Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 01, 2023 | Mar. 31, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 000-23153 | ||
Entity Registrant Name | TRACK GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 87-0543981 | ||
Entity Address, Address Line One | 200 E. 5th Avenue Suite 100 | ||
Entity Address, City or Town | Naperville | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60563 | ||
City Area Code | 877 | ||
Local Phone Number | 260-2010 | ||
Title of 12(g) Security | Common Stock, Par Value $0.0001 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.8 | ||
Entity Common Stock, Shares Outstanding (in shares) | 11,863,758 | ||
Auditor Firm ID | 286 | ||
Auditor Name | Eide Bailly LLP | ||
Auditor Location | Denver, Colorado | ||
Entity Central Index Key | 0001045942 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash | $ 4,057,195 | $ 5,311,104 |
Accounts receivable, net of allowances of $178,095 and $102,570, respectively | 4,536,916 | 6,236,555 |
Prepaid expense and deposits | 610,440 | 769,006 |
Inventory, net of reserves of $3,772 and $0, respectively | 1,286,194 | 1,053,245 |
Other current assets | 0 | 284,426 |
Total current assets | 10,490,745 | 13,654,336 |
Intangible assets, net of accumulated amortization of $17,430,846 and $14,804,269, respectively | 14,157,294 | 15,661,417 |
Goodwill | 7,851,466 | 8,061,002 |
Other assets | 2,442,154 | 3,509,655 |
Total assets | 40,244,559 | 44,680,840 |
Current liabilities: | ||
Accounts payable | 2,796,712 | 2,858,915 |
Accrued liabilities | 2,571,839 | 3,042,443 |
Current portion of long-term debt | 308,417 | 456,681 |
Total current liabilities | 5,676,968 | 6,358,039 |
Long-term debt, net of current portion | 42,801,165 | 42,979,243 |
Long-term liabilities | 259,359 | 398,285 |
Total liabilities | 48,737,492 | 49,735,567 |
Commitments and Contingencies | ||
Stockholders’ equity (deficit): | ||
Common stock, $0.0001 par value: 30,000,000 shares authorized; 11,863,758 and 11,863,758 shares outstanding, respectively | 1,186 | 1,186 |
Paid in capital | 302,597,115 | 302,437,593 |
Accumulated deficit | (309,610,397) | (306,218,889) |
Accumulated other comprehensive loss | (1,480,837) | (1,274,617) |
Total equity (deficit) | (8,492,933) | (5,054,727) |
Total liabilities and stockholders’ equity (deficit) | 40,244,559 | 44,680,840 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders’ equity (deficit): | ||
Series A Convertible Preferred stock, $0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding | 0 | 0 |
Property, Plant, and Equipment, Excluding Monitoring Equipment [Member] | ||
Current assets: | ||
Property and equipment, net of accumulated depreciation of $1,920,850 and $1,829,588, respectively | 115,808 | 170,329 |
Monitoring Equipment [Member] | ||
Current assets: | ||
Property and equipment, net of accumulated depreciation of $1,920,850 and $1,829,588, respectively | $ 5,187,092 | $ 3,624,101 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 178,095 | $ 102,570 | |
Reserve for inventory | 3,772 | 0 | |
Intangible assets, accumulated amortization | 17,430,846 | $ 14,804,269 | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common Stock, Shares Authorized (in shares) | 30,000,000 | 30,000,000 | |
Common stock - shares outstanding (in shares) | 11,863,758 | 11,863,758 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | ||
Series A Convertible Preferred Stock - shares authorized (in shares) | 20,000,000 | ||
Series A Convertible Preferred Stock [Member] | |||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Series A Convertible Preferred Stock - shares authorized (in shares) | 1,200,000 | 1,200,000 | |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 | |
Property, Plant, and Equipment, Excluding Monitoring Equipment [Member] | |||
Property, Plant, and Equipment, Owned, Accumulated Depreciation | 1,920,850 | $ 1,829,588 | |
Monitoring Equipment [Member] | |||
Property, Plant, and Equipment, Owned, Accumulated Depreciation | $ 6,348,695 | $ 5,950,639 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income/(Loss) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||
Revenues | $ 34,475,865 | $ 36,968,499 |
Cost of revenue: | ||
Monitoring, products and other related services | 15,915,300 | 16,377,573 |
Depreciation and amortization | 3,263,490 | 3,237,970 |
Total cost of revenue | 19,178,790 | 19,615,543 |
Gross profit | 15,297,075 | 17,352,956 |
Operating expense: | ||
General & administrative | 10,275,695 | 12,462,931 |
Selling & marketing | 2,842,661 | 2,993,749 |
Research & development | 2,735,060 | 2,432,448 |
Depreciation & amortization | 987,472 | 1,563,729 |
Total operating expense | 16,840,888 | 19,452,857 |
Operating income (loss) | (1,543,813) | (2,099,901) |
Other income (expense): | ||
Interest income | 272,775 | 162,975 |
Interest expense | (1,960,488) | (1,991,302) |
Currency exchange rate gain (loss) | 467,868 | (1,619,018) |
Other income/(expense), net | 0 | (959,628) |
Total other income (expense) | (1,219,845) | (4,406,973) |
Net income (loss) before income taxes | (2,763,658) | (6,506,874) |
Income tax expense | 627,850 | 883,488 |
Net income (loss) attributable to common stockholders | (3,391,508) | (7,390,362) |
Foreign currency translation adjustments | (206,220) | (220,268) |
Comprehensive income (loss) | $ (3,597,728) | $ (7,610,630) |
Net income (loss) per share – basic: | ||
Net income (loss) per common share, basic (in dollars per share) | $ (0.3) | $ (0.64) |
Weighted average common shares outstanding, basic (in shares) | 11,863,758 | 11,634,449 |
Net income (loss) per share – diluted: | ||
Net income (loss) per common share (in dollars per share) | $ (0.3) | $ (0.64) |
Weighted average common shares outstanding (in shares) | 11,863,758 | 11,634,449 |
Monitoring and Other Related Services [Member] | ||
Revenue: | ||
Revenues | $ 33,503,687 | $ 35,768,090 |
Product Sales and Other [Member] | ||
Revenue: | ||
Revenues | $ 972,178 | $ 1,200,409 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity/(Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Sep. 30, 2021 | 11,524,978 | ||||
Balance at Sep. 30, 2021 | $ 1,152 | $ 302,250,954 | $ (298,828,527) | $ (1,054,349) | $ 2,369,230 |
Stock-based compensation | 207,547 | 207,547 | |||
Foreign currency translation adjustments | (220,268) | (220,268) | |||
Net loss | $ (7,390,362) | (7,390,362) | |||
Stock Issued During Period, Shares, Issued for Services (in shares) | 285,000 | ||||
Stock Issued During Period, Value, Issued for Services | $ 29 | (29) | 0 | ||
Issuance of Common Stock for options/warrants exercised (in shares) | 53,780 | ||||
Issuance of Common Stock for options/warrants exercised | $ 5 | (5) | 0 | ||
Cash received for options/warrants exercised | 10,570 | ||||
Tax withheld on issuance of Common Stock for options/warrants exercised | $ (31,444) | ||||
Balance (in shares) at Sep. 30, 2022 | 11,863,758 | ||||
Balance at Sep. 30, 2022 | $ 1,186 | 302,437,593 | (306,218,889) | (1,274,617) | (5,054,727) |
Stock-based compensation | 159,522 | 159,522 | |||
Foreign currency translation adjustments | (206,220) | (206,220) | |||
Net loss | (3,391,508) | (3,391,508) | |||
Balance (in shares) at Sep. 30, 2023 | 11,863,758 | ||||
Balance at Sep. 30, 2023 | $ 1,186 | $ 302,597,115 | $ (309,610,397) | $ (1,480,837) | $ (8,492,933) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (3,391,508) | $ (7,390,362) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Bad debt expense/(recovery) | 4,250,962 | 4,801,699 |
(Recovery of)/Bad debt expense | 166,737 | (16,814) |
Sales allowance | (23,065) | 0 |
Stock-based compensation | 159,522 | 207,547 |
Loss on monitoring equipment included in cost of sales | 305,300 | 280,783 |
Amortization of debt issuance costs | 152,663 | 137,540 |
Amortization of monitoring center assets included in cost of revenue | 572,135 | 494,001 |
Impairment of intangible assets and loss from disposal of fixed assets | 0 | 1,729,658 |
Income on forgiveness of expense/debt | 0 | (633,471) |
Foreign currency exchange (gain)/loss | (467,868) | 1,619,018 |
Change in assets and liabilities: | ||
Accounts receivable, net | 1,509,837 | 693,752 |
Inventories | (234,262) | (748,035) |
Prepaid expense, deposits and other assets | 1,376,822 | 284,048 |
Accounts payable and accrued expense | (546,605) | (656,403) |
Net cash provided by operating activities | 3,876,800 | 802,961 |
Cash flow from investing activities: | ||
Purchase of property and equipment | (40,083) | (117,177) |
Capitalized software | (1,020,604) | (865,263) |
Purchase of monitoring equipment and parts | (3,503,515) | (2,077,840) |
Net cash used in investing activities | (4,564,202) | (3,060,280) |
Cash flow from financing activities: | ||
Payment of deferred financing fees | (44,151) | 0 |
Principal payments on long-term debt | (467,323) | (494,626) |
Employee tax withholdings related to net share settlement of equity-based awards | 0 | (31,444) |
Proceeds from exercise of employee stock options | 0 | 10,570 |
Net cash provided by (used in) financing activities | (511,474) | (515,500) |
Effect of exchange rate changes on cash | (55,033) | (337,239) |
Net increase (decrease) in cash | (1,253,909) | (3,110,058) |
Cash, beginning of year | 5,311,104 | 8,421,162 |
Cash, end of year | 4,057,195 | 5,311,104 |
Cash paid for interest | 1,894,972 | 1,870,204 |
Cash paid for taxes | $ 670,231 | $ 212,268 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | (1) Organization and Nature of Operations General The Company’s business is based on the leasing of patented tracking and monitoring solutions to federal, state and local law enforcement agencies, both in the U.S. and abroad, for the electronic monitoring of offenders and offering unique data analytics services on a platform-as-a-service (“ PaaS Business Condition. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (2) Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Track Group, Inc. and its active wholly-owned subsidiaries, Track Group Analytics Limited, Track Group Americas, Inc., Track Group International LTD., and Track Group - Chile SpA. All significant inter-company transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the period presented. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to, allowances for doubtful accounts and certain assumptions related to the recoverability of intangible assets and Goodwill. Business Combinations Business combinations are accounted for under the provisions of ASC 805-10, Business Combinations Goodwill represents costs in excess of purchase price over the fair value of the assets of businesses acquired, including other identifiable intangible assets. Foreign Currency Translation The Chilean Peso, New Israeli Shekel and the Canadian Dollar are used as functional currencies of the operating subsidiaries: (i) Track Group Chile SpA; (ii) Track Group International Ltd.; and (iii) Track Group Analytics Limited, respectively. The balance sheets of all subsidiaries have been converted into United States Dollars (“ USD Other Intangible Assets Other intangible assets principally consist of patents, royalty purchase agreements, developed technology acquired, trade name, and capitalized software development costs. The Company accounts for other intangible assets in accordance with generally accepted accounting principles and does not amortize intangible assets with indefinite lives. Intangible assets with finite useful lives are amortized over their respective estimated useful lives, which range from three twenty Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for accounts receivable, other assets, accounts payable, accrued liabilities and debt obligations approximate fair values because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value as the interest rates approximate market interest rates. Concentration of Revenue & Credit Risk In the normal course of business, the Company provides credit terms to its customers and requires no collateral. Accordingly, the Company performs credit evaluations of our customers' financial condition. The Company had sales to entities, two 2023 % 2022 % Customer A $ 6,730,687 20 % $ 6,095,403 16 % Customer B 3,804,951 11 % 4,871,073 13 % No other customer represented more than 10% of the Company’s total revenue for the fiscal years ended September 30, 2023 or 2022. Concentration of credit risk associated with the Company’s total and outstanding accounts receivable as of September 30, 2023 and 2022, respectively, are shown in the table below: 2023 % 2022 % Customer A $ 490,848 11 % $ 1,346,854 22 % Customer B 303,777 7 % 714,399 11 % Customer C 630,494 14 % 675,725 11 % Customer D 465,320 10 % 310,723 5 % Cash Equivalents Cash equivalents consist of investments with original maturities to the Company of three months or less. The Company has cash in bank accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company had $3,715,850 and $3,037,903 of cash deposits in excess of federally insured limits as of September 30, 2023 and 2022, respectively. Accounts Receivable Accounts receivable, which is made up of trade receivables for monitoring and other related services, are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. The allowance is estimated by management based on certain assumptions and variables, including the customer’s financial condition, age of the customer’s receivables and changes in payment histories. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when cash is received. A trade receivable is considered to be past due if any portion of the receivable balance has not been received by the Company within its normal terms. Interest income is not recorded on trade receivables that are past due, unless that interest is collected. For the fiscal years ended September 30, 2023 and September 30 2022, the Company wrote-off accounts receivables of $127,527 and $201,469, respectively. The Company also maintains an allowance for credit memos for estimated credit memos to be issued against current sales. Estimates of allowance for credit memos are based upon the application of a historical issuance lag period to the average credit memos issued each month. For the fiscal years ended September 30, 2023 and September 30 2022, the reserve for credit memos was $23,065 and $0 respectively. Prepaid Expense and Other Prepaid assets and other is comprised largely of performance bond deposits, tax deposits, vendor deposits and other prepaid supplier expenses. We generally expect deposits to be returned to the Company as cash within 12 months after the Company’s contractual obligation has been completed and prepaid expenses to be allocated over the commitment. Inventory Inventory is valued at the lower of the cost or net realizable value. Cost is determined using the first-in/first-out method. Net realizable value is determined based on the item selling price. Inventory is periodically reviewed in order to identify obsolete or damaged items or impaired values. Inventory consists of parts used for minor repairs of ReliAlert™, and other tracking devices as well as completed circuit boards used to manufacture new devices and components used to manufacture circuit boards. Completed and shipped ReliAlert™ and other tracking devices are reflected in Monitoring Equipment. As of September 30, 2023 and 2022, inventory consisted of the following: 2023 2022 Monitoring equipment component boards inventory $ 1,289,966 $ 1,053,245 Reserve for damaged or obsolete inventory (3,772 ) - Total inventory, net of reserves $ 1,286,194 $ 1,053,245 The Company uses a third-party fulfillment service provider. As a result of this service, the Company’s employees do not actively assemble new products or repair a significant amount of monitoring equipment shipped directly from suppliers. Purchases of monitoring equipment are recognized directly. Management believes this process reduces maintenance and fulfillment costs associated with inventory and monitoring equipment. Management reviews inventory regularly to identify damaged or obsolete inventory and reserves for potential losses. The Company recorded charges of $3,772 and $0 during the years ended September 30, 2023 and 2022, respectively, for inventory that was obsolete, lost or damaged. Obsolete, lost and damaged items are expensed in Monitoring, products & other related services in the Consolidated Statement of Operations. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, typically three seven Property and equipment consisted of the following as of September 30, 2023 and 2022, respectively: 2023 2022 Equipment, software and tooling $ 1,427,522 $ 1,399,288 Automobiles 4,460 4,187 Leasehold improvements 382,122 380,586 Furniture and fixtures 222,554 215,856 Total property and equipment before accumulated depreciation 2,036,658 1,999,917 Accumulated depreciation (1,920,850 ) (1,829,588 ) Property and equipment, net of accumulated depreciation $ 115,808 $ 170,329 Property and equipment to be disposed of is reported at the lower of the carrying amount or fair value, less the estimated costs to sell and any gains or losses are included in the results of operations. During the fiscal years ended September 30, 2023 and September 30, 2022, the Company disposed of $8,669 and $794,555 fixed assets, respectively. Internally developed software costs related to the Company’s monitoring platform are recorded as intangible assets on the Consolidated Balance Sheet. Depreciation expense recognized for property and equipment for the fiscal years ended September 30, 2023 and 2022 was $95,099 and $144,054, respectively. Depreciation expense for property and equipment is recognized in operating expense in the Consolidated Statements of Operations. Monitoring Equipment The Company leases monitoring equipment to agencies for offender tracking under contractual service agreements. The monitoring equipment is depreciated using the straight-line method over an estimated useful life of between one three 2023 2022 Monitoring equipment $ 11,535,787 $ 9,574,740 Less: accumulated depreciation (6,348,695 ) (5,950,639 ) Monitoring equipment, net of accumulated depreciation $ 5,187,092 $ 3,624,101 Depreciation expense for the fiscal years ended September 30, 2023 and 2022 was $1,539,234 and $1,380,558, respectively. This expense was classified as a cost of revenue in the Consolidated Statements of Operations. During the fiscal years ended September 30, 2023 and 2022, the Company recorded charges of $305,300 and $280,783, respectively, for devices that were lost, stolen or damaged. Lost, stolen and damaged items are expensed in Monitoring, product and other related services in the Consolidated Statements of Operations. Impairment of Long-Lived Assets and Goodwill The Company reviews long-lived assets for impairment when events or changes in circumstances indicate that the book value of an asset may not be recoverable, and in the case of goodwill, at least annually. The Company evaluates whether events and circumstances have occurred which indicate possible impairment as of each balance sheet date. If the carrying amount of an asset exceeds its fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there is an identifiable fair value that is independent of other groups of assets. See Note 13. Revenue Recognition Our revenue is predominantly derived from two sources: (i) monitoring services, and (ii) product sales. Monitoring and Other Related Services Monitoring services include two components: (i) lease contracts pursuant to which the Company provides monitoring services and leased devices to distributors or end users and the Company retains ownership of the leased device; and (ii) monitoring services purchased by distributors or end users who have previously purchased monitoring devices and opt to use the Company’s monitoring services. The rates for leased devices and monitoring services are considered to be stated at their individual stand-alone selling prices. The Company recognizes revenue on leased devices and monitoring services at the end of each month the services have been provided and payment terms are 30 days from invoice date. In those circumstances in which the Company receives payment in advance, the Company records these payments as deferred revenue. Product Sales and Other The Company sells devices and replacement parts to customers under certain contracts, as well as law enforcement software licenses and maintenance, and analytical software. Revenue transactions associated with the sale of devices and replacement parts comprise a single performance obligation. We satisfy the performance obligation when the Company has transferred control of the product to the customer and they receive substantially all of the benefits. Transfer of control passes to customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. The transaction price is determined based upon the invoiced sales price and payment terms for the transaction depends on the agreement with the customer and payment is generally required within 60 days or less of shipment. The Company recognizes revenue from other services as the customer receives services and the Company has the right to payment. When purchasing products (such as ReliAlert™ devices) from the Company, customers may, but are not required to, enter into monitoring service contracts with us. The Company recognizes revenue on monitoring services for customers that have previously purchased devices at the end of each month that monitoring services have been provided. Multiple Element Arrangements The majority of our revenue transactions do not have multiple elements. However, on occasion, the Company may enter into revenue transactions that have multiple elements. These may include different combinations of products or services that are included in a single billable rate. These products or services are delivered over time as the customer utilizes our services. In cases where obligations in a contract are distinct and thus require separation into multiple performance obligations, revenue recognition guidance requires that contract consideration be allocated to each distinct performance obligation based on its relative standalone selling price. The value allocated to each performance obligation is then recognized as revenue when the revenue recognition criteria for each distinct promise or bundle of promises has been met. There were no multiple element arrangements for the years ended September 30, 2023 and 2022. Other Matters The Company considers an arrangement with payment terms longer than the Company’s normal terms not to be fixed or determinable. Normal payment terms for the sale of monitoring services and products are due upon receipt to 30 days. The Company sells devices and services directly to end users and to distributors. Distributors do not have general rights of return. Also, distributors have no price protection or stock protection rights with respect to devices sold to them by us. Generally, title and risk of loss pass to the buyer upon delivery of the devices. Shipping and handling fees charged to customers are included as part of total revenue. The related freight costs and supplies directly associated with shipping products to customers are included as a component of cost of revenue. Research and Development Costs The Company expenses research and development costs as incurred. During the fiscal year ended September 30, 2023 and September 30, 2022, the Company incurred research and development expense of $2,735,060 and $2,432,448, respectively. Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the fiscal years ended September 30, 2023 and 2022 was $13,707 and $14,037, respectively. Stock-Based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The fair value of stock options is estimated using a Black-Scholes option pricing model, which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. Outstanding restricted stock units are amortized over the vesting period. We recorded $159,522 and $207,547 of expense related to these awards for fiscal years ended September 30, 2023 and 2022, respectively. Income Taxes The Company recognizes deferred income tax assets or liabilities for the expected future tax consequences of events that have been recognized in the financial statements or income tax returns. Deferred income tax assets or liabilities are determined based upon the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to apply when the differences are expected to be settled or realized. Deferred income tax assets are reviewed periodically for recoverability and valuation allowances are provided as necessary. The tax effects from uncertain tax positions can be recognized in the financial statements, provided the position is more likely than not to be sustained on audit, based on the technical merits of the position. We recognize the financial statement benefits of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized, upon ultimate settlement with the relevant tax authority. The Company applied the foregoing accounting standard to all of our tax positions for which the statute of limitations remained open as of the date of the accompanying consolidated financial statements. The Company's policy is to recognize interest and penalties related to income tax issues as components of other noninterest expense. As of September 30, 2023 and September 30, 2022, we did not Net Income (Loss) Per Common Share Basic net income (loss) per common share (“ Basic EPS Diluted net income (loss) per common share (“ Diluted EPS Common share equivalents consist of shares issuable upon the exercise of options and warrants to purchase shares of the Company’s Common Stock, par value $0.0001 per share (“ Common Stock none 2023 2022 Issuable Common Stock options and warrants 4,688 160,881 Total Common Stock equivalents 4,688 160,881 At September 30, 2023 and 2022, all stock options and warrants had exercise prices that were above the market price of $0.49 per share and $0.51, respectively and have not been included in the diluted earnings per share calculations. Recent Accounting Pronouncements Recently Adopted Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB Recently Issued Accounting Standards In January 2017, the FASB issued Accounting Standards Update (“ ASU Intangibles Goodwill and Other: Simplifying the Test for Goodwill Impairment ASU 2017-04 In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments ASU 2016-13 CECL |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | (3) Revenue Recognition Monitoring and Other Related Services The balance of accounts receivable at September 30, 2023 of $4,536,916 includes an unbilled balance of $490,848. The balance of accounts receivable at September 30, 2022 of $6,236,555 includes an unbilled balance of $777,514, and the balance of accounts receivable at October 1, 2021 of $7,163,615 includes an unbilled balance of $420,697. The balance of the deferred revenue at September 30, 2023, September 30, 2022 and October 1, 2021 was $431, $3,299, and $22,500 respectively, and were included in accrued liabilities on the Consolidated Balance Sheets. The Company recognized $12,928 and $120,958 of deferred revenue in the fiscal years ended September 30, 2023 and September 30, 2022, respectively. Product Sales and Other Multiple Element Arrangements The standalone selling price for each performance obligation is an amount that depicts the amount of consideration to which the entity expects to be entitled in exchange for transferring the good or service. When there is only one performance obligation associated with a contract, the entire sale value is attributed to that obligation. When a contract contains multiple performance obligations the transaction value is first allocated using the observable price, which is generally a list price, net of applicable discount, or the price used to sell in similar circumstances. In circumstances when a selling price is not directly observable, the Company will estimate the standalone selling price using information available to us. The following tables present the Company’s revenue disaggregated by geography, based on management’s assessment of available data: Year Ended September 30, 2023 Year Ended September 30, 2022 Total Revenue % of Total Revenue Total Revenue % of Total Revenue United States $ 24,295,601 71 % $ 26,427,402 72 % Latin America 9,370,160 27 % 9,389,482 25 % Other 810,104 2 % 1,151,615 3 % Total $ 34,475,865 100 % $ 36,968,499 100 % The above table includes total revenue for the Company, of which monitoring and other related services is the majority (approximately 97% for fiscal years ended September 30, 2023 and 2022) of the Company’s revenue. Latin America includes Bahamas, Chile, Mexico, Puerto Rico and the U.S. Virgin Islands. Other includes Canada, New Zealand, Saudi Arabia, South Africa, the United Kingdom and Vietnam. |
Note 4 - Other Assets
Note 4 - Other Assets | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Investments and Other Noncurrent Assets [Text Block] | (4) Other Assets As of September 30, 2023 and September 30, 2022, respectively, the balance of other assets was $2,442,154 and $3,509,655, respectively. Other assets at September 30, 2023 are comprised largely of cash used as collateral for Performance Bonds as well as contractually required monitoring center and other equipment, right of use assets, lease deposits and other long-term assets. The Company anticipates these performance bonds will be reimbursed to the Company upon completion of its contracts with the customer. See Note 12. The Company was contractually obligated to construct and equip two monitoring centers for an international customer, as well as supply equipment for the customer’s satellite locations, which have been owned by the customer since construction was completed. The monitoring center equipment is amortized using the straight-line method over the contract period between 32 and 40 months. Monitoring center equipment as of September 30, 2023 and 2022, was as follows: September 30, 2023 September 30, 2022 Monitoring center equipment $ 1,619,278 $ 1,520,115 Less: accumulated amortization (1,088,825 ) (524,178 ) Monitoring center equipment, net of accumulated amortization $ 530,453 $ 995,937 The Santiago and Puerto Montt monitoring centers amortization is recorded in Monitoring, products and other related service costs on the Condensed Consolidated Statements of Operations. Amortization of costs related to the Santiago and Puerto Montt monitoring centers for the twelve-months ended September 30, 2023 and 2022 were $572,135 and $494,001, respectively. The Company recorded revenue from the customer based on a contractually agreed upon unit per day amount during the contract period. See Note 7 for details of the borrowings related to the monitoring centers construction and equipment. |
Note 5 - Accrued Liabilities
Note 5 - Accrued Liabilities | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | (5) Accrued Liabilities Accrued liabilities consisted of the following as of September 30, 2023 and 2022: September 30, 2023 September 30, 2022 Accrued payroll, taxes and employee benefits $ 1,116,036 $ 1,412,055 Deferred revenue 431 3,299 Accrued taxes - foreign and domestic 260,697 371,293 Accrued other expense 108,476 123,752 Accrued legal and other professional costs 80,210 57,905 Accrued costs of revenue 410,726 352,060 Right of use liability 143,846 177,431 Deferred financing fees - 88,685 Accrued interest 451,417 455,963 Total accrued liabilities $ 2,571,839 $ 3,042,443 |
Note 6 - Related Parties
Note 6 - Related Parties | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | (6) Related Parties ETS Limited is currently the beneficial owner of 4,706,579 shares of the Company's Common Stock (the “ Track Group Shares ADS Board |
Note 7 - Debt Obligations
Note 7 - Debt Obligations | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (7) Debt Obligations Debt obligations, net of debt issuance costs, as of September 30, 2023 and 2022 consisted of the following: September 30, 2023 September 30, 2022 The unsecured loan (the “ Amended Facility Agreement Conrent $ 42,743,599 $ 42,653,649 The unsecured Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.56% per annum, with a maturity date of February 6, 2024. 11,435 35,335 The unsecured Note Payable Agreement with Banco Santander, net of unamortized issuance costs $4,837, bearing interest at a rate of 5.04% per annum, with a maturity date of May 11, 2024. 77,670 177,463 The unsecured Note Payable Agreement with Banco Estado, net of unamortized issuance costs of $1,976, bearing interest at a rate of 3.50% per annum, with a maturity date of January 2, 2024. 36,773 135,521 The unsecured Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.61% per annum, with a maturity date of March 4, 2024. 29,118 79,375 The unsecured Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $57, bearing interest at a rate of 2.54% per annum, with a maturity date of March 4, 2024. 18,440 51,278 The unsecured Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $10,807, bearing interest at a rate of 3.12% per annum, with a maturity date of February 17, 2025. 192,547 303,303 Total debt obligations 43,109,582 43,435,924 Less: current portion (308,417 ) (456,681 ) Long-term debt, less current portion $ 42,801,165 $ 42,979,243 On December 21, 2020, Conrent and the Company signed an amendment to the Amended Facility Agreement which extended the maturity date of the Amended Facility Agreement to July 1, 2024 (“ Amended Facility Amendment Amended Facility Agreement Change of Control On January 6, 2021, the Company borrowed 70,443,375 Chilean Pesos (“ CLP HP Note 1 Santiago Monitoring Center Puerto Montt Monitoring Center On January 12, 2021, the Company borrowed 347,198,500CLP ($482,965USD), net of 2,801,500CLP fees ($3,897USD), from Banco Santander (the “ Banco Santander Note On February 2, 2021, the Company borrowed 247,999,300CLP ($338,954USD), net of 2,000,700CLP fees ($2,734USD), from Banco Estado (the “ Banco Estado Note On February 4, 2021, the Company borrowed 149,794,432CLP ($205,330USD) from HP Financial Services Chile Limitada (the “ HP Note 2 On February 5, 2021, the Company borrowed 99,808,328CLP ($136,564USD), net of 210,485CLP fees ($286USD), from Banco de Chile (the “ Banco de Chile Note 1 On February 15, 2021, the Company borrowed 500,000,000CLP ($678,214USD) from Banco de Chile (the “ Banco de Chile Note 2 The following table summarizes our future maturities of debt obligations, net of the amortization of debt discounts as of September 30, 2023: Twelve months ended September 30: Total 2024 $ 322,915 2025 60,745 2026 - 2027 42,864,000 Total 43,247,660 Issuance costs (138,078 ) Debt obligations, net of unamortized issuance costs $ 43,109,582 |
Note 8 - Preferred Stock
Note 8 - Preferred Stock | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | (8) Preferred Stock The Company’s Certificate of Incorporation authorizes it to issue up to 20,000,000 shares of preferred stock, $0.0001 par value per share (“ Preferred Stock Series A Preferred Series A Convertible Preferred Stock On October 12, 2017, the Company filed a Certificate of Designation of the Relative Rights and Preferences (“ Certificate of Designation Except with respect to transactions upon which holders of the Series A Preferred are entitled to vote separately as a class under the terms of the Certificate of Designation, the Series A Preferred has no voting rights. The shares of Common Stock into which the Series A Preferred is convertible shall, upon issuance, have all of the same voting rights as other issued and outstanding shares of our Common Stock. The Series A Preferred has no separate dividend rights; however, whenever the Board declares a dividend on the Company’s Common Stock, if ever, each holder of record of a share of Series A Preferred shall be entitled to receive an amount equal to such dividend declared on one share of Common Stock multiplied by the number of shares of Common Stock into which such share of Series A Preferred could be converted on the Record Date. Each share of Series A Preferred has a Liquidation Preference of $35.00 per share, and is convertible, at the holder’s option, into ten five As of September 30, 2023, there were no shares of Series A Preferred issued and outstanding. |
Note 9 - Common Stock
Note 9 - Common Stock | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Common Stock [Text Block] | (9) Common Stock Common Stock Issuances The Company is authorized to issue up to 30,000,000 shares of Common Stock, $0.0001 par value per share. There were no issuances of Common Stock in fiscal year 2023. On December 28, 2021, a member of the Board of Directors received 7,283 shares of Common Stock by exercising 7,283 options. On December 30, 2021, a member of the Board of Directors received 9,191 shares of Common Stock by exercising 9,191 options. On April 14, 2022, a member of the Board of Directors received an after-tax total of 37,306 shares of Common Stock by exercising 64,665 and 8,868 warrants, through a net exercise provision of the Common Stock Purchase Warrant Agreement and the payment of taxes. On April 13, 2022, a member of management received an award of 185,000 shares of Common Stock based on a Restricted Stock Agreement. On April 13, 2022, another employee received an award of 100,000 shares of Common Stock based on a Restricted Stock Agreement. |
Note 10 - Stock Options and War
Note 10 - Stock Options and Warrants | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | (10) Stock Options and Warrants Stock Incentive Plan At the annual meeting of stockholders on April 13, 2022, our stockholders approved the 2022 Omnibus Equity Incentive Plan (the “ 2022 Plan The 2022 Plan supersedes and replaces the Company’s 2012 Equity Compensation Plan (the “ 2012 Plan There were no issuances of restricted shares in fiscal year 2023. On April 13, 2022, the Company issued 285,000 restricted shares, at a grant date value of $1.30, to members of its executive team from the 2022 Plan with a total value of $370,500. The restricted shares are amortized over the vesting period. One-third of the restricted shares vested on the grant date and one-third of the restricted shares vested on October 13, 2022 and October 13, 2023, respectively. The Company recorded expense of $159,522 and $207,547 during the fiscal years ended September 30, 2023 and 2022, respectively. As of September 30, 2023 there were 215,000 shares of Common Stock available for issuance under the 2022 Plan. All Options and Warrants The fair value of each stock option and warrant grant is estimated on the date of grant using the Black-Scholes option-pricing model. During the fiscal years ended September 30, 2023 and 2022, the Company granted no All options and warrants have vested and are exercisable at September 30, 2023 and no future issuances are expected. As of September 30, 2023, no A summary of the compensation-based options and warrants activity for the fiscal years ended September 30, 2023 and 2022 is presented below: Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding as of September 30, 2021 457,075 $ 1.74 1.04 $ 779,977 Granted - - - - Expired (196,097 ) (2.41 ) - - Exercised (100,097 ) (1.23 ) - - Outstanding as of September 30, 2022 160,881 $ 1.24 0.60 $ - Granted - - - - Expired (156,193 ) (1.24 ) - - Exercised - - - - Outstanding as of September 30, 2023 4,688 $ 1.24 0.25 $ - Exercisable as of September 30, 2023 4,688 $ 1.24 0.25 $ - The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.49 of the Company’s common stock on September 30, 2023. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (11) Income Taxes The Company recognizes deferred income tax assets or liabilities for the expected future tax consequences of events that have been recognized in the financial statements or income tax returns. Deferred income tax assets or liabilities are determined based upon the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to apply when the differences are expected to be settled or realized. Deferred income tax assets are reviewed periodically for recoverability and valuation allowances are provided as necessary. Interest and penalties related to income tax liabilities, when incurred, are classified in interest expense and income tax provision, respectively. Deferred tax liabilities are recorded in Accrued liabilities on the Consolidated Balance Sheets. For the fiscal years ended September 30, 2023 and 2022, the Company incurred no net losses for income tax purposes. The amount and ultimate realization of the benefits from the net operating losses is dependent, in part, upon the tax laws in effect, our future earnings, and other future events, the effects of which cannot be determined. The Company has established a valuation allowance for all deferred income tax assets not offset by deferred income tax liabilities due to the uncertainty of their realization. Accordingly, there is no benefit for income taxes in the accompanying statements of operations. At September 30, 2023, the Company had net carryforwards available to offset future taxable income of approximately $163,702,643, $4,590,967 of which expires during the year ended September 30, 2023. The utilization of the net loss carryforwards is dependent upon the tax laws in effect at the time the net operating loss carryforwards can be utilized. The Internal Revenue Code contains provisions that likely could reduce or limit the availability and utilization of these net operating loss carryforwards. An ownership change generally affects the rate at which NOLs and potentially other deferred tax assets are permitted to offset future taxable income. Since the Company maintains a full valuation allowance on all U.S. and state deferred tax assets, the impact of prior year ownership changes on the future realizability of U.S. and state deferred tax assets did not result in an impact to the provision for income taxes for the year ended September 30, 2023, or on net deferred tax asset as of September 30, 2022. In the past, ownership changes of the Company resulted in a Sec. 382 limitation on the future realizability of U.S. state NOLs. Since the Company maintains a full valuation allowance on all U.S. and state deferred tax assets, the impact of the Sec. 382 limitation did not result in an impact to the provision for income taxes for the year ended September 30, 2023, or on net deferred assets as of September 30, 2023. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The tax provision for the year ended September 30, 2023 was due primarily to taxes on the income of a foreign-based subsidiary and U.S. state and local income taxes. The deferred income tax assets (liabilities) were comprised of the following for the periods indicated: Fiscal Years Ended September 30, 2023 2022 Net loss carryforwards $ 33,396,062 $ 34,261,003 Accruals and reserves (44,816 ) 723,617 Severance indemnity reserve 98,735 76,918 Contributions 3,911 2,478 Depreciation and amortization (378,920 ) (219,722 ) Stock-based compensation 93,031 109,397 Interest Expense Carryforward 397,566 - Valuation allowance (33,661,255 ) (35,182,109 ) Total $ (95,686 ) $ (228,418 ) Reconciliations between the benefit for income taxes at the federal statutory income tax rate and the Company's benefit for income taxes for the years ended September 30, 2023 and 2022 are as follows: Fiscal Years Ended September 30, 2023 2022 Federal income tax benefit at statutory rate $ (169,121 ) $ (78,091 ) State income tax benefit, net of federal income tax effect (31,811 ) 42,086 Effect of foreign income taxes 548,851 679,605 Return to Provision (33,604 ) (4,473 ) Withholding Taxes 79,000 147,109 Deferred only adjustment 1,740,896 471,609 Gain on deductible expenses 14,493 487,442 Change in valuation allowance (1,520,854 ) (861,799 ) Provision for income taxes $ 627,850 $ 883,488 The Company’s open tax years for federal and state income tax returns are for the tax years ended September 30, 2018 through September 30, 2023. The Company was examined by the Internal Revenue Service for fiscal years ended September 30, 2018 and September 30, 2017. The examinations were closed as of November 29, 2021, with no additional tax assessment. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (12) Commitments and Contingencies Legal Matters The Company is, from time to time, involved in various legal proceedings incidental to the conduct of our business. Historically, the outcome of nearly all such legal proceedings has not, in the aggregate, had a material adverse effect on our business, financial condition, results of operations or liquidity. Other than as set forth below, there are no additional pending or threatened legal proceedings at this time. SecureAlert, Inc. v. Federal Government of Mexico (Department of the Interior). Commonwealth of Puerto Rico, through its Trustees v. International Surveillance Services Corporation. ISS Jeffrey Mohamed Abed v. Track Group, Inc., et al. Track Group Chile SpA. v. Republic of Chile. Jesus Valle Gonzalez, et al. v. Track Group-Puerto Rico, et al. Michael Matthews v. Track Group, Inc., et al. Leases Leases as Lessor Monitoring Equipment and Other Related Services The Company leases monitoring equipment and provides monitoring services to its customers with contract terms varying from month-to-month to several years and each daily contract price varies. Devices supplied to customers are not serial number unique and a single device may be used by multiple customers over its useful life. If a leased device is returned for repair, it will likely be replaced with a different device from a different customer or possibly a new device. The Company’s tracking devices are considered operating leases under ASC 842 as transfer of control of the asset does not occur at the end of the lease, a single device is not specific to a customer and devices may be used by multiple customers throughout their life cycle. Due to the movement of devices from customer to customer, relatively few long-term contracts, the measurement of the equipment life and the present value of the equipment’s fair values would not be a measurement to qualify the devices as sales-type leases. Operating lease and monitoring revenue associated with the Company’s monitoring equipment as of September 30, 2023 and 2022, respectively, are shown in the table below: 2023 2022 Monitoring equipment operating revenue $ 28,106,916 $ 29,867,266 The Company cannot accurately estimate 5-years of future minimum lease receipts for its devices leased to customers because none of its customers make any contractual commitment regarding the number of active devices utilized in any given year and those quantities of active devices vary significantly for every customer each and every day. Leases as Lessee The following table shows right of use assets and lease liabilities for real estate and equipment, with the associated financial statement line items as of September 30, 2023 and 2022. September 30, 2023 September 30, 2022 Operating lease asset Operating lease liability Operating lease asset Operating lease liability Other assets $ 403,205 $ - $ 575,716 $ - Accrued liabilities - 143,846 - 177,431 Long-term liabilities - 259,359 - 398,285 The following table summarizes the supplemental cash flow information for the year ended September 30, 2023 and 2022: September 30, 2023 September 30, 2022 Cash paid for noncancelable operating leases included in operating cash flows $ 284,897 $ 272,921 Right of use assets obtained in exchange for operating lease liabilities: $ 5,459 $ 626,047 The future minimum lease payments under noncancelable operating leases with terms greater than one year as of September 30, 2023 are: Operating From October 2023 to September 2024 $ 157,632 From October 2023 to September 2025 92,492 From October 2024 to September 2026 94,273 From October 2025 to September 2027 87,585 From October 2026 to September 2028 773 Thereafter - Undiscounted Cash Flow 432,755 Less: imputed interest (29,550 ) Total $ 403,205 Reconciliation to lease liabilities: Lease liabilities - current $ 143,846 Lease liabilities - long-term 259,359 Total Lease Liabilities $ 403,205 The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of September 30, 2023 were 3.44 years and 4%, respectively. The Company’s lease discount rates are generally based on the estimates of its incremental borrowing rate as the discount rates implicit in the Company’s leases cannot be readily determined. Performance Bonds As of September 30, 2023, the Company has one performance bond in connection with a foreign customer totaling $1,654,134 (“ Performance Bond The amounts held on two The Company pays interest on the full amount of the Performance Bond to the financial institution providing the guarantee at 2.8% interest per annum for the Performance Bond expiring in July 2024. The Company recorded interest expenses of $54,676 and $56,343 for the years ended September 30, 2023 and September 30, 2022, respectively. |
Note 13 - Intangible Assets
Note 13 - Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | (13) Intangible Assets The following table summarizes the activity of intangible assets for the years ended September 30, 2023 and 2022, respectively: September 30, 2023 September 30, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patent & royalty agreements $ 21,120,565 $ (14,358,431 ) $ 6,762,134 $ 21,120,565 $ (13,027,465 ) $ 8,093,100 Developed technology 10,328,125 (2,933,499 ) 7,394,626 9,206,006 (1,649,563 ) 7,556,443 Trade name 139,450 (138,916 ) 534 139,115 (127,241 ) 11,874 Total intangible assets $ 31,588,140 $ (17,430,846 ) $ 14,157,294 $ 30,465,686 $ (14,804,269 ) $ 15,661,417 The intangible assets summarized above were purchased or developed on various dates from July 2011 through September 30, 2023. The assets have useful lives ranging from three twenty The following table summarizes the future maturities of amortization of intangible assets as of September 30, 2023: Fiscal Year Amortization STOP Royalty 2024 2,240,653 187,500 2025 2,418,908 - 2026 2,418,908 - 2027 2,418,908 - Thereafter 4,472,417 - Total $ 13,969,794 $ 187,500 Goodwill Goodwill, as of September 30, consisted of the following: September 30, 2023 2022 Balance - beginning of year $ 8,061,002 $ 8,519,998 Effect of foreign currency translation on goodwill (209,536 ) (458,996 ) Balance - end of year $ 7,851,466 $ 8,061,002 |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (14) Subsequent Events In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and noted that no additional subsequent events have occurred that are reasonably likely to impact the financial statements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Track Group, Inc. and its active wholly-owned subsidiaries, Track Group Analytics Limited, Track Group Americas, Inc., Track Group International LTD., and Track Group - Chile SpA. All significant inter-company transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the period presented. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to, allowances for doubtful accounts and certain assumptions related to the recoverability of intangible assets and Goodwill. |
Business Combinations Policy [Policy Text Block] | Business Combinations Business combinations are accounted for under the provisions of ASC 805-10, Business Combinations Goodwill represents costs in excess of purchase price over the fair value of the assets of businesses acquired, including other identifiable intangible assets. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Chilean Peso, New Israeli Shekel and the Canadian Dollar are used as functional currencies of the operating subsidiaries: (i) Track Group Chile SpA; (ii) Track Group International Ltd.; and (iii) Track Group Analytics Limited, respectively. The balance sheets of all subsidiaries have been converted into United States Dollars (“ USD |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Other Intangible Assets Other intangible assets principally consist of patents, royalty purchase agreements, developed technology acquired, trade name, and capitalized software development costs. The Company accounts for other intangible assets in accordance with generally accepted accounting principles and does not amortize intangible assets with indefinite lives. Intangible assets with finite useful lives are amortized over their respective estimated useful lives, which range from three twenty |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for accounts receivable, other assets, accounts payable, accrued liabilities and debt obligations approximate fair values because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value as the interest rates approximate market interest rates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Revenue & Credit Risk In the normal course of business, the Company provides credit terms to its customers and requires no collateral. Accordingly, the Company performs credit evaluations of our customers' financial condition. The Company had sales to entities, two 2023 % 2022 % Customer A $ 6,730,687 20 % $ 6,095,403 16 % Customer B 3,804,951 11 % 4,871,073 13 % No other customer represented more than 10% of the Company’s total revenue for the fiscal years ended September 30, 2023 or 2022. Concentration of credit risk associated with the Company’s total and outstanding accounts receivable as of September 30, 2023 and 2022, respectively, are shown in the table below: 2023 % 2022 % Customer A $ 490,848 11 % $ 1,346,854 22 % Customer B 303,777 7 % 714,399 11 % Customer C 630,494 14 % 675,725 11 % Customer D 465,320 10 % 310,723 5 % |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents Cash equivalents consist of investments with original maturities to the Company of three months or less. The Company has cash in bank accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company had $3,715,850 and $3,037,903 of cash deposits in excess of federally insured limits as of September 30, 2023 and 2022, respectively. |
Receivable [Policy Text Block] | Accounts Receivable Accounts receivable, which is made up of trade receivables for monitoring and other related services, are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. The allowance is estimated by management based on certain assumptions and variables, including the customer’s financial condition, age of the customer’s receivables and changes in payment histories. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when cash is received. A trade receivable is considered to be past due if any portion of the receivable balance has not been received by the Company within its normal terms. Interest income is not recorded on trade receivables that are past due, unless that interest is collected. For the fiscal years ended September 30, 2023 and September 30 2022, the Company wrote-off accounts receivables of $127,527 and $201,469, respectively. The Company also maintains an allowance for credit memos for estimated credit memos to be issued against current sales. Estimates of allowance for credit memos are based upon the application of a historical issuance lag period to the average credit memos issued each month. For the fiscal years ended September 30, 2023 and September 30 2022, the reserve for credit memos was $23,065 and $0 respectively. |
Prepaid Expense and Other, Policy [Policy Text Block] | Prepaid Expense and Other Prepaid assets and other is comprised largely of performance bond deposits, tax deposits, vendor deposits and other prepaid supplier expenses. We generally expect deposits to be returned to the Company as cash within 12 months after the Company’s contractual obligation has been completed and prepaid expenses to be allocated over the commitment. |
Inventory, Policy [Policy Text Block] | Inventory Inventory is valued at the lower of the cost or net realizable value. Cost is determined using the first-in/first-out method. Net realizable value is determined based on the item selling price. Inventory is periodically reviewed in order to identify obsolete or damaged items or impaired values. Inventory consists of parts used for minor repairs of ReliAlert™, and other tracking devices as well as completed circuit boards used to manufacture new devices and components used to manufacture circuit boards. Completed and shipped ReliAlert™ and other tracking devices are reflected in Monitoring Equipment. As of September 30, 2023 and 2022, inventory consisted of the following: 2023 2022 Monitoring equipment component boards inventory $ 1,289,966 $ 1,053,245 Reserve for damaged or obsolete inventory (3,772 ) - Total inventory, net of reserves $ 1,286,194 $ 1,053,245 The Company uses a third-party fulfillment service provider. As a result of this service, the Company’s employees do not actively assemble new products or repair a significant amount of monitoring equipment shipped directly from suppliers. Purchases of monitoring equipment are recognized directly. Management believes this process reduces maintenance and fulfillment costs associated with inventory and monitoring equipment. Management reviews inventory regularly to identify damaged or obsolete inventory and reserves for potential losses. The Company recorded charges of $3,772 and $0 during the years ended September 30, 2023 and 2022, respectively, for inventory that was obsolete, lost or damaged. Obsolete, lost and damaged items are expensed in Monitoring, products & other related services in the Consolidated Statement of Operations. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, typically three seven Property and equipment consisted of the following as of September 30, 2023 and 2022, respectively: 2023 2022 Equipment, software and tooling $ 1,427,522 $ 1,399,288 Automobiles 4,460 4,187 Leasehold improvements 382,122 380,586 Furniture and fixtures 222,554 215,856 Total property and equipment before accumulated depreciation 2,036,658 1,999,917 Accumulated depreciation (1,920,850 ) (1,829,588 ) Property and equipment, net of accumulated depreciation $ 115,808 $ 170,329 Property and equipment to be disposed of is reported at the lower of the carrying amount or fair value, less the estimated costs to sell and any gains or losses are included in the results of operations. During the fiscal years ended September 30, 2023 and September 30, 2022, the Company disposed of $8,669 and $794,555 fixed assets, respectively. Internally developed software costs related to the Company’s monitoring platform are recorded as intangible assets on the Consolidated Balance Sheet. Depreciation expense recognized for property and equipment for the fiscal years ended September 30, 2023 and 2022 was $95,099 and $144,054, respectively. Depreciation expense for property and equipment is recognized in operating expense in the Consolidated Statements of Operations. |
Loans and Leases Receivable, Lease Financing, Policy [Policy Text Block] | Monitoring Equipment The Company leases monitoring equipment to agencies for offender tracking under contractual service agreements. The monitoring equipment is depreciated using the straight-line method over an estimated useful life of between one three 2023 2022 Monitoring equipment $ 11,535,787 $ 9,574,740 Less: accumulated depreciation (6,348,695 ) (5,950,639 ) Monitoring equipment, net of accumulated depreciation $ 5,187,092 $ 3,624,101 Depreciation expense for the fiscal years ended September 30, 2023 and 2022 was $1,539,234 and $1,380,558, respectively. This expense was classified as a cost of revenue in the Consolidated Statements of Operations. During the fiscal years ended September 30, 2023 and 2022, the Company recorded charges of $305,300 and $280,783, respectively, for devices that were lost, stolen or damaged. Lost, stolen and damaged items are expensed in Monitoring, product and other related services in the Consolidated Statements of Operations. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets and Goodwill The Company reviews long-lived assets for impairment when events or changes in circumstances indicate that the book value of an asset may not be recoverable, and in the case of goodwill, at least annually. The Company evaluates whether events and circumstances have occurred which indicate possible impairment as of each balance sheet date. If the carrying amount of an asset exceeds its fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there is an identifiable fair value that is independent of other groups of assets. See Note 13. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Our revenue is predominantly derived from two sources: (i) monitoring services, and (ii) product sales. Monitoring and Other Related Services Monitoring services include two components: (i) lease contracts pursuant to which the Company provides monitoring services and leased devices to distributors or end users and the Company retains ownership of the leased device; and (ii) monitoring services purchased by distributors or end users who have previously purchased monitoring devices and opt to use the Company’s monitoring services. The rates for leased devices and monitoring services are considered to be stated at their individual stand-alone selling prices. The Company recognizes revenue on leased devices and monitoring services at the end of each month the services have been provided and payment terms are 30 days from invoice date. In those circumstances in which the Company receives payment in advance, the Company records these payments as deferred revenue. Product Sales and Other The Company sells devices and replacement parts to customers under certain contracts, as well as law enforcement software licenses and maintenance, and analytical software. Revenue transactions associated with the sale of devices and replacement parts comprise a single performance obligation. We satisfy the performance obligation when the Company has transferred control of the product to the customer and they receive substantially all of the benefits. Transfer of control passes to customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. The transaction price is determined based upon the invoiced sales price and payment terms for the transaction depends on the agreement with the customer and payment is generally required within 60 days or less of shipment. The Company recognizes revenue from other services as the customer receives services and the Company has the right to payment. When purchasing products (such as ReliAlert™ devices) from the Company, customers may, but are not required to, enter into monitoring service contracts with us. The Company recognizes revenue on monitoring services for customers that have previously purchased devices at the end of each month that monitoring services have been provided. Multiple Element Arrangements The majority of our revenue transactions do not have multiple elements. However, on occasion, the Company may enter into revenue transactions that have multiple elements. These may include different combinations of products or services that are included in a single billable rate. These products or services are delivered over time as the customer utilizes our services. In cases where obligations in a contract are distinct and thus require separation into multiple performance obligations, revenue recognition guidance requires that contract consideration be allocated to each distinct performance obligation based on its relative standalone selling price. The value allocated to each performance obligation is then recognized as revenue when the revenue recognition criteria for each distinct promise or bundle of promises has been met. There were no multiple element arrangements for the years ended September 30, 2023 and 2022. Other Matters The Company considers an arrangement with payment terms longer than the Company’s normal terms not to be fixed or determinable. Normal payment terms for the sale of monitoring services and products are due upon receipt to 30 days. The Company sells devices and services directly to end users and to distributors. Distributors do not have general rights of return. Also, distributors have no price protection or stock protection rights with respect to devices sold to them by us. Generally, title and risk of loss pass to the buyer upon delivery of the devices. Shipping and handling fees charged to customers are included as part of total revenue. The related freight costs and supplies directly associated with shipping products to customers are included as a component of cost of revenue. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs The Company expenses research and development costs as incurred. During the fiscal year ended September 30, 2023 and September 30, 2022, the Company incurred research and development expense of $2,735,060 and $2,432,448, respectively. |
Advertising Cost [Policy Text Block] | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the fiscal years ended September 30, 2023 and 2022 was $13,707 and $14,037, respectively. |
Compensation Related Costs, Policy [Policy Text Block] | Stock-Based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The fair value of stock options is estimated using a Black-Scholes option pricing model, which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. Outstanding restricted stock units are amortized over the vesting period. We recorded $159,522 and $207,547 of expense related to these awards for fiscal years ended September 30, 2023 and 2022, respectively. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company recognizes deferred income tax assets or liabilities for the expected future tax consequences of events that have been recognized in the financial statements or income tax returns. Deferred income tax assets or liabilities are determined based upon the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to apply when the differences are expected to be settled or realized. Deferred income tax assets are reviewed periodically for recoverability and valuation allowances are provided as necessary. The tax effects from uncertain tax positions can be recognized in the financial statements, provided the position is more likely than not to be sustained on audit, based on the technical merits of the position. We recognize the financial statement benefits of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized, upon ultimate settlement with the relevant tax authority. The Company applied the foregoing accounting standard to all of our tax positions for which the statute of limitations remained open as of the date of the accompanying consolidated financial statements. The Company's policy is to recognize interest and penalties related to income tax issues as components of other noninterest expense. As of September 30, 2023 and September 30, 2022, we did not |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Common Share Basic net income (loss) per common share (“ Basic EPS Diluted net income (loss) per common share (“ Diluted EPS Common share equivalents consist of shares issuable upon the exercise of options and warrants to purchase shares of the Company’s Common Stock, par value $0.0001 per share (“ Common Stock none 2023 2022 Issuable Common Stock options and warrants 4,688 160,881 Total Common Stock equivalents 4,688 160,881 At September 30, 2023 and 2022, all stock options and warrants had exercise prices that were above the market price of $0.49 per share and $0.51, respectively and have not been included in the diluted earnings per share calculations. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently Adopted Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB Recently Issued Accounting Standards In January 2017, the FASB issued Accounting Standards Update (“ ASU Intangibles Goodwill and Other: Simplifying the Test for Goodwill Impairment ASU 2017-04 In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments ASU 2016-13 CECL |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | 2023 % 2022 % Customer A $ 6,730,687 20 % $ 6,095,403 16 % Customer B 3,804,951 11 % 4,871,073 13 % 2023 % 2022 % Customer A $ 490,848 11 % $ 1,346,854 22 % Customer B 303,777 7 % 714,399 11 % Customer C 630,494 14 % 675,725 11 % Customer D 465,320 10 % 310,723 5 % |
Schedule of Inventory, Current [Table Text Block] | 2023 2022 Monitoring equipment component boards inventory $ 1,289,966 $ 1,053,245 Reserve for damaged or obsolete inventory (3,772 ) - Total inventory, net of reserves $ 1,286,194 $ 1,053,245 |
Property, Plant and Equipment [Table Text Block] | 2023 2022 Equipment, software and tooling $ 1,427,522 $ 1,399,288 Automobiles 4,460 4,187 Leasehold improvements 382,122 380,586 Furniture and fixtures 222,554 215,856 Total property and equipment before accumulated depreciation 2,036,658 1,999,917 Accumulated depreciation (1,920,850 ) (1,829,588 ) Property and equipment, net of accumulated depreciation $ 115,808 $ 170,329 |
Schedule of Monitoring Property and Equipment [Table Text Block] | 2023 2022 Monitoring equipment $ 11,535,787 $ 9,574,740 Less: accumulated depreciation (6,348,695 ) (5,950,639 ) Monitoring equipment, net of accumulated depreciation $ 5,187,092 $ 3,624,101 |
Common Stock Equivalents [Table Text Block] | 2023 2022 Issuable Common Stock options and warrants 4,688 160,881 Total Common Stock equivalents 4,688 160,881 |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregated Revenue by Geography [Table Text Block] | Year Ended September 30, 2023 Year Ended September 30, 2022 Total Revenue % of Total Revenue Total Revenue % of Total Revenue United States $ 24,295,601 71 % $ 26,427,402 72 % Latin America 9,370,160 27 % 9,389,482 25 % Other 810,104 2 % 1,151,615 3 % Total $ 34,475,865 100 % $ 36,968,499 100 % |
Note 4 - Other Assets (Tables)
Note 4 - Other Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Other Assets [Table Text Block] | September 30, 2023 September 30, 2022 Monitoring center equipment $ 1,619,278 $ 1,520,115 Less: accumulated amortization (1,088,825 ) (524,178 ) Monitoring center equipment, net of accumulated amortization $ 530,453 $ 995,937 |
Note 5 - Accrued Liabilities (T
Note 5 - Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, 2023 September 30, 2022 Accrued payroll, taxes and employee benefits $ 1,116,036 $ 1,412,055 Deferred revenue 431 3,299 Accrued taxes - foreign and domestic 260,697 371,293 Accrued other expense 108,476 123,752 Accrued legal and other professional costs 80,210 57,905 Accrued costs of revenue 410,726 352,060 Right of use liability 143,846 177,431 Deferred financing fees - 88,685 Accrued interest 451,417 455,963 Total accrued liabilities $ 2,571,839 $ 3,042,443 |
Note 7 - Debt Obligations (Tabl
Note 7 - Debt Obligations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 30, 2023 September 30, 2022 The unsecured loan (the “ Amended Facility Agreement Conrent $ 42,743,599 $ 42,653,649 The unsecured Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.56% per annum, with a maturity date of February 6, 2024. 11,435 35,335 The unsecured Note Payable Agreement with Banco Santander, net of unamortized issuance costs $4,837, bearing interest at a rate of 5.04% per annum, with a maturity date of May 11, 2024. 77,670 177,463 The unsecured Note Payable Agreement with Banco Estado, net of unamortized issuance costs of $1,976, bearing interest at a rate of 3.50% per annum, with a maturity date of January 2, 2024. 36,773 135,521 The unsecured Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.61% per annum, with a maturity date of March 4, 2024. 29,118 79,375 The unsecured Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $57, bearing interest at a rate of 2.54% per annum, with a maturity date of March 4, 2024. 18,440 51,278 The unsecured Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $10,807, bearing interest at a rate of 3.12% per annum, with a maturity date of February 17, 2025. 192,547 303,303 Total debt obligations 43,109,582 43,435,924 Less: current portion (308,417 ) (456,681 ) Long-term debt, less current portion $ 42,801,165 $ 42,979,243 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | Twelve months ended September 30: Total 2024 $ 322,915 2025 60,745 2026 - 2027 42,864,000 Total 43,247,660 Issuance costs (138,078 ) Debt obligations, net of unamortized issuance costs $ 43,109,582 |
Note 10 - Stock Options and W_2
Note 10 - Stock Options and Warrants (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Stock Options Roll Forward [Table Text Block] | Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding as of September 30, 2021 457,075 $ 1.74 1.04 $ 779,977 Granted - - - - Expired (196,097 ) (2.41 ) - - Exercised (100,097 ) (1.23 ) - - Outstanding as of September 30, 2022 160,881 $ 1.24 0.60 $ - Granted - - - - Expired (156,193 ) (1.24 ) - - Exercised - - - - Outstanding as of September 30, 2023 4,688 $ 1.24 0.25 $ - Exercisable as of September 30, 2023 4,688 $ 1.24 0.25 $ - |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Fiscal Years Ended September 30, 2023 2022 Net loss carryforwards $ 33,396,062 $ 34,261,003 Accruals and reserves (44,816 ) 723,617 Severance indemnity reserve 98,735 76,918 Contributions 3,911 2,478 Depreciation and amortization (378,920 ) (219,722 ) Stock-based compensation 93,031 109,397 Interest Expense Carryforward 397,566 - Valuation allowance (33,661,255 ) (35,182,109 ) Total $ (95,686 ) $ (228,418 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Years Ended September 30, 2023 2022 Federal income tax benefit at statutory rate $ (169,121 ) $ (78,091 ) State income tax benefit, net of federal income tax effect (31,811 ) 42,086 Effect of foreign income taxes 548,851 679,605 Return to Provision (33,604 ) (4,473 ) Withholding Taxes 79,000 147,109 Deferred only adjustment 1,740,896 471,609 Gain on deductible expenses 14,493 487,442 Change in valuation allowance (1,520,854 ) (861,799 ) Provision for income taxes $ 627,850 $ 883,488 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Operating Lease, Lease Income [Table Text Block] | 2023 2022 Monitoring equipment operating revenue $ 28,106,916 $ 29,867,266 |
Lessee, Operating Lease, Balance Sheet Information [Table Text Block] | September 30, 2023 September 30, 2022 Operating lease asset Operating lease liability Operating lease asset Operating lease liability Other assets $ 403,205 $ - $ 575,716 $ - Accrued liabilities - 143,846 - 177,431 Long-term liabilities - 259,359 - 398,285 |
Lease, Cost [Table Text Block] | September 30, 2023 September 30, 2022 Cash paid for noncancelable operating leases included in operating cash flows $ 284,897 $ 272,921 Right of use assets obtained in exchange for operating lease liabilities: $ 5,459 $ 626,047 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Operating From October 2023 to September 2024 $ 157,632 From October 2023 to September 2025 92,492 From October 2024 to September 2026 94,273 From October 2025 to September 2027 87,585 From October 2026 to September 2028 773 Thereafter - Undiscounted Cash Flow 432,755 Less: imputed interest (29,550 ) Total $ 403,205 Reconciliation to lease liabilities: Lease liabilities - current $ 143,846 Lease liabilities - long-term 259,359 Total Lease Liabilities $ 403,205 |
Note 13 - Intangible Assets (Ta
Note 13 - Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2023 September 30, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patent & royalty agreements $ 21,120,565 $ (14,358,431 ) $ 6,762,134 $ 21,120,565 $ (13,027,465 ) $ 8,093,100 Developed technology 10,328,125 (2,933,499 ) 7,394,626 9,206,006 (1,649,563 ) 7,556,443 Trade name 139,450 (138,916 ) 534 139,115 (127,241 ) 11,874 Total intangible assets $ 31,588,140 $ (17,430,846 ) $ 14,157,294 $ 30,465,686 $ (14,804,269 ) $ 15,661,417 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Amortization STOP Royalty 2024 2,240,653 187,500 2025 2,418,908 - 2026 2,418,908 - 2027 2,418,908 - Thereafter 4,472,417 - Total $ 13,969,794 $ 187,500 |
Schedule of Goodwill [Table Text Block] | September 30, 2023 2022 Balance - beginning of year $ 8,061,002 $ 8,519,998 Effect of foreign currency translation on goodwill (209,536 ) (458,996 ) Balance - end of year $ 7,851,466 $ 8,061,002 |
Note 1 - Organization and Nat_2
Note 1 - Organization and Nature of Operations (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Apr. 27, 2023 | |
Retained Earnings (Accumulated Deficit), Total | $ (309,610,397) | $ (306,218,889) | |
Net Income (Loss) Attributable to Parent, Total | (3,391,508) | (7,390,362) | |
Long-Term Debt | 43,109,582 | 43,435,924 | |
Asset Impairment Charges, Total | 0 | $ 1,729,658 | |
Debt Maturing in July 2024 [Member] | |||
Long-Term Debt | $ 42,900,000 | ||
Notes Payable Related to Construction of Monitoring Centers [Member] | |||
Long-Term Debt | $ 365,983 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 USD ($) $ / shares | |
Cash, Uninsured Amount | $ 3,715,850 | $ 3,037,903 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 127,527 | 201,469 | |
Allowance for Credit Memos | 23,065 | 0 | |
Inventory Write-down | 3,772 | 0 | |
Property, Plant and Equipment, Disposals | 8,669 | 794,555 | |
Depreciation, Nonproduction | 95,099 | 144,054 | |
Depreciation, Lessor Asset under Operating Lease | 1,539,234 | 1,380,558 | |
Disposal of Lease Monitoring Equipment | 305,300 | 280,783 | |
Research and Development Expense | 2,735,060 | 2,432,448 | |
Advertising Expense | $ 13,707 | $ 14,037 | |
Unrecognized Tax Benefits | $ 0 | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Total (in shares) | shares | 25,352 | ||
Share Price (in dollars per share) | $ / shares (in dollars per share) | $ / shares | $ 0.51 | $ 0.49 | |
Restricted Stock [Member] | |||
Share-Based Payment Arrangement, Expense | $ 159,522 | $ 207,547 | |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | |||
Number of Major Customers | 2 | 2 | |
Minimum [Member] | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | ||
Property, Plant and Equipment, Useful Life (Year) (Year) | 3 years | ||
Equipment Leased Under Contractual Service Agreements, Useful Life (Year) | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years | ||
Property, Plant and Equipment, Useful Life (Year) (Year) | 7 years | ||
Equipment Leased Under Contractual Service Agreements, Useful Life (Year) | 3 years |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Customer Concentration Risk (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | $ 34,475,865 | $ 36,968,499 |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||
Revenues | $ 6,730,687 | $ 6,095,403 |
Customer concentration risk percentage | 20% | 16% |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||
Revenues | $ 3,804,951 | $ 4,871,073 |
Customer concentration risk percentage | 11% | 13% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||
Customer accounts receivable amount | $ 490,848 | $ 1,346,854 |
Customer concentration risk percentage | 11% | 22% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||
Customer accounts receivable amount | $ 303,777 | $ 714,399 |
Customer concentration risk percentage | 7% | 11% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||
Customer accounts receivable amount | $ 630,494 | $ 675,725 |
Customer concentration risk percentage | 14% | 11% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member] | ||
Customer accounts receivable amount | $ 465,320 | $ 310,723 |
Customer concentration risk percentage | 10% | 5% |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Summary of Inventory (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Monitoring equipment component boards inventory | $ 1,289,966 | $ 1,053,245 |
Reserve for damaged or obsolete inventory | (3,772) | 0 |
Total inventory, net of reserves | $ 1,286,194 | $ 1,053,245 |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Equipment, software and tooling | $ 1,427,522 | $ 1,399,288 |
Automobiles | 4,460 | 4,187 |
Leasehold improvements | 382,122 | 380,586 |
Furniture and fixtures | 222,554 | 215,856 |
Total property and equipment before accumulated depreciation | 2,036,658 | 1,999,917 |
Accumulated depreciation | (1,920,850) | (1,829,588) |
Property, Plant, and Equipment, Excluding Monitoring Equipment [Member] | ||
Property and equipment, net of accumulated depreciation | $ 115,808 | $ 170,329 |
Note 2 - Summary of Significa_7
Note 2 - Summary of Significant Accounting Policies - Summary of Monitoring Equipment (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Monitoring equipment | $ 11,535,787 | $ 9,574,740 |
Less: accumulated depreciation | (6,348,695) | (5,950,639) |
Monitoring equipment, net of accumulated depreciation | $ 5,187,092 | $ 3,624,101 |
Note 2 - Summary of Significa_8
Note 2 - Summary of Significant Accounting Policies - Common Stock Equivalents Excluded from EPS Calculation (Details) - shares | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2020 |
Issuable Common Stock options and warrants (in shares) | 4,688 | 160,881 | 457,075 |
Total Common Stock equivalents (in shares) | 4,688 | 160,881 | |
Stock Options and Warrants [Member] | |||
Issuable Common Stock options and warrants (in shares) | 4,688 | 160,881 |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2020 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Total | $ 6,236,555 | $ 4,536,916 | $ 7,163,615 | |
Unbilled Receivables, Current | 777,514 | 490,848 | 420,697 | |
Contract with Customer, Liability, Total | 3,299 | $ 431 | $ 22,500 | |
Contract with Customer, Liability, Deferred Revenue Recognized | $ 12,928 | $ 120,958 | ||
Monitoring and Other Related Services [Member] | ||||
Revenue From Contract With Customer, Percent | 97% | 97% |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Customer revenue amount | $ 34,475,865 | $ 36,968,499 |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 100% | 100% |
UNITED STATES | ||
Customer revenue amount | $ 24,295,601 | $ 26,427,402 |
UNITED STATES | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 71% | 72% |
Latin America [Member] | ||
Customer revenue amount | $ 9,370,160 | $ 9,389,482 |
Latin America [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 27% | 25% |
Other than United States and Latin America [Member] | ||
Customer revenue amount | $ 810,104 | $ 1,151,615 |
Other than United States and Latin America [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 2% | 3% |
Note 4 - Other Assets (Details
Note 4 - Other Assets (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Other Assets, Total | $ 2,442,154 | $ 3,509,655 |
Capitalized Contract Cost, Santiago Monitoring Center [Member] | ||
Capitalized Contract Cost, Amortization | $ 572,135 | $ 494,001 |
Note 4 - Other Assets - Monitor
Note 4 - Other Assets - Monitoring Center Equipment (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Monitoring center equipment | $ 2,036,658 | $ 1,999,917 |
Less: accumulated amortization | 1,920,850 | 1,829,588 |
Monitoring Center Equipment [Member] | ||
Monitoring center equipment | 1,619,278 | 1,520,115 |
Less: accumulated amortization | 1,088,825 | 524,178 |
Property and equipment, net of accumulated depreciation of $1,920,850 and $1,829,588, respectively | $ 530,453 | $ 995,937 |
Note 5 - Accrued Liabilities -
Note 5 - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Accrued payroll, taxes and employee benefits | $ 1,116,036 | $ 1,412,055 |
Deferred revenue | 431 | 3,299 |
Accrued taxes - foreign and domestic | 260,697 | 371,293 |
Accrued other expense | 108,476 | 123,752 |
Accrued legal and other professional costs | 80,210 | 57,905 |
Accrued costs of revenue | 410,726 | 352,060 |
Deferred financing fees | 0 | 88,685 |
Accrued interest | 451,417 | 455,963 |
Total accrued liabilities | 2,571,839 | 3,042,443 |
Right-of-use Liability [Member] | ||
Right of use liability | $ 143,846 | $ 177,431 |
Note 6 - Related Parties (Detai
Note 6 - Related Parties (Details Textual) | Sep. 28, 2017 shares |
Stock Issued During Period, Shares, Acquisitions (in shares) | 4,706,579 |
Note 7 - Debt Obligations (Deta
Note 7 - Debt Obligations (Details Textual) | 12 Months Ended | ||||||||||||||||||
Feb. 15, 2021 USD ($) | Feb. 15, 2021 CLP ($) | Feb. 05, 2021 USD ($) | Feb. 05, 2021 CLP ($) | Feb. 04, 2021 USD ($) | Feb. 04, 2021 CLP ($) | Feb. 02, 2021 USD ($) | Feb. 02, 2021 CLP ($) | Jan. 12, 2021 USD ($) | Jan. 12, 2021 CLP ($) | Jan. 06, 2021 USD ($) | Jan. 06, 2021 CLP ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 | Feb. 15, 2021 CLP ($) | Feb. 02, 2021 CLP ($) | Jan. 12, 2021 CLP ($) | Dec. 21, 2020 | Dec. 20, 2020 | |
Principal Amount | $ 42,864,000 | ||||||||||||||||||
Repayments of Long-Term Debt | $ 678,214 | $ 136,564 | $ 205,330 | $ 338,954 | $ 482,965 | $ 101,186 | |||||||||||||
Other Expenses, Total | $ 286 | 2,734 | 3,897 | ||||||||||||||||
Broker Fees Others | $ 38,317 | $ 19,304 | $ 27,275 | ||||||||||||||||
Chilean Pesos [Member] | |||||||||||||||||||
Repayments of Long-Term Debt | $ 500,000,000 | $ 99,808,328 | $ 149,794,432 | $ 247,999,300 | $ 347,198,500 | $ 70,443,375 | |||||||||||||
Other Expenses, Total | $ 210,485 | $ 2,000,700 | $ 2,801,500 | ||||||||||||||||
Broker Fees Others | $ 28,248,588 | $ 14,124,294 | $ 19,607,843 | ||||||||||||||||
Agreement with Conrent [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4% | 4% | 8% | ||||||||||||||||
Debt Instrument, Increase, Accrued Interest | $ 438,165 | ||||||||||||||||||
Note Payable With HP Financial Services Maturing on Feb 6, 2024 [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.56% | 6.56% | |||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.56% | 6.56% | |||||||||||||||||
Note Payable With Banco Santander [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.04% | 5.04% | |||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.04% | 5.04% | |||||||||||||||||
Note Payable With Banco Estado [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.50% | 3.50% | |||||||||||||||||
Note Payable with HP Financial Services Maturing on March 4, 2024 [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.61% | 6.61% | |||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.61% | 6.61% | |||||||||||||||||
Note Payable with Banco De Chile Maturing on March 4, 2024 [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% | |||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.54% | 2.54% | |||||||||||||||||
Note Payable with Banco De Chile Maturing on Feb 17, 2025 [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.12% | 3.12% | |||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.12% | 3.12% |
Note 7 - Debt Obligations - Sum
Note 7 - Debt Obligations - Summary of Debt Obligations (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Total debt obligations | $ 43,109,582 | $ 43,435,924 |
Less: current portion | (308,417) | (456,681) |
Long-term debt, net of current portion | 42,801,165 | 42,979,243 |
Agreement with Conrent [Member] | ||
Total debt obligations | 42,743,599 | 42,653,649 |
Note Payable With HP Financial Services Maturing on Feb 6, 2024 [Member] | ||
Total debt obligations | 11,435 | 35,335 |
Note Payable With Banco Santander [Member] | ||
Total debt obligations | 77,670 | 177,463 |
Note Payable With Banco Estado [Member] | ||
Total debt obligations | 36,773 | 135,521 |
Note Payable with HP Financial Services Maturing on March 4, 2024 [Member] | ||
Total debt obligations | 29,118 | 79,375 |
Note Payable with Banco De Chile Maturing on March 4, 2024 [Member] | ||
Total debt obligations | 18,440 | 51,278 |
Note Payable with Banco De Chile Maturing on Feb 17, 2025 [Member] | ||
Total debt obligations | $ 192,547 | $ 303,303 |
Note 7 - Debt Obligations - S_2
Note 7 - Debt Obligations - Summary of Debt Obligations (Details) (Parentheticals) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 21, 2020 | Dec. 20, 2020 | |
Debt Issuance Costs, Net | $ 138,078 | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 1,894,972 | $ 1,870,204 | ||
Agreement with Conrent [Member] | ||||
Debt Instrument, Face Amount | $ 42,864,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4% | 4% | 8% | |
Debt Instrument, Face Amount | $ 42,864,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4% | 4% | 8% | |
Amended Agreement with Conrent [Member] | ||||
Debt Instrument, Face Amount | $ 42,864,000 | |||
Debt Issuance Costs, Net | 120,401 | |||
Debt Instrument, Face Amount | 42,864,000 | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 438,165 | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 1,738,373 | |||
Note Payable With HP Financial Services Maturing on Feb 6, 2024 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.56% | 6.56% | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.56% | 6.56% | ||
Note Payable With Banco Santander [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.04% | 5.04% | ||
Debt Issuance Costs, Net | $ 4,837 | $ 4,837 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.04% | 5.04% | ||
Note Payable With Banco Estado [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | ||
Debt Issuance Costs, Net | $ 1,976 | $ 1,976 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | ||
Note Payable with HP Financial Services Maturing on March 4, 2024 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.61% | 6.61% | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.61% | 6.61% | ||
Note Payable with Banco De Chile Maturing on March 4, 2024 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% | ||
Debt Issuance Costs, Net | $ 57 | $ 57 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% | ||
Note Payable with Banco De Chile Maturing on Feb 17, 2025 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.12% | 3.12% | ||
Debt Issuance Costs, Net | $ 10,807 | $ 10,807 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.12% | 3.12% |
Note 7 - Debt Obligations - Fut
Note 7 - Debt Obligations - Future Maturities of Debt Obligations (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
2024 | $ 322,915 | |
2025 | 60,745 | |
2026 | 0 | |
Long-Term Debt, Maturity, Year Four | 42,864,000 | |
Total | 43,247,660 | |
Issuance costs | (138,078) | |
Total debt obligations | $ 43,109,582 | $ 43,435,924 |
Note 8 - Preferred Stock (Detai
Note 8 - Preferred Stock (Details Textual) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 $ / shares shares | Sep. 30, 2021 $ / shares shares | Oct. 12, 2017 shares | |
Preferred Stock, Shares Authorized | shares | 20,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | |||
Series A Convertible Preferred Stock [Member] | ||||
Preferred Stock, Shares Authorized | shares | 1,200,000 | 1,200,000 | 1,200,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||
Preferred Stock, Liquidation Preference Per Share | $ 35 | |||
Preferred Stock, Convertible, Conversion Ratio | 10 | |||
Preferred Stock, Convertible, Convertibility, Period After Date of Issuance (Day) | 540 days |
Note 9 - Common Stock (Details
Note 9 - Common Stock (Details Textual) - $ / shares | 12 Months Ended | ||||||
Apr. 14, 2022 | Apr. 13, 2022 | Dec. 30, 2021 | Dec. 28, 2021 | Dec. 28, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | |||||
Restricted Stock [Member] | |||||||
Stock Issued During Period, Shares, Issued for Services | 285,000 | ||||||
Director [Member] | |||||||
Issuance of Common Stock for Options Warrants Exercised, Shares (in shares) | 37,306 | 9,191 | 7,283 | ||||
Class of Warrant or Right, Exercised During Period (in shares) | 9,191 | 7,283 | |||||
Director [Member] | Warrants 1 [Member] | |||||||
Class of Warrant or Right, Exercised During Period (in shares) | 64,665 | ||||||
Director [Member] | Warrants 2 [Member] | |||||||
Class of Warrant or Right, Exercised During Period (in shares) | 8,868 | ||||||
Management [Member] | Restricted Stock [Member] | |||||||
Stock Issued During Period, Shares, Issued for Services | 185,000 | ||||||
Management 2 [Member] | Restricted Stock [Member] | |||||||
Stock Issued During Period, Shares, Issued for Services | 100,000 |
Note 10 - Stock Options and W_3
Note 10 - Stock Options and Warrants (Details Textual) - USD ($) | 12 Months Ended | |||
Apr. 13, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 215,000 | |||
Share Price (in dollars per share) | $ / shares (in dollars per share) | $ 0.51 | $ 0.49 | ||
Restricted Stock [Member] | ||||
Stock Issued During Period, Shares, Issued for Services | 285,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 1.3 | |||
Share-Based Payment Arrangement, Expense | $ 159,522 | $ 207,547 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Stock Issued During Period, Value, Issued for Services | $ 370,500 | |||
Stock Options and Warrants [Member] | ||||
Share Price (in dollars per share) | $ / shares (in dollars per share) | $ 0.49 | |||
Stock Options and Warrants [Member] | Director [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0 | |||
The 2022 Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 500,000 | |||
The 2022 Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 159,522 | $ 207,547 | ||
The 2012 Plan [Member] | ||||
Class of Warrant or Right, Issued During Period (in shares) | 0 |
Note 10 - Stock Options and W_4
Note 10 - Stock Options and Warrants - Summary of Stock Options and Warrants Activity (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Outstanding (in shares) | 160,881 | 457,075 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.24 | $ 1.74 | |
Outstanding, weighted average remaining contractual life (Year) | 3 months | 7 months 6 days | 1 year 14 days |
Outstanding, aggregate intrinsic value | $ 0 | $ 0 | $ 779,977 |
Expired (in shares) | (156,193) | (196,097) | |
ExpiredExpired, weighted average exercise price (in dollars per share) | $ (1.24) | $ (2.41) | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 0 | (100,097) | |
Exercised (in dollars per share) | $ 0 | $ (1.23) | |
Outstanding (in shares) | 4,688 | 160,881 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.24 | $ 1.24 | |
Exercisable (in shares) | 4,688 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 1.24 | ||
Exercisable, weighted average remaining contractual life (Year) | 3 months | ||
Exercisable, aggregate intrinsic value | $ 0 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred Tax Assets, Capital Loss Carryforwards | $ 163,702,643 | $ 4,590,967 |
Note 11 - Income Taxes - Deferr
Note 11 - Income Taxes - Deferred Income Tax Assets (Liabilities) (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Net loss carryforwards | $ 33,396,062 | $ 34,261,003 |
Accruals and reserves | (44,816) | 723,617 |
Severance indemnity reserve | 98,735 | 76,918 |
Contributions | 3,911 | 2,478 |
Depreciation and amortization | (378,920) | (219,722) |
Stock-based compensation | 93,031 | 109,397 |
Interest Expense Carryforward | 397,566 | 0 |
Valuation allowance | (33,661,255) | (35,182,109) |
Net liability | $ (95,686) | $ (228,418) |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Federal income tax benefit at statutory rate | $ (169,121) | $ (78,091) |
State income tax benefit, net of federal income tax effect | (31,811) | 42,086 |
Effect of foreign income taxes | 548,851 | 679,605 |
Return to Provision | (33,604) | (4,473) |
Withholding Taxes | 79,000 | 147,109 |
Deferred only adjustment | 1,740,896 | 471,609 |
Gain/(Loss) on deductible expenses | 14,493 | 487,442 |
Change in valuation allowance | (1,520,854) | (861,799) |
Provision for income taxes | $ 627,850 | $ 883,488 |
Note 12 - Commitments and Con_3
Note 12 - Commitments and Contingencies (Details Textual) | 12 Months Ended | ||||
May 09, 2022 USD ($) | Mar. 24, 2017 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 3 years 5 months 8 days | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 4% | ||||
Performance Bonds in Connection with a Foreign Customer | $ 1,654,134 | ||||
Performance Bonds in Connection with a Foreign Customer, Amount Held in an Interest-bearing Account on Behalf of Customer | $ 1,157,867 | ||||
Number of Performance Bonds. Released, in Connection with a Foreign Customer | 2 | ||||
Performance Bonds in Connection with a Foreign Customer, Including Interest | $ 1,041,797 | ||||
Performance Bonds in Connection with a Foreign Customer, Bonds Expiring in Next Fiscal Year, Interest Rate | 2.80% | ||||
Performance Bonds in Connection with a Foreign Customer, Interest Expense | $ 54,676 | $ 56,343 | |||
SecureAlert, Inc. v. Federal Government of Mexico [Member] | |||||
Claim Amount | $ 4,000,000 | ||||
Jesus Valle Gonzalez, et.al v. Track Group Puerto Rico [Member] | Pending Litigation [Member] | Minimum [Member] | |||||
Loss Contingency, Damages Sought, Value | $ 1,500,000 |
Note 12 - Commitments and Con_4
Note 12 - Commitments and Contingencies - Operating Lease Revenue Associated With Monitoring Equipment (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Monitoring equipment operating revenue | $ 28,106,916 | $ 29,867,266 |
Note 12 - Commitments and Con_5
Note 12 - Commitments and Contingencies - Right of Use Assets and Lease Liabilities (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Other Assets [Member] | ||
Other assets | $ 403,205 | $ 575,716 |
Accounts Payable and Accrued Liabilities [Member] | ||
Accrued liabilities | 143,846 | 177,431 |
Other Noncurrent Liabilities [Member] | ||
Long-term liabilities | $ 259,359 | $ 398,285 |
Note 12 - Commitments and Con_6
Note 12 - Commitments and Contingencies - Cash Flow Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for noncancelable operating leases included in operating cash flows | $ 284,897 | $ 272,921 |
Right of use assets obtained in exchange for operating lease liabilities: | $ 5,459 | $ 626,047 |
Note 12 - Commitments and Con_7
Note 12 - Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
From October 2022 to September 2023 | $ 157,632 | |
From October 2023 to September 2024 | 92,492 | |
From October 2024 to September 2025 | 94,273 | |
From October 2025 to September 2026 | 87,585 | |
Total | 403,205 | |
From October 2026 to September 2027 | 773 | |
Undiscounted Cash Flow | 432,755 | |
Less: imputed interest | (29,550) | |
Under ASC 840 [Member] | ||
Thereafter | 0 | |
Accounts Payable and Accrued Liabilities [Member] | ||
Accrued liabilities | 143,846 | $ 177,431 |
Long-term Liabilities [Member] | ||
Long-term liabilities | 259,359 | |
Lease Liabilities [Member] | ||
Total | $ 403,205 |
Note 13 - Intangible Assets (De
Note 13 - Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Amortization of Intangible Assets | $ 2,616,629 | $ 3,277,088 |
Write off of Amortized Intangible Assets | 0 | 1,860,000 |
Impairment of Intangible Assets (Excluding Goodwill), Total | 0 | 1,728,961 |
Cost of Sales [Member] | ||
Amortization of Intangible Assets | 1,724,256 | 1,857,413 |
Operating Expense [Member] | ||
Amortization of Intangible Assets | $ 892,373 | $ 1,419,675 |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years |
Note 13 - Intangible Assets - I
Note 13 - Intangible Assets - Intangible Asset Activity (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Gross | $ 31,588,140 | $ 30,465,686 |
Accumulated amortization | 17,430,846 | 14,804,269 |
Net | 14,157,294 | 15,661,417 |
Patents [Member] | ||
Gross | 21,120,565 | 21,120,565 |
Accumulated amortization | 14,358,431 | 13,027,465 |
Net | 6,762,134 | 8,093,100 |
Developed Technology Rights [Member] | ||
Gross | 10,328,125 | 9,206,006 |
Accumulated amortization | 2,933,499 | 1,649,563 |
Net | 7,394,626 | 7,556,443 |
Trade Names [Member] | ||
Gross | 139,450 | 139,115 |
Accumulated amortization | 138,916 | 127,241 |
Net | $ 534 | $ 11,874 |
Note 13 - Intangible Assets - F
Note 13 - Intangible Assets - Future Maturities of Amortization of Intangible Assets (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Total | $ 14,157,294 | $ 15,661,417 |
Amortization [Member] | ||
2024 | 2,240,653 | |
2025 | 2,418,908 | |
2026 | 2,418,908 | |
2027 | 2,418,908 | |
Thereafter | 4,472,417 | |
Total | 13,969,794 | |
STOP Royalty [Member] | ||
2024 | 187,500 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total | $ 187,500 |
Note 13 - Intangible Assets - G
Note 13 - Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2021 | |
Balance - beginning of year | $ 8,061,002 | $ 8,519,998 |
Effect of foreign currency translation on goodwill | (209,536) | (458,996) |
Balance - end of year | $ 7,851,466 | $ 8,061,002 |