Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Feb. 11, 2020 | |
Document and Entity Information: | ||
Entity Registrant Name | TRACK GROUP, INC. | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001045942 | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 11,414,150 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Entity File Number | 0-23153 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Cash | $ 8,493,550 | $ 6,896,711 |
Accounts receivable, net of allowance for doubtful accounts of $2,556,393 and $2,454,281, respectively | 5,321,396 | 6,763,236 |
Prepaid expenses and right of use assets | 1,692,887 | 1,339,465 |
Inventory, net of reserves of $62,147 and $26,934, respectively | 442,570 | 274,501 |
Total current assets | 15,950,403 | 15,273,913 |
Property and equipment, net of accumulated depreciation of $2,316,172 and $2,248,913, respectively | 636,619 | 675,037 |
Monitoring equipment, net of accumulated amortization of $6,325,027 and $6,322,768, respectively | 2,568,379 | 2,624,900 |
Intangible assets, net of accumulated amortization of $14,729,536 and $14,157,090, respectively | 21,829,868 | 21,955,679 |
Goodwill | 8,227,025 | 8,187,911 |
Deferred tax asset | 526,833 | 540,563 |
Other assets | 451,696 | 124,187 |
Total assets | 50,190,823 | 49,382,190 |
Current liabilities: | ||
Accounts payable | 2,616,049 | 2,628,003 |
Accrued liabilities | 14,607,777 | 13,828,696 |
Current portion of long-term debt | 33,818,587 | 33,827,689 |
Total current liabilities | 51,042,413 | 50,284,388 |
Long-term liabilities | 327,644 | 0 |
Total liabilities | 51,370,057 | 50,284,388 |
Commitments and contingencies (Note 21) | 0 | 0 |
Stockholders' equity (deficit): | ||
Common stock, $0.0001 par value: 30,000,000 shares authorized;11,414,150 and 11,401,650 shares outstanding, respectively | 1,141 | 1,140 |
Series A Convertible Preferred stock, $0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding | 0 | 0 |
Paid in capital | 302,270,242 | 302,250,556 |
Accumulated deficit | (302,384,917) | (302,152,292) |
Accumulated other comprehensive loss | (1,065,700) | (1,001,602) |
Total equity (deficit) | (1,179,234) | (902,198) |
Total liabilities and stockholders' equity (deficit) | $ 50,190,823 | $ 49,382,190 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, accounts receivable | $ 2,556,393 | $ 2,454,281 |
Reserve for inventory | 62,147 | 26,934 |
Property and equipment accumulated depreciation | 2,316,172 | 2,248,913 |
Monitoring equipment accumulated amortization | 6,325,027 | 6,322,768 |
Intangible assets accumulated amortization | $ 14,729,536 | $ 14,157,090 |
Common Stock - par value | $ .0001 | $ 0.0001 |
Common Stock - shares authorized | 30,000,000 | 30,000,000 |
Common Stock - shares outstanding | 11,414,150 | 11,401,650 |
Series A Convertible Preferred Stock - par value | $ 0.0001 | $ .0001 |
Series A Convertible Preferred Stock - shares authorized | 1,200,000 | 1,200,000 |
Series A Convertible Preferred Stock - shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | ||
Monitoring services | $ 8,268,423 | $ 8,060,328 |
Product sales and other | 152,408 | 151,207 |
Total revenue | 8,420,831 | 8,211,535 |
Cost of revenues: | ||
Monitoring, products & other related services | 3,266,909 | 3,100,193 |
Depreciation and amortization included in cost of revenue | 487,442 | 478,289 |
Total cost of revenues | 3,754,351 | 3,578,482 |
Gross profit | 4,666,480 | 4,633,053 |
Operating expenses: | ||
General & administrative | 3,011,854 | 3,422,272 |
Selling & marketing | 541,549 | 503,930 |
Research & development | 296,155 | 248,865 |
Depreciation & amortization | 515,939 | 514,981 |
Total operating expense | 4,365,497 | 4,690,048 |
Operating income (loss) | 300,983 | (56,995) |
Other income (expense): | ||
Interest expense, net | (602,533) | (601,239) |
Currency exchange gain (loss) | 143,308 | (932,677) |
Total other expense | (459,225) | (1,533,916) |
Loss before income taxes | (158,242) | (1,590,911) |
Income tax expense | 74,383 | 144,007 |
Net loss attributable to common shareholders | (232,625) | (1,734,918) |
Foreign currency translation adjustments | (64,098) | 96,673 |
Comprehensive loss | $ (296,723) | $ (1,638,245) |
Net loss per common share, basic and diluted | $ (0.02) | $ (0.16) |
Weighted average common shares outstanding, basic and diluted | 11,411,704 | 11,101,650 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Comprehensive Loss | Total |
Beginning Balance, Shares at Sep. 30, 2018 | 11,401,650 | ||||
Beginning balance, Amount at Sep. 30, 2018 | $ 1,140 | $ 302,102,866 | $ (299,495,370) | $ (970,270) | $ 163,866 |
ASC 606 modified retrospective adjustment | (92,969) | (92,969) | |||
Share-based compensation | 83,217 | 83,218 | |||
Foreign currency translation adjustments | 96,673 | 96,673 | |||
Net Loss | (1,734,918) | (1,734,918) | |||
Ending Balance, Shares at Dec. 31, 2018 | 11,401,650 | ||||
Ending Balance, Amount at Dec. 31, 2018 | $ 1,140 | 302,186,084 | (301,323,257) | (873,597) | (9,630) |
Beginning Balance, Shares at Sep. 30, 2019 | 11,401,650 | ||||
Beginning balance, Amount at Sep. 30, 2019 | $ 1,140 | 302,250,556 | (302,152,292) | (1,001,602) | (902,198) |
Share-based compensation | 19,687 | 19,687 | |||
Issuance of Common Stock to employees for services, Shares | 12,500 | ||||
Issuance of Common Stock to employees for services, Amount | $ 1 | (1) | 0 | ||
Foreign currency translation adjustments | (64,098) | (64,098) | |||
Net Loss | (232,625) | (232,625) | |||
Ending Balance, Shares at Dec. 31, 2019 | 11,414,150 | ||||
Ending Balance, Amount at Dec. 31, 2019 | $ 1,141 | $ 302,270,242 | $ (302,384,917) | $ (1,065,700) | $ (1,179,234) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (232,625) | $ (1,734,918) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,003,381 | 993,270 |
Bad debt expense | 109,161 | 90,400 |
Stock based compensation | 19,687 | 83,218 |
Loss on monitoring equipment included in cost of revenue | 134,047 | 104,079 |
Foreign currency exchange loss | (143,308) | 932,677 |
Change in assets and liabilities: | ||
Accounts receivable, net | 1,155,606 | (380,133) |
Prepaid expenses, deposits and right of use assets | (179,203) | (106,071) |
Accounts payable | (9,101) | (153,690) |
Accrued liabilities | 793,323 | 1,309,601 |
Net cash provided by operating activities | 2,650,968 | 1,138,433 |
Cash flow from investing activities: | ||
Purchase of property and equipment | (54,581) | (141,595) |
Capitalized software | (341,622) | (275,623) |
Purchase of monitoring equipment and parts | (606,225) | (133,981) |
Net cash used in investing activities | (1,002,428) | (551,199) |
Cash flow from financing activities: | ||
Principal payments on long-term debt | (9,552) | (9,357) |
Net cash used in financing activities | (9,552) | (9,357) |
Effect of exchange rate changes on cash | (42,149) | (158,888) |
Net increase in cash | 1,596,839 | 418,989 |
Cash, beginning of period | 6,896,711 | 5,446,557 |
Cash, end of period | 8,493,550 | 5,865,546 |
Cash paid for interest | 6,856 | 8,858 |
Supplemental schedule of non-cash investing and financing activities: | ||
Non-cash transfer of inventory to monitoring equipment | $ 230,105 | $ 128,044 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited interim condensed consolidated financial information of Track Group, Inc. and subsidiaries (collectively, the “ Company Track Group SEC GAAP As of December 31, 2019, and 2018, the Company had an accumulated deficit of $302,384,917 and $301,323,257, respectively. The Company incurred a net loss of $232,625 and $1,734,918 for the three months ended December 31, 2019 and 2018, respectively. The Company may continue to incur losses and require additional financial resources. The Company also has debt maturing in September 2020 and July 2021. See Note 23. The Company’s transition to profitable operations is dependent upon generating a level of revenue adequate to support its cost structure, which it has almost achieved and resolving the balance sheet. Management has evaluated the significance of these conditions and has determined that the Company can meet its operating obligations for a reasonable period of time. The Company expects to fund operations using cash on hand and through operational cash flows through the upcoming twelve months. |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Track Group, Inc. and its active 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. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Accounting Standards | From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB Recently Adopted Accounting Standards In February 2016, FASB issued Accounting Standards Update (“ ASU Leases (Topic 842)” Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments CECL |
Impairment of Long-lived Assets
Impairment of Long-lived Assets | 3 Months Ended |
Dec. 31, 2019 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-lived Assets | The Company reviews its 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. |
Business Combinations
Business Combinations | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in ASC 805, Business Combinations, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed, and any non-controlling interest in the acquiree, and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and non-controlling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with ASC 805, the Company recognizes and measures goodwill as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired. Acquired Assets and Assumed Liabilities Pursuant to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the Company retrospectively adjusts the provisional amounts recognized at the acquisition date, by means of adjusting the amount recognized for goodwill. Contingent Consideration In certain acquisitions, the Company has agreed to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain future goals, which may include revenue milestones, new customer accounts, and earnings targets. The Company records contingent consideration based on its estimated fair value as of the date of the acquisition. The Company evaluates and adjusts the value of contingent consideration, if necessary, at each reporting period based on the progress toward and likely achievement of certain targets on which issuance of the contingent consideration is based. Any differences between the acquisition-date fair value and the changes in fair value of the contingent consideration subsequent to the acquisition date are recognized in current period earnings until the arrangement is settled. If there is uncertainty surrounding the value of contingent consideration, then the Company’s policy is to wait until the end of the measurement period before making an adjustment. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Comprehensive income (loss) includes net income (loss) as currently reported under GAAP and other comprehensive income (loss). Other comprehensive income (loss) considers the effects of additional economic events, such as foreign currency translation adjustments, that are not required to be recorded in determining net income (loss), but rather are reported as a separate component of stockholders’ equity. The Chilean Peso, New Israeli Shekel and the Canadian Dollar are used as functional currencies of the following 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 at the prevailing exchange rate at December 31, 2019. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
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 common stock options and warrants. As of December 31, 2019, and 2018, there were 685,259 and 681,926 outstanding common share equivalents, respectively, that were not included in the computation of Diluted EPS for the three months ended December 31, 2019 and 2018, respectively, as their effect would be anti-dilutive. The common stock equivalents outstanding as of December 31, 2019 and December 31, 2018 consisted of the following: December 31, December 31, 2019 2018 Exercisable common stock options and warrants 685,259 681,926 Total common stock equivalents 685,259 681,926 At December 31, 2019 and 2018, all stock option and warrant exercise prices were above the market price of $0.49 and $0.51, respectively, and thus have not been included in the basic earnings per share calculation. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | On October 1, 2018, the Company adopted ASC 606 using the modified retrospective method, whereby the adoption did not impact any prior periods. Monitoring and Other Related Services. 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 table presents the Company’s revenue by geography, based on management’s assessment of available data: Three months ended December 31, 2019 Three months ended December 31, 2018 Total Revenue % of Total Revenue Total Revenue % of Total Revenue United States $ 5,567,858 66 % $ 5,061,559 62 % Latin America 2,737,593 33 % 3,107,553 38 % Other 115,380 1 % 42,423 0 % Total $ 8,420,831 100 % $ 8,211,535 100 % The above table includes total revenue for the Company, of which monitoring and other related services is the majority (approximately 98%) of the Company’s revenue. Latin America includes Bahamas, Chile, Mexico, Puerto Rico and the U.S. Virgin Islands. Other includes Canada, Saudi Arabia, United Kingdom, South Africa and Vietnam. |
Prepaid Expense and Other
Prepaid Expense and Other | 3 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Prepaid Expense and Other | As of December 31, 2019, and September 30, 2019, the outstanding balance of prepaid expense, deposits and right of use assets was $1,692,887 and $1,339,465, respectively. These balances are comprised largely of a performance bond deposit, tax deposits, right of use lease assets, vendor deposits and other prepaid supplier expense. |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory is valued at the lower of the cost or net realizable value. Cost is determined using the standard costing 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 finished goods that are to be shipped to customers and parts used for minor repairs of ReliAlert™, Shadow, and other tracking devices. Completed and shipped ReliAlert™ and other tracking devices are reflected in Monitoring Equipment. As of December 31, 2019, and September 30, 2019, inventory consisted of the following: December 31, 2019 September 30, 2019 Finished goods inventory $ 504,717 301,435 Reserve for damaged or obsolete inventory (62,147 ) (26,934 ) Total inventory, net of reserves $ 442,570 274,501 The Company uses a third-party fulfillment service provider. As a result of this service, the Company’s employees do not actively assemble new product or repair damaged inventory or 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 $35,123 and $0 during the three months ended December 31, 2019 and 2018, respectively, for devices that were obsolete, lost or damaged. Obsolete, lost and damaged inventory items are included in Monitoring, products & other related services in the Condensed Consolidated Statement of Operations |
Property and Equipment
Property and Equipment | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following as of December 31, 2019 and September 30, 2019, respectively: December 31, 2019 September 30, 2019 Equipment, software and tooling $ 1,264,375 $ 1,210,583 Automobiles 5,433 5,574 Leasehold improvements 1,368,519 1,393,976 Furniture and fixtures 314,464 313,817 Total property and equipment before accumulated depreciation 2,952,791 2,923,950 Accumulated depreciation (2,316,172 ) (2,248,913 ) Property and equipment, net of accumulated depreciation $ 636,619 $ 675,037 Property and equipment depreciation expense for the three months ended December 31, 2019 and 2018 was $83,432 and $79,636, respectively. |
Monitoring Equipment
Monitoring Equipment | 3 Months Ended |
Dec. 31, 2019 | |
Monitoring Equipment | |
Monitoring Equipment | The Company leases monitoring equipment to agencies for offender tracking under contractual service agreements. The monitoring equipment is amortized using the straight-line method over an estimated useful life of between one and three years. Monitoring equipment as of December 31, 2019 and September 30, 2019 was as follows: December 31, 2019 September 30, 2019 Monitoring equipment $ 8,893,406 $ 8,947,668 Less: accumulated amortization (6,325,027 ) (6,322,768 ) Monitoring equipment, net of accumulated amortization $ 2,568,379 $ 2,624,900 Amortization of monitoring equipment for the three months ended December 31, 2019 and 2018 was $360,630 and $354,626, respectively. Amortization expense for monitoring devices is recognized in cost of revenue. During the three months ended December 31, 2019 and December 31, 2018, the Company recorded charges of $98,924 and $104,079, respectively, for devices that were lost, stolen or damaged. Lost, stolen and damaged items are included in Monitoring, products & other related services in the Condensed Consolidated Statement of Operations. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | The following table summarizes intangible assets at December 31, 2019 and September 30, 2019, respectively: Intangible assets: December 31, 2019 September 30, 2019 Patent & royalty agreements $ 21,170,565 $ 21,170,565 Developed technology 13,131,519 12,685,281 Customer relationships 1,860,000 1,860,000 Trade name 319,119 318,722 Website 78,201 78,201 Total intangible assets 36,559,404 36,112,769 Accumulated amortization (14,729,536 ) (14,157,090 ) Intangible assets, net $ 21,829,868 $ 21,955,679 The intangible assets summarized above were purchased or developed on various dates from January 2010 through December 31, 2019. The assets have useful lives ranging from three to twenty years. Amortization expense for the three months ended December 31, 2019 and 2018 was $559,319 and $559,008, respectively. |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following table summarizes the activity of goodwill at December 31, 2019 and September 30, 2019, respectively: December 31, September 30, 2019 2019 Balance - beginning of period $ 8,187,911 $ 8,076,759 Effect of foreign currency translation on goodwill 39,114 111,152 Balance - end of period $ 8,227,025 $ 8,187,911 Goodwill is recognized in connection with acquisition transactions in accordance with ASC 805. The Company performs an impairment test for goodwill annually or more frequently if indicators of potential impairment exist. No impairment of goodwill was recognized through December 31, 2019. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Effective October 1, 2019, the Company adopted the new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) “ ASC Topic 842 The following table shows right of use assets and lease liabilities and the associated financial statement line items as of December 31, 2019. Operating lease asset Operating lease liability Prepaid expense, deposits and right of use assets $ 213,228 $ - Other assets 327,644 - Accrued liabilities - 213,228 Long-term liabilities - 327,644 $ 540,872 $ 540,872 The following table summarizes the supplemental cash flow information for the three months ended December 31, 2019: December 31, 2019 Cash paid for noncancelable operating leases included in operating cash flows $ 116,411 Right of use assets obtained in exchange for operating lease liabilities: $ - The future minimum lease payments under noncancelable operating leases with terms greater than one year as of December 31, 2019 are: Operating Leases From January 2020 to September 2020 $ 180,259 From October 2020 to September 2021 233,331 From October 2021 to September 2022 181,598 From October 2022 to September 2023 4,082 Undiscounted Cash Flow 599,270 Less: imputed interest (58,398 ) Total $ 540,872 Reconciliation to lease liabilities: Lease liabilities - current $ 213,228 Lease liabilities - long-term 327,644 Total Lease Liabilities $ 540,872 The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of December 31, 2019 were 2.5 years and 8%, 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. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following as of December 31, 2019 and September 30, 2019, respectively: December 31, 2019 September 30, 2019 Accrued payroll, taxes and employee benefits $ 1,993,428 $ 1,680,634 Deferred revenue 316,158 389,229 Deposits payable 10,000 10,000 Accrued taxes - foreign and domestic 942,946 1,071,532 Accrued other expense 159,408 170,055 Accrued legal costs 915,784 1,057,305 Accrued costs of revenue 257,593 251,262 Accrued bond guarantee 138,788 142,405 Right of use liability 213,228 - Accrued interest 9,660,444 9,056,274 Total accrued liabilities $ 14,607,777 $ 13,828,696 |
Debt Obligations
Debt Obligations | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | On February 24, 2019, the Company and Conrent Invest S.A. ( “Conrent” Second Amended Facility Agreement Noteholders Debt obligations as of December 31, 2019 and September 30, 2019, respectively, are comprised of the following: December 31, 2019 September 30, 2019 Unsecured facility agreement with Conrent whereby, as of June 30, 2015, the Company had borrowed $30.4 million, bearing interest at a rate of 8% per annum, payable in arrears semi-annually, with all principal and accrued and unpaid interest due on April 1, 2020. The Company did not pay interest on this loan during the three months ended December 31, 2019. $ 30,400,000 $ 30,400,000 Loan Agreement whereby the Company can borrow up to $5.0 million at 8% interest per annum on borrowed funds maturing on September 30, 2020. 3,399,644 3,399,644 Non-interest bearing notes payable to a Canadian governmental agency assumed in conjunction with the acquisition. 18,943 28,045 Total debt obligations 33,818,587 33,827,689 Less current portion (33,818,587 ) (33,827,689 ) Long-term debt, net of current portion $ - $ - The following table summarizes future maturities of debt obligations as of December 31, 2019: Twelve-month period ended December 31, Total 2020 $ 33,818,587 2021 - Thereafter - Total $ 33,818,587 |
Related-Party
Related-Party | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party | According to Amendment No. 1 to ADS Securities LLC's Schedule 13D filing, ETS Limited, a wholly-owned subsidiary of ADS Securities LLC, owns 4,871,745 shares of the Company. |
Preferred and Common Stock
Preferred and Common Stock | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Preferred and Common Stock | The Company is authorized to issue up to 30,000,000 shares of common stock, $0.0001 par value per share. The Company is authorized to issue up to 20,000,000 shares of preferred stock, $0.0001 par value per share. The Company’s Board of Directors has the authority to amend the Company’s Certificate of Incorporation, without further stockholder approval, to designate and determine, in whole or in part, the preferences, limitations and relative rights of the preferred stock before any issuance of the preferred stock, and to create one or more series of preferred stock. As of December 31, 2019, there were no shares of preferred stock outstanding. No dividends were paid during the three-month period ended December 31, 2019 or 2018, respectively. Series A 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 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 shares of the Company’s common stock, subject to adjustments as set forth in the Certificate of Designation, at any time beginning five hundred and forty days after the date of issuance. As of December 31, 2019, no shares of Series A Preferred were issued and outstanding. |
Stock Options and Warrants
Stock Options and Warrants | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options and Warrants | Stock Incentive Plan At the annual meeting of stockholders on March 21, 2011, our stockholders approved the 2012 Equity Compensation Plan (the “ 2012 Plan As of December 31, 2018, the Board of Directors suspended further awards under the 2012 Plan until further notice. The Company recorded expense of $19,687 and $65,312 for the three months ended December 31, 2019 and 2018, respectively, related to the vesting of common stock awarded prior to the suspension of the 2012 Plan. There were 27,218 shares of common stock available for issuance under the 2012 Plan as of December 31, 2019. 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 three months ended December 31, 2019 and 2018, the Company granted no options and warrants to purchase shares of common stock under the 2012 Plan. The warrants for Board members vest immediately and expire five years from grant date and warrants or options issued to employees vest annually over either a two to three-year period and expire five years after the final vesting date of the grant. The Company recorded expense of $0 and $17,906 for the three months ended December 31, 2019 and 2018, respectively, related to the issuance and vesting of outstanding stock options and warrants. All options and warrants have vested and are exercisable at December 31, 2019 and no future issuances are expected. The expected life of stock options (warrants) represents the period of time that the stock options or warrants are expected to be outstanding based on the simplified method allowed under GAAP. The expected volatility is based on the historical price volatility of the Company’s common stock. The risk-free interest rate represents the U.S. Treasury bill rate for the expected life of the related stock options (warrants). The dividend yield represents the Company’s anticipated cash dividends over the expected life of the stock options (warrants). A summary of stock option (warrant) activity for the three months ended December 31, 2019 is presented below: Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2019 685,259 $ 1.56 2.90 years $ - Granted - $ - - - Expired/Cancelled - $ - - - Exercised - $ - - - Outstanding as of December 31, 2019 685,259 $ 1.56 2.65 years $ - Exercisable as of December 31, 2019 685,259 $ 1.56 2.65 years $ - The intrinsic value of options and warrants outstanding and exercisable is based on the Company’s share price of $0.49 at December 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
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. For the three months ended December 31, 2019 and 2018, the Company incurred a net loss for income tax purposes of $232,625 and $1,734,918, respectively. 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. In computing income tax, we recognize an income tax provision in tax jurisdictions in which we have pre-tax income for the period and are expecting to generate pre-tax book income during the fiscal year. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Legal Matters The Company is, from time to time, involved in various legal proceedings incidental to the conduct of our business. John Merrill v. Track Group, Inc. and Guy Dubois. SecureAlert, Inc. v. Federal Government of Mexico (Department of the Interior). Blaike Anderson v. Track Group, Inc., et. al. Commonwealth of Puerto Rico, through its Trustees v. International Surveillance Services Corporation . ISS |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | As previously reported, on December 4, 2019, the Company requested that Conrent extend the maturity of the Amended Facility Agreement from April 1, 2020 to July 1, 2021. On January 6, 2020, the investors who owned the securities from Conrent used to finance the debt (the “ Noteholders In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and noted that, other than as disclosed above, no additional subsequent events have occurred that are reasonably likely to impact the financial statements. |
Principles of Consolidation (Po
Principles of Consolidation (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Track Group, Inc. and its active 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. |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Recent Accounting Standards | From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB Recently Adopted Accounting Standards In February 2016, FASB issued Accounting Standards Update (“ ASU Leases (Topic 842)” Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments CECL |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of common stock equivalents outstanding | December 31, December 31, 2019 2018 Exercisable common stock options and warrants 685,259 681,926 Total common stock equivalents 685,259 681,926 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of revenue | Three months ended December 31, 2019 Three months ended December 31, 2018 Total Revenue % of Total Revenue Total Revenue % of Total Revenue United States $ 5,567,858 66 % $ 5,061,559 62 % Latin America 2,737,593 33 % 3,107,553 38 % Other 115,380 1 % 42,423 0 % Total $ 8,420,831 100 % $ 8,211,535 100 % |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | December 31, 2019 September 30, 2019 Finished goods inventory $ 504,717 301,435 Reserve for damaged or obsolete inventory (62,147 ) (26,934 ) Total inventory, net of reserves $ 442,570 274,501 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, 2019 September 30, 2019 Equipment, software and tooling $ 1,264,375 $ 1,210,583 Automobiles 5,433 5,574 Leasehold improvements 1,368,519 1,393,976 Furniture and fixtures 314,464 313,817 Total property and equipment before accumulated depreciation 2,952,791 2,923,950 Accumulated depreciation (2,316,172 ) (2,248,913 ) Property and equipment, net of accumulated depreciation $ 636,619 $ 675,037 |
Monitoring Equipment (Tables)
Monitoring Equipment (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Monitoring Equipment | |
Schedule of monitoring property and equipment | December 31, 2019 September 30, 2019 Monitoring equipment $ 8,893,406 $ 8,947,668 Less: accumulated amortization (6,325,027 ) (6,322,768 ) Monitoring equipment, net of accumulated amortization $ 2,568,379 $ 2,624,900 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets: December 31, 2019 September 30, 2019 Patent & royalty agreements $ 21,170,565 $ 21,170,565 Developed technology 13,131,519 12,685,281 Customer relationships 1,860,000 1,860,000 Trade name 319,119 318,722 Website 78,201 78,201 Total intangible assets 36,559,404 36,112,769 Accumulated amortization (14,729,536 ) (14,157,090 ) Intangible assets, net $ 21,829,868 $ 21,955,679 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | December 31, September 30, 2019 2019 Balance - beginning of period $ 8,187,911 $ 8,076,759 Effect of foreign currency translation on goodwill 39,114 111,152 Balance - end of period $ 8,227,025 $ 8,187,911 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right of use assets and lease liabilities | Operating lease asset Operating lease liability Prepaid expense, deposits and right of use assets $ 213,228 $ - Other assets 327,644 - Accrued liabilities - 213,228 Long-term liabilities - 327,644 $ 540,872 $ 540,872 |
Supplemental cash flow information | December 31, 2019 Cash paid for noncancelable operating leases included in operating cash flows $ 116,411 Right of use assets obtained in exchange for operating lease liabilities: $ - |
Operating lease obligations | Operating Leases From January 2020 to September 2020 $ 180,259 From October 2020 to September 2021 233,331 From October 2021 to September 2022 181,598 From October 2022 to September 2023 4,082 Undiscounted Cash Flow 599,270 Less: imputed interest (58,398 ) Total $ 540,872 Reconciliation to lease liabilities: Lease liabilities - current $ 213,228 Lease liabilities - long-term 327,644 Total Lease Liabilities $ 540,872 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | December 31, 2019 September 30, 2019 Accrued payroll, taxes and employee benefits $ 1,993,428 $ 1,680,634 Deferred revenue 316,158 389,229 Deposits payable 10,000 10,000 Accrued taxes - foreign and domestic 942,946 1,071,532 Accrued other expense 159,408 170,055 Accrued legal costs 915,784 1,057,305 Accrued costs of revenue 257,593 251,262 Accrued bond guarantee 138,788 142,405 Right of use liability 213,228 - Accrued interest 9,660,444 9,056,274 Total accrued liabilities $ 14,607,777 $ 13,828,696 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | December 31, 2019 September 30, 2019 Unsecured facility agreement with Conrent whereby, as of June 30, 2015, the Company had borrowed $30.4 million, bearing interest at a rate of 8% per annum, payable in arrears semi-annually, with all principal and accrued and unpaid interest due on April 1, 2020. The Company did not pay interest on this loan during the three months ended December 31, 2019. $ 30,400,000 $ 30,400,000 Loan Agreement whereby the Company can borrow up to $5.0 million at 8% interest per annum on borrowed funds maturing on September 30, 2020. 3,399,644 3,399,644 Non-interest bearing notes payable to a Canadian governmental agency assumed in conjunction with the acquisition. 18,943 28,045 Total debt obligations 33,818,587 33,827,689 Less current portion (33,818,587 ) (33,827,689 ) Long-term debt, net of current portion $ - $ - |
Schedule of maturities of long-term debt | Twelve-month period ended December 31, Total 2020 $ 33,818,587 2021 - Thereafter - Total $ 33,818,587 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Stock Options And Warrants Tables | |
Schedule of stock option activity | Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2019 685,259 $ 1.56 2.90 years $ - Granted - $ - - - Expired/Cancelled - $ - - - Exercised - $ - - - Outstanding as of December 31, 2019 685,259 $ 1.56 2.65 years $ - Exercisable as of December 31, 2019 685,259 $ 1.56 2.65 years $ - |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ (302,384,917) | $ (302,152,292) | |
Net loss attributable to common shareholders | $ (232,625) | $ (1,734,918) |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details) - shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock equivalents excluded from computation of Diluted EPS | 685,259 | 681,926 |
Options and Warrants | ||
Stock equivalents excluded from computation of Diluted EPS | 685,259 | 681,926 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share (Details Narrative) - shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 685,259 | 681,926 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 8,420,831 | $ 8,211,535 |
Percentage of revenue | 100.00% | 100.00% |
United States | ||
Revenue | $ 5,567,858 | $ 5,061,559 |
Percentage of revenue | 66.00% | 62.00% |
Latin America | ||
Revenue | $ 2,737,593 | $ 3,107,553 |
Percentage of revenue | 33.00% | 38.00% |
Other | ||
Revenue | $ 115,380 | $ 42,423 |
Percentage of revenue | 1.00% | 0.00% |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Revenue Recognition [Abstract] | ||
Contract liabilities included in accrued liabilities | $ 316,158 | $ 389,229 |
Deferred revenue | $ 73,071 |
Prepaid Expense and Other (Deta
Prepaid Expense and Other (Details Narrative) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Other Assets [Abstract] | ||
Prepaid expenses and other | $ 1,692,887 | $ 1,339,465 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods inventory | $ 504,717 | $ 301,435 |
Reserve for damaged or obsolete inventory | (62,147) | (26,934) |
Total inventory, net of reserves | $ 442,570 | $ 274,501 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Property, Plant and Equipment [Abstract] | ||
Equipment, software and tooling | $ 1,264,375 | $ 1,210,583 |
Automobiles | 5,433 | 5,574 |
Leasehold improvements | 1,368,519 | 1,393,976 |
Furniture and fixtures | 314,464 | 313,817 |
Total property and equipment before accumulated depreciation | 2,952,791 | 2,923,950 |
Accumulated depreciation | (2,316,172) | (2,248,913) |
Property and equipment, net of accumulated depreciation | $ 636,619 | $ 675,037 |
Property And Equipment (Detai_2
Property And Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 83,432 | $ 79,636 |
Monitoring Equipment (Details)
Monitoring Equipment (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Monitoring Equipment | ||
Monitoring equipment | $ 8,893,406 | $ 8,947,668 |
Less: accumulated amortization | (6,325,027) | (6,322,768) |
Monitoring equipment, net of accumulated amortization | $ 2,568,379 | $ 2,624,900 |
Monitoring Equipment (Details N
Monitoring Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation expense | $ 360,630 | $ 354,626 |
Impairment of monitoring equipment | $ 98,924 | $ 104,079 |
Minimum | ||
Monitoring equipment useful life | 1 year | |
Maximum | ||
Monitoring equipment useful life | 3 years |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Intangible assets | $ 36,559,404 | $ 36,112,769 |
Accumulated amortization | (14,729,536) | (14,157,090) |
Intangible assets, net of accumulated amortization | 21,829,868 | 21,955,679 |
Patent & Royalty agreements | ||
Intangible assets | 21,170,565 | 318,722 |
Technology | ||
Intangible assets | 13,131,519 | 1,860,000 |
Customer Relationships | ||
Intangible assets | 1,860,000 | 12,685,281 |
Trade Name | ||
Intangible assets | 319,119 | 21,170,565 |
Website | ||
Intangible assets | $ 78,201 | $ 78,201 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization of intangible assets | $ 559,319 | $ 559,008 |
Minimum | ||
Intangible assets, useful life | 3 years | |
Maximum | ||
Intangible assets, useful life | 20 years |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance - beginning of year | $ 8,187,911 | $ 8,076,759 |
Effect of foreign currency translation adjustment on goodwill | 39,114 | 111,152 |
Ending balance | $ 8,227,025 | $ 8,187,911 |
Leases (Details)
Leases (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Prepaid expense, deposits and right of use assets | $ 1,692,887 | $ 1,339,465 |
Other assets | 451,696 | 124,187 |
Accrued liabilities | 14,607,777 | 13,828,696 |
Long-term liabilities | 327,644 | $ 0 |
Operating lease asset | ||
Prepaid expense, deposits and right of use assets | 213,228 | |
Other assets | 327,644 | |
Accrued liabilities | 0 | |
Long-term liabilities | 0 | |
Total | 540,872 | |
Operating lease liability | ||
Prepaid expense, deposits and right of use assets | 0 | |
Other assets | 0 | |
Accrued liabilities | 213,228 | |
Long-term liabilities | 327,644 | |
Total | $ 540,872 |
Leases (Details 1)
Leases (Details 1) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for noncancelable operating leases included in operating cash flows | $ 116,411 |
Right of use assets obtained in exchange for operating lease liabilities | $ 0 |
Leases (Details 2)
Leases (Details 2) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Leases [Abstract] | ||
From January 2020 to September 2020 | $ 180,259 | |
From October 2020 to September 2021 | 233,331 | |
From October 2021 to September 2022 | 181,598 | |
From October 2022 to September 2023 | 4,082 | |
Total future minimum lease payments | 599,270 | |
Less: imputed interest | (58,398) | |
Present value of net future minimum lease payments | 540,872 | |
Reconciliation to lease liabilities: | ||
Lease liabilities - current | 231,228 | |
Lease liabilities - long-term | 327,644 | $ 0 |
Total lease liabilities | $ 540,872 |
Leases (Details Narrative)
Leases (Details Narrative) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 2 years 6 months |
Discount rate | 8.00% |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Payables and Accruals [Abstract] | ||
Accrued payroll, taxes and employee benefits | $ 1,993,428 | $ 1,680,634 |
Deferred revenue | 316,158 | 389,229 |
Deposits payable | 10,000 | 10,000 |
Accrued taxes - foreign and domestic | 942,946 | 1,071,532 |
Accrued other expenses | 159,408 | 170,055 |
Accrued legal costs | 915,784 | 1,057,305 |
Accrued costs of revenue | 257,593 | 251,262 |
Accrued bond guarantee | 138,788 | 142,405 |
Right of use liability | 213,228 | 0 |
Accrued interest | 9,660,444 | 9,056,274 |
Total accrued liabilities | $ 14,607,777 | $ 13,828,696 |
Debt Obligations (Details)
Debt Obligations (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Total debt obligations | $ 33,818,587 | $ 33,827,689 |
Less current portion | (33,818,587) | (33,827,689) |
Long-term debt, net of current portion | 0 | 0 |
Debt Obligation 1 | ||
Total debt obligations | 30,400,000 | 30,400,000 |
Debt Obligation 2 | ||
Total debt obligations | 3,399,644 | 3,399,644 |
Debt Obligation 3 | ||
Total debt obligations | $ 18,943 | $ 28,045 |
Debt Obligations (Details 1)
Debt Obligations (Details 1) | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 33,818,587 |
2021 | 0 |
Thereafter | 0 |
Total | $ 33,818,587 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details 1) | 3 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Shares Under Option/ Warrant Outstanding, Beginning Balance | shares | 685,259 |
Shares Under Option/ Warrant Granted | shares | 0 |
Shares Under Option/ Warrant Expired / Cancelled | shares | 0 |
Shares Under Option/ Warrant Exercised | shares | 0 |
Shares Under Option/ Warrant Outstanding, Ending Balance | shares | 685,259 |
Shares Under Option/ Warrant Exercisable | shares | 685,259 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 1.56 |
Weighted Average Exercise Price Granted | $ / shares | 0 |
Weighted Average Exercise Price Expired / Cancelled | $ / shares | 0 |
Weighted Average Exercise Price Exercised | $ / shares | 0 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | 1.56 |
Weighted Average Exercise Price Exercisable | $ / shares | $ 1.56 |
Weighted Average Remaining Contractual Life Outstanding, Beginning Balance | 2 years 10 months 24 days |
Weighted Average Remaining Contractual Life Outstanding, Ending Balance | 2 years 7 months 24 days |
Weighted Average Remaining Contractual Life Exercisable | 2 years 7 months 24 days |
Aggregate Intrinsic Value Outstanding, Beginning Balance | $ | $ 0 |
Aggregate Intrinsic Value Outstanding, Ending Balance | $ | 0 |
Aggregate Intrinsic Value Exercisable | $ | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Net loss for income tax purpose | $ 232,625 | $ 1,734,918 |