2013

Organization And Significant Accounting Policies

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization and Business Description

Parametric Sound Corporation (“Parametric” or the “Company”) is a technology company focused on delivering novel audio solutions through its HyperSound® or “HSS®” technology platform, that pioneered the practical application of parametric acoustic technology for generating audible sound along a directional ultrasonic column. The creation of sound using the Company’s technology also creates a unique sound image distinct from traditional audio systems. In addition to its commercial product business, the Company is targeting its technology for new uses in consumer markets including computers, video gaming, televisions and home audio along with other commercial markets including casino gaming and cinema. The Company is also researching and developing health applications for persons with hearing loss.

The Company was incorporated in Nevada on June 2, 2010 as a new, wholly owned subsidiary of LRAD Corporation in order to effect the 100% separation and spin-off of the HSS business (the “Spin-Off”). On September 27, 2010, the Spin-Off was completed and the Company became a stand-alone, independent, publicly traded company. In June 2012, the Company formed PSC Licensing Corp. (“PSC”) and in October 2012 formed HyperSound Health, Inc. (“HHI”), both as wholly owned subsidiaries. The Company’s corporate headquarters are located in Poway, California. Principal markets for the Company’s products are North America, Europe and Asia.

On August 5, 2013, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with VTB Holdings, Inc. (“Turtle Beach”). The Merger Agreement provides, that upon the terms and subject to the conditions of the Merger Agreement, a wholly-owned subsidiary of the Company will merge with and into Turtle Beach resulting in Turtle Beach becoming a wholly-owned subsidiary of the Company (the “Merger”). At the effective time of the Merger, the Company will issue shares of common stock to the former Turtle Beach stockholders which, together with options to purchase shares of Turtle Beach common stock that will be converted into options to purchase shares of the Company’s common stock (and will be assumed by the Company at the effective time of the Merger), will represent approximately 80% of the Company’s common stock on a fully-diluted basis after the Merger, subject to adjustment pursuant to the Merger Agreement. Certain redeemable, non-convertible preferred stock of Turtle Beach with a stated value of $12,000,000, plus dividends accrued but unpaid thereon, as well as certain phantom stock units of Turtle Beach, will remain outstanding following the Merger and will not be exchanged for Company common stock. The Merger and related transactions are more fully described in Note 3, “Pending Merger with Turtle Beach.”

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the Company and its wholly owned subsidiaries, PSC and HHI. Intercompany balances and transactions have been eliminated in consolidation. Where necessary, the prior year’s information has been reclassified to conform to the fiscal 2013 statement presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit.

On March 21, 2012, the Company completed a 1-for-5 reverse split of its common stock. All common stock share and per share information in the accompanying interim condensed consolidated financial statements and notes thereto have been adjusted to reflect retrospective application of the reverse stock split, except for par value per share and the number of authorized shares, which were not affected by the reverse stock split.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., valuation of inventory, valuation of intangible assets, warranty reserve, the grant date fair value of stock options and warrants, share-based compensation expense and valuation allowance related to deferred tax assets) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Loss Per Share

Basic loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential common stock instruments outstanding to be antidilutive. Stock options and warrants exercisable into a total of 1,485,699 and 1,693,839 shares of common stock were outstanding at September 30, 2013 and 2012, respectively. These securities are not included in the computation of diluted net loss per common share for the periods presented, as their inclusion would be antidilutive due to losses incurred by the Company. Previously reported share and earnings per share amounts have been restated to reflect the 1-for-5 reverse stock split effected in March 2012.

Fair Value of Financial Instruments

The carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair values due to the short maturity of these instruments. The fair value of warrants issued in March and April 2012 were estimated using a Black-Scholes valuation model (see Note 10).

The Company does not have any financial assets and liabilities that are measured at fair value on a recurring basis.

Concentrations of Credit Risk

The Company sells its products to a number of geographically diverse customers. At September 30, 2013, accounts receivable from three customers accounted for 62%, 13% and 11% of total accounts receivable. At September 30, 2012 accounts receivable from one customer accounted for 98% of total accounts receivable.

Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents.

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s policy is to evaluate the collectability of accounts receivable based on an assessment of the collectability of specific customer accounts and then record an allowance for doubtful accounts to reduce the receivables to an amount that management reasonably estimates will be collected. There was no allowance for doubtful accounts recorded at September 30, 2012 or 2013. Accounts that are deemed uncollectible will be written off against the allowance for doubtful accounts. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our reported financial results.

Contract Manufacturers

The Company uses contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions. The Company performs assembly of products in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers.

Inventories

Inventories are valued at the lower of cost or net realizable value. The cost of substantially all of the Company’s inventory is determined by the weighted average cost method. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers. The Company evaluates the need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s products. At September 30, 2013 and 2012, the reserve for obsolescence included certain raw materials obtained at the Spin-Off, some of which are being used to produce the Company’s products.

Property, Equipment and Depreciation

Property and equipment is stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of two to three years using the straight-line method. Leasehold improvements are amortized over the life of the lease. Upon retirement or disposition of property and equipment, the related cost and accumulated depreciation is removed and a gain or loss is recorded based on the difference between proceeds received, if any, and the carrying value of the asset on the date of retirement or disposition.

Intangible Assets

Patents, licenses, purchased technology and trademarks are carried at cost less accumulated amortization. Intangible assets acquired through a transaction that is not a business combination are measured based on the cash consideration paid plus either the fair value of the non-cash consideration given or the fair value of the assets acquired, whichever is more clearly evident. Legal costs incurred to file, renew, or extend the term of recognized intangible assets are capitalized.

Intangible assets are amortized over their estimated useful lives, which have been estimated to be 15 years for patents, licenses, purchased technology and trademarks protecting the Company’s products. The Company amortizes certain patents acquired in the Spin-Off, classified as defensive patents, over a weighted average of three years. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the expected future benefit to be derived from an individual intangible asset is less than its carrying value.

Revenue Recognition

The Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed pursuant to the terms of sale or agreement, (iii) amounts are fixed or determinable and (iv) collectability of amounts is reasonably assured. During fiscal 2012, the Company began pursuing licensing of its patents and technologies but has recognized no licensing revenues through September 30, 2013.

Product Sales

Revenues derived from product sales to customers, including resellers and system integrators, are recognized in the periods that products are shipped to customers (FOB shipping point) or when product is received by the customer (FOB destination), when the fee is fixed and determinable, when collection of resulting receivables is probable and there are no remaining obligations on the part of the Company. Most revenues to resellers and system integrators are based on commitments from the end user or stocking for identified projects; as a result, resellers and system integrators generally carry minimal inventory. The Company’s customers do not have the right to return product unless the product is found to be defective.

Licensing

The Company’s strategy is to derive licensing revenues primarily from royalties paid by licensees of the Company’s intellectual property rights, including patents, trademarks and know-how. Revenues generated from license agreements are recognized in the period earned, provided that amounts are fixed or determinable and collectability is reasonably assured. Deferred revenue is reported for amounts that are expected to be recognized as revenue including upfront license fees, but for which not all revenue recognition criteria have been met.

Shipping and Handling Costs

Shipping and handling costs are included in cost of revenues. The amount of shipping and handling costs invoiced to customers is included in revenue. Shipping and handling costs were $9,480 and $11,233 for the fiscal years ended September 30, 2013 and 2012, respectively.

Research and Development Costs

Research and development expenses include costs and expenses associated with the development of the Company’s technology and the design and development of new products, including initial nonrecurring engineering and product verification charges. Research and development is expensed as incurred.

Business Transaction

For the year ended September 30, 2013, the Company incurred $1,280,273 of business transaction costs related to reviewing strategic opportunities and preparing for the merger with Turtle Beach consisting of legal, investment bank, accounting and related costs and expenses.

Warranty Reserves

The Company warrants its products to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally a limited warranty. The Company currently provides direct warranty service. The Company establishes a warranty reserve based on anticipated warranty claims at the time revenue from product sales is recognized. Factors affecting warranty reserve levels include the number of units sold and anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period.

Classification and Valuation of Warrants

The Company accounts for warrants as either equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation is made. Warrants that do not qualify for equity classification are recorded as derivative liabilities based on the issue date fair value and are subject to adjustment to fair value at each reporting period. As of September 30, 2013 and 2012, the Company has no warrants or other derivative financial instruments that require separate accounting as liabilities and periodic revaluation.

Income Taxes

The Company accounts for its income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on temporary differences between financial statement and tax basis of assets and liabilities and net operating loss and credit carry-forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when it is more likely than not that some portion of the deferred tax assets will not be realized.

Financial statement effects of a tax position are initially recognized when it is more likely than not, based on the technical merits, that the position would be sustained upon examination. A tax position that meets the more-likely-than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a more likely than not likelihood of being realized upon ultimate settlement with a taxing authority. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as income tax expense.

Comprehensive Loss

Comprehensive loss consists of net loss and other gains and losses affecting stockholders’ equity that under GAAP, are excluded from reported net loss. There were no differences between net loss and comprehensive loss for any of the periods presented.

Impairment of Long-Lived Assets

Long-lived assets and identifiable finite-lived intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value.

Share-Based Compensation

The Company measures employee share-based compensation awards using a fair-value method and records related compensation expense for all awards that are expected to vest over the requisite service period.

Share-Based Payments for Goods and Services

Stock options, stock awards or warrants issued to non-employees who are not directors of the Company are recorded at the fair value of the consideration received, when more reliably measurable, or the fair value of the equity instruments issued at the measurement date. Non-employee options are periodically revalued as the options vest so the cost ultimately recognized is equivalent to the fair value on the date performance is complete with such expense recognized over the related service period on a graded vesting method.

Recent Accounting Pronouncements

The Company does not expect the adoption of any recent accounting pronouncements to have a material effect on the Company’s financial position, results of operations or cash flows.

Subsequent Events

Management has evaluated events subsequent to September 30, 2013 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements.

2. Liquidity and Capital Resources

12 Months Ended

Sep. 30, 2013

Liquidity And Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

The Company has sustained recurring losses and negative cash flows from operations. The Company’s recent business operations have been funded primarily from products sales, proceeds from sales of common stock and proceeds from the exercise of warrants and options. As of September 30, 2013, the Company had cash and cash equivalents of approximately $1.6 million and a working capital balance of approximately $1.5 million. Subsequent to September 30, 2013, in November 2013, the Company obtained net proceeds of approximately $5.08 million from the registered direct sale of common stock pursuant to the Company’s “shelf” registration statement as more fully described in Note 15.

Assuming the merger is completed, the Company expects its cash including the proceeds from the November 2013 sale of common stock, to meet its liquidity requirements through the anticipated closing of the Merger and the resulting combined company is expected to have sufficient resources to finance operations for the next year. The Company believes the stock sale satisfies a closing condition under the Merger Agreement requiring Parametric to raise a minimum of $5 million as described in Note 3. If the Merger is not completed, the Company believes that existing working capital resources and product revenues will be sufficient to meet operating requirements based on current plans over the next year. Under this scenario, the Company expects its cash and cash equivalents to decrease as it continues to pay merger related transaction costs and fund operating and working capital requirements. Accordingly, the Company may need to reevaluate its strategic alternatives, including pursuing other strategic transactions, but such alternatives may be negatively impacted in the event that the Merger is terminated. Under this scenario, the Company may also need to evaluate the scope of its operations, and make reductions as considered necessary based on current levels of revenues.

The Company’s future capital requirements will depend upon numerous factors, including:

the timing, cost and successful completion of the Merger;

the success, progress, timing and costs of the Company’s business development efforts to obtain licensing arrangements and the Company’s efforts to evaluate possible strategic alternatives with respect to the Company and its technology;

the Company’s ability to obtain value from its current products and technologies and its ability to sell or license new products and technologies and the costs and expenses of such activities;

the perceived, potential and actual commercial success of the Company’s products;

the Company’s operating expenses;

the progress, timing, cost and results of the Company’s regulatory efforts related to hearing applications of its technology;

the costs of preparing, filing, prosecuting, maintaining and enforcing patent claims and other intellectual property rights;

the emergence of competing products and technologies, and other adverse market developments; and

the resolution of existing shareholder litigation discussed in Note 12 and any amount the Company may be required to pay in connection with this litigation.

In the event the Company would require additional working capital to fund operations or otherwise elect to raise additional funds, management may seek to acquire any such additional funds through equity or debt financing arrangements. There is no assurance that any financing transaction will be available on terms acceptable to the Company, or at all. If the Company raises additional funds by issuing equity securities, the Company’s stockholders may experience dilution. Debt financing, if available, may involve covenants restricting the Company’s operations or its ability to incur additional debt.

If the Company does not complete the Merger and if adequate funds are not available in the future or are not available on acceptable terms, the Company may need to reduce its operating costs which may have a material adverse effect on its financial position and results of operations.

- Definition

Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations.

+ References+ Details

3. Pending Merger with Turtle Beach

12 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Pending Merger with Turtle Beach

Agreement and Plan of Merger

On August 5, 2013, the Company entered into the Merger Agreement with Turtle Beach. The Merger Agreement provides that upon the terms and subject to the conditions of the Merger Agreement, a wholly-owned subsidiary of the Company will merge with and into Turtle Beach resulting in Turtle Beach becoming a wholly-owned subsidiary of the Company (the “Merger”). At the effective time of the Merger, the Company will issue shares of common stock to the former Turtle Beach stockholders which, together with options to purchase shares of Turtle Beach common stock that will be converted into options to purchase shares of the Company’s common stock (and will be assumed by the Company at the effective time of the Merger), will represent approximately 80% of the Company’s common stock on a fully-diluted basis after the Merger, subject to adjustment pursuant to the Merger Agreement. Certain redeemable, non-convertible preferred stock of Turtle Beach with a stated value of $12,000,000, plus dividends accrued but unpaid thereon, as well as certain phantom stock units of Turtle Beach, will remain outstanding following the Merger and will not be exchanged for Company common stock.

The Merger Agreement requires the Company to cause, as of the effective time of the Merger, the size of the Company’s Board of Directors to consist of a total nine members, initially to be comprised of five individuals identified by Turtle Beach and two individuals identified by the Company, and two vacancies.

The Merger is intended to qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended.

Although the Company will be the legal acquirer, the Merger will be accounted for as a “reverse acquisition” pursuant to which Turtle Beach will be considered the acquiring entity for accounting purposes in accordance GAAP. As such, Turtle Beach will allocate the total purchase consideration to Parametric’s tangible and identifiable intangible assets and liabilities based on their respective fair values at the date of completion of the Merger. Turtle Beach’s historical results of operations will replace Parametric’s historical results of operations for all periods prior to the Merger. After completion of the Merger, the results of operations of the combined companies will be included in Parametric’s financial statements, which will also reflect the Series B Preferred Stock of Turtle Beach that will remain outstanding after the Merger.

The consummation of the Merger is subject to a number of conditions, including, but not limited to, (i) adoption and approval of the Merger Agreement and the Merger by Company’s stockholders as required by NASDAQ rules, (ii) the approval of the continued listing application by NASDAQ, (iii) the completion of a qualifying capital raising transaction through the incurrence of debt or the issuance of equity by the Company, with net proceeds of at least $5 million, and (iv) certain other closing conditions. The Company believes the $5.1 million stock sale completed in November 2013 (see Note 15) satisfies the capital raising closing condition under the Merger Agreement. The number of shares of common stock to be issued pursuant to the Merger is subject to adjustment as described in the Merger Agreement depending upon the amount of qualifying equity proceeds (up to a maximum of $15 million), obtained by the Company prior to closing of the Merger.

Each of the Company and Turtle Beach have made customary representations, warranties and covenants in the Merger Agreement including, among others, covenants that: (i) each party will conduct its business in the ordinary course consistent with past practice during the interim period between the execution of the Merger Agreement and the consummation of the Merger; (ii) each party will not engage in certain kinds of transactions or take certain actions during such period, (iii) the Company will convene and hold a meeting of its stockholders for the purpose of considering the adoption and approval of the Merger Agreement, and (iv) the transactions contemplated thereby and the Board of dDrectors of the Company will recommend, subject to certain exceptions, that its stockholders adopt and approve the Merger Agreement and the Merger. Other than for a period of 30 days that followed the signing of the Merger Agreement, the Company has agreed not to solicit proposals relating to alternative business combinations or enter into discussions or an agreement concerning any proposals for alternative business combinations, subject to fiduciary duty exceptions in the event of the Company’s receipt of a “superior proposal.”

The Merger Agreement contains certain termination rights in favor of each of the Company and Turtle Beach under specified circumstances. Upon termination in specified circumstances, some of which may be outside of the Company’s control (including, but not limited to, in the event that the Board of Directors of the Company changes its recommendation that its stockholders approve the principal terms of the Merger Agreement and the Merger, or elects to pursue a superior proposal from a third party), (i) the Company may be required to pay to Turtle Beach a termination fee of $1,000,000 and/or enter into a license agreement with Turtle Beach with respect to certain Company intellectual property for use in console audio products on an exclusive basis and computer audio products on a non-exclusive basis, or (ii) Turtle Beach may be required to pay the Company a termination fee of $1,000,000. Either party may terminate the Merger Agreement if the Merger has not occurred on or prior to February 28, 2014.

Stockholder Agreement

Concurrently with the execution of the Merger Agreement, on August 5, 2013, the Company, Turtle Beach and certain stockholders of Turtle Beach (the “Turtle Beach Stockholders”) entered into a Stockholder Agreement (the “Stockholder Agreement”) pursuant to which the Turtle Beach Stockholders agreed to certain restrictions and other provisions with respect to the Turtle Beach capital stock currently held by them and the shares of Company common stock that will be issued to them pursuant to the Merger Agreement (collectively, the “Merger Shares”).

Under the Stockholder Agreement, (i) the Turtle Beach Stockholders have agreed to a lock-up whereby they will not sell or otherwise transfer the Merger Shares for a period of six months following the closing of the Merger, subject to certain exceptions, and (ii) the Turtle Beach Stockholders also agreed to execute a written consent of stockholders in favor of the Merger concurrent with the execution of the Stockholder Agreement.

Pursuant to the Stockholder Agreement, from and after the closing of the Merger, the Turtle Beach Stockholders are entitled to certain registration rights covering the Merger Shares, including customary piggyback registration rights for all Turtle Beach Stockholders and demand registration rights for SG VTB Holdings, LLC (“SG VTB”).

Pursuant to the Stockholder Agreement, the Turtle Beach Stockholders have also agreed, effective as of the closing of the Merger, to the formation of a group (the “Stockholder Group”) for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. The Turtle Beach Stockholders provided these block voting covenants to have the Company qualify as a “controlled company” under NASDAQ rules following the closing of the Merger.

The Turtle Beach Stockholders have also agreed, effective from and after the closing of the Merger, to vote their Merger Shares to ensure that SG VTB has the right to designate seven directors to Parametric’s Board of Directors (including the Chief Executive Officer of the Company and two independent directors) so long as SG VTB and its affiliates collectively beneficially own at least 10% of the outstanding capital stock of the Company.

Voting Agreements

Concurrently with the execution of the Merger Agreement, on August 5, 2013, the Company and Turtle Beach entered into Shareholder Agreements and Irrevocable Proxies (collectively, the “Voting Agreements”) with Kenneth Potashner, the Company’s Executive Chairman, James A. Barnes, the Company’s Chief Financial Officer, Secretary and Treasurer, and Elwood G. Norris, the Company’s President and Chief Science Officer, as well as certain entities over which they exercise voting and/or investment control (collectively, the “Management Stockholders”).

Under the Voting Agreements, (i) the Management Stockholders are subject to a lock-up restriction whereby they have agreed not to sell or otherwise transfer the shares of Company common stock beneficially owned by them for a period of time commencing on the date of the agreement and ending six months following the closing of the Merger, subject to certain exceptions, and (ii) the Management Stockholders have agreed to vote their currently held shares in favor of the Merger Agreement and the Merger. The shares subject to the Voting Agreements represented approximately 19.2% of the outstanding shares of Company common stock as of August 5, 2013, the date of the Merger Agreement.

4. Inventories, net

12 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

INVENTORIES, NET

Inventories, net consist of the following:

At September 30,	2013			2012
Finished goods	$	260,646		$	143,430
Work in process		43,494			11,735
Raw materials		479,963			400,300
		784,103			555,465
Reserve for obsolescence		(60,683	)		(111,761	)
	$	723,420		$	443,704

The Company relies on one supplier for film used in its HSS products. The Company’s ability to manufacture its HSS product could be adversely affected if it were to lose a sole source supplier and was unable to find an alternative supplier.

The reserve for obsolescence was reduced by $60,711 and $25,020 for the years ended September 30, 2013 and 2012, respectively, through the use of legacy HSS parts and components obtained in connection with the Spin-Off and used in the production of HSS-3000 products and prototypes. The Company increased the reserve during the year ended September 30, 2013 and 2012 by $9,633 and $17,416, respectively, for parts deemed obsolete due to model changes. The Company may continue to incur non-cash inventory reserve reductions through the use of reserved legacy HSS parts obtained in connection with the Spin-Off and will continue to evaluate inventory for excess or obsolete components.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References+ Details

5. Property and Equipment, net

12 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and equipment, net consist of the following:

At September 30,	2013			2012
Equipment	$	195,438		$	180,519
Research equipment under capital lease		139,967			–
Tooling		125,433			124,299
Furniture and office equipment		75,950			58,170
Leasehold improvements		17,934			16,266
		554,722			379,254
Accumulated depreciation		(335,353	)		(202,342	)
	$	219,369		$	176,912

Depreciation expense was $133,011 and $77,125 for the years ended September 30, 2013 and 2012, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

6. Intangible Assets, net

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, net

Intangible assets, net consist of the following:

At September 30,	2013			2012
Purchased technology	$	1,225,000		$	1,225,000
Patents		452,040			201,745
Defensive patents		190,213			183,498
Licenses and trademarks		18,548			15,462
		1,885,801			1,625,705
Accumulated amortization		(434,503	)		(310,844	)
	$	1,451,298		$	1,314,861

Purchased technology consists of patent applications and intellectual property acquired from a related party (see Note 13) in December 2011.

Aggregate amortization expense for the Company’s intangible assets was $123,659 and $103,775 during the years ended September 30, 2013 and 2012, respectively.

The following table shows the estimated amortization expense for intangible assets for each of the five succeeding fiscal years and thereafter:

Estimated Amortization Expense Years Ending September 30,
	2014	$	127,839
	2015		122,514
	2016		113,880
	2017		106,413
	2018		105,497
	Thereafter		875,155

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details

8. Capital Lease Obligation

12 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Capital Lease Obligation

The capital lease obligation is for research equipment (see Note 5). Amortization of the asset under the capital lease is included in depreciation and amortization expense and the accumulated amortization was $31,515 at September 30, 2013.

Future minimum lease payments for each year of the capital lease are as follows:

	Total
2014	$	42,888
2015		42,888
2016		42,888
2017		14,295
Total payments		142,959
Less amount representing interest		(10,862	)
Present value of minimum payments		132,097
Less current portion		(37,486	)
	$	94,611

9. Income Taxes

12 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

The Company recorded no income tax expense in 2013 or 2012 due to losses incurred. The Company generated federal tax net operating loss carryforwards related to expenditures incurred after the Spin-Off including costs incurred after incorporation and paid after the Spin-Off. At September 30, 2013, the Company had a federal and state net operating loss carryforward of approximately $9.3 million that will expire beginning in 2031 unless previously utilized. Internal Revenue Code Section 382 limits net operating loss and tax credit carryforwards if an ownership change of more than fifty percent of the value of the stock in a loss corporation occurs within a three-year period. Any future equity issuances or significant ownership changes, including the Merger, could result in Section 382 limits. Accordingly, the ability to utilize net operating loss and tax credit carryforwards could be restricted in the future.

The provision for income taxes consists of the following:

Years Ended September 30,	2013			2012
Current tax benefit	$	–		$	–
Deferred tax benefit		2,327,000			1,758,000
Change in valuation allowance		(2,327,000	)		(1,758,000	)
Income tax benefit (provision)	$	–		$	–

A reconciliation of income taxes at the federal statutory rate of 34% to the effective tax rate for the years ended September 30, 2013 and 2012 is as follows:

Years Ended September 30,	2013			2012
Income taxes benefit computed at federal statutory rate	$	2,608,000		$	1,517,000
State income taxes, net of federal effect		460,000			268,000
Permanent differences and other		(741,000	)		(27,000	)
Change in valuation allowance		(2,327,000	)		(1,758,000	)
Income tax benefit (provision)	$	–		$	–

The Company did not benefit from any of the carryforward tax attributes from periods prior to the Spin-Off including net operating loss carryforwards. In assessing the possible realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. In making this assessment, management does not believe that it is more likely than not that the Company will realize the benefits of the net deferred tax assets as of September 30, 2013. Accordingly, a valuation allowance has been established to offset the deferred tax assets as realization of such assets is uncertain. The components of the net deferred tax assets are as follows:

At September 30,	2013			2012
Deferred tax assets:
Net operating losses	$	3,720,000		$	1,805,000
Inventory reserve		339,000			382,000
Research tax credits		19,000			19,000
Stock-based and deferred compensation		1,094,000			683,000
Accruals and other		38,000			53,000
		5,210,000			2,942,000
Deferred tax liabilities:
Amortization, depreciation and other		78,000			137,000
		78,000			137,000
Net deferred tax assets		5,132,000			2,805,000
Less valuation allowance		(5,132,000	)		(2,805,000	)
Net deferred taxes after valuation allowance	$	–		$	–

The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for net operating loss carryforwards resulting from windfall tax benefits occurring from September 27, 2010 onward. At September 30, 2013, deferred tax assets do not include excess tax benefits from stock-based compensation of approximately $176,000.

The Company adopted ASC 740-10-25, Income Taxes—Recognition (formerly FIN 48), as of the date of incorporation. As of the date of the adoption, the Company had no unrecognized tax benefits and there were no material changes during the years ended September 30, 2013 and 2012. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Upon adoption of ASC 740-10-25, the Company did not record any interest or penalties. The Company is subject to income tax in the U.S. federal jurisdiction and the state of California. All years since the Company’s 2010 organization remain subject to examination but there are currently no ongoing exams in any taxing jurisdiction.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

10. Capital Stock

12 Months Ended

Sep. 30, 2013

Equity [Abstract]

CAPITAL STOCK

Common Stock

The Company is authorized to issue 50,000,000 shares of common stock, $0.001 par value. At September 30, 2013 and 2012, the Company had 6,835,321 and 6,408,151 shares issued and outstanding, respectively. All common stock share and per share information herein have been adjusted to reflect the retrospective application of the 1-for-5 reverse stock split effected March 21,2012, except for par value per share and the number of authorized shares, which were not affected by the reverse stock split.

Preferred Stock

The Company is authorized to issue 1,000,000 shares of preferred stock, $0.001 par value. The Company is authorized under its certificate of incorporation and bylaws to issue the shares of preferred stock without any further action by the stockholders. The Board of Directors has the authority to divide any and all shares of preferred stock into series and to fix and determine the relative rights and preferences of the preferred stock, such as the designation of series and the number of shares constituting such series, dividend rights, redemption and sinking fund provisions, liquidation and dissolution preferences, conversion or exchange rights and voting rights, if any. Issuance of preferred stock by the Board of Directors could result in such shares having dividend and/or liquidation preferences senior to the rights of the holders of common stock and could dilute the voting rights of the holders of common stock.

Secondary Public Offering

During March and April 2012, the Company completed a secondary public offering of 2,053,400 shares of common stock, at a price of $4.50 per share, for gross proceeds of $9.24 million. The net proceeds of the offering after deducting underwriting discounts and commissions and offering expenses was $8.0 million. In connection with the offering, the Company granted the underwriter warrants to purchase 205,339 shares of common stock at an exercise price of $5.625 per share. These warrants expire on March 21, 2017. The estimated fair value of these warrants was $622,729, as determined using the Black-Scholes methodology (assuming estimated volatility of 91% and 90%, risk-free interest rate of 0.89% and 0.87%, expected dividend yield of 0.0%). This amount was recorded as both an increase to additional paid in capital and as a non-cash issuance cost of the financing transaction.

Summary of Stock Purchase Warrants

The following table summarizes information on warrant activity during the years ended September 30, 2012 and 2013:

	Number			Average Purchase Price Per Share
Shares purchasable under outstanding warrants at October 1, 2011		320,000		$	3.75
Stock purchase warrants issued		205,339		$	5.625
Stock purchase warrants exercised		–
Shares purchasable under outstanding warrants at September 30, 2012		525,339		$	4.48
Stock purchase warrants issued		4,200		$	8.72
Stock purchase warrants exercised		(392,194	)	$	4.19
Shares purchasable under outstanding warrants at September 30, 2013		137,345		$	5.45

In June 2013, the Company issued 4,200 warrants exercisable for five years at $8.72 per share to a corporate vendor as payment for a $25,000 obligation.

During the year ended September 30, 2013, a total of 92,194 warrants were converted pursuant to cashless net exercise features, resulting in the issuance of 65,553 shares of common stock, and warrants to purchase 300,000 shares of common stock were exercised for cash resulting in proceeds of $1,125,000. Subsequent to September 30, 2013 a total of 26,471 warrants were converted pursuant to cashless net exercise, resulting in the issuance of 16,793 shares of common stock.

The Company has outstanding share warrants as of September 30, 2013 as follows:

	Number of		Exercise Price
Description	Common Shares		Per Share		Expiration Date
Stock Purchase Warrants (1)		20,000	$	3.75	February 22, 2016
Stock Purchase Warrants		113,145	$	5.625	March 21, 2017
Stock Purchase Warrants		4,200	$	8.720	June 30, 2018

(1)

warrants held by an entity affiliated with the Company’s Chief Financial Officer, Treasurer and Secretary, James A. Barnes.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

11. Share-Based Compensation

12 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

On September 27, 2010, the Company adopted its 2010 Stock Option Plan (the “2010 Plan”). The 2010 Plan authorized the grant of options to purchase up to 600,000 shares of the Company’s common stock to directors, officers, employees and consultants. On December 29, 2011, the Company adopted, and stockholders subsequently approved, the 2012 Stock Option Plan (the “2012 Plan”) providing the Board of Directors with authority to grant options to purchase up to 253,000 of the shares of common stock remaining available for issuance under the 2010 Plan and up to an additional 600,000 shares of common stock. Upon adoption of the 2012 Plan, no further awards could be granted under the 2010 Plan; awards previously granted under the 2010 Plan remain outstanding in accordance with their terms. Any outstanding awards under the 2010 Plan that expire or terminate, other than through exercise or share settlement, will also become eligible for grant under the 2012 Plan. In August 2012, the Company’s Board of Directors approved, and stockholders subsequently approved, an amendment to the 2012 Plan, authorizing an additional 500,000 shares of common stock for issuance under the 2012 Plan (“2012 Plan Amendment”). At September 30, 2013, a total of 195,500 shares were available for grant under the 2012 Plan, as amended.

At September 30, 2013, the Company had outstanding options to purchase up to 25,500 shares of the Company’s common stock that were granted outside of the 2012 Plan as an inducement grant in accordance with NASDAQ rules.

The Company uses the Black-Scholes option pricing model to determine the estimated fair value of each option as of its grant date or any revaluation date, and the grant date fair value is recognized as non-cash based compensation expense over the expected vesting term of options. The inputs to the Black-Scholes option-pricing model are subjective and generally require significant analysis and judgment to develop. The following table sets forth the significant weighted-average assumptions used in the Black-Scholes model and the calculation of stock-based compensation cost (annualized percentages):

Years Ended September 30,		2013	2012
	Volatility	87%	90%
	Risk-free interest rate	0.47%	0.92%
	Forfeiture rate	4.10%	1.10%
	Dividend yield	0.00%	0.00%
	Expected life in years	3.28	4.61
	Weighted average fair value of options granted	$7.40	$3.68

Expected volatility is based on the historical volatility of the Company’s common stock over the period commensurate with the expected life of the options. The risk-free interest rate is based on rates published by the Federal Reserve Board. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. The Company has a small number of option grants and limited exercise history. Accordingly, for all new option grants the Company has applied the simplified method prescribed by SEC Staff Accounting Bulletin 110, Share-Based Payment: Certain Assumptions Used in Valuation Methods - Expected Term, to estimate expected life (computed as vesting term plus contractual term divided by two). The estimated forfeiture rate was estimated by class of employee. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates, or if the Company updates its estimated forfeiture rate. Such amounts, if any, will be recorded as a cumulative adjustment in the period in which the estimate is changed.

The Company recorded share-based compensation in its statements of operations for the relevant periods as follows:

Years Ended September 30,	2013		2012
Selling, general and administrative	$	1,727,542	$	1,420,708
Research and development		378,831		266,201
	$	2,106,373	$	1,686,909

As of September 30, 2013, total estimated compensation cost relating to stock options granted but not yet vested was $1,657,603. This cost is expected to be recognized over the weighted average period of 1.4 years.

The following table summarizes stock option activity for the period:

	Number			Weighted Average		Aggregate
	of Shares			Exercise Price		Intrinsic Value (2)
Fiscal 2012:
Outstanding October 1, 2011		347,000		$	1.80
Granted		1,054,000		$	4.40
Canceled/expired		(112,500	)	$	4.20
Exercised		(120,000	)	$	1.61
Outstanding September 30, 2012		1,168,500		$	3.93

Fiscal 2013:
Outstanding October 1, 2012		1,168,500		$	3.93
Granted		305,500		$	12.23
Canceled/expired		(64,000	)	$	10.55
Exercised		(61,646	)	$	3.77
Outstanding September 30, 2013 (1)		1,348,354		$	5.51	$	9,867,480
Exercisable September 30, 2013		871,897		$	3.98	$	7,516,630

	(1)	Options outstanding are exercisable at prices ranging from $1.50 to $16.92 and expire in 2015 to 2018.
	(2)	Aggregate intrinsic value is based on the closing price of our common stock on September 30, 2013 of $12.53.

The total intrinsic value of options exercised during fiscal 2013 was $480,682. Cash received from the exercise of stock options for the year ended September 30, 2013 was $232,087.

The following table summarizes information about stock options outstanding at September 30, 2013:

Range of exercise prices	Number outstanding at September 30, 2013	Number exercisable at September 30, 2013	Weighted Average exercise price	Weighted average remaining contractual life	Weighted average Exercise price of options exercisable at September 30, 2013
$1.50-$3.00	193,500	193,500	$1.59	2.0	$1.59
$3.01-$4.00	512,354	474,355	$3.26	3.2	$3.26
$4.01-$5.00	268,500	79,813	$4.50	3.4	$4.49
$5.01-$10.00	208,000	82,564	$9.05	4.1	$8.74
$10.01-$16.92	166,000	41,665	$14.18	4.6	$12.76

Options of Subsidiary

In February 2013, HHI adopted an equity incentive plan under which it may grant options to purchase up to 250 shares of its common stock to HHI employees, directors and consultants. HHI has 1,000 shares of common stock issued and outstanding. In February and March 2013, HHI granted to consultants and employees options, with a five year term, to purchase 140 shares of HHI common stock at an exercise price of $1,000 per share including an option to purchase 50 shares of HHI common stock granted to the Company’s Executive Chairman (who also serves as the President of HHI). These option grants are subject to a combination of performance and time-based vesting, and also contain certain anti-dilution adjustment rights (which generally allow the option holders to maintain their percentage ownership in HHI during a three-year period from the date of the original option grant), as well as repurchase rights and first refusal rights in favor of HHI. At September 30, 2013 options to purchase 13.75 shares issued to consultants had vested and were exercisable.

The Company used the Black-Scholes option-pricing model to determine the estimated fair value of each option using a weighted average volatility of 72%, a weighted average risk-free interest rate of 0.68%, and expected terms of 3-5 years. The Company recorded $10,108 as option expense related to the HHI options for the period ended September 30, 2013 which expense is included in the consolidated share-based compensation expenses summarized above.

In August 2013, in connection with the Merger (see Note 3), previously granted options on 100 shares (including the 50 shares held by the Company’s Executive Chairman) were amended to narrow certain performance vesting conditions and to provide that the options on such 100 shares terminate upon the closing of the merger or a specified alternative acquisition. No expense was recorded for these options, as they were not considered probable of vesting at September 30, 2013.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

12. Commitments and Contingencies

12 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Bank and Other Cash Equivalent Deposits in Excess of FDIC Insurance Limits

The Company maintains cash and cash equivalent accounts with Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. The FDIC insures certain of the Company’s accounts up to $250,000. The Company’s exposure for amounts in excess of FDIC insured limits at September 30, 2013 was approximately $1.3 million. The Company has not experienced any losses in such accounts.

Facility Lease

Commencing May 18, 2012 the Company leased approximately 6,800 square feet (increased to 9,650 square feet in July 2013) of improved office, laboratory, assembly and warehouse space in Poway, California for a period terminating in August 2015. The gross monthly base rent is approximately $7,070 increasing approximately 3.5% per annum subject to other certain future adjustments.

The Company has no other operating leases and the remaining future annual minimum lease payment obligation under the foregoing facility lease is $78,415 and $80,505 for the years ending September 30, 2014 and 2015, respectively.

Employment Agreement

In April 2012 the Company entered into a five-year employment agreement with Kenneth F. Potashner as Executive Chairman. Under the terms of the employment agreement, the Company may be obligated to pay to Mr. Potashner severance equal to one year of his annual base salary plus targeted bonus if his employment is terminated without cause.

Bonus Plan

On February 21, 2013, the Company adopted a cash bonus plan for the period January 1, 2013 to December 31, 2013, pursuant to which each of the Company’s executive officers and certain other officers and consultants designated by the Board of Directors are eligible to receive a target bonus equal to a percentage of the executive officer’s or other individual’s annualized base compensation if applicable performance objectives were met. The performance objectives are based 25% upon the Company achieving certain revenue performance targets, 25% upon the Company achieving certain licensing targets, 25% based upon the Company achieving certain technology development targets and 25% upon the Company or its licensees or partners achieving certain new product launch targets. The performance objectives include both objective determinations and subjective determinations to be made by the Board of Directors. The maximum bonus percentage for each participant is 50% of his annual base compensation, except for the Company’s Executive Chairman whose maximum bonus percentage is 60% of his annual base compensation. The Company accrued no bonus expense at September 30, 2013.

In August 2013, in connection with the Merger (see Note 3), and as authorized under the cash bonus plan, the Board of Directors approved, for its three executive officers, the closing of the Merger as a stand-alone performance objective eligible for the maximum bonus payout for 2013 aggregating $453,000. The Company is also obligated to a consultant for a payment of $250,000 only upon closing which includes a bonus for business development activities in 2013. No amount was accrued pursuant to these arrangements at September 30, 2013 pending consummation of the Merger.

Pending Merger

As more fully described in Note 3 “Pending Merger with Turtle Beach”, upon termination of the Merger Agreement in specified circumstances, the Company may be required to pay to Turtle Beach a termination fee of $1,000,000 and/or enter into a license agreement with Turtle Beach with respect to certain Company intellectual property.

Shareholder Litigation

On August 8, 2013, James Harrison, Jr., a purported shareholder of the Company, filed a class action lawsuit in the Superior Court California, County of San Diego, under the caption Harrison v. Parametric Sound Corp., naming the Company, the Company’s directors, Paris Acquisition Corp. (a wholly-owned subsidiary of the Company) and Turtle Beach as defendants. Several other substantially similar shareholder class action complaints were filed in the same court in August 2013. In August and September 2013, several substantially similar shareholder class action complaints were filed in the Eighth Judicial District Court, Clark County, Nevada. All complaints related to the same events and transactions regarding the Merger, allege breaches of fiduciary duty and aiding and abetting breaches of fiduciary duty in connection therewith, sought class action status, and demanded an order enjoining the proposed Merger and unspecified reforms, actions and disclosures. On September 10, 2013, the California Superior Court consolidated all related cases before it under the caption In re Parametric Sound Corp. Shareholder Litigation, Case No. 37-2013-00061953-CU-BT-CTL. On September 23, 2013, the Nevada District Court consolidated all related cases before it under the caption In re Parametric Sound Corp. Shareholders’ Litigation, Lead Case No. A-13-686890-B, Dep’t XI. Following the Company’s filing of a preliminary proxy statement with the Securities and Exchange Commission (“SEC”) on November 4, 2013, amended consolidated complaints were filed on November 14, 2013 in the consolidated action pending in Nevada and on November 19, 2013 in the consolidated action pending in California. These amended complaints reiterate the same claims and seeks the same relief as asserted and sought in the original complaints. On November 20, 2013, Shana Vasek, a purported shareholder of the Company, filed a class action lawsuit in the United States District Court for the District of Nevada, under the caption Vasek v. Parametric Sound Corp., Case No. 2:13-cv-02148-JAD-GWF, naming the same defendants, asserting substantially the same allegations and seeking substantially the same relief as asserted and sought in the above-referenced consolidated action pending in Nevada state court. In addition to asserting substantially the same claims for breach of fiduciary duty and aiding and abetting as asserted in the above-referenced consolidated action pending in Nevada state court, the plaintiff in the federal court action asserts a claim for violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 14a-9.

The Company is unable to predict the outcome of the lawsuits and the possible loss or range of loss, if any, associated with their resolution or any potential effect the lawsuits may have on the Company’s operations or the pending merger. Depending on the outcome or resolution of these lawsuits, they could have a material adverse effect on the Company’s operations, including its financial condition, results of operations, or cash flows. Except for legal fees incurred through September 30, 2013 totaling approximately $108,000, no amounts have been recorded or accrued related to these lawsuits as of September 30, 2013.

Guarantees and Indemnifications

Our officers and directors are indemnified as to personal liability as provided by the Nevada Revised Statutes, the Company’s articles of incorporation and bylaws and by indemnification agreements with the Company. The Company may also undertake indemnification obligations in the ordinary course of business related to its products and the issuance of securities with customers, investors, vendors and business parties. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to any such indemnification obligations now or in the future. Because of the uncertainty surrounding these circumstances, the Company’s current or future indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has no liabilities recorded for such indemnities.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

13. Related Party Transactions

12 Months Ended

Sep. 30, 2013

Related Party Transactions

On December 29, 2011, the Company entered into an Assignment Agreement (“Assignment”) with Syzygy Licensing, LLC (“Syzygy”), pursuant to which the Company acquired all technology and intellectual property covered by the License and Royalty Agreement (“License”) dated September 27, 2010 previously entered into between the parties. The Assignment terminated the License and all future royalty obligations owed by the Company to Syzygy thereunder. Pending patent applications comprising part of the intellectual property were also assigned to the Company. Syzygy is owned by the Company’s President, Elwood G. Norris (65%), and by the Company’s Chief Financial Officer, Treasurer and Secretary, James A. Barnes (35%).

Under the terms of the Assignment, the Company issued 300,000 shares of its common stock to Syzygy (valued at $975,000 based on the closing price of the common stock of $3.25) and in June 2012 paid $250,000 to Syzygy. The Company valued the technology in accordance with ASC 350-30-30, Intangible - Goodwill and Other - General Intangibles Other than Goodwill - Initial Measurement, and ASC 805-50-30, Business Combinations – Related Issues – Initial Measurement, which requires that intangible assets acquired through a transaction that is not a business combination be measured based on the cash consideration paid plus either the fair value of the non-cash consideration given or the fair value of the assets acquired, whichever is more clearly evident. As the Company had only recently begun selling products based on the acquired technology and intellectual property in the fourth quarter of fiscal 2011, management determined that the fair value of the common stock issued was more clearly evident, and accordingly, recorded the acquired intangible assets at the aggregate amount of $1,225,000. The Company incurred $3,194 of royalties for the three months ended December 31, 2011 prior to termination of the License and owed Syzygy an aggregate of $7,028 in royalties, which was paid in April 2012. The Company incurred $3,834 as royalties pursuant to License during the year ended September 30, 2011.

Prior to termination of the License, the Company was obligated to reimburse Syzygy’s costs in filing for, prosecuting and maintaining the licensed patents in the United States. The Company incurred and capitalized $2,852 and $28,237 related to such licensed patents during the fiscal year ended September 30, 2012 (prior to termination) and 2011, respectively.

In April 2013, the Company granted an exclusive, worldwide, royalty-bearing license to use certain HSS-related intellectual property to its wholly-owned subsidiary HHI. In July 2013, the Company entered into an amended and restated license agreement with HHI to narrow the scope of the license such that the intellectual property and technology licensed thereunder may be used by HHI solely for, and in connection with, the use, testing, manufacture, marketing, sale, offering for sale, commercialization, distribution and servicing of products in the medical device field and no longer for the “personal sound amplification product” field, as initially provided. The license term runs until the expiration of the last patent owned or licensed. HHI is required to pay royalties to the Company of (i) 15% of all cash and non-cash revenues from any source, including net sales, of the licensed products and (ii) 30% of all cash and non-cash consideration received by HHI from third party license agreements, joint ventures and co-development agreements. If the amount of royalties is less than $1,000,000 before the earlier to occur of (i) April 4, 2017 and (ii) HHI’s procurement of aggregate equity based financing of $20,000,000, then HHI must pay the Company $1,000,000 in royalties; and if the amount of royalties is less than $500,000 in any year following the fourth year of the term, then HHI must pay $500,000 in royalties for each such year.

On September 6, 2012, director Seth Putterman, was granted a stock option to purchase 25,000 shares of common stock for a period of five years from shares under the 2012 Plan Amendment, exercisable at $10.24 per share vesting over three years and subject to continued service, for future non-director technical consulting and advisory services. Any options vesting were not exercisable prior to stockholder approval of the 2012 Plan Amendment and if not so approved by August 17, 2013 the entire option grant was by its terms null and void. The 2012 Plan Amendment was approved by stockholders on February 21, 2013. The options, vesting over three years, were valued at $162,775 on the effective grant date of February 21, 2013 based on the market price of $9.95 per common share. During the years ended September 30, 2013 and 2012, Dr. Putterman was also paid cash consulting fees for non-director consulting services of $40,000 and $16,666, respectively.

See Notes 10, 11 and 12 for additional related party transactions and information.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

14. Major Customers and Suppliers

12 Months Ended

Sep. 30, 2013

Major Customers And Suppliers

MAJOR CUSTOMERS AND SUPPLIERS

Major Customers

For the fiscal year ended September 30, 2013, revenues from two customers accounted for 43% and 24% of total revenues. No other single customer represented more than 10% of total revenues. For the fiscal year ended September 30, 2012, revenues from three customers accounted for 30%, 16% and 16% of total revenues. No other single customer represented more than 10% of total revenues.

Suppliers

The Company has a number of components and sub-assemblies produced by outside suppliers, some of which are sourced from a single supplier, which can magnify the risk of shortages and decrease the Company’s ability to negotiate with suppliers on the basis of price. In particular, the Company depends on its HSS piezo-film supplier to provide expertise and materials used in the Company’s proprietary HSS emitters. If supplier shortages occur, or quality problems arise, then production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows.

At September 30, 2013, the Company was committed for approximately $14,000 for future inventory deliveries that are generally subject to modification or rescheduling in the normal course of business.

Segment and Related Information

The Company operates as a single reportable segment on an enterprise-wide basis. The Company generates revenue by selling its technology-based products and expects future licensing revenues from such technology.

The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer location.

Years Ended September 30,	2013		2012
United States	$	326,429	$	91,124
Europe		137,110		37,048
Asia		63,435		83,337
Other		35,928		22,140
Total	$	562,902	$	233,649

15. Subsequent Events

12 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Events

On October 30, 2013, the Board of Directors adopted the Parametric Sound Corporation 2013 Stock-Based Incentive Compensation Plan (“2013 Plan”), which will only become effective when and only when (i) the stockholders have approved the 2013 Plan, (ii) the stockholders have approved the Merger and related transactions and (iii) the Merger has been consummated. The total number of shares of common stock that are being authorized for grant under the proposed 2013 Plan is 2,250,000 shares.

Also on October 30, 2013 the Company adopted the Parametric Sound Corporation Annual Incentive Bonus Plan (“Incentive Bonus Plan”) that will become effective when, and only when, (i) the stockholders have approved the Incentive Bonus Plan, (ii) the stockholders have approved the Merger and related transactions and (iii) the Merger has been consummated. The proposed Incentive Bonus Plan will permit incentive compensation bonus awards to be structured to qualify as “performance-based” compensation under Section 162(m) of the Code.

In November 2013 the Company obtained $5.1 million of gross proceeds ($5.08 million of net proceeds, after estimated expenses) from the registered direct sale of 364,286 shares of common stock pursuant to the Company’s “shelf” registration statement.

See Note 10 and 12 for additional subsequent event information.

1. Organization and Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]
Organization and Business Description	Organization and Business Description Parametric Sound Corporation (“Parametric” or the “Company”) is a technology company focused on delivering novel audio solutions through its HyperSound® or “HSS®” technology platform, that pioneered the practical application of parametric acoustic technology for generating audible sound along a directional ultrasonic column. The creation of sound using the Company’s technology also creates a unique sound image distinct from traditional audio systems. In addition to its commercial product business, the Company is targeting its technology for new uses in consumer markets including computers, video gaming, televisions and home audio along with other commercial markets including casino gaming and cinema. The Company is also researching and developing health applications for persons with hearing loss. The Company was incorporated in Nevada on June 2, 2010 as a new, wholly owned subsidiary of LRAD Corporation in order to effect the 100% separation and spin-off of the HSS business (the “Spin-Off”). On September 27, 2010, the Spin-Off was completed and the Company became a stand-alone, independent, publicly traded company. In June 2012, the Company formed PSC Licensing Corp. (“PSC”) and in October 2012 formed HyperSound Health, Inc. (“HHI”), both as wholly owned subsidiaries. The Company’s corporate headquarters are located in Poway, California. Principal markets for the Company’s products are North America, Europe and Asia. On August 5, 2013, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with VTB Holdings, Inc. (“Turtle Beach”). The Merger Agreement provides, that upon the terms and subject to the conditions of the Merger Agreement, a wholly-owned subsidiary of the Company will merge with and into Turtle Beach resulting in Turtle Beach becoming a wholly-owned subsidiary of the Company (the “Merger”). At the effective time of the Merger, the Company will issue shares of common stock to the former Turtle Beach stockholders which, together with options to purchase shares of Turtle Beach common stock that will be converted into options to purchase shares of the Company’s common stock (and will be assumed by the Company at the effective time of the Merger), will represent approximately 80% of the Company’s common stock on a fully-diluted basis after the Merger, subject to adjustment pursuant to the Merger Agreement. Certain redeemable, non-convertible preferred stock of Turtle Beach with a stated value of $12,000,000, plus dividends accrued but unpaid thereon, as well as certain phantom stock units of Turtle Beach, will remain outstanding following the Merger and will not be exchanged for Company common stock. The Merger and related transactions are more fully described in Note 3, “Pending Merger with Turtle Beach.”
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the Company and its wholly owned subsidiaries, PSC and HHI. Intercompany balances and transactions have been eliminated in consolidation. Where necessary, the prior year’s information has been reclassified to conform to the fiscal 2013 statement presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit. On March 21, 2012, the Company completed a 1-for-5 reverse split of its common stock. All common stock share and per share information in the accompanying interim condensed consolidated financial statements and notes thereto have been adjusted to reflect retrospective application of the reverse stock split, except for par value per share and the number of authorized shares, which were not affected by the reverse stock split.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., valuation of inventory, valuation of intangible assets, warranty reserve, the grant date fair value of stock options and warrants, share-based compensation expense and valuation allowance related to deferred tax assets) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.
Loss Per Share	Loss Per Share Basic loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential common stock instruments outstanding to be antidilutive. Stock options and warrants exercisable into a total of 1,485,699 and 1,693,839 shares of common stock were outstanding at September 30, 2013 and 2012, respectively. These securities are not included in the computation of diluted net loss per common share for the periods presented, as their inclusion would be antidilutive due to losses incurred by the Company. Previously reported share and earnings per share amounts have been restated to reflect the 1-for-5 reverse stock split effected in March 2012.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair values due to the short maturity of these instruments. The fair value of warrants issued in March and April 2012 were estimated using a Black-Scholes valuation model (see Note 10). The Company does not have any financial assets and liabilities that are measured at fair value on a recurring basis.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company sells its products to a number of geographically diverse customers. At September 30, 2013, accounts receivable from three customers accounted for 62%, 13% and 11% of total accounts receivable. At September 30, 2012 accounts receivable from one customer accounted for 98% of total accounts receivable.
Cash Equivalents	Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The Company’s policy is to evaluate the collectability of accounts receivable based on an assessment of the collectability of specific customer accounts and then record an allowance for doubtful accounts to reduce the receivables to an amount that management reasonably estimates will be collected. There was no allowance for doubtful accounts recorded at September 30, 2012 or 2013. Accounts that are deemed uncollectible will be written off against the allowance for doubtful accounts. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our reported financial results.
Contract Manufacturers	Contract Manufacturers The Company uses contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions. The Company performs assembly of products in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. The cost of substantially all of the Company’s inventory is determined by the weighted average cost method. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers. The Company evaluates the need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s products. At September 30, 2013 and 2012, the reserve for obsolescence included certain raw materials obtained at the Spin-Off, some of which are being used to produce the Company’s products.
Property, Equipment and Depreciation	Property, Equipment and Depreciation Property and equipment is stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of two to three years using the straight-line method. Leasehold improvements are amortized over the life of the lease. Upon retirement or disposition of property and equipment, the related cost and accumulated depreciation is removed and a gain or loss is recorded based on the difference between proceeds received, if any, and the carrying value of the asset on the date of retirement or disposition.
Intangible Assets	Intangible Assets Patents, licenses, purchased technology and trademarks are carried at cost less accumulated amortization. Intangible assets acquired through a transaction that is not a business combination are measured based on the cash consideration paid plus either the fair value of the non-cash consideration given or the fair value of the assets acquired, whichever is more clearly evident. Legal costs incurred to file, renew, or extend the term of recognized intangible assets are capitalized. Intangible assets are amortized over their estimated useful lives, which have been estimated to be 15 years for patents, licenses, purchased technology and trademarks protecting the Company’s products. The Company amortizes certain patents acquired in the Spin-Off, classified as defensive patents, over a weighted average of three years. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the expected future benefit to be derived from an individual intangible asset is less than its carrying value.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed pursuant to the terms of sale or agreement, (iii) amounts are fixed or determinable and (iv) collectability of amounts is reasonably assured. During fiscal 2012, the Company began pursuing licensing of its patents and technologies but has recognized no licensing revenues through September 30, 2013. Product Sales Revenues derived from product sales to customers, including resellers and system integrators, are recognized in the periods that products are shipped to customers (FOB shipping point) or when product is received by the customer (FOB destination), when the fee is fixed and determinable, when collection of resulting receivables is probable and there are no remaining obligations on the part of the Company. Most revenues to resellers and system integrators are based on commitments from the end user or stocking for identified projects; as a result, resellers and system integrators generally carry minimal inventory. The Company’s customers do not have the right to return product unless the product is found to be defective. Licensing The Company’s strategy is to derive licensing revenues primarily from royalties paid by licensees of the Company’s intellectual property rights, including patents, trademarks and know-how. Revenues generated from license agreements are recognized in the period earned, provided that amounts are fixed or determinable and collectability is reasonably assured. Deferred revenue is reported for amounts that are expected to be recognized as revenue including upfront license fees, but for which not all revenue recognition criteria have been met.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs are included in cost of revenues. The amount of shipping and handling costs invoiced to customers is included in revenue. Shipping and handling costs were $9,480 and $11,233 for the fiscal years ended September 30, 2013 and 2012, respectively.
Research and Development Costs	Research and Development Costs Research and development expenses include costs and expenses associated with the development of the Company’s technology and the design and development of new products, including initial nonrecurring engineering and product verification charges. Research and development is expensed as incurred.
Business Transaction	Business Transaction For the year ended September 30, 2013, the Company incurred $1,280,273 of business transaction costs related to reviewing strategic opportunities and preparing for the merger with Turtle Beach consisting of legal, investment bank, accounting and related costs and expenses.
Warranty Reserves	Warranty Reserves The Company warrants its products to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally a limited warranty. The Company currently provides direct warranty service. The Company establishes a warranty reserve based on anticipated warranty claims at the time revenue from product sales is recognized. Factors affecting warranty reserve levels include the number of units sold and anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period.
Classification and Valuation of Warrants	Classification and Valuation of Warrants The Company accounts for warrants as either equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation is made. Warrants that do not qualify for equity classification are recorded as derivative liabilities based on the issue date fair value and are subject to adjustment to fair value at each reporting period. As of September 30, 2013 and 2012, the Company has no warrants or other derivative financial instruments that require separate accounting as liabilities and periodic revaluation.
Income Taxes	Income Taxes The Company accounts for its income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on temporary differences between financial statement and tax basis of assets and liabilities and net operating loss and credit carry-forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when it is more likely than not that some portion of the deferred tax assets will not be realized. Financial statement effects of a tax position are initially recognized when it is more likely than not, based on the technical merits, that the position would be sustained upon examination. A tax position that meets the more-likely-than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a more likely than not likelihood of being realized upon ultimate settlement with a taxing authority. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as income tax expense.
Comprehensive Loss	Comprehensive Loss Comprehensive loss consists of net loss and other gains and losses affecting stockholders’ equity that under GAAP, are excluded from reported net loss. There were no differences between net loss and comprehensive loss for any of the periods presented.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets and identifiable finite-lived intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value.
Share-Based Compensation	Share-Based Compensation The Company measures employee share-based compensation awards using a fair-value method and records related compensation expense for all awards that are expected to vest over the requisite service period.
Share-Based Payments for Goods and Services	Share-Based Payments for Goods and Services Stock options, stock awards or warrants issued to non-employees who are not directors of the Company are recorded at the fair value of the consideration received, when more reliably measurable, or the fair value of the equity instruments issued at the measurement date. Non-employee options are periodically revalued as the options vest so the cost ultimately recognized is equivalent to the fair value on the date performance is complete with such expense recognized over the related service period on a graded vesting method.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company does not expect the adoption of any recent accounting pronouncements to have a material effect on the Company’s financial position, results of operations or cash flows.
Subsequent Events	Subsequent Events Management has evaluated events subsequent to September 30, 2013 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements.

5. Property and Equipment, net (Tables)

12 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property and equipment

At September 30,	2013			2012
Equipment	$	195,438		$	180,519
Research equipment under capital lease		139,967			–
Tooling		125,433			124,299
Furniture and office equipment		75,950			58,170
Leasehold improvements		17,934			16,266
		554,722			379,254
Accumulated depreciation		(335,353	)		(202,342	)
	$	219,369		$	176,912

6. Intangible Assets, net (Tables)

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

At September 30,	2013			2012
Purchased technology	$	1,225,000		$	1,225,000
Patents		452,040			201,745
Defensive patents		190,213			183,498
Licenses and trademarks		18,548			15,462
		1,885,801			1,625,705
Accumulated amortization		(434,503	)		(310,844	)
	$	1,451,298		$	1,314,861

Intangible assets amortization expense

Estimated Amortization Expense Years Ending September 30,
	2014	$	127,839
	2015		122,514
	2016		113,880
	2017		106,413
	2018		105,497
	Thereafter		875,155

7. Accrued Liabilities (Tables)

12 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

Accrued Liabilities

At September 30,	2013		2012
Payroll and related	$	68,292	$	93,806
Warranty reserve		10,140		4,242
Customer deposits		682		2,187
Accrued patent and research costs		83,088		32,566
Deferred rent		17,661		3,975
Other		3,853		3,099
	$	183,716	$	139,875

Estimated warranty liability

Years Ended September 30,	2013			2012
Beginning balance	$	4,242		$	1,534
Warranty provision		15,997			10,612
Warranty settlements		(10,099	)		(7,904	)
Ending balance	$	10,140		$	4,242

9. Income Taxes (Tables)

12 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Provision for income taxes

Years Ended September 30,	2013			2012
Current tax benefit	$	–		$	–
Deferred tax benefit		2,327,000			1,758,000
Change in valuation allowance		(2,327,000	)		(1,758,000	)
Income tax benefit (provision)	$	–		$	–

Reconciliation of income taxes

Years Ended September 30,	2013			2012
Income taxes benefit computed at federal statutory rate	$	2,608,000		$	1,517,000
State income taxes, net of federal effect		460,000			268,000
Permanent differences and other		(741,000	)		(27,000	)
Change in valuation allowance		(2,327,000	)		(1,758,000	)
Income tax benefit (provision)	$	–		$	–

Deferred tax assets

At September 30,	2013			2012
Deferred tax assets:
Net operating losses	$	3,720,000		$	1,805,000
Inventory reserve		339,000			382,000
Research tax credits		19,000			19,000
Stock-based and deferred compensation		1,094,000			683,000
Accruals and other		38,000			53,000
		5,210,000			2,942,000
Deferred tax liabilities:
Amortization, depreciation and other		78,000			137,000
		78,000			137,000
Net deferred tax assets		5,132,000			2,805,000
Less valuation allowance		(5,132,000	)		(2,805,000	)
Net deferred taxes after valuation allowance	$	–		$	–

10. Capital Stock (Tables)

12 Months Ended

Sep. 30, 2013

Equity [Abstract]

Warrant activity

	Number			Average Purchase Price Per Share
Shares purchasable under outstanding warrants at October 1, 2011		320,000		$	3.75
Stock purchase warrants issued		205,339		$	5.625
Stock purchase warrants exercised		–
Shares purchasable under outstanding warrants at September 30, 2012		525,339		$	4.48
Stock purchase warrants issued		4,200		$	8.72
Stock purchase warrants exercised		(392,194	)	$	4.19
Shares purchasable under outstanding warrants at September 30, 2013		137,345		$	5.45

Outstanding share warrants

	Number of		Exercise Price
Description	Common Shares		Per Share		Expiration Date
Stock Purchase Warrants (1)		20,000	$	3.75	February 22, 2016
Stock Purchase Warrants		113,145	$	5.625	March 21, 2017
Stock Purchase Warrants		4,200	$	8.720	June 30, 2018

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References+ Details

11. Share-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Weighted-average assumptions used in the Black-Scholes model

Years Ended September 30,		2013	2012
	Volatility	87%	90%
	Risk-free interest rate	0.47%	0.92%
	Forfeiture rate	4.10%	1.10%
	Dividend yield	0.00%	0.00%
	Expected life in years	3.28	4.61
	Weighted average fair value of options granted	$7.40	$3.68

Stock-based compensation cost

Years Ended September 30,	2013		2012
Selling, general and administrative	$	1,727,542	$	1,420,708
Research and development		378,831		266,201
	$	2,106,373	$	1,686,909

Stock option activity

	Number			Weighted Average		Aggregate
	of Shares			Exercise Price		Intrinsic Value (2)
Fiscal 2012:
Outstanding October 1, 2011		347,000		$	1.80
Granted		1,054,000		$	4.40
Canceled/expired		(112,500	)	$	4.20
Exercised		(120,000	)	$	1.61
Outstanding September 30, 2012		1,168,500		$	3.93

Fiscal 2013:
Outstanding October 1, 2012		1,168,500		$	3.93
Granted		305,500		$	12.23
Canceled/expired		(64,000	)	$	10.55
Exercised		(61,646	)	$	3.77
Outstanding September 30, 2013 (1)		1,348,354		$	5.51	$	9,867,480
Exercisable September 30, 2013		871,897		$	3.98	$	7,516,630

Summarizes stock option activity

Range of exercise prices	Number outstanding at September 30, 2013	Number exercisable at September 30, 2013	Weighted Average exercise price	Weighted average remaining contractual life	Weighted average Exercise price of options exercisable at September 30, 2013
$1.50-$3.00	193,500	193,500	$1.59	2.0	$1.59
$3.01-$4.00	512,354	474,355	$3.26	3.2	$3.26
$4.01-$5.00	268,500	79,813	$4.50	3.4	$4.49
$5.01-$10.00	208,000	82,564	$9.05	4.1	$8.74
$10.01-$16.92	166,000	41,665	$14.18	4.6	$12.76

1. Description of Business and Basis of Accounting/Presentation ( Details Narrative) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Stock options and warrants not included in computation of diluted net loss per share	1,485,699	1,693,839
Allowance for doubtful accounts accounts receivable	$ 0	$ 0
Shipping and handling costs	9,480	11,233
Business transaction costs	$ 1,280,273	$ 0
Accounts Receivable [Member] \| Customer One
Concentration percentage	62.00%	98.00%
Accounts Receivable [Member] \| Customer Two
Concentration percentage	13.00%
Accounts Receivable [Member] \| Customer Three
Concentration percentage	11.00%

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

- Definition

Cost incurred during the reporting period in transporting goods and services to customers. Includes freight-out costs.

+ References+ Details

4. Inventories, net (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Inventories, net
Finished goods	$ 260,646	$ 143,430
Work in process	43,494	11,735
Raw materials	479,963	400,300
Inventory total	784,103	555,465
Reserve for obsolescence	(60,683)	(111,761)
Inventory net	$ 723,420	$ 443,704

- Definition

Amount of valuation reserve for inventory.

+ References+ Details

5. Property and Equipment, net (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Property, Equipment and Tooling, Gross	$ 554,722	$ 379,254
Accumulated depreciation	(335,353)	(202,342)
Property, Equipment and Tooling, Net	219,369	176,912
Equipment
Property, Equipment and Tooling, Gross	195,438	180,519
Research equipment under capital lease
Property, Equipment and Tooling, Gross	139,967	0
Tooling
Property, Equipment and Tooling, Gross	125,433	124,299
Furniture and office equipment
Property, Equipment and Tooling, Gross	75,950	58,170
Leasehold Improvements
Property, Equipment and Tooling, Gross	$ 17,934	$ 16,266

6. Intangible Assets, net (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Total intangible assets	$ 1,885,801	$ 1,625,705
Accumulated amortization	(434,503)	(310,844)
Intangible assets, net	1,451,298	1,314,861
Purchasesd technology
Total intangible assets	1,225,000	1,225,000
Patents
Total intangible assets	452,040	201,745
Defensive patents
Total intangible assets	190,213	183,498
Licenses and trademarks
Total intangible assets	$ 18,548	$ 15,462

6. Intangible Assets, net (Details 1) (USD $)	Sep. 30, 2013
Estimated intangible assets amortization expense
2014	$ 127,839
2015	122,514
2016	113,880
2017	106,413
2018	105,497
Thereafter	$ 875,155

6. Intangible Assets, net (Details Narrative) (USD $)	12 Months Ended
6. Intangible Assets, net (Details Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate amortization expense	$ 123,659	$ 103,775

7. Accrued Liabilities (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Accrued liabilities
Payroll and related	$ 68,292	$ 93,806
Warranty reserve	10,140	4,242
Customer deposits	682	2,187
Accrued patent and research costs	83,088	32,566
Deferred rent	17,661	3,975
Other	3,853	3,099
Accrued liabilities	$ 183,716	$ 139,875

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for contractual rent under lease arrangements. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

7. Warranty liability (Details) (USD $)	12 Months Ended
7. Warranty liability (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Payables and Accruals [Abstract]
Beginning balance	$ 4,242	$ 1,534
Warranty provision	15,997	10,612
Warranty settlements	(10,099)	(7,904)
Ending balance	$ 10,140	$ 4,242

8. Capital Lease Obligation (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Debt Disclosure [Abstract]
2014	$ 42,888
2015	42,888
2016	42,888
2017	14,295
Total payments	142,959
Less amount representing interest	(10,862)
Present value of minimum payments	132,097
Less current portion	(37,486)	0
Capiltal lease obligation - long term	$ 94,611	$ 0

9. Income Taxes (Details) (USD $)	12 Months Ended
9. Income Taxes (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Current tax benefit	$ 0	$ 0
Deferred tax benefit	2,327,000	1,758,000
Change in valuation allowance	(2,327,000)	(1,758,000)
Income tax benefit (provision)	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.

+ References+ Details

- Definition

Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

9. Reconciliation of Income Taxes (Details) (USD $)	12 Months Ended
9. Reconciliation of Income Taxes (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Income taxes benefit computed at federal statutory rate	$ 2,608,000	$ 1,517,000
State income taxes, net of federal effect	460,000	268,000
Permanent differences and other	(741,000)	(27,000)
Change in valuation allowance	(2,327,000)	(1,758,000)
Income tax benefit (provision)	$ 0	$ 0

9. Deferred tax assets (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Deferred tax assets:
Net operating losses	$ 3,720,000	$ 1,805,000
Inventory reserve	339,000	382,000
Research tax credits	19,000	19,000
Stock-based and deferred compensation	1,094,000	683,000
Accruals and other	38,000	53,000
Total deferred tax assets	5,210,000	2,942,000
Deferred tax liabilities:
Amortization, depreciation and other	78,000	137,000
Net deferred tax assets	5,132,000	2,805,000
Less valuation allowance	(5,132,000)	(2,805,000)
Net deferred taxes after valuation allowance	$ 0	$ 0

9. Income Taxes (Details Narrative) (USD $)	12 Months Ended
9. Income Taxes (Details Narrative) (USD $)	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Federal and state net operating loss carryforward	$ 9,300,000
Excess tax benefits from stock-based compensation	$ 176,000

- Definition

Amount of an unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward. This amount is presented as a reduction of the related deferred tax asset in the balance sheet if that deferred tax asset is not used. This amount is presented separately from the deferred tax asset for a net operating loss carryforward if this unrelated tax benefit is associated with a different tax position.

+ References+ Details

10. Warrant Activity (Details) (Stock Purchase Warrants, USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Stock Purchase Warrants
Stock Purchase Warrants
Shares purchasable under outstanding warrants at beginning of period	525,339	320,000
Stock purchase warrants issued	4,200	205,339
Stock purchase warrants exercised	(392,194)	0
Shares purchasable under outstanding warrants at end of period	137,345	525,339
Average Purchase Price Per Share
Shares purchasable under outstanding warrants at beginning of period	4.48	3.75
Stock purchase warrants issued	$ 8.72	$ 5.625
Stock purchase warrants exercised	$ 4.19
Shares purchasable under outstanding warrants at end of period	5.45	4.48

10. Outstanding Share Warrants (Details)	12 Months Ended
10. Outstanding Share Warrants (Details)	Sep. 30, 2013
Stock Purchase Warrants-1
Class of Warrant or Right [Line Items]
Number of Common Shares	20,000
Exercise Price Per Share	3.75
Expiration Date	Feb. 22, 2016
Stock Purchase Warrants-2
Class of Warrant or Right [Line Items]
Number of Common Shares	113,145
Exercise Price Per Share	5.625
Expiration Date	Mar. 21, 2017
Stock Purchase Warrants-3
Class of Warrant or Right [Line Items]
Number of Common Shares	4,200
Exercise Price Per Share	8.720
Expiration Date	Jun. 30, 2018

10. Capital Stock (Details Narrative) (USD $)	12 Months Ended
10. Capital Stock (Details Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Equity [Abstract]
Warrants converted pursuant to a cashless feature	92,194
Common stock issued upon conversion to cashless net exercise features	65,553
Common stock issued upon conversion of warrants	300,000
Proceeds from exersice of warrants	$ 1,125,000	$ 0

- Definition

Number of shares issued during the period as a result of the conversion of convertible securities.

+ References+ Details

11. Share-Based Compensation Assumptions (Details) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Share-Based Compensation
Volatility	87.00%	90.00%
Risk-free interest rate	0.47%	0.92%
Forfeiture rate	4.10%	1.10%
Dividend yield	0.00%	0.00%
Expected life in years	p3y3m11d	P4Y7M10D
Weighted average fair value of options granted	$ 7.40	$ 3.68

11. Option Activity (Details) (Options, USD $)	12 Months Ended
11. Option Activity (Details) (Options, USD $)	Sep. 30, 2013	Sep. 30, 2012
Options
Number of Shares
Outstanding beginning of period	1,168,500	347,000
Granted	305,500	1,054,000
Canceled/expired	(64,000)	(112,500)
Exercised	(61,646)	(120,000)
Outstanding end of period	1,348,354	1,168,500
Exercisable	871,897
Weighted Average Exercise Price
Outstanding beginning of period	$ 3.93	$ 1.80
Granted	$ 12.23	$ 4.40
Canceled/expired	$ 10.55	$ 4.20
Exercised	$ 3.77	$ 1.61
Outstanding end of period	$ 5.51	$ 3.93
Exercisable	$ 3.98
Aggregate Intrinsic Value
Outstanding	$ 9,867,480
Exercisable	$ 7,516,630

11. Stock Options Outstanding (Details) (USD $)	12 Months Ended
11. Stock Options Outstanding (Details) (USD $)	Sep. 30, 2013
$1.50-$3.00
Number outstanding	193,500
Number exercisable	193,500
Weighted Average exercise price	$ 1.59
Weighted average remaining contractual life	2 years
Weighted average exercise price of options exercisable	$ 1.59
$3.01-$4.00
Number outstanding	512,354
Number exercisable	474,355
Weighted Average exercise price	$ 3.26
Weighted average remaining contractual life	3 years 2 months 12 days
Weighted average exercise price of options exercisable	$ 3.26
$4.01-$5.00
Number outstanding	268,500
Number exercisable	79,813
Weighted Average exercise price	$ 4.50
Weighted average remaining contractual life	3 years 4 months 24 days
Weighted average exercise price of options exercisable	$ 4.49
$5.01-$10.00
Number outstanding	208,000
Number exercisable	82,564
Weighted Average exercise price	$ 9.05
Weighted average remaining contractual life	4 years 1 month 6 days
Weighted average exercise price of options exercisable	$ 8.74
$10.01-$16.92
Number outstanding	166,000
Number exercisable	41,665
Weighted Average exercise price	$ 14.18
Weighted average remaining contractual life	4 years 7 months 6 days
Weighted average exercise price of options exercisable	$ 12.76

11. Share-Based Compensation (Details Narrative) (USD $)	12 Months Ended
	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-plan inducement options outstanding	25,500
Stock option compensation costs to options granted, not yet vested	$ 1,657,603
Weighted average period of unvested options	1 year 4 months 24 days
Intrinsic value of options exercised	480,682
Cash received from exercise of options	$ 232,087
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options available for grant	195,500

12. Commitments and Contingencies (Details Narrative) (USD $)	12 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Company's exposure for amounts in excess of FDIC insured limits	$ 1,300,000
Future annual minimum lease payment - year 1	78,415
Future annual minimum lease payment - year 2	80,505
Legal fees incurred	$ 108,000

12. Major Customers and Suppliers (Details Narrative) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Committed future inventory deliveries	$ 14,000
Customer One \| Revenue
Concentration percentage	43.00%	30.00%
Customer Two \| Revenue
Concentration percentage	24.00%	16.00%
Customer Three \| Revenue
Concentration percentage		16.00%

2. Liquidity (Details Narrative) (USD $)	12 Months Ended
2. Liquidity (Details Narrative) (USD $)	Sep. 30, 2013
Liquidity Details Narrative
Working capital	$ 1,500,000

4. Inventories (Narrative) (USD $)	12 Months Ended
4. Inventories (Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Increase/(decrease) in reserve for obsolescence	$ (51,078)	$ (7,604)
Legacy HSS parts
Increase/(decrease) in reserve for obsolescence	(60,711)	(25,020)
Model Changes
Increase/(decrease) in reserve for obsolescence	$ 9,633	$ 17,416

8. Capital Lease Obligation (Narrative) (USD $)	12 Months Ended
8. Capital Lease Obligation (Narrative) (USD $)	Sep. 30, 2013
Capital Lease Obligation Narrative
Amortization of capital leased asset	$ 31,515

13. Related Party Transactions (Details Narrative) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Related Party Transactions [Abstract]
Consulting fees paid	$ 40,000	$ 16,666

11. Share-Based Compensation Expense (Details) (USD $)	12 Months Ended
11. Share-Based Compensation Expense (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Share-Based Compensation
Share-based compensation expense	$ 2,106,373	$ 1,686,909
Selling, General and Administrative Expenses
Share-Based Compensation
Share-based compensation expense	1,727,542	1,420,708
Research and Development Expense
Share-Based Compensation
Share-based compensation expense	$ 378,831	$ 266,201

14. Major Customers and Suppliers (Details) (USD $)	12 Months Ended
14. Major Customers and Suppliers (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Revenues by geographic region	$ 562,902	$ 233,649
United States
Revenues by geographic region	326,429	91,124
Europe
Revenues by geographic region	137,110	37,048
Asia
Revenues by geographic region	63,435	83,337
OtherRegionMember
Revenues by geographic region	$ 35,928	$ 22,140