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TRCK Track

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Mar. 31, 2021May 11, 2021
Cover [Abstract]
Entity Registrant NameTRACK GROUP, INC.
Document Type10-Q
Document Period End DateMar. 31,
2021
Amendment Flagfalse
Entity Central Index Key0001045942
Current Fiscal Year End Date--09-30
Entity Common Stock, Shares Outstanding11,461,966
Entity Filer CategoryNon-accelerated Filer
Entity Emerging Growth Companyfalse
Entity Small Businesstrue
Entity Current Reporting StatusYes
Entity Shell Companyfalse
Entity Interactive Data CurrentYes
Entity Incorporation State Country CodeDE
Entity File Number0-23153
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)Mar. 31, 2021Sep. 30, 2020
Current assets:
Cash $ 6,679,527 $ 6,762,099
Accounts receivable, net of allowance for doubtful accounts of $2,616,716 and $2,654,173, respectively6,720,965 5,546,213
Prepaid expense, deposits and right of use assets1,120,543 866,389
Inventory, net of reserves of $0 and $6,483, respectively0 124,606
Total current assets14,521,035 13,299,307
Property and equipment, net of accumulated depreciation of $2,822,516 and $2,531,631, respectively258,243 378,764
Monitoring equipment, net of accumulated depreciation of $5,780,731 and $6,639,883, respectively2,920,544 2,065,947
Intangible assets, net of accumulated amortization of $17,584,880 and $16,390,721, respectively21,478,335 21,171,045
Goodwill8,408,174 8,220,380
Deferred tax asset401,108 432,721
Other assets4,393,915 2,166,743
Total assets52,381,354 47,734,907
Current liabilities:
Accounts payable1,705,807 2,199,215
Accrued liabilities3,657,480 14,958,628
Current portion of long-term debt516,256 30,914,625
Total current liabilities5,879,543 48,072,468
Long-term debt, net43,791,682 418,575
Long-term liabilities70,539 164,487
Total liabilities49,741,764 48,655,530
Commitments and contingencies (Note 22)
Stockholders' equity (deficit):
Common stock, $0.0001 par value: 30,000,000 shares authorized; 11,453,790 and 11,414,150 shares outstanding, respectively1,145 1,141
Series A Convertible Preferred stock, $0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding0 0
Paid in capital302,270,238 302,270,242
Accumulated deficit(298,763,208)(302,270,933)
Accumulated other comprehensive loss(868,585)(921,073)
Total equity (deficit)2,639,590 (920,623)
Total liabilities and stockholders' equity (deficit) $ 52,381,354 $ 47,734,907

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)Mar. 31, 2021Sep. 30, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts, accounts receivable $ 2,616,716 $ 2,654,173
Reserve for inventory0 6,483
Property and equipment accumulated depreciation2,822,516 2,531,631
Monitoring equipment accumulated amortization5,780,731 6,639,883
Intangible assets accumulated amortization $ 17,584,880 $ 16,390,721
Common Stock - par value$ .0001$ .0001
Common Stock - shares authorized30,000,000 30,000,000
Common Stock - shares outstanding11,453,790 11,414,150
Series A Convertible Preferred Stock - par value$ .0001 $ 0.0001
Series A Convertible Preferred Stock - shares authorized1,200,000 1,200,000
Series A Convertible Preferred Stock - shares outstanding0 0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Revenue:
Monitoring services $ 9,742,290 $ 7,993,092 $ 19,014,019 $ 16,261,515
Product sales and other119,540 138,634 249,716 291,042
Total revenue9,861,830 8,131,726 19,263,735 16,552,557
Cost of revenues:
Monitoring, products & other related services3,901,824 3,201,677 7,602,250 6,468,586
Depreciation and amortization included in cost of revenue525,022 494,157 1,013,697 981,599
Total cost of revenues4,426,846 3,695,834 8,615,947 7,450,185
Gross profit5,434,984 4,435,892 10,647,788 9,102,372
Operating expenses:
General & administrative2,313,836 2,723,219 4,714,571 5,735,073
Selling & marketing614,409 642,432 1,164,866 1,183,981
Research & development334,569 323,737 641,863 619,892
Depreciation & amortization510,067 509,287 1,041,830 1,025,226
Total operating expense3,772,881 4,198,675 7,563,130 8,564,172
Operating income1,662,103 237,217 3,084,658 538,200
Other income (expense):
Interest expense, net(565,522)(596,324)(1,205,544)(1,198,857)
Currency exchange rate gain (loss)124,216 (1,334,240)942,842 (1,190,932)
Other incmoe/(loss) net1,000,756 (4,347)1,000,782 (4,347)
Total other income (expense)559,450 (1,934,911)738,080 (2,394,136)
Income (loss) before income taxes2,221,553 (1,697,694)3,822,738 (1,855,936)
Income tax expense37,322 23,365 315,013 97,748
Net income (loss) attributable to common shareholders2,184,231 (1,721,059)3,507,725 (1,953,684)
Foreign currency translation adjustments(265,347)132,588 52,489 68,490
Comprehensive income (loss) $ 1,918,884 $ (1,588,471) $ 3,560,214 $ (1,885,194)
Net income (loss) per common share, basic $ 0.19 $ (0.15) $ 0.31 $ (0.17)
Weighted average common shares outstanding, basic and diluted11,435,291 11,414,150 11,424,605 11,336,690
Net income (loss) per common share, diluted $ 0.18 $ (0.15) $ 0.29 $ (0.17)
Weighted average common shares outstanding, basic and diluted12,056,918 11,414,150 12,072,079 11,336,690

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)Common StockAdditional Paid-In CapitalAccumulated DeficitComprehensive LossTotal
Beginning balance, shares at Sep. 30, 201911,401,650
Beginning balance, Amount at Sep. 30, 2019 $ 1,140 $ 302,250,556 $ (302,152,292) $ (1,001,602) $ (902,198)
Share-based compensation19,687 19,687
Issuance of Common Stock to employees for services, shares12,500
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, 201911,414,150
Ending balance, amount at Dec. 31, 2019 $ 1,141 302,270,242 (302,384,917)(1,065,700)(1,179,234)
Foreign currency translation adjustments132,588 132,588
Net Loss(1,721,059)(1,721,059)
Ending balance, shares at Mar. 31, 202011,414,150
Ending balance, amount at Mar. 31, 2020 $ 1,141 302,270,242 (304,105,976)(933,112)(2,767,705)
Beginning balance, shares at Sep. 30, 202011,414,150
Beginning balance, Amount at Sep. 30, 2020 $ 1,141 302,270,242 (302,270,933)(921,073)(920,623)
Foreign currency translation adjustments317,835 317,835
Net Loss1,323,494 1,323,494
Ending balance, shares at Dec. 31, 202011,414,150
Ending balance, amount at Dec. 31, 2020 $ 1,141 302,270,242 (300,947,439)(603,238)720,706
Beginning balance, shares at Sep. 30, 202011,414,150
Beginning balance, Amount at Sep. 30, 2020 $ 1,141 302,270,242 (302,270,933)(921,073) $ (920,623)
Issuance of Common Stock for options/warrants exercised, shares0
Ending balance, shares at Mar. 31, 202111,453,790
Ending balance, amount at Mar. 31, 2021 $ 1,145 302,270,238 (298,763,208)(868,585) $ 2,639,590
Beginning balance, shares at Dec. 31, 202011,414,150
Beginning balance, Amount at Dec. 31, 2020 $ 1,141 302,270,242 (300,947,439)(603,238)720,706
Issuance of Common Stock for options/warrants exercised, shares39,640
Issuance of Common Stock for options/warrants exercised, amount $ 4 (4)0
Foreign currency translation adjustments(265,347)(265,347)
Net Loss2,184,231 2,184,231
Ending balance, shares at Mar. 31, 202111,453,790
Ending balance, amount at Mar. 31, 2021 $ 1,145 $ 302,270,238 $ (298,763,208) $ (868,585) $ 2,639,590

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)6 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows from operating activities:
Net income (loss) $ 3,507,725 $ (1,953,684)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization2,055,527 2,006,825
(Recovery) of / bad debt expense(6,257)(135,287)
Stock based compensation0 19,687
Loss on monitoring equipment included in cost of revenue219,629 231,226
Amortization of debt issuance costs4,922 0
Income on extinguishment of debt(1,000,756)0
Foreign currency exchange (gain)/loss942,842 1,190,932
Change in assets and liabilities:
Accounts receivable, net(1,125,860)1,485,269
Inventory4,200 0
Prepaid expenses, deposits(2,353,455)(159,705)
Accounts payable(498,947)(1,045,796)
Accrued liabilities985,199 624,904
Net cash provided by operating activities849,085 2,534,945
Cash flow from investing activities:
Purchase of property and equipment(94,307)(62,433)
Capitalized software(897,681)(680,730)
Purchase of monitoring equipment and parts(1,661,469)(748,713)
Net cash used in investing activities(2,653,457)(1,491,876)
Cash flow from financing activities:
Principal payments on long-term debt(48,462)(18,137)
Payment of deferred financing costs(271,084)0
Proceeds from notes payable1,943,213 0
Net cash used in financing activities1,623,667 (18,137)
Effect of exchange rate changes on cash98,133 (235,601)
Net increase in cash(82,572)789,311
Cash, beginning of period6,762,099 6,896,711
Cash, end of period6,679,527 7,686,042
Cash paid for interest40,490 12,441
Non-cash investing and financing activities
Interest previously in accrued liabilities and added to notes payable $ 12,531,556 $ 0

Basis of Presentation

Basis of Presentation6 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of PresentationThe unaudited interim condensed
consolidated financial information of Track Group, Inc. and subsidiaries (collectively, the “ Company Track
Group SEC GAAP As of March 31, 2021 and
September 30, 2020, the Company had an accumulated deficit of $298,763,208 and $302,270,933, respectively. The Company had net
income of $3,507,725 and incurred a net loss of $1,953,684 for the six months ended March 31, 2021 and 2020, respectively. The
Company may continue to incur losses and require additional financial resources. The Company also has $42,864,000 of debt maturing
in July 2024 and six notes payable maturing between February 2, 2024 and February 17, 2025 related to the construction of two monitoring
centers in Chile totaling $1,891,236 at March 31, 2021. See Note 19. The Company’s transition to profitable operations is
dependent upon generating a level of revenue adequate to support its cost structure, which it has achieved on an operating basis,
although the Company needs to resolve its debt obligation which matures on July 1, 2024. 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 Consolidation6 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of ConsolidationThe 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 Standards6 Months Ended
Mar. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recently Accounting StandardsFrom 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 Assets6 Months Ended
Mar. 31, 2021
Asset Impairment Charges [Abstract]
Impairment of Long-lived AssetsThe 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 Combinations6 Months Ended
Mar. 31, 2021
Business Combinations [Abstract]
Business CombinationsThe Company accounts for
its business acquisitions under the acquisition method of accounting as indicated in ASC 805, “Business Combinations” 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 the seller 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)6 Months Ended
Mar. 31, 2021
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 March 31, 2021.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share6 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Net Income (Loss) Per Common ShareBasic 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 both March 31, 2021, and 2020, there
were 12,500 and 685,259 outstanding common share equivalents that were not included in the computation of Basic and Diluted EPS
for the three and six months ended March 31, 2021 and 2020, respectively, as their effect would be anti-dilutive. At March 31, 2021 576,887
stock options and warrants had exercise prices that were below the market price of $1.60, and have been included in the basic and
diluted earnings per share calculations. At March 31, 2020, all stock option and warrant exercise prices were above the market
price of $0.20 and thus have not been included in the basic earnings per share calculation. The common stock equivalents outstanding
as of March 31, 2021 and March 31, 2020 consisted of the following:
March 31, March 31,
2021 2020
Exercisable common stock options and warrants 589,387 685,259
Total common stock equivalents 589,387 685,259

Revenue Recognition

Revenue Recognition6 Months Ended
Mar. 31, 2021
Revenue Recognition [Abstract]
Revenue RecognitionMonitoring 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 March 31, 2021
Three Months Ended March 31, 2020
Total Revenue
% of Total Revenue
Total Revenue
% of Total Revenue
United States 7,399,434 75 % $ 5,426,065 67 %
Latin America 2,365,906 24 % 2,525,623 31 %
Other 96,490 1 % 180,038 2 %
Total $ 9,861,830 100 % $ 8,131,726 100 %
Six Months Ended March 31, 2021
Six Months Ended March 31, 2020
Total Revenue
% of Total Revenue
Total Revenue
% of Total Revenue
United States 14,197,191 74 % $ 10,993,923 66 %
Latin America 4,872,319 25 % 5,263,216 32 %
Other 194,225 1 % 295,418 2 %
Total $ 19,263,735 100 % $ 16,552,557 100 % The above table includes
total revenue for the Company, of which monitoring and other related services is the majority (approximately 99% in the three and
six-months ended March 31, 2021 and approximately 98% in the three and six-months ended March 31, 2020) of the Company’s
revenue. Latin America includes Bahamas, Chile, Mexico, Puerto Rico and the U.S. Virgin Islands. Other includes Canada and Saudi
Arabia in the six months ended March 31, 2021 and Canada, New Zealand, Saudi Arabia, South Africa and Vietnam in the six months
ended March 31, 2020.

Prepaid Expense and Other

Prepaid Expense and Other6 Months Ended
Mar. 31, 2021
Other Assets [Abstract]
Prepaid Expense and OtherAs of March 31, 2021, and
September 30, 2020, the outstanding balance of prepaid expense and deposits was $1,120,543 and $866,389, respectively. These
balances are comprised largely of tax deposits, prepaid bond insurance, vendor deposits and other prepaid supplier expense.

Inventory

Inventory6 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]
InventoryInventory 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 March 31, 2021,
and September 30, 2020, inventory consisted of the following:
March 31, 2021
September 30, 2020
Finished goods inventory $ - $ 131,089
Reserve for damaged or obsolete inventory - (6,483 )
Total inventory, net of reserves $ - $ 124,606 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 $11,103 and $35,123 during the six months ended March 31, 2021 and March 31, 2020, respectively, for inventory
that was 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 Equipment6 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property and EquipmentProperty and equipment consisted
of the following as of March 31, 2021 and September 30, 2020, respectively:
March 31, 2021
September 30, 2020
Equipment, software and tooling $ 1,370,034 $ 1,272,635
Automobiles 5,525 5,156
Leasehold improvements 1,357,475 1,290,708
Furniture and fixtures 347,725 341,896
Total property and equipment before accumulated depreciation 3,080,759 2,910,395
Accumulated depreciation (2,822,516 ) (2,531,631 )
Property and equipment, net of accumulated depreciation $ 258,243 $ 378,764 Property and equipment depreciation
expense for the three months ended March 31, 2021 and 2020 was $112,256 and $77,346, respectively. Property and equipment depreciation
expense for the six months ended March 31, 2021 and 2020 was $224,465 and $160,778, respectively.

Monitoring Equipment

Monitoring Equipment6 Months Ended
Mar. 31, 2021
Notes to Financial Statements
Monitoring EquipmentThe 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 five years. Monitoring equipment as of March 31, 2021
and September 30, 2020 was as follows:
March 31, 2021
September 30, 2020
Monitoring equipment $ 8,701,275 $ 8,705,830
Less: accumulated depreciation (5,780,731 ) (6,639,883 )
Monitoring equipment, net of accumulated depreciation $ 2,920,544 $ 2,065,947 Depreciation of monitoring
equipment for the three months ended March 31, 2021 and 2020 was $372,784 and $367,571, respectively. Depreciation of monitoring
equipment for the six months ended March 31, 2021 and 2020 was $710,344 and $728,201, respectively. Depreciation expense for monitoring
devices is recognized in cost of revenue. During the three months ended March 31, 2021 and March 31, 2020, the Company recorded
charges of $109,506 and $97,179, respectively, for devices that were lost, stolen or damaged. During the six months ended March
31, 2021 and March 31, 2020, the Company recorded charges of $219,629 and $231,226, 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 Assets6 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible AssetsThe following table summarizes
intangible assets at March 31, 2021 and September 30, 2020, respectively:
Intangible assets:
March 31, 2021
September 30, 2020
Patent & royalty agreements $ 21,170,565 $ 21,170,565
Developed technology 15,634,175 14,134,562
Customer relationships 1,860,000 1,860,000
Trade name 320,274 318,438
Website 78,201 78,201
Total intangible assets 39,063,215 37,561,766
Accumulated amortization (17,584,880 ) (16,390,721 )
Intangible assets, net of accumulated amortization $ 21,478,335 $ 21,171,045 The intangible assets summarized
above were purchased or developed on various dates from January 2010 through March 31, 2021. The assets have useful lives ranging
from three to twenty years. Amortization expense for the three months ended March 31, 2021 and 2020 was $550,050 and $558,527,
respectively. Amortization expense for the six months ended March 31, 2021 and 2020 was $1,120,719 and $1,117,846, respectively.

Goodwill

Goodwill6 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
GoodwillThe following table summarizes
the activity of goodwill at March 31, 2021 and September 30, 2020, respectively:
March 31, September 30,
2021 2020
Balance - beginning of period $ 8,220,380 $ 8,187,911
Effect of foreign currency translation on goodwill 187,794 32,469
Balance - end of period $ 8,408,174 $ 8,220,380 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 March 31, 2021.

Other Assets

Other Assets6 Months Ended
Mar. 31, 2021
Other Assets [Abstract]
Other AssetsAs of March 31, 2021 and
September 30, 2020, respectively, the outstanding balance of other assets was $4,393,915 and $2,166,743, respectively. Other assets
at March 31, 2021 are comprised largely of cash used as collateral for Performance Bonds (as defined in Note 23) for an international
customer, as well as contractually required monitoring center and other equipment, right of use assets, lease deposits, insurance
costs 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. The Company is contractually
obligated to construct and equip two monitoring centers for an international customer, as well as supply equipment for the customers
satellite locations, which will be owned by the customer when construction is completed. The Company has incurred approximately
$1.2 million in costs for monitoring centers and related equipment at March 31, 2021 and estimates the total to construct and equip
the locations will be approximately $2.0 million. The cost of these assets will be amortized monthly in Monitoring, products and
other related services on the Condensed Consolidated Statement of Operations over the life of the new contract. The Company will
record revenue from the customer based on a contractually agreed upon unit per day amount during the contract period. See Note
19.

Leases

Leases6 Months Ended
Mar. 31, 2021
Leases [Abstract]
LeasesEffective 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 March 31, 2021 and September
30, 2020.
March 31, 2021 September 30, 2020
Operating lease asset Operating lease liability
Operating lease asset Operating lease liability
Other assets $ 275,379 $ $ 375,397 $ -
Accrued liabilities 204,840 - 210,910
Long-term liabilities 70,539 - 164,487 The following table
summarizes the supplemental cash flow information for the six months ended March 31, 2021 and 2020:
March 31, 2021
March 31, 2020
Cash paid for noncancelable operating leases included in operating cash flows $ 152,856 $ 190,370
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 March 31, 2021 are:
Operating Leases
From April 2021 to September 2021 $ 118,577
From October 2021 to September 2022 168,573
From October 2022 to September 2023 3,612
Undiscounted cash flow 290,762
Less: imputed interest (15,383 )
Total $ 275,379
Reconciliation to lease liabilities:
Lease liabilities - current $ 204,840
Lease liabilities - long-term 70,539
Total lease liabilities $ 275,379 The weighted-average remaining
lease term and discount rate related to the Company’s lease liabilities as of March 31, 2021 were 1.3 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 Liabilities6 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]
Accrued LiabilitiesAccrued liabilities consisted
of the following as of March 31, 2021 and September 30, 2020, respectively:
March 31, 2021
September 30, 2020
Accrued payroll, taxes and employee benefits $ 1,589,845 $ 1,607,920
Deferred revenue 56,083 147,921
Accrued taxes - foreign and domestic 345,001 324,221
Accrued other expense 87,847 117,264
Accrued legal and other professional costs 675,746 725,547
Accrued costs of revenue 347,808 309,470
Right of use liability 204,840 210,910
Deferred financing fees 180,000 -
Accrued interest 170,310 11,515,375
Total accrued liabilities $ 3,657,480 $ 14,958,628 On March 1, 2021 accrued
interest outstanding related to the Conrent Amended Facility Agreement was capitalized, increasing the principal of the outstanding
loan. See Note 19.

Related Parties

Related Parties6 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]
Related PartiesETS Limited is currently
the beneficial owner of 4,871,745 shares of the Company's Common Stock (“ Track Group Shares ADS On September 8, 2020, the
Company received a letter from ADS informing the Company that ADS had been assigned the right to payment under that certain Loan
Facility dated September 14, 2015, by and between Sapinda Asia Limited and the Company (the “ Sapinda Loan Agreement

Debt Obligations

Debt Obligations6 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Debt ObligationsDebt obligations, net of debt
issuance costs, as of March 31, 2021 and September 30, 2020 consisted of the following:
March 31, 2021
September 30, 2020
The unsecured Amended Facility Agreement with Conrent whereby, as of March 1, 2021, the Company had borrowed $42,864,000, net of unamortized issuance costs of $360,602, bearing interest at a rate of 4% per annum, payable in arrears annually beginning July 1, 2022, with all principal and accrued and unpaid interest due on July 1, 2024. The Company did not pay interest on this loan during the six months ended March 31, 2021. $ 42,503,398 $ 30,400,000
Note payable with BMO Harris Bank for a Paycheck Protection Program (" PPP SBA - 933,200
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 91,500 -
Note Payable Agreement with Banco Santander, net of unamortized issuance costs of $28,458 at March 31, 2021, bearing interest at a rate of 5.04% per annum, with a maturity date of May 11, 2024. 427,411 -
Note Payable Agreement with Banco Estado, net of unamortized issuance costs of $20,802 at March 31, 2021, bearing interest at a rate of 3.50% per annum, with a maturity date of January 2, 2024. 320,678 -
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. 199,607 -
Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $426 at March 31, 2021, bearing interest at a rate of 2.54% per annum, with a maturity date of March 4, 2024. 132,785 -
Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $37,010 at March 31, 2021, bearing interest at a rate of 3.12% per annum, with a maturity date of February 17, 2025. 632,559 -
Total debt obligations 44,307,938 31,333,200
Less: current portion (516,256 ) (30,914,625 )
Long-term debt, less current portion $ 43,791,682 $ 418,575 On October 21, 2020, the
Company requested, in writing, an additional extension to the maturity date of the $30.4 million Amended Facility Agreement. On
November 25, 2020, the Noteholders held a meeting to address the Company’s request and approved a new maturity date of July
1, 2024. On December 21, 2020, Conrent and the Company signed an amendment to the Amended Facility Agreement which extends the
maturity date of the Amended Facility Agreement to July 1, 2024 (“ Amended Facility Interest
payments are scheduled to be made on July 1, 2022, July 1, 2023 and on July 1, 2024 with the principal payment. We will begin amortizing
deferred financing fees of approximately $360,000 on July 1, 2021. As of March 31, 2021, $42,864,000 of principal and $147,643
of interest was owed to Conrent. On
May 19, 2020, the Company received net proceeds of $933,200 from a potentially forgivable loan from the SBA pursuant to the PPP
enacted by Congress under the Coronavirus Aid, Relief, and Economic Security Act (15 U.S.C. 636(a)(36)) (the " CARES
Act PPP Loan Lender . On
January 6, 2021, the Company borrowed 70,443,375 Chilean Pesos ( “CLP” On
January 12, 2021, the Company borrowed 347,198,500 CLP , CLP CLP On
February 2, 2021, the Company borrowed 247,999,300 CLP CLP On
February 4, 2021, the Company borrowed 149,794,432 CLP On
February 5, 2021, the Company borrowed of 99,808,328 CLP CLP On
February 15, 2021, the Company borrowed 500,000,000 CLP CLP The following table summarizes
our future maturities of debt obligations, net of the amortization of debt discounts as of March 31, 2021:
Twelve months ended March 31,
Total
2022 $ 516,256
2023 600,076
2024 584,795
2025 43,054,109
Thereafter -
Total 44,755,236
Issuance costs (447,298 )
Debt obligations, net of unamortized issuance costs $ 44,307,938

Preferred and Common Stock

Preferred and Common Stock6 Months Ended
Mar. 31, 2021
Equity [Abstract]
Preferred and Common StockThe 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 March 31, 2021, there were no shares of preferred stock outstanding. No dividends were paid during
the three- and six-month period ended March 31, 2021 or 2020, respectively. 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 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 March 31, 2021, no shares of Series A Preferred were issued and outstanding.

Stock Options and Warrants

Stock Options and Warrants6 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock Options and WarrantsStock 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 March 31, 2020, the
Board of Directors suspended further awards under the 2012 Plan until further notice. The Company recorded expense of $0 and $19,687
for the six months ended March 31, 2021 and 2020, respectively, related to the vesting of common stock awarded prior to the suspension
of the 2012 Plan. On February 11, 2021, a former member of the Board of Directors received 39,640 shares of Common Stock by exercising
95,872 warrants through a net exercise provision of the Common Stock Purchase Warrant Agreement. There were 27,218 shares of common
stock available for issuance under the 2012 Plan as of March 31, 2021. 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 six months
ended March 31, 2021 and 2020, 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 for the six months ended March 31, 2021 and 2020, respectively, related to the issuance and
vesting of outstanding stock options and warrants. On February 11, 2021, a former member of the Board of Directors exercised 95,872
warrants and received 39,640 shares of Common Stock through a net exercise provision of the Common Stock Purchase Warrant Agreement All options and warrants
have vested and are exercisable at March 31, 2021 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 March 31, 2021 is presented below:
Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value
Outstanding as of September 30, 2020 685,259 $ 1.56 1.90 years $ -
Granted - -
Expired/Cancelled (95,872 ) (1.17 )
Exercised - -
Outstanding as of March 31, 2021 589,387 $ 1.63 1.41 years $ 209,551
Exercisable as of March 31, 2021 589,387 $ 1.63 1.41 years $ 209,551 The intrinsic value of options
and warrants outstanding and exercisable is based on the Company’s share price of $1.60 at March 31, 2021.

Income Taxes

Income Taxes6 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income TaxesThe 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 six months ended
March 31, 2021 and 2020, the Company incurred net income (loss) for income tax purposes of $3,507,725 and ($1,953,684) 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 Contingencies6 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesLegal Matters From time to time, claims
are made against the Company in the ordinary course of business, which could result in litigation. Claims and associated litigation
are subject to inherent uncertainties, and unfavorable outcomes could occur. In the opinion of management, the resolution of these
matters, if any, will not have a material adverse impact on the Company’s financial position or results of operations. 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). Blaike Anderson v.
Track Group, Inc., et. al. Commonwealth of Puerto
Rico, through its Trustees v. International Surveillance Services Corporation . ISS Eli Sabag v. Track
Group, Inc., et al. (“SPA” Performance Bonds As of March 31, 2021, Company
has two performance bonds in connection with a foreign customer totaling $2,519,449, (“ Performance Bonds The Company pays interest
on the full amount of the Performance Bonds to the financial institution providing the guarantee at 3.5% interest for the Performance
Bond expiring in January 2022 and 2.8% interest for the Performance Bond expiring in July 2024. Related interest expense recorded
for the six months ended March 31, 2021 of $37,329. During the six months ended March 31, 2020 the Company expensed $8,326 related
to the Performance Bond which expires on January 18, 2022.

Subsequent Events

Subsequent Events6 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent EventsIn
accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and
noted no subsequent events that are reasonably likely to impact the financial statements.

Principles of Consolidation (Po

Principles of Consolidation (Policies)6 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of ConsolidationThe 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)6 Months Ended
Mar. 31, 2021
Notes To Financial Statements Abstract
Recent Accounting StandardsFrom 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)6 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of common stock equivalents outstandingMarch 31, March 31,
2021 2020
Exercisable common stock options and warrants 589,387 685,259
Total common stock equivalents 589,387 685,259

Revenue Recognition (Tables)

Revenue Recognition (Tables)6 Months Ended
Mar. 31, 2021
Revenue Recognition [Abstract]
Disaggregation of revenueThree Months Ended March 31, 2021
Three Months Ended March 31, 2020
Total Revenue
% of Total Revenue
Total Revenue
% of Total Revenue
United States 7,399,434 75 % $ 5,426,065 67 %
Latin America 2,365,906 24 % 2,525,623 31 %
Other 96,490 1 % 180,038 2 %
Total $ 9,861,830 100 % $ 8,131,726 100 %
Six Months Ended March 31, 2021
Six Months Ended March 31, 2020
Total Revenue
% of Total Revenue
Total Revenue
% of Total Revenue
United States 14,197,191 74 % $ 10,993,923 66 %
Latin America 4,872,319 25 % 5,263,216 32 %
Other 194,225 1 % 295,418 2 %
Total $ 19,263,735 100 % $ 16,552,557 100 %

Inventory (Tables)

Inventory (Tables)6 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]
Schedule of inventoryMarch 31, 2021
September 30, 2020
Finished goods inventory $ - $ 131,089
Reserve for damaged or obsolete inventory - (6,483 )
Total inventory, net of reserves $ - $ 124,606

Property and Equipment (Tables)

Property and Equipment (Tables)6 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of property and equipmentMarch 31, 2021
September 30, 2020
Equipment, software and tooling $ 1,370,034 $ 1,272,635
Automobiles 5,525 5,156
Leasehold improvements 1,357,475 1,290,708
Furniture and fixtures 347,725 341,896
Total property and equipment before accumulated depreciation 3,080,759 2,910,395
Accumulated depreciation (2,822,516 ) (2,531,631 )
Property and equipment, net of accumulated depreciation $ 258,243 $ 378,764

Monitoring Equipment (Tables)

Monitoring Equipment (Tables)6 Months Ended
Mar. 31, 2021
Notes to Financial Statements
Schedule of monitoring property and equipmentMarch 31, 2021
September 30, 2020
Monitoring equipment $ 8,701,275 $ 8,705,830
Less: accumulated depreciation (5,780,731 ) (6,639,883 )
Monitoring equipment, net of accumulated depreciation $ 2,920,544 $ 2,065,947

Intangible Assets (Tables)

Intangible Assets (Tables)6 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assetsIntangible assets:
March 31, 2021
September 30, 2020
Patent & royalty agreements $ 21,170,565 $ 21,170,565
Developed technology 15,634,175 14,134,562
Customer relationships 1,860,000 1,860,000
Trade name 320,274 318,438
Website 78,201 78,201
Total intangible assets 39,063,215 37,561,766
Accumulated amortization (17,584,880 ) (16,390,721 )
Intangible assets, net of accumulated amortization $ 21,478,335 $ 21,171,045

Goodwill (Tables)

Goodwill (Tables)6 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
GoodwillMarch 31, September 30,
2021 2020
Balance - beginning of period $ 8,220,380 $ 8,187,911
Effect of foreign currency translation on goodwill 187,794 32,469
Balance - end of period $ 8,408,174 $ 8,220,380

Leases (Tables)

Leases (Tables)6 Months Ended
Mar. 31, 2021
Leases [Abstract]
Right of use assets and lease liabilitiesMarch 31, 2021 September 30, 2020
Operating lease asset Operating lease liability
Operating lease asset Operating lease liability
Other assets $ 275,379 $ $ 375,397 $ -
Accrued liabilities 204,840 - 210,910
Long-term liabilities 70,539 - 164,487
Supplemental cash flow informationMarch 31, 2021
March 31, 2020
Cash paid for noncancelable operating leases included in operating cash flows $ 152,856 $ 190,370
Right of use assets obtained in exchange for operating lease liabilities: $ - $ -
Future minimum lease paymentsOperating Leases
From April 2021 to September 2021 $ 118,577
From October 2021 to September 2022 168,573
From October 2022 to September 2023 3,612
Undiscounted cash flow 290,762
Less: imputed interest (15,383 )
Total $ 275,379
Reconciliation to lease liabilitiesReconciliation to lease liabilities:
Lease liabilities - current $ 204,840
Lease liabilities - long-term 70,539
Total lease liabilities $ 275,379

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)6 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]
Schedule of accrued liabilitiesMarch 31, 2021
September 30, 2020
Accrued payroll, taxes and employee benefits $ 1,589,845 $ 1,607,920
Deferred revenue 56,083 147,921
Accrued taxes - foreign and domestic 345,001 324,221
Accrued other expense 87,847 117,264
Accrued legal and other professional costs 675,746 725,547
Accrued costs of revenue 347,808 309,470
Right of use liability 204,840 210,910
Deferred financing fees 180,000 -
Accrued interest 170,310 11,515,375
Total accrued liabilities $ 3,657,480 $ 14,958,628

Debt Obligations (Tables)

Debt Obligations (Tables)6 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of debtMarch 31, 2021
September 30, 2020
The unsecured Amended Facility Agreement with Conrent whereby, as of March 1, 2021, the Company had borrowed $42,864,000, net of unamortized issuance costs of $360,602, bearing interest at a rate of 4% per annum, payable in arrears annually beginning July 1, 2022, with all principal and accrued and unpaid interest due on July 1, 2024. The Company did not pay interest on this loan during the six months ended March 31, 2021. $ 42,503,398 $ 30,400,000
Note payable with BMO Harris Bank for a Paycheck Protection Program (" PPP SBA - 933,200
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 91,500 -
Note Payable Agreement with Banco Santander, net of unamortized issuance costs of $28,458 at March 31, 2021, bearing interest at a rate of 5.04% per annum, with a maturity date of May 11, 2024. 427,411 -
Note Payable Agreement with Banco Estado, net of unamortized issuance costs of $20,802 at March 31, 2021, bearing interest at a rate of 3.50% per annum, with a maturity date of January 2, 2024. 320,678 -
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. 199,607 -
Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $426 at March 31, 2021, bearing interest at a rate of 2.54% per annum, with a maturity date of March 4, 2024. 132,785 -
Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $37,010 at March 31, 2021, bearing interest at a rate of 3.12% per annum, with a maturity date of February 17, 2025. 632,559 -
Total debt obligations 44,307,938 31,333,200
Less: current portion (516,256 ) (30,914,625 )
Long-term debt, less current portion $ 43,791,682 $ 418,575
Schedule of maturities of long-term debtTwelve months ended March 31,
Total
2022 $ 516,256
2023 600,076
2024 584,795
2025 43,054,109
Thereafter -
Total 44,755,236
Issuance costs (447,298 )
Debt obligations, net of unamortized issuance costs $ 44,307,938

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)6 Months Ended
Mar. 31, 2021
Stock Options And Warrants Tables
Schedule of stock option activityShares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value
Outstanding as of September 30, 2020 685,259 $ 1.56 1.90 years $ -
Granted - -
Expired/Cancelled (95,872 ) (1.17 )
Exercised - -
Outstanding as of March 31, 2021 589,387 $ 1.63 1.41 years $ 209,551
Exercisable as of March 31, 2021 589,387 $ 1.63 1.41 years $ 209,551

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit $ (298,763,208) $ (298,763,208) $ (302,270,933)
Net loss attributable to common shareholders $ 2,184,231 $ (1,721,059) $ 3,507,725 $ (1,953,684)

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share (Details) - shares6 Months Ended
Mar. 31, 2021Mar. 31, 2020
Stock equivalents excluded from computation of Diluted EPS589,387 685,259
Options and Warrants
Stock equivalents excluded from computation of Diluted EPS589,387 685,259

Net Income (Loss) Per Common _4

Net Income (Loss) Per Common Share (Details Narrative) - shares6 Months Ended
Mar. 31, 2021Mar. 31, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount589,387 685,259

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Revenue $ 9,861,830 $ 8,131,726 $ 19,263,735 $ 16,552,557
Percentage of revenue100.00%100.00%100.00%100.00%
United States
Revenue $ 7,399,434 $ 5,426,065 $ 14,197,191 $ 10,993,923
Percentage of revenue75.00%67.00%74.00%66.00%
Latin America
Revenue $ 2,365,906 $ 2,525,623 $ 4,872,319 $ 5,263,216
Percentage of revenue24.00%31.00%25.00%32.00%
Other
Revenue $ 96,490 $ 180,038 $ 194,225 $ 295,418
Percentage of revenue1.00%2.00%1.00%2.00%

Prepaid Expense and Other (Deta

Prepaid Expense and Other (Details Narrative) - USD ($)Mar. 31, 2021Sep. 30, 2020
Other Assets [Abstract]
Prepaid expenses and other $ 1,120,543 $ 866,389

Inventory (Details)

Inventory (Details) - USD ($)Mar. 31, 2021Sep. 30, 2020
Inventory Disclosure [Abstract]
Finished goods inventory $ 0 $ 131,089
Reserve for damaged or obsolete inventory0 (6,483)
Total inventory, net of reserves $ 0 $ 124,606

Property And Equipment (Details

Property And Equipment (Details) - USD ($)Mar. 31, 2021Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Equipment, software and tooling $ 1,370,034 $ 1,272,635
Automobiles5,525 5,156
Leasehold improvements1,357,475 1,290,708
Furniture and fixtures347,725 341,896
Total property and equipment before accumulated depreciation3,080,759 2,910,395
Accumulated depreciation(2,822,516)(2,531,631)
Property and equipment, net of accumulated depreciation $ 258,243 $ 378,764

Property And Equipment (Detai_2

Property And Equipment (Details Narrative) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation $ 112,256 $ 7,734 $ 224,465 $ 160,778

Monitoring Equipment (Details)

Monitoring Equipment (Details) - USD ($)Mar. 31, 2021Sep. 30, 2020
Notes to Financial Statements
Monitoring equipment $ 8,701,275 $ 8,705,830
Less: accumulated amortization(5,780,731)(6,639,883)
Monitoring equipment, net of accumulated amortization $ 2,920,544 $ 2,065,947

Monitoring Equipment (Details N

Monitoring Equipment (Details Narrative) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Depreciation expense $ 372,784 $ 367,571 $ 710,344 $ 728,201
Lost or stolen monitoring equipment $ 109,506 $ 97,179 $ 219,629 $ 231,226
Minimum
Monitoring equipment useful life1 year
Maximum
Monitoring equipment useful life5 years

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)Mar. 31, 2021Sep. 30, 2020
Intangible assets $ 39,063,215 $ 37,561,766
Accumulated amortization(17,584,880)(16,390,721)
Intangible assets, net of accumulated amortization21,478,335 21,171,045
Patent & Royalty agreements
Intangible assets21,170,565 21,170,565
Technology
Intangible assets15,634,175 14,134,562
Customer Relationships
Intangible assets1,860,000 1,860,000
Trade Name
Intangible assets320,274 318,438
Website
Intangible assets $ 78,201 $ 78,201

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Amortization of intangible assets $ 550,050 $ 558,527 $ 1,120,719 $ 1,117,846
Minimum
Intangible assets, useful life3 years
Maximum
Intangible assets, useful life20 years

Goodwill (Details)

Goodwill (Details) - USD ($)6 Months Ended12 Months Ended
Mar. 31, 2021Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Balance - beginning of year $ 8,220,380 $ 8,187,911
Effect of foreign currency translation adjustment on goodwill187,794 32,469
Ending balance $ 8,408,174 $ 8,220,380

Other Assets (Details Narrative

Other Assets (Details Narrative) - USD ($)Mar. 31, 2021Sep. 30, 2020
Other Assets [Abstract]
Other assets $ 4,393,915 $ 2,166,743

Leases (Details)

Leases (Details) - USD ($)Mar. 31, 2021Sep. 30, 2020Sep. 30, 2019
Accrued liabilities $ 3,657,480 $ 14,958,628
Operating lease asset
Other assets275,379 $ 375,397
Operating lease liability
Accrued liabilities204,840 $ 210,910
Long-term liabilities $ 70,539 $ 164,487

Leases (Details 1)

Leases (Details 1) - USD ($)6 Months Ended
Mar. 31, 2021Mar. 31, 2020
Leases [Abstract]
Cash paid for noncancelable operating leases included in operating cash flows $ 152,856 $ 190,370
Right of use assets obtained in exchange for operating lease liabilities $ 0 $ 0

Leases (Details 2)

Leases (Details 2)Mar. 31, 2021USD ($)
Leases [Abstract]
From April 2021 to September 2021 $ 118,577
From October 2021 to September 2022168,573
From October 2022 to September 20233,612
Undiscounted Cash Flow290,762
Less: imputed interest(15,383)
Total $ 275,379

Leases (Details 3)

Leases (Details 3)Mar. 31, 2021USD ($)
Leases [Abstract]
Lease liabilities - current $ 204,840
Lease liabilities - long term70,539
Total lease liabilities $ 275,379

Leases (Details Narrative)

Leases (Details Narrative)Mar. 31, 2021
Leases [Abstract]
Weighted-average remaining lease term1 year 3 months 18 days
Discount rate8.00%

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)Mar. 31, 2021Sep. 30, 2020
Payables and Accruals [Abstract]
Accrued payroll, taxes and employee benefits $ 1,589,845 $ 1,607,920
Deferred revenue56,083 147,921
Accrued taxes - foreign and domestic345,001 324,221
Accrued other expenses87,847 117,264
Accrued legal costs675,746 725,547
Accrued costs of revenue347,808 309,470
Right of use liability204,840 210,910
Deferred financing fees180,000 0
Accrued interest170,310 11,515,375
Total accrued liabilities $ 3,657,480 $ 14,958,628

Debt Obligations (Details)

Debt Obligations (Details) - USD ($)Mar. 31, 2021Sep. 30, 2020
Total debt obligations $ 632,559 $ 0
Less current portion(516,256)(30,914,625)
Long-term debt, net of current portion43,791,682 418,575
Debt Obligation 1
Total debt obligations42,503,398 30,400,000
Debt Obligation 2
Total debt obligations0 933,200
Debt Obligation 3
Total debt obligations91,500 0
Debt Obligation 4
Total debt obligations427,411 0
Debt Obligation 5
Total debt obligations320,678 0
Debt Obligation 6
Total debt obligations199,607 0
Debt Obligation 7
Total debt obligations $ 132,785 $ 0

Debt Obligations (Details 1)

Debt Obligations (Details 1)Mar. 31, 2021USD ($)
Debt Disclosure [Abstract]
2022 $ 516,256
2023600,076
2024584,795
202543,054,109
Thereafter0
Total44,755,236
Issuance costs(447,298)
Debt obligations, net of unamortized costs $ 44,307,938

Stock Options and Warrants (Det

Stock Options and Warrants (Details)6 Months Ended
Mar. 31, 2021USD ($)$ / sharesshares
Share-based Payment Arrangement [Abstract]
Shares under option/warrant outstanding, beginning balance | shares685,259
Shares under option/warrant granted | shares0
Shares under option/warrant expired/cancelled | shares(95,872)
Shares under option/warrant exercised | shares0
Shares under option/warrant outstanding, ending balance | shares589,387
Shares under option/warrant exercisable | shares589,387
Weighted average exercise price outstanding, beginning balance | $ / shares $ 1.56
Weighted average exercise price granted | $ / shares.00
Weighted average exercise price expired/cancelled | $ / shares(1.17)
Weighted average exercise price exercised | $ / shares.00
Weighted average exercise price outstanding, ending balance | $ / shares1.63
Weighted average exercise price exercisable | $ / shares $ 1.63
Weighted average remaining contractual life outstanding, beginning balance1 year 10 months 24 days
Weighted average remaining contractual life outstanding, ending balance1 year 4 months 28 days
Weighted average remaining contractual life exercisable1 year 4 months 28 days
Aggregate intrinsic value outstanding, beginning balance | $ $ 0
Aggregate intrinsic value outstanding, ending balance | $209,551
Aggregate intrinsic value exercisable | $ $ 209,551

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Income Tax Disclosure [Abstract]
Net loss attributable to common shareholders $ 2,184,231 $ (1,721,059) $ 3,507,725 $ (1,953,684)