Item 8.01 Other Events.

In October 2009 Boomerang Systems entered into a Contract (the “Contract”) with Crescent Heights R&D, LLC (“Crescent Heights”) to provide a rack and rail-type automated parking system for Crescent Heights.  In March 2013, Crescent Heights filed a state court Complaint against Boomerang in the State of Florida alleging Fraud in the Inducement, Equitable Rescission based on Fraud, Mutual Mistake, and Breach of Contract related to the automated parking system, and seeking the remedies of specific performance, rescission of the Contract, and a Declaratory Judgment regarding a limitation of liability clause, as well an unspecified amount of monetary damages in excess of the Contract’s purchase price. Boomerang and Crescent Heights agreed to arbitrate the matter in Miami, Florida with the American Arbitration Association.  In arbitration, Crescent Heights alleged an initial claim of $10,000,000, and later specified damages in a greater amount of $17,769,755.        

On January 23, 2015, the arbitrator issued an Interim Arbitration Award.  The arbitrator denied Crescent Heights’ claims of fraud in the inducement, equitable rescission based on fraud, and declaratory relief to strike the limitation of liability clause, but found Boomerang in Breach of Contract.  Crescent Heights was awarded damages of $1,197,887, plus reasonable attorneys’ fees and costs.   

We expect the Arbitrator to issue a final arbitration award in April 2015, which will include the attorney’s fees and costs payable by Boomerang. Boomerang had previously eliminated the warranty reserve associated with this project, and will establish a reserve for the amount of the award, plus reasonable attorneys’ fees and costs.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.