Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 22, 2016 | Mar. 31, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | BIOANALYTICAL SYSTEMS INC | ||
Entity Central Index Key | 720,154 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 7,745,000 | ||
Trading Symbol | BASI | ||
Entity Common Stock, Shares Outstanding | 8,107,388 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 386 | $ 438 |
Accounts receivable | ||
Trade, net of allowance of $565 at September 30, 2016 and $559 at September 30, 2015 | 1,649 | 2,904 |
Unbilled revenues and other | 591 | 1,095 |
Inventories, net | 1,453 | 1,466 |
Prepaid expenses | 798 | 773 |
Total current assets | 4,877 | 6,676 |
Property and equipment, net | 16,136 | 15,989 |
Lease rent receivable | 51 | 15 |
Goodwill | 38 | 1,009 |
Debt issue costs, net | 10 | 94 |
Other assets | 27 | 32 |
Total assets | 21,139 | 23,815 |
Current liabilities: | ||
Accounts payable | 2,965 | 1,741 |
Restructuring liability | 1,117 | 1,117 |
Accrued expenses | 1,089 | 1,710 |
Customer advances | 3,114 | 3,414 |
Income taxes payable | 13 | 30 |
Revolving line of credit | 1,358 | 86 |
Fair value of warrant liability | 0 | 189 |
Fair value of interest rate swap | 35 | 0 |
Current portion of capital lease obligation | 126 | 230 |
Current portion of long-term debt | 3,666 | 786 |
Total current liabilities | 13,483 | 9,303 |
Capital lease obligation, less current portion | 198 | 68 |
Fair value of interest rate swap | 0 | 50 |
Long-term debt, less current portion | 0 | 3,666 |
Total liabilities | 13,681 | 13,087 |
Shareholders’ equity: | ||
Preferred shares, authorized 1,000,000 shares, no par value: 1,185 Series A shares at $1,000 stated value issued and outstanding at September 30, 2016 and September 30, 2015 | 1,185 | 1,185 |
Common shares, no par value: Authorized 19,000,000 shares; 8,107,558 issued and outstanding at September 30, 2016 and 8,105,007 at September 30, 2015 | 1,989 | 1,988 |
Additional paid-in capital | 21,240 | 21,193 |
Accumulated deficit | (16,921) | (13,691) |
Accumulated other comprehensive (loss) income | (35) | 53 |
Total shareholders’ equity | 7,458 | 10,728 |
Total liabilities and shareholders’ equity | $ 21,139 | $ 23,815 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Allowance for Doubtful Accounts Receivable, Current | $ 565 | $ 565 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 19,000,000 | 19,000,000 |
Common Stock, Shares, Issued | 8,107,558 | 8,105,007 |
Common Stock, Shares, Outstanding | 8,107,558 | 8,105,007 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Issued | 1,185 | 1,185 |
Preferred Stock, Shares Outstanding | 1,185 | 1,185 |
Preferred Stock, Par or Stated Value Per Share | $ 1,000 | $ 1,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Services revenue | $ 15,924 | $ 17,768 |
Products revenue | 4,517 | 4,930 |
Total revenue | 20,441 | 22,698 |
Cost of services revenue | 13,355 | 12,525 |
Cost of products revenue | 2,661 | 2,684 |
Total cost of revenue | 16,016 | 15,209 |
Gross profit | 4,425 | 7,489 |
Operating expenses: | ||
Selling | 1,417 | 1,396 |
Research and development | 496 | 715 |
General and administrative | 4,581 | 5,074 |
Mediation settlement, net | 0 | (605) |
Impairment of goodwill | 971 | 0 |
Total operating expenses | 7,465 | 6,580 |
Operating (loss) income | (3,040) | 909 |
Interest expense | (399) | (287) |
Decrease in fair value of warrant liability | 189 | 487 |
Other income | 6 | 5 |
(Loss) income before income taxes | (3,244) | 1,114 |
Income tax (benefit) expense | (14) | 15 |
Net (loss) income | (3,230) | 1,099 |
Other comprehensive (loss) income : | (88) | 46 |
Comprehensive (loss) income | $ (3,318) | $ 1,145 |
Other comprehensive (loss) income : | ||
Basic net (loss) income per share: | $ (0.40) | $ 0.14 |
Diluted net (loss) income per share: | $ (0.40) | $ 0.07 |
Weighted common shares outstanding: | ||
Basic | 8,107 | 8,084 |
Diluted | 8,107 | 8,791 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive income (loss) [Member] |
Balance at Sep. 30, 2014 | $ 9,536 | $ 1,185 | $ 1,980 | $ 21,154 | $ (14,790) | $ 7 |
Balance (in shares) at Sep. 30, 2014 | 1,185 | 8,075,335 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | 1,099 | 1,099 | ||||
Other comprehensive income (loss) | (46) | 46 | ||||
Stock based compensation expense | 79 | 79 | ||||
Stock option exercise | 0 | $ 0 | $ 8 | (8) | ||
Stock option exercise (in shares) | 0 | 29,672 | ||||
Payment of withholding taxes from net settlement of stock based awards | (32) | $ 0 | (32) | |||
Balance at Sep. 30, 2015 | 10,728 | $ 1,185 | $ 1,988 | 21,193 | (13,691) | 53 |
Balance (in shares) at Sep. 30, 2015 | 1,185 | 8,105,007 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | (3,230) | (3,230) | ||||
Other comprehensive income (loss) | 88 | (88) | ||||
Stock based compensation expense | 45 | 45 | ||||
Stock option exercise | 3 | $ 1 | 2 | |||
Stock option exercise (in shares) | 2,551 | |||||
Balance at Sep. 30, 2016 | $ 7,458 | $ 1,185 | $ 1,989 | $ 21,240 | $ (16,921) | $ (35) |
Balance (in shares) at Sep. 30, 2016 | 1,185 | 8,107,558 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net income (loss) | $ (3,230) | $ 1,099 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,556 | 1,437 |
Decrease in fair value of warrant liability | (189) | (487) |
Stock based compensation expense | 45 | 79 |
Loss/(Gain) on sale of property and equipment | 14 | (7) |
Provision for doubtful accounts | 84 | 505 |
Impairment of goodwill | 971 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,639 | (1,084) |
Inventories | 13 | 98 |
Income taxes payable | (17) | 10 |
Prepaid expenses and other assets | (27) | (97) |
Accounts payable | 1,122 | 259 |
Accrued expenses | (621) | (132) |
Customer advances | (300) | 424 |
Net cash provided by operating activities | 1,060 | 2,104 |
Investing activities: | ||
Capital expenditures | (1,256) | (1,467) |
Proceeds from sale of equipment | 33 | |
Net cash used by investing activities | (1,256) | (1,434) |
Financing activities: | ||
Payments of long-term debt | (786) | (786) |
Payments of debt issuance costs | (68) | 0 |
Proceeds from exercise of stock options | 3 | 0 |
Payments on revolving line of credit | (11,304) | (7,740) |
Borrowings on revolving line of credit | 12,576 | 7,624 |
Payments on capital lease obligations | (277) | (279) |
Payment of withholding taxes from net settlement of stock based awards | 0 | (32) |
Net cash provided (used) by financing activities | 144 | (1,213) |
Net decrease in cash and cash equivalents | (52) | (543) |
Cash and cash equivalents at beginning of year | 438 | 981 |
Cash and cash equivalents at end of year | 386 | 438 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 312 | 264 |
Cash paid for income taxes | 0 | 4 |
Supplemental disclosure of non-cash financing activities: | ||
Equipment financed under capital leases | $ 303 | $ 0 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Bioanalytical Systems, Inc. and its subsidiaries (“We,” the “Company” or “BASi”) engage in contract laboratory research services and other services related to pharmaceutical development. We also manufacture scientific instruments for life sciences research, which we sell with related software for use by pharmaceutical companies, universities, government research centers and medical research institutions. Our customers are located throughout the world. During fiscal 2016 we have operated either in default of, or under forbearance arrangements with respect to, our credit agreements with Huntington National Bank (“Huntington Bank”), as more fully described under "Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Credit Facility." Effective October 31, 2016, we entered into a Fourth Forbearance Agreement and Fifth Amendment to Credit Agreement (the “Fourth Forbearance Agreement”) with Huntington Bank. Pursuant to the Fourth Forbearance Agreement, Huntington Bank agreed to forbear from exercising its rights and remedies under the Company’s credit facility and from terminating the Company’s related swap agreement with respect to the Company’s non-compliance with applicable financial covenants under the credit agreement and any further non-compliance with such covenants until January 31, 2017. If we are unable to refinance our indebtedness before the end of the forbearance period, and were Huntington Bank to demand payment on the outstanding debt under our credit arrangements, we would have insufficient funds to satisfy that obligation. In such case, in addition to the ability to immediately demand payment of the outstanding debt under our term loan and revolving loan, Huntington Bank would have the right to exercise its security interest, to take possession of or sell the underlying collateral, to increase interest accruing on the debt, to refrain from making additional advances under the revolving loan, and to terminate our interest rate swap. We have classified the entire term loan payable to Huntington Bank and the interest rate swap agreement with Huntington Bank as current liabilities of the Company. |
MANAGEMENT'S PLAN
MANAGEMENT'S PLAN | 12 Months Ended |
Sep. 30, 2016 | |
Managements Plan [Abstract] | |
MANAGEMENT'S PLAN | 2. MANAGEMENT’S PLAN The Company’s consolidated financial statements were prepared on a going concern basis, which assumes continuity of operations and realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments to reflect possible future effects on the recoverability and classification of assets and liabilities that may result in the event the Company’s plans, including plans to rectify our liquidity issues, are not successful. As noted above, during fiscal 2016 we have operated either in default of, or under forbearance arrangements with respect to, our credit agreements with Huntington National Bank. During recent periods, we have experienced depressed revenues as compared to historical levels. A significant portion of our costs are fixed. Thus, decreases in revenues lead to decreased margins, which in turn negatively impacts cash provided from operating activities. To supplement cash from operating activities, we have recently relied, and may in the future rely, on our cash balance and supplemental funds from our credit arrangements. The Company’s liquidity circumstances, including the potential inability to find replacement financing, raise substantial doubt about the Company’s ability to continue as a going concern, and management has and will continue to take measures to mitigate that possibility. We cannot provide assurance that we will be able to satisfy our cash requirements from cash provided by operating activities on a go-forward basis. If our working capital needs and capital expenditure requirements exceed cash provided by operating activities, then we may again look to our cash balance and committed credit lines, if any, to satisfy those needs. The term of our Fourth Forbearance Agreement ends on January 31, 2017, after which, or sooner should we default on the Fourth Forbearance Agreement, Huntington Bank may refrain from making additional advances under our revolving loan. In addition, alternative financing sources may hesitate to enter into credit arrangements with us due in part to real and/or perceived difficulties in achieving revenue growth. The Company’s Board of Directors has directed management to seek alternatives that will enable the Company to repay its indebtedness to Huntington Bank in full upon the expiration of the forbearance period. The Company continues to pursue liquidity alternatives, including but not limited to, the potential disposition of certain of its assets and the possible sale of its West Lafayette facilities. Management has been reviewing details of all current account management and marketing programs as well as all invoicing and top line growth initiatives. Management also has been, and continues to be, actively engaged in more effectively controlling operating costs in the short-term as we strive for long term stabilization. We cannot provide assurance that we will be able to resolve our liquidity issues on satisfactory terms, or at all. In addition, we are taking steps to strengthen our leadership team including the pursuit of a new Chief Executive Officer. Strengthening the overall leadership team represents an important step forward in the Company’s continuing program to build a management team with the depth, experience and dedication to position the Company to deliver profitable growth over the long-term. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated. (b) Revenue Recognition The majority of our bioanalytical and analytical research service contracts involve the development of analytical methods and the processing of bioanalytical samples for pharmaceutical companies and generally provide for a fixed fee for each sample processed. Revenue is recognized under the specific performance method of accounting and the related direct costs are recognized when services are performed. Our preclinical research service contracts generally consist of preclinical studies, and revenue is recognized under the proportional performance method of accounting. Revisions in profit estimates, if any, are reflected on a cumulative basis in the period in which such revisions become known. The establishment of contract prices and total contract costs involves estimates we make at the inception of the contract. These estimates could change during the term of the contract and impact the revenue and costs reported in the consolidated financial statements. Revisions to estimates have generally not been material. Research service contract fees received upon acceptance are deferred until earned, and classified within customer advances. Unbilled revenues represent revenues earned under contracts in advance of billings. Product revenue from sales of equipment not requiring installation, testing or training is recognized upon shipment to customers. One product includes internally developed software and requires installation, testing and training, which occur concurrently. Revenue from these sales is recognized upon completion of the installation, testing and training when the services are bundled with the equipment sale. (c) Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At September 30, 2016, we did not have any cash accounts that exceeded federally insured limits. Accounts Receivable We perform periodic credit evaluations of our customers’ financial conditions and generally do not require collateral on trade accounts receivable. We account for trade receivables based on the amounts billed to customers. Past due receivables are determined based on contractual terms. We do not accrue interest on any of our trade receivables. The allowance for doubtful accounts is determined by management based on our historical losses, specific customer circumstances, and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables when all attempts to collect have failed. Our allowance for doubtful accounts was $ 565 559 Fiscal year ended September 30, 2016 2015 Opening balance $ 559 $ 54 Charged to expense 84 505 Accounts recovered (25) Accounts written off (53) Ending balance $ 565 $ 559 Inventories Inventories are stated at the lower of cost or market using the first-in, first-out (FIFO) cost method of accounting. We evaluate inventories on a regular basis to identify inventory on hand that may be obsolete or in excess of current and future projected market demand. For inventory deemed to be obsolete, we provide a reserve. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates the estimate of future demand. Fiscal year ended September 30, 2016 2015 Opening balance $ 301 $ 299 Provision for slow moving and obsolescence 21 45 Write-off of obsolete and slow moving inventory (34) (43) Closing balance $ 288 $ 301 (f) Property and Equipment We record property and equipment at cost, including interest capitalized during the period of construction of major facilities. We compute depreciation, including amortization on capital leases, using the straight-line method over the estimated useful lives of the assets, which we estimate to be: buildings and improvements, 34 40 5 10 10 1,398 1,402 2016 2015 Land and improvements $ 1,043 $ 923 Buildings and improvements 21,943 21,347 Machinery and equipment 18,568 17,946 Office furniture and fixtures 645 640 Construction in progress 603 832 42,802 41,688 Less: accumulated depreciation (26,666) (25,699) Net property and equipment $ 16,136 $ 15,989 (g) Long-Lived Assets including Goodwill Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized of the amount by which the carrying amount of the asset exceeds the fair value of the asset. We carry goodwill at cost. Other intangible assets with definite lives are stated at cost and are amortized on a straight-line basis over their estimated useful lives. All intangible assets acquired that are obtained through contractual or legal right, or are capable of being separately sold, transferred, licensed, rented, or exchanged, are recognized as an asset apart from goodwill. Goodwill is not amortized . Goodwill is tested annually for impairment and more frequently if events and circumstances indicate that the asset might be impaired. First, we can assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We elected to bypass the qualitative assessment aspect of this guidance. We proceeded directly to a two-step quantitative process. In the first step, we compare the fair value of each reporting unit, as computed primarily by present value cash flow calculations, to its book carrying value, including goodwill. We do not believe that market value is indicative of the true fair value of the Company mainly due to average daily trading volumes of less than 1%. If the fair value exceeds the carrying value, no further work is required and no impairment loss is recognized. If the carrying value exceeds the fair value, the goodwill of the reporting unit is potentially impaired and we would then complete step 2 in order to measure the impairment loss. In step 2, the implied fair value is compared to the carrying amount of the goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, we would recognize an impairment loss equal to the difference. The implied fair value is calculated by allocating the fair value of the reporting unit (as determined in step 1) to all of its assets and liabilities (including unrecognized intangible assets) and any excess in fair value that is not assigned to the assets and liabilities is the implied fair value of goodwill. The discount rate, gross margin and sales growth rates are material assumptions utilized in our calculations of the present value cash flows used to estimate the fair value of the reporting units when performing the annual goodwill impairment test. Our reporting units with goodwill at September 30, 2015 were bioanalytical services and preclinical services, which are both included in our Services segment, based on the discrete financial information available which is reviewed by management. We utilize a cash flow approach in estimating the fair value of the reporting units, where the discount rate reflects a weighted average cost of capital rate. The cash flow model used to derive fair value is sensitive to the discount rate and sales growth assumptions used. We performed our annual goodwill impairment test for all reporting units mentioned above at September 30, 2016. There was no indication of impairment for the Preclinical Services reporting unit as of September 30, 2016. The estimated fair value of our Bioanalytical Services reporting unit was less than its related book value and we determined that its goodwill balance was impaired. This was a result of the rates of growth, earnings and cash flow expectations for future performance that were below the Company’s previous projections. In late fiscal 2015, we began to experience a declining revenue pattern resulting from a smaller percentage of quotes accepted in this reporting unit due in part to staff turnover in our Business Development group that we were unable to reverse in fiscal 2016. Accordingly, step two of the goodwill impairment test was completed for the Bioanalytical Services reporting unit which resulted in an impairment charge totaling $ 971 Considerable management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted sales growth rates and our cost of capital or discount rate, are based on the best available market information. Changes in these estimates or a continued decline in general economic conditions could change our conclusion regarding an impairment of goodwill and potentially result in a non-cash impairment loss in a future period. The assumptions used in our impairment testing could be adversely affected by certain risks. There have been no significant events since the timing of our impairment tests that would have triggered additional impairment testing. At September 30, 2016 the remaining recorded goodwill was $ 38 1,009 Bioanalytical Preclinical Total Balance as of October 1, 2015 $ 971 $ 38 $ 1,009 Impairment loss (971) - (971) Balance as of September 30, 2016 $ - $ 38 $ 38 We amortize costs of patents and licenses, which are included in other assets on the Consolidated Balance Sheets. For the fiscal years ended September 30, 2016 and 2015, the amortization expense associated with these was $ 5 7 (h) Advertising Expense We expense advertising costs as incurred. Advertising expense was $ 14 16 (i) Stock-Based Compensation We have a stock-based employee compensation plan and a stock-based employee and outside director compensation plan, which are described more fully in Note 10. All options granted under these plans have an exercise price equal to the market value of the underlying common shares on the date of grant. We expense the estimated fair value of stock options over the vesting periods of the grants. Our policy is to recognize expense for awards subject to graded vesting using the straight-line attribution method, reduced for estimated forfeitures. We use a binomial option-pricing model as our method of valuation for share-based awards, requiring us to make certain assumptions about the future, which are more fully described in Note 10. (j) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We record valuation allowances based on a determination of the expected realization of tax assets. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of the accrual for which an exposure exists is measured as the largest amount of benefit determined on a cumulative probability basis that we believe is more likely than not to be realized upon settlement of the position. We record interest and penalties accrued in relation to uncertain income tax positions as a component of income tax expense. Any changes in the liability for uncertain tax positions would impact our effective tax rate. We do not expect the total amount of unrecognized tax benefits to significantly change in the next twelve months. (k) Fair Value of Financial Instruments The provisions of the Fair Value Measurements and Disclosure Topic defines fair value, establishes a consistent framework for measuring fair value and provides the disclosure requirements about fair value measurements. This Topic also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s judgment about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: · Level 1 Valuations based on quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. · Level 2 Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. · Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement. In May 2011, we issued Class A and B Warrants that are measured at fair value on a recurring basis. We recorded these warrants as a liability determining the fair value at inception on May 11, 2011. Subsequent quarterly fair value measurements, using the Black Scholes model which is considered a level 2 measurement, are calculated with fair value changes charged to the statement of operations and comprehensive income (loss). Class B Warrants expired in May 2012 and the liability was reduced to zero. Class A Warrants expired in May 2016 and the liability was reduced to zero. September 30, 2015 Risk-free interest rate 0.14 % Dividend yield 0.00 % Volatility of the Company's common shares 65.03 % Expected life of the warrants (years) 0.6 Fair value per unit $ 0.236 The carrying amounts for cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other assets, accounts payable and other accruals approximate their fair values because of their nature and respective duration. The carrying value of the credit facility entered into in fiscal 2014 approximates fair value due to the variable nature of the interest rates. We use an interest rate swap, designated as a hedge, to fix 60 Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 35 $ - Class A warrant liability $ - $ - $ - The following table summarizes fair value measurements by level as of September 30, 2015, for the Company’s financial liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 50 $ - Class A warrant liability $ - $ 189 $ - Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates as part of the issuance of these consolidated financial statements include but are not limited to the determination of fair values, allowance for doubtful accounts, inventory obsolescence, deferred tax valuations, depreciation, impairment charges and stock compensation. Our actual results could differ from those estimates. (m) Research and Development In fiscal 2016 and 2015, we incurred $ 496 715 (n) Interest Rate Swap The Company uses an interest rate swap designated as a cash flow hedge to fix 60% of the Huntington debt due to mitigate changes in interest rates. The changes in the fair value of the interest rate swap are recorded in Accumulated Other Comprehensive Income (AOCI) to the extent effective. We assess on an ongoing basis whether the derivative that is used in the hedging transaction is highly effective in offsetting changes in cash flows of the hedged debt. The terms of the interest rate swap match the terms of the underlying debt resulting in no ineffectiveness. When we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued and we reclassify gains or losses that were accumulated in AOCI to other income (expense), net on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The balance in AOCI at September 30, 2016 and 2015 was ($ 35 53 (o) Debt issuance costs The Company capitalizes costs associated with the issuance of debt and amortizes them as additional interest expense over the lives of the debt on a straight-line basis, which approximates the effective interest method. The Company believes the difference between the straight-line basis and the effective interest method is not material to the consolidated financial statements. Upon prepayment of the related debt, the Company accelerates the recognition of an appropriate amount of the costs as refinancing or extinguishment of debt. (p) Reclassifications Certain amounts in the fiscal 2015 consolidated financial statements have been reclassified to conform to the fiscal 2016 presentation without affecting previously reported net income or stockholders’ equity. (q) New Accounting Pronouncements Effective October 1, 2018, the Company will be required to adopt the new guidance of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), which will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company will be required to adopt Topic 606 either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application. If the Company elects the modified retrospective approach, it will be required to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes. The Company has not yet assessed the impact of the new guidance on its consolidated financial statements. In August 2014, the FASB issued new guidance in Accounting Standards Update (ASU) No. 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40).” The update provides guidance regarding management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The Company is required to adopt the guidance in the first quarter of fiscal 2017. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. In November 2014, the FASB issued new guidance in ASU No. 2014-16, “Derivatives and Hedging (Topic 815) Determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity.” The guidance clarifies how current GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The Company adopted this guidance with no material effect on the consolidated financial statements. In February 2015, the FASB amended guidance in ASU No. 2015-02, “Consolidation Topic 810.” The guidance made certain targeted revisions to various area of the consolidation guidance, including the determination of the primary beneficiary of an entity, among others. The Company adopted this guidance with no material effect on the consolidated financial statements. In April 2015, the FASB amended the existing accounting standards for imputation of interest. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. The Company is required to adopt the guidance in the first quarter of fiscal 2017. Early adoption is permitted. The amendments should be applied retrospectively with the adjusted balance sheet of each individual period presented, in order to reflect the period-specific effects of applying the new guidance. The effect of adopting this guidance will be to reclass $ 10 In July 2015, the FASB issued an amendment to the accounting guidance related to the measurement of inventory. The amendment revises inventory to be measured at lower of cost and net realizable value from lower of cost or market. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. This guidance will be effective prospectively for the first quarter of fiscal 2018, with early application permitted. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. In February 2016, the FASB issued updated guidance on leases which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. We are currently evaluating the effects of the adoption and have not yet determined the impact the revised guidance will have on our consolidated financial statements and related disclosures. |
SALE OF PREFERRED SHARES AND WA
SALE OF PREFERRED SHARES AND WARRANTS | 12 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
SALE OF PREFERRED SHARES AND WARRANTS | 4. SALE OF PREFERRED SHARES AND WARRANTS (not in thousands) On May 11, 2011, we completed a registered public offering of 5,506 1,000 6 500 250 2.00 250 2.00 The Class B Warrants expired in May, 2012 and the liability was reduced to zero and the Class A Warrants expired in May, 2016 and the liability was reduced to zero. The Series A preferred shares were valued using the common shares available upon conversion of all preferred shares of 2,753,000 1.86 As of September 30, 2016, 4,321 2,564,108 217,366 577,897 1,185 2016 2015 Balance at beginning of year $ 189 $ 676 Fair value of Class A warrants exercised Decrease in fair value of Class A warrants (189) (487) Balance at end of year $ $ 189 For the years ended September 30, 2016 and 2015, the Company recognized income of $ 189 487 |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | 5. INCOME (LOSS) PER SHARE We compute basic income (loss) per share using the weighted average number of common shares outstanding. The Company has two categories of dilutive potential common shares: the Series A preferred shares issued in May 2011 in connection with the registered direct offering and shares issuable upon exercise of options. We compute diluted earnings per share using the if-converted method for preferred stock and the treasury stock method for stock options, respectively. Shares issuable upon exercise of 209 vested options and 592 Years Ended September 30, 2016 2015 Basic net income (loss) per share: Net (loss) income applicable to common shareholders $ (3,230) $ 1,099 Weighted average common shares outstanding 8,107 8,084 Basic net (loss) income per share $ (0.40) $ 0.14 Diluted net income (loss) per share: Net (loss) income applicable to common shareholders $ (3,230) $ 1,099 Change in fair value of warrant liability (487) Diluted net (loss) income applicable to common shareholders $ (3,230) $ 612 Weighted average common shares outstanding 8,107 8,084 Plus: Incremental shares from assumed conversions: Series A preferred shares 593 Class A warrants 4 Dilutive stock options/shares 110 Diluted weighted average common shares outstanding 8,107 8,791 Diluted net (loss) income per share $ (0.40) $ 0.07 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES Inventories at September 30 consisted of the following: 2016 2015 Raw materials $ 1,190 $ 1,112 Work in progress 267 247 Finished goods 284 408 $ 1,741 $ 1,767 Obsolescence reserve (288) (301) $ 1,453 $ 1,466 |
LEASE ARRANGEMENTS
LEASE ARRANGEMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
LEASE ARRANGEMENTS | 7. LEASE ARRANGEMENTS The total amount of equipment capitalized under capital lease obligations as of September 30, 2016 and 2015 was $ 6,195 5,892 5,880 5,623 In fiscal 2016, we had two new capital lease additions of $ 303 Principal Interest Total 2017 $ 126 $ 14 $ 140 2018 128 7 135 2019 70 1 71 2020 2021 $ 324 $ 22 $ 346 We lease office space and equipment under non-cancelable operating leases that terminate at various dates through 2019. Certain of these leases contain renewal options. Total rental expense under these leases was $ 96 82 7 2017 $ 13 2018 12 2019 12 2020 11 2021 8 $ 56 We lease a portion of our headquarters’ building in West Lafayette, Indiana to Cook Biotech, Inc. (Tenant) as part of the Lease Agreement signed in January 2015. The Lease Agreement has an initial term ending December 31, 2024 with escalating rents each year. The Tenant took full possession of the space on May 1, 2015. We recognize the escalating rents on a straight-line basis as a reduction to general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss) and lease rent receivable on the Consolidated Balance Sheets. The cash rent received is recorded to the customer account and as a reduction to the other accounts receivable on the Consolidated Balance Sheets. The variance between the straight line rents recognized and the actual cash rents received will net to zero in other accounts receivable by the end of the agreement on December 31, 2024. As of September 30, 2016, the rents recognized amounted to $ 901 850 Straight line Cash rent rents to be to be recognized received 2017 $ 636 $ 600 2018 636 609 2019 636 621 2020 636 633 2021 636 646 $ 3,180 $ 3,109 |
DEBT ARRANGEMENTS
DEBT ARRANGEMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT ARRANGEMENTS | 8. DEBT ARRANGEMENTS 2016 2015 Term loan payable to a bank, payable in monthly principal installments of $65. Interest is variable at LIBOR plus 325 basis points, which was 3.4 % at September 30, 2016. Collateralized by underlying property. Due January 31, 2017. $ 3,666 $ 4,452 Less: Current portion 3,666 786 Long term total $ $ 3,666 Cash interest payments of $ 312 264 2017 2018 2019 2020 Total Term loan $ 3,666 $ $ $ $ 3,666 Credit Facility On May 14, 2014, we entered into a Credit Agreement with Huntington Bank, which was subsequently amended on May 14, 2015 (“Agreement”). The Agreement includes both a term loan and a revolving loan and is secured by mortgages on our facilities in West Lafayette and Evansville, Indiana and liens on our personal property. As of December 31, 2015, we were not in compliance with certain financial covenants of the Agreement, and during fiscal 2016 we have operated either in default of, or under forbearance arrangements with respect to, the Agreement. On April 27, 2016, the Company entered into a Forbearance Agreement and Second Amendment to Credit Agreement (“Forbearance Agreement”) with Huntington Bank and on July 1, 2016, the Company entered into a Second Forbearance Agreement and Third Amendment to Credit Agreement (“Second Forbearance Agreement”) with Huntington Bank. As of June 30, 2016, the Company was not in compliance with an additional financial covenant under the Second Forbearance Agreement, resulting in termination of the forbearance period thereunder. On September 30, 2016, the Company entered into a Third Forbearance Agreement and Fourth Amendment to Credit Agreement with Huntington Bank (“Third Forbearance Agreement”) and on October 31, 2016, the Company entered into a Fourth Forbearance Agreement and Fifth Amendment to Credit Agreement (“Fourth Forbearance Agreement”) with Huntington Bank. Subject to the conditions set forth in the Fourth Forbearance Agreement, Huntington Bank has agreed to continue to forbear from exercising its rights and remedies under the Agreement and from terminating the Company’s related swap agreement with respect to the Company’s non-compliance with applicable financial covenants under the Agreement and any further non-compliance with such covenants during a forbearance period ending January 31, 2017 and to continue to make advances under the Agreement. In exchange for Huntington Bank’s agreement to continue to forbear from exercising its rights and remedies under the Agreement, the Company has agreed to, among other things: (i) amend the maturity dates for the term and revolving loans under the Agreement to January 31, 2017, (ii) take commercially reasonable efforts to obtain funds sufficient to repay the indebtedness in full upon the expiration of the forbearance period, (iii) provide to Huntington Bank certain cash flow forecasts and other financial information, (iv) comply with a minimum cash flow covenant, and (v) continue to engage the services of the Company’s financial consultant and cause the financial consultant to provide Huntington Bank such information regarding its efforts as Huntington Bank reasonably requests. As required under the Fourth Forbearance Agreement, the Company’s Board of Directors has directed management to seek alternatives that will enable the Company to repay its indebtedness to Huntington Bank in full upon the expiration of the current forbearance period. The Fourth Forbearance Agreement provides for immediate termination of the forbearance period upon the occurrence of, among other events, the failure of the Company to perform, observe or comply with the terms of the Fourth Forbearance Agreement. The available remedies in the event of a default by the Company include among others, the ability to accelerate and immediately demand payment of the outstanding debt under our term loan and revolving loan, to exercise on the security interest, to take possession of or sell the underlying collateral, to refrain from making additional advances under the revolving loan, to increase interest accruing on the debt by five percent ( 5 The term loan bears interest at 65 3,666 4,452 2,000 25 12 1,358 86 Were Huntington Bank to demand payment of the outstanding debt (whether at or, in the case of a default of the Fourth Forbearance Agreement, prior to the scheduled maturity of the loans on January 31, 2017), we would currently have insufficient funds to satisfy that obligation, and the bank’s exercise of alternative remedies could also have a material adverse effect on our operations and financial condition. As an example, in recent periods we have drawn on our revolving facility to supplement cash from operations. Should cash from operating activities remain insufficient to cover expenses and if Huntington Bank determines to refrain from making additional advances under the revolving facility, we may not have the requisite funds to continue operations. We cannot provide assurance that we will be able to complete initiatives to refinance our indebtedness or otherwise resolve our liquidity issues. If we are unable to execute on our initiatives, we may have insufficient funds to both satisfy our debt obligations and operate our business. We incurred $ 134 94 41 10 153 28 10 94 Interest Rate Swap We entered into an interest rate swap agreement with respect to the above loans to fix the interest rate with respect to 60 5.0 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES 2016 2015 Deferred tax assets: Inventory $ 209 $ 191 Accrued compensation and vacation 90 120 Accrued expenses and other 427 457 Domestic net operating loss carryforwards 5,365 4,449 Stock compensation expense 19 20 AMT credit carryover 55 75 Total deferred tax assets 6,165 5,312 Deferred tax liabilities: Prepaid expenses (64) (91) Unrealized gain/loss - warrant liability (376) Basis difference for fixed assets (412) (352) Total deferred tax liabilities (476) (819) Total net deferred tax assets 5,689 4,493 Valuation allowance for net deferred tax assets (5,689) (4,493) Net deferred tax asset (liability) $ $ 2016 2015 Current: Federal $ (20) $ 16 State and local 6 (1) Deferred: Federal State and local Income tax expense $ (14) $ 15 2016 2015 Federal statutory income tax rate 34.0 % 34.0 % Increases (decreases): State and local income taxes, net of Federal tax benefit, if applicable (0.1) % 0.0 % Nondeductible goodwill impairment (10.2) % 0.0 % Other nondeductible expenses (0.8) % 3.1 % Valuation allowance changes (22.5) % (35.7) % Effective income tax rate 0.4 % 1.4 % In the current year, an impairment of goodwill in the amount of $ 971 Realization of deferred tax assets associated with the net operating loss carryforward and credit carryforward is dependent upon generating sufficient taxable income prior to their expiration. The valuation allowance for our domestic operations in fiscal 2016 and 2015 was $ 5,689 4,493 3 4 At September 30, 2016 13,348 17,944 September 30, 2016 55 We may recognize the tax benefit from an uncertain tax position only if it more likely than not to be sustained upon regulatory examination based on the technical merits of the position. The amount of the benefit for which an exposure exists is measured as the largest amount of benefit determined on a cumulative probability basis that we believe is more likely than not to be realized upon ultimate settlement of the position. At September 30, 2016 and 2015, a $ 16 2016 2015 Balance at beginning of year $ 16 $ 16 Additions based on tax positions related to the current year - - Additions for tax positions or prior years - - Reductions for tax positions of prior years - - Settlements - - Balance at end of year $ 16 $ 16 As noted in the table above, there has been no change in our gross uncertain tax positions during fiscal 2016 based on a state tax position. We are no longer subject to U.S. federal tax examinations for years before 2012 or state and local for years before 2011, with limited exceptions. For federal purposes, the tax attributes carried forward could be adjusted through the examination process and are subject to examination 3 years from the date of utilization. We have assessed the application of Internal Revenue Code Section 382 regarding certain limitations on the future usage of net operating losses. No limitation applies as of September 30, 2016, and we will continue to monitor activities in the future. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATON | 10. STOCK-BASED COMPENSATION Summary of Stock Option Plans and Activity In March 2008, our shareholders approved the 2008 Stock Option Plan (the “Plan”) to replace the 1997 Outside Director Stock Option Plan and the 1997 Employee Stock Option Plan. Future common shares will be granted from the 2008 Stock Option Plan. The purpose of the Plan is to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees. The Compensation Committee administers the Plan and approves the particular officers, directors or employees eligible for grants. Under the Plan, employees are granted the option to purchase our common shares at fair market value on the date of the grant. Generally, options granted vest and become exercisable in four equal installments commencing one year from date of grant and expire upon the earlier of the employee’s termination of employment with us, or ten years from the date of grant. The Plan terminates in fiscal 2018. The maximum number of common shares that may be granted under the Plan is 500 228 The Compensation Committee has also issued non-qualified stock option grants with vesting periods different from the Plan. As of September 30, 2016 and 2015, total non-qualified stock options outstanding were 15 30 2016 2015 Risk-free interest rate 1.58% 2.15% Dividend yield 0.00% 0.00% Volatility of the expected market price of the Company's common shares 97.5%-97.5% 95.70%-100.10% Expected life of the options (years) 8.0 8.0 Weighted- Weighted- Weighted- Average Average Average Grant Remaining Aggregate Options Exercise Date Contractual Intrinsic (shares) Price Fair Value Life Value Outstanding - October 1, 2014 426 $ 1.83 Exercised (128) $ 1.38 $ 1.12 Granted 65 $ 2.07 $ 1.72 Terminated (44) $ 4.23 Outstanding - September 30, 2015 319 $ 1.73 $ 1.38 Outstanding - October 1, 2015 319 $ 1.73 Exercised (3) $ 1.14 $ 0.95 Granted 10 $ 0.94 $ 0.79 Terminated (64) $ 1.49 Outstanding - September 30, 2016 262 $ 1.76 $ 1.39 6.4 $ 11 Exercisable at September 30, 2016 209 $ 1.75 $ 1.36 5.8 $ 9 The aggregate intrinsic value is the product of the total options outstanding and the net positive difference of our common share price on September 30, 2016 and the options’ exercise price. As of September 30, 2016, our total unrecognized compensation cost related to non-vested stock options was $ 68 1.4 15 45 79 Weighted average Weighted Weighted Range of Remaining average average Exercise Shares Contractual Exercise Shares Exercise Prices Outstanding Life (Yrs) Price Exercisable Price $0.79 - $1.50 146 5.85 $ 1.20 136 $ 1.22 $1.51 - $4.00 100 7.83 $ 2.04 57 $ 2.05 $4.01 - $8.79 16 1.93 $ 5.09 16 $ 5.09 |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLAN | 11. RETIREMENT PLAN We have a 401(k) Retirement Plan (the “Plan”) covering all employees over twenty-one years of age with at least one year of service. Under the terms of the Plan, we match 50 6 30 169 152 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 12. SEGMENT INFORMATION We operate in two principal segments contract research services and research products. Our Services segment provides research and development support on a contract basis directly to pharmaceutical companies. Our Products segment provides liquid chromatography, electrochemical and physiological monitoring products to pharmaceutical companies, universities, government research centers, and medical research institutions. We evaluate performance and allocate resources based on these segments. Certain of our assets are not directly attributable to the Services or Products segments. These assets are grouped into the Corporate segment and include cash and cash equivalents, deferred income taxes, refundable income taxes, debt issue costs and certain other assets. We do not allocate such items to the principal segments because they are not used to evaluate their financial position. The accounting policies of these segments are the same as those described in the summary of significant accounting policies. (a) Operating Segments Years Ended September 30, 2016 2015 Revenue: Services $ 15,924 $ 17,768 Products 4,517 4,930 $ 20,441 $ 22,698 Operating (loss) income : Services $ (1,576) $ 889 Products (1,464) 20 $ (3,040) $ 909 Interest Expense (399) (287) Decrease in fair value of warrant liability 189 487 Other income 6 5 Income (loss) before income taxes $ (3,244) $ 1,114 Years Ended September 30, 2016 2015 Identifiable assets: Services $ 12,413 $ 14,709 Products 5,562 5,821 Corporate 3,164 3,285 $ 21,139 $ 23,815 Goodwill, net: Services $ 38 $ 1,009 Products $ 38 $ 1,009 Years Ended September 30, 2016 2015 Depreciation and amortization: Services $ 1,242 $ 1,228 Products 314 209 $ 1,556 $ 1,437 Capital expenditures: Services $ 945 $ 1,073 Products 311 394 $ 1,256 $ 1,467 (b) Geographic Information Years Ended September 30, 2016 2015 Sales to External Customers: United States $ 18,385 $ 19,732 Other North America 297 1,099 Pacific Rim 1,148 646 Europe 447 908 Other 164 313 $ 20,441 $ 22,698 Long-lived Assets: United States $ 16,211 $ 17,124 $ 16,211 $ 17,124 (c) Major Customers In fiscal 2016, our Services group continued its presence at several important existing customers. In fiscal 2016, one customer accounted for approximately 14.0 13.2 2 4.0 19.4 |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | 13. RESTRUCTURING In March 2012, we announced a plan to restructure our bioanalytical laboratory operations. We consolidated our laboratory in McMinnville, Oregon into our 120,000 We reserved for lease payments at the cease use date for our UK facility and have considered free rent, sublease rentals and the number of days it would take to restore the space to its original condition prior to our improvements. In the first quarter of fiscal 2013, we began amortizing into general and administrative expense, equally through the cease use date, the estimated rent income of $ 200 1,000 Other costs of $ 117 |
SELF-INSURANCE
SELF-INSURANCE | 12 Months Ended |
Sep. 30, 2016 | |
SELF-INSURANCE [Abstract] | |
SELF-INSURANCE | 14. SELF-INSURANCE The Company is self-insured for certain costs related to its employee health plan. Costs resulting from noninsured losses are charged to income when incurred. The Company has purchased insurance which limits its exposure for individual claims to approximately $ 75 85 1,531 871 |
MEDIATION
MEDIATION | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
MEDIATION | 15. MEDIATION In the third quarter of fiscal 2015, the Company received $ 640 35 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | 16. RELATED-PARTY TRANSACTIONS The Company entered into a consulting agreement with a shareholder during fiscal 2016. The Company incurred consulting fees and reimbursed travel costs of $31 for the year ended September 30, 2016. The agreement was terminated on good terms on June 1, 2016. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 17. SUBSEQUENT EVENT In connection with our former Chief Executive Officer and President’s resignation in November 2016, her attorney provided a letter to Company’s counsel, which indicates that she believes her resignation to be for "good reason" under the terms of her employment agreement and her expectation of severance compensation commensurate therewith. The Company disagrees with the characterization of the events set forth in the letter, and disagrees that our former Chief Executive Officer and President has met the requirements under her employment agreement to resign for "good reason." Nonetheless, costs incurred to resolve this matter and any severance compensation the Company becomes obligated, or otherwise determines, to pay, could have a material adverse effect on our financial condition. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (a) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated. |
Revenue Recognition | (b) Revenue Recognition The majority of our bioanalytical and analytical research service contracts involve the development of analytical methods and the processing of bioanalytical samples for pharmaceutical companies and generally provide for a fixed fee for each sample processed. Revenue is recognized under the specific performance method of accounting and the related direct costs are recognized when services are performed. Our preclinical research service contracts generally consist of preclinical studies, and revenue is recognized under the proportional performance method of accounting. Revisions in profit estimates, if any, are reflected on a cumulative basis in the period in which such revisions become known. The establishment of contract prices and total contract costs involves estimates we make at the inception of the contract. These estimates could change during the term of the contract and impact the revenue and costs reported in the consolidated financial statements. Revisions to estimates have generally not been material. Research service contract fees received upon acceptance are deferred until earned, and classified within customer advances. Unbilled revenues represent revenues earned under contracts in advance of billings. Product revenue from sales of equipment not requiring installation, testing or training is recognized upon shipment to customers. One product includes internally developed software and requires installation, testing and training, which occur concurrently. Revenue from these sales is recognized upon completion of the installation, testing and training when the services are bundled with the equipment sale. |
Cash Equivalents | (c) Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At September 30, 2016, we did not have any cash accounts that exceeded federally insured limits. |
Accounts Receivable | (d) Accounts Receivable We perform periodic credit evaluations of our customers’ financial conditions and generally do not require collateral on trade accounts receivable. We account for trade receivables based on the amounts billed to customers. Past due receivables are determined based on contractual terms. We do not accrue interest on any of our trade receivables. The allowance for doubtful accounts is determined by management based on our historical losses, specific customer circumstances, and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables when all attempts to collect have failed. Our allowance for doubtful accounts was $ 565 559 Fiscal year ended September 30, 2016 2015 Opening balance $ 559 $ 54 Charged to expense 84 505 Accounts recovered (25) Accounts written off (53) Ending balance $ 565 $ 559 |
Inventories | (e) Inventories Inventories are stated at the lower of cost or market using the first-in, first-out (FIFO) cost method of accounting. We evaluate inventories on a regular basis to identify inventory on hand that may be obsolete or in excess of current and future projected market demand. For inventory deemed to be obsolete, we provide a reserve. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates the estimate of future demand. Fiscal year ended September 30, 2016 2015 Opening balance $ 301 $ 299 Provision for slow moving and obsolescence 21 45 Write-off of obsolete and slow moving inventory (34) (43) Closing balance $ 288 $ 301 |
Property and Equipment | (f) Property and Equipment We record property and equipment at cost, including interest capitalized during the period of construction of major facilities. We compute depreciation, including amortization on capital leases, using the straight-line method over the estimated useful lives of the assets, which we estimate to be: buildings and improvements, 34 40 5 10 10 1,398 1,402 2016 2015 Land and improvements $ 1,043 $ 923 Buildings and improvements 21,943 21,347 Machinery and equipment 18,568 17,946 Office furniture and fixtures 645 640 Construction in progress 603 832 42,802 41,688 Less: accumulated depreciation (26,666) (25,699) Net property and equipment $ 16,136 $ 15,989 |
Long-Lived Assets including Goodwill | (g) Long-Lived Assets including Goodwill Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized of the amount by which the carrying amount of the asset exceeds the fair value of the asset. We carry goodwill at cost. Other intangible assets with definite lives are stated at cost and are amortized on a straight-line basis over their estimated useful lives. All intangible assets acquired that are obtained through contractual or legal right, or are capable of being separately sold, transferred, licensed, rented, or exchanged, are recognized as an asset apart from goodwill. Goodwill is not amortized . Goodwill is tested annually for impairment and more frequently if events and circumstances indicate that the asset might be impaired. First, we can assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We elected to bypass the qualitative assessment aspect of this guidance. We proceeded directly to a two-step quantitative process. In the first step, we compare the fair value of each reporting unit, as computed primarily by present value cash flow calculations, to its book carrying value, including goodwill. We do not believe that market value is indicative of the true fair value of the Company mainly due to average daily trading volumes of less than 1%. If the fair value exceeds the carrying value, no further work is required and no impairment loss is recognized. If the carrying value exceeds the fair value, the goodwill of the reporting unit is potentially impaired and we would then complete step 2 in order to measure the impairment loss. In step 2, the implied fair value is compared to the carrying amount of the goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, we would recognize an impairment loss equal to the difference. The implied fair value is calculated by allocating the fair value of the reporting unit (as determined in step 1) to all of its assets and liabilities (including unrecognized intangible assets) and any excess in fair value that is not assigned to the assets and liabilities is the implied fair value of goodwill. The discount rate, gross margin and sales growth rates are material assumptions utilized in our calculations of the present value cash flows used to estimate the fair value of the reporting units when performing the annual goodwill impairment test. Our reporting units with goodwill at September 30, 2015 were bioanalytical services and preclinical services, which are both included in our Services segment, based on the discrete financial information available which is reviewed by management. We utilize a cash flow approach in estimating the fair value of the reporting units, where the discount rate reflects a weighted average cost of capital rate. The cash flow model used to derive fair value is sensitive to the discount rate and sales growth assumptions used. We performed our annual goodwill impairment test for all reporting units mentioned above at September 30, 2016. There was no indication of impairment for the Preclinical Services reporting unit as of September 30, 2016. The estimated fair value of our Bioanalytical Services reporting unit was less than its related book value and we determined that its goodwill balance was impaired. This was a result of the rates of growth, earnings and cash flow expectations for future performance that were below the Company’s previous projections. In late fiscal 2015, we began to experience a declining revenue pattern resulting from a smaller percentage of quotes accepted in this reporting unit due in part to staff turnover in our Business Development group that we were unable to reverse in fiscal 2016. Accordingly, step two of the goodwill impairment test was completed for the Bioanalytical Services reporting unit which resulted in an impairment charge totaling $ 971 Considerable management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted sales growth rates and our cost of capital or discount rate, are based on the best available market information. Changes in these estimates or a continued decline in general economic conditions could change our conclusion regarding an impairment of goodwill and potentially result in a non-cash impairment loss in a future period. The assumptions used in our impairment testing could be adversely affected by certain risks. There have been no significant events since the timing of our impairment tests that would have triggered additional impairment testing. At September 30, 2016 the remaining recorded goodwill was $ 38 1,009 Bioanalytical Preclinical Total Balance as of October 1, 2015 $ 971 $ 38 $ 1,009 Impairment loss (971) - (971) Balance as of September 30, 2016 $ - $ 38 $ 38 We amortize costs of patents and licenses, which are included in other assets on the Consolidated Balance Sheets. For the fiscal years ended September 30, 2016 and 2015, the amortization expense associated with these was $ 5 7 |
Advertising Expense | (h) Advertising Expense We expense advertising costs as incurred. Advertising expense was $ 14 16 |
Stock-Based Compensation | (i) Stock-Based Compensation We have a stock-based employee compensation plan and a stock-based employee and outside director compensation plan, which are described more fully in Note 10. All options granted under these plans have an exercise price equal to the market value of the underlying common shares on the date of grant. We expense the estimated fair value of stock options over the vesting periods of the grants. Our policy is to recognize expense for awards subject to graded vesting using the straight-line attribution method, reduced for estimated forfeitures. We use a binomial option-pricing model as our method of valuation for share-based awards, requiring us to make certain assumptions about the future, which are more fully described in Note 10. |
Income Taxes | (j) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We record valuation allowances based on a determination of the expected realization of tax assets. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of the accrual for which an exposure exists is measured as the largest amount of benefit determined on a cumulative probability basis that we believe is more likely than not to be realized upon settlement of the position. We record interest and penalties accrued in relation to uncertain income tax positions as a component of income tax expense. Any changes in the liability for uncertain tax positions would impact our effective tax rate. We do not expect the total amount of unrecognized tax benefits to significantly change in the next twelve months. |
Fair Value of Financial Instruments | (k) Fair Value of Financial Instruments The provisions of the Fair Value Measurements and Disclosure Topic defines fair value, establishes a consistent framework for measuring fair value and provides the disclosure requirements about fair value measurements. This Topic also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s judgment about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: · Level 1 Valuations based on quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. · Level 2 Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. · Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement. In May 2011, we issued Class A and B Warrants that are measured at fair value on a recurring basis. We recorded these warrants as a liability determining the fair value at inception on May 11, 2011. Subsequent quarterly fair value measurements, using the Black Scholes model which is considered a level 2 measurement, are calculated with fair value changes charged to the statement of operations and comprehensive income (loss). Class B Warrants expired in May 2012 and the liability was reduced to zero. Class A Warrants expired in May 2016 and the liability was reduced to zero. September 30, 2015 Risk-free interest rate 0.14 % Dividend yield 0.00 % Volatility of the Company's common shares 65.03 % Expected life of the warrants (years) 0.6 Fair value per unit $ 0.236 The carrying amounts for cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other assets, accounts payable and other accruals approximate their fair values because of their nature and respective duration. The carrying value of the credit facility entered into in fiscal 2014 approximates fair value due to the variable nature of the interest rates. We use an interest rate swap, designated as a hedge, to fix 60 Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 35 $ - Class A warrant liability $ - $ - $ - The following table summarizes fair value measurements by level as of September 30, 2015, for the Company’s financial liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 50 $ - Class A warrant liability $ - $ 189 $ - |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates as part of the issuance of these consolidated financial statements include but are not limited to the determination of fair values, allowance for doubtful accounts, inventory obsolescence, deferred tax valuations, depreciation, impairment charges and stock compensation. Our actual results could differ from those estimates. |
Research and Development | (m) Research and Development In fiscal 2016 and 2015, we incurred $ 496 715 |
Interest Rate Swap | (n) Interest Rate Swap The Company uses an interest rate swap designated as a cash flow hedge to fix 60% of the Huntington debt due to mitigate changes in interest rates. The changes in the fair value of the interest rate swap are recorded in Accumulated Other Comprehensive Income (AOCI) to the extent effective. We assess on an ongoing basis whether the derivative that is used in the hedging transaction is highly effective in offsetting changes in cash flows of the hedged debt. The terms of the interest rate swap match the terms of the underlying debt resulting in no ineffectiveness. When we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued and we reclassify gains or losses that were accumulated in AOCI to other income (expense), net on the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The balance in AOCI at September 30, 2016 and 2015 was ($ 35 53 |
Debt issuance costs | (o) Debt issuance costs The Company capitalizes costs associated with the issuance of debt and amortizes them as additional interest expense over the lives of the debt on a straight-line basis, which approximates the effective interest method. The Company believes the difference between the straight-line basis and the effective interest method is not material to the consolidated financial statements. Upon prepayment of the related debt, the Company accelerates the recognition of an appropriate amount of the costs as refinancing or extinguishment of debt. |
Reclassifications | (p) Reclassifications Certain amounts in the fiscal 2015 consolidated financial statements have been reclassified to conform to the fiscal 2016 presentation without affecting previously reported net income or stockholders’ equity. |
New Accounting Pronouncements | (q) New Accounting Pronouncements Effective October 1, 2018, the Company will be required to adopt the new guidance of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), which will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company will be required to adopt Topic 606 either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application. If the Company elects the modified retrospective approach, it will be required to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes. The Company has not yet assessed the impact of the new guidance on its consolidated financial statements. In August 2014, the FASB issued new guidance in Accounting Standards Update (ASU) No. 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40).” The update provides guidance regarding management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The Company is required to adopt the guidance in the first quarter of fiscal 2017. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. In November 2014, the FASB issued new guidance in ASU No. 2014-16, “Derivatives and Hedging (Topic 815) Determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity.” The guidance clarifies how current GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The Company adopted this guidance with no material effect on the consolidated financial statements. In February 2015, the FASB amended guidance in ASU No. 2015-02, “Consolidation Topic 810.” The guidance made certain targeted revisions to various area of the consolidation guidance, including the determination of the primary beneficiary of an entity, among others. The Company adopted this guidance with no material effect on the consolidated financial statements. In April 2015, the FASB amended the existing accounting standards for imputation of interest. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. The Company is required to adopt the guidance in the first quarter of fiscal 2017. Early adoption is permitted. The amendments should be applied retrospectively with the adjusted balance sheet of each individual period presented, in order to reflect the period-specific effects of applying the new guidance. The effect of adopting this guidance will be to reclass $ 10 In July 2015, the FASB issued an amendment to the accounting guidance related to the measurement of inventory. The amendment revises inventory to be measured at lower of cost and net realizable value from lower of cost or market. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. This guidance will be effective prospectively for the first quarter of fiscal 2018, with early application permitted. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. In February 2016, the FASB issued updated guidance on leases which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. We are currently evaluating the effects of the adoption and have not yet determined the impact the revised guidance will have on our consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Schedule Of Valuation And Qualifying Accounts Disclosure | A summary of activity in our allowance for doubtful accounts is as follows: Fiscal year ended September 30, 2016 2015 Opening balance $ 559 $ 54 Charged to expense 84 505 Accounts recovered (25) Accounts written off (53) Ending balance $ 565 $ 559 |
Schedule Of Movement In Inventory Reserve | A summary of activity in our inventory obsolescence is as follows for the years ended September 30, 2016 and 2015: Fiscal year ended September 30, 2016 2015 Opening balance $ 301 $ 299 Provision for slow moving and obsolescence 21 45 Write-off of obsolete and slow moving inventory (34) (43) Closing balance $ 288 $ 301 |
Schedule of Property, Plant and Equipment | Property and equipment, net, as of September 30, 2016 and 2015 consisted of the following: 2016 2015 Land and improvements $ 1,043 $ 923 Buildings and improvements 21,943 21,347 Machinery and equipment 18,568 17,946 Office furniture and fixtures 645 640 Construction in progress 603 832 42,802 41,688 Less: accumulated depreciation (26,666) (25,699) Net property and equipment $ 16,136 $ 15,989 |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the year ended September 30, 2016, are as follows: Bioanalytical Preclinical Total Balance as of October 1, 2015 $ 971 $ 38 $ 1,009 Impairment loss (971) - (971) Balance as of September 30, 2016 $ - $ 38 $ 38 |
Fair Value, Liabilities Measured on Recurring Basis | The following table summarizes fair value measurements by level as of September 30, 2016, for the Company’s financial liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 35 $ - Class A warrant liability $ - $ - $ - The following table summarizes fair value measurements by level as of September 30, 2015, for the Company’s financial liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 50 $ - Class A warrant liability $ - $ 189 $ - |
Class A Warrant [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The assumptions used to compute the fair value of the Class A Warrants at September 30, 2015 was as follows: September 30, 2015 Risk-free interest rate 0.14 % Dividend yield 0.00 % Volatility of the Company's common shares 65.03 % Expected life of the warrants (years) 0.6 Fair value per unit $ 0.236 |
SALE OF PREFERRED SHARES AND 26
SALE OF PREFERRED SHARES AND WARRANTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following table summarizes the change in the estimated fair value of the Company’s Class A warrants as of September 30 (in thousands): 2016 2015 Balance at beginning of year $ 189 $ 676 Fair value of Class A warrants exercised Decrease in fair value of Class A warrants (189) (487) Balance at end of year $ $ 189 |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles our computation of basic net income (loss) per share to diluted net income (loss) per share: Years Ended September 30, 2016 2015 Basic net income (loss) per share: Net (loss) income applicable to common shareholders $ (3,230) $ 1,099 Weighted average common shares outstanding 8,107 8,084 Basic net (loss) income per share $ (0.40) $ 0.14 Diluted net income (loss) per share: Net (loss) income applicable to common shareholders $ (3,230) $ 1,099 Change in fair value of warrant liability (487) Diluted net (loss) income applicable to common shareholders $ (3,230) $ 612 Weighted average common shares outstanding 8,107 8,084 Plus: Incremental shares from assumed conversions: Series A preferred shares 593 Class A warrants 4 Dilutive stock options/shares 110 Diluted weighted average common shares outstanding 8,107 8,791 Diluted net (loss) income per share $ (0.40) $ 0.07 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories at September 30 consisted of the following: 2016 2015 Raw materials $ 1,190 $ 1,112 Work in progress 267 247 Finished goods 284 408 $ 1,741 $ 1,767 Obsolescence reserve (288) (301) $ 1,453 $ 1,466 |
LEASE ARRANGEMENTS (Tables)
LEASE ARRANGEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments on capital leases at September 30, 2016 for the next five years are as follows: Principal Interest Total 2017 $ 126 $ 14 $ 140 2018 128 7 135 2019 70 1 71 2020 2021 $ 324 $ 22 $ 346 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments, exclusive of rent related to the UK restructuring discussed in Note 13, for 2017 $ 13 2018 12 2019 12 2020 11 2021 8 $ 56 |
Schedule of Future Rental Income Recognized and Cash Rents Receivable | Future rental income recognized and cash rents received for the next five years are as follows: Straight line Cash rent rents to be to be recognized received 2017 $ 636 $ 600 2018 636 609 2019 636 621 2020 636 633 2021 636 646 $ 3,180 $ 3,109 |
DEBT ARRANGEMENTS (Tables)
DEBT ARRANGEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following at September 30: 2016 2015 Term loan payable to a bank, payable in monthly principal installments of $65. Interest is variable at LIBOR plus 325 basis points, which was 3.4 % at September 30, 2016. Collateralized by underlying property. Due January 31, 2017. $ 3,666 $ 4,452 Less: Current portion 3,666 786 Long term total $ $ 3,666 |
Schedule of Maturities of Long-term Debt | The following table summarizes the annual principal payments under our term loan: 2017 2018 2019 2020 Total Term loan $ 3,666 $ $ $ $ 3,666 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of September 30 are as follows: 2016 2015 Deferred tax assets: Inventory $ 209 $ 191 Accrued compensation and vacation 90 120 Accrued expenses and other 427 457 Domestic net operating loss carryforwards 5,365 4,449 Stock compensation expense 19 20 AMT credit carryover 55 75 Total deferred tax assets 6,165 5,312 Deferred tax liabilities: Prepaid expenses (64) (91) Unrealized gain/loss - warrant liability (376) Basis difference for fixed assets (412) (352) Total deferred tax liabilities (476) (819) Total net deferred tax assets 5,689 4,493 Valuation allowance for net deferred tax assets (5,689) (4,493) Net deferred tax asset (liability) $ $ |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision (benefit) for income taxes are as follows as of the year ended September 30: 2016 2015 Current: Federal $ (20) $ 16 State and local 6 (1) Deferred: Federal State and local Income tax expense $ (14) $ 15 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate on continuing operations varied from the statutory federal income tax rate as follows: 2016 2015 Federal statutory income tax rate 34.0 % 34.0 % Increases (decreases): State and local income taxes, net of Federal tax benefit, if applicable (0.1) % 0.0 % Nondeductible goodwill impairment (10.2) % 0.0 % Other nondeductible expenses (0.8) % 3.1 % Valuation allowance changes (22.5) % (35.7) % Effective income tax rate 0.4 % 1.4 % |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 Balance at beginning of year $ 16 $ 16 Additions based on tax positions related to the current year - - Additions for tax positions or prior years - - Reductions for tax positions of prior years - - Settlements - - Balance at end of year $ 16 $ 16 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used to compute the fair value of options granted for the fiscal years ended September 30 were as follows: 2016 2015 Risk-free interest rate 1.58% 2.15% Dividend yield 0.00% 0.00% Volatility of the expected market price of the Company's common shares 97.5%-97.5% 95.70%-100.10% Expected life of the options (years) 8.0 8.0 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of our stock option activity for all options and related information for the years ended September 30, 2016 and 2015, respectively, is as follows (in thousands except for share prices): Weighted- Weighted- Weighted- Average Average Average Grant Remaining Aggregate Options Exercise Date Contractual Intrinsic (shares) Price Fair Value Life Value Outstanding - October 1, 2014 426 $ 1.83 Exercised (128) $ 1.38 $ 1.12 Granted 65 $ 2.07 $ 1.72 Terminated (44) $ 4.23 Outstanding - September 30, 2015 319 $ 1.73 $ 1.38 Outstanding - October 1, 2015 319 $ 1.73 Exercised (3) $ 1.14 $ 0.95 Granted 10 $ 0.94 $ 0.79 Terminated (64) $ 1.49 Outstanding - September 30, 2016 262 $ 1.76 $ 1.39 6.4 $ 11 Exercisable at September 30, 2016 209 $ 1.75 $ 1.36 5.8 $ 9 |
Schedule Of Outstanding And Exercisable Options | Weighted average Weighted Weighted Range of Remaining average average Exercise Shares Contractual Exercise Shares Exercise Prices Outstanding Life (Yrs) Price Exercisable Price $0.79 - $1.50 146 5.85 $ 1.20 136 $ 1.22 $1.51 - $4.00 100 7.83 $ 2.04 57 $ 2.05 $4.01 - $8.79 16 1.93 $ 5.09 16 $ 5.09 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | (a) Operating Segments Years Ended September 30, 2016 2015 Revenue: Services $ 15,924 $ 17,768 Products 4,517 4,930 $ 20,441 $ 22,698 Operating (loss) income : Services $ (1,576) $ 889 Products (1,464) 20 $ (3,040) $ 909 Interest Expense (399) (287) Decrease in fair value of warrant liability 189 487 Other income 6 5 Income (loss) before income taxes $ (3,244) $ 1,114 Years Ended September 30, 2016 2015 Identifiable assets: Services $ 12,413 $ 14,709 Products 5,562 5,821 Corporate 3,164 3,285 $ 21,139 $ 23,815 Goodwill, net: Services $ 38 $ 1,009 Products $ 38 $ 1,009 Years Ended September 30, 2016 2015 Depreciation and amortization: Services $ 1,242 $ 1,228 Products 314 209 $ 1,556 $ 1,437 Capital expenditures: Services $ 945 $ 1,073 Products 311 394 $ 1,256 $ 1,467 |
Schedule of Geographical Information | (b) Geographic Information Years Ended September 30, 2016 2015 Sales to External Customers: United States $ 18,385 $ 19,732 Other North America 297 1,099 Pacific Rim 1,148 646 Europe 447 908 Other 164 313 $ 20,441 $ 22,698 Long-lived Assets: United States $ 16,211 $ 17,124 $ 16,211 $ 17,124 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Opening balance | $ 559 | $ 54 |
Charged to expense | 84 | 505 |
Accounts recovered | (25) | 0 |
Accounts written off | (53) | 0 |
Ending balance | $ 565 | $ 559 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - Inventory Valuation Reserve [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Opening balance | $ 301 | $ 299 |
Provision for slow moving and obsolescence | 21 | 45 |
Write-off of obsolete and slow moving inventory | (34) | (43) |
Closing balance | $ 288 | $ 301 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Summary Of Significant Accounting Policies [Line Items] | ||
Land and improvements | $ 1,043 | $ 923 |
Buildings and improvements | 21,943 | 21,347 |
Machinery and equipment | 18,568 | 17,946 |
Office furniture and fixtures | 645 | 640 |
Construction in progress | 603 | 832 |
Property, Plant and Equipment, Gross, Total | 42,802 | 41,688 |
Less: accumulated depreciation | (26,666) | (25,699) |
Net property and equipment | $ 16,136 | $ 15,989 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Balance | $ 1,009 | |
Impairment loss | 971 | $ 0 |
Balance | 38 | 1,009 |
Bioanalytical Services [Member] | ||
Balance | 971 | |
Impairment loss | (971) | |
Balance | 0 | 971 |
Preclinical Services [Member] | ||
Balance | 38 | |
Impairment loss | 0 | |
Balance | $ 38 | $ 38 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - Common Class A [Member] - Fair Value, Inputs, Level 2 [Member] | 12 Months Ended |
Sep. 30, 2015$ / shares | |
Risk-free interest rate | 0.14% |
Dividend yield | 0.00% |
Volatility of the Company's common shares | 65.03% |
Expected life of the warrants (years) | 7 months 6 days |
Fair value per unit | $ 0.236 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||
Derivative Liability | $ 0 | $ 0 |
Fair Value, Inputs, Level 1 [Member] | Warrant [Member] | ||
Derivative Liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
Derivative Liability | 35 | 50 |
Fair Value, Inputs, Level 2 [Member] | Warrant [Member] | ||
Derivative Liability | 0 | 189 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||
Derivative Liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Warrant [Member] | ||
Derivative Liability | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 565 | $ 565 |
Depreciation, Total | 1,398 | 1,402 |
Goodwill | 38 | 1,009 |
Advertising Expense | $ 14 | 16 |
Percentage of Debt Hedged by Interest Rate Derivatives | 60.00% | |
Research and Development Expense, Total | $ 496 | 715 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 35 | 53 |
Deferred Finance Costs, Net | 10 | |
Other Intangible Assets [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization of Intangible Assets | $ 5 | $ 7 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 34 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Furniture and Fixtures [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years |
SALE OF PREFERRED SHARES AND 41
SALE OF PREFERRED SHARES AND WARRANTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Decrease in fair value of Class A warrants | $ 189 | $ 487 |
Class A Warrant [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Balance at beginning of year | 189 | 676 |
Fair value of Class A warrants exercised | 0 | 0 |
Decrease in fair value of Class A warrants | (189) | (487) |
Balance at end of year | $ 0 | $ 189 |
SALE OF PREFERRED SHARES AND 42
SALE OF PREFERRED SHARES AND WARRANTS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 11, 2011 | Sep. 30, 2016 | Sep. 30, 2015 |
Stock And Warrants By Class [Line Items] | |||
Units Issued During Period Shares New Issues | 5,506 | ||
Shares Issued, Price Per Share | $ 1,000 | ||
Class Of Warrant Or Right Exercises | 577,897 | ||
Fair Value Adjustment of Warrants | $ (189) | $ (487) | |
Class A Warrant [Member] | |||
Stock And Warrants By Class [Line Items] | |||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 250 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2 | ||
Fair Value Adjustment of Warrants | $ 189 | $ 487 | |
Class B Warrant [Member] | |||
Stock And Warrants By Class [Line Items] | |||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 250 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2 | ||
Series A Preferred Stock [Member] | |||
Stock And Warrants By Class [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 6.00% | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 500 | ||
Convertible Preferred Stock Aggregate Shares Issued Upon Conversion | 2,753,000 | ||
Share Price | $ 1.86 | ||
Conversion of Stock, Shares Converted | 4,321 | ||
Conversion of Stock, Shares Issued | 2,564,108 | ||
Common Stock Dividends, Shares | 217,366 | ||
Preferred Stock, Shares Outstanding | 1,185 | 1,185 |
INCOME (LOSS) PER SHARE (Detail
INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Basic net income (loss) per share: | ||
Net (loss) income applicable to common shareholders | $ (3,230) | $ 1,099 |
Weighted average common shares outstanding | 8,107 | 8,084 |
Basic net (loss) income per share | $ (0.40) | $ 0.14 |
Diluted net income (loss) per share: | ||
Net (loss) income applicable to common shareholders | $ (3,230) | $ 1,099 |
Change in fair value of warrant liability | 0 | (487) |
Diluted net (loss) income applicable to common shareholders | $ (3,230) | $ 612 |
Weighted average common shares outstanding | 8,107 | 8,084 |
Plus: Incremental shares from assumed conversions: | ||
Series A preferred shares | 0 | 593 |
Class A warrants | 0 | 4 |
Dilutive stock options/shares | 0 | 110 |
Diluted weighted average common shares outstanding | 8,107 | 8,791 |
Diluted net (loss) income per share | $ (0.40) | $ 0.07 |
INCOME (LOSS) PER SHARE (Deta44
INCOME (LOSS) PER SHARE (Details Textual) shares in Thousands | 12 Months Ended |
Sep. 30, 2016shares | |
Series A Preferred Stock [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 592 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 1,190 | $ 1,112 |
Work in progress | 267 | 247 |
Finished goods | 284 | 408 |
Gross inventories | 1,741 | 1,767 |
Obsolescence reserve | (288) | (301) |
Inventories | $ 1,453 | $ 1,466 |
LEASE ARRANGEMENTS (Details)
LEASE ARRANGEMENTS (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Capital Leased Assets [Line Items] | |
2,017 | $ 140 |
2,018 | 135 |
2,019 | 71 |
2,020 | 0 |
2,021 | 0 |
Total minimum lease payments due | 346 |
Principal [Member] | |
Capital Leased Assets [Line Items] | |
2,017 | 126 |
2,018 | 128 |
2,019 | 70 |
2,020 | 0 |
2,021 | 0 |
Total minimum lease payments due | 324 |
Interest [Member] | |
Capital Leased Assets [Line Items] | |
2,017 | 14 |
2,018 | 7 |
2,019 | 1 |
2,020 | 0 |
2,021 | 0 |
Total minimum lease payments due | $ 22 |
LEASE ARRANGEMENTS (Details 1)
LEASE ARRANGEMENTS (Details 1) $ in Thousands | Sep. 30, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 13 |
2,018 | 12 |
2,019 | 12 |
2,020 | 11 |
2,021 | 8 |
Total minimum lease payments due | $ 56 |
LEASE ARRANGEMENTS (Details 2)
LEASE ARRANGEMENTS (Details 2) $ in Thousands | Sep. 30, 2016USD ($) |
Straight Line Rent [Member] | |
Operating Leased Assets [Line Items] | |
2,017 | $ 636 |
2,018 | 636 |
2,019 | 636 |
2,020 | 636 |
2,021 | 636 |
Operating Leases, Future Minimum Payments Receivable, Total | 3,180 |
Cash Rent [Member] | |
Operating Leased Assets [Line Items] | |
2,017 | 600 |
2,018 | 609 |
2,019 | 621 |
2,020 | 633 |
2,021 | 646 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 3,109 |
LEASE ARRANGEMENTS (Details Tex
LEASE ARRANGEMENTS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Capital And Operating Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 6,195 | $ 5,892 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 5,880 | 5,623 |
Capital Lease Obligations Incurred | 303 | 0 |
Operating Leases, Rent Expense, Net, Total | 96 | $ 82 |
Operating Lease Rental Revenue | 901 | |
Cash Rent | $ 850 | |
Equipment [Member] | ||
Capital And Operating Leased Assets [Line Items] | ||
Lease Expiration Date | Dec. 31, 2019 | |
Building [Member] | ||
Capital And Operating Leased Assets [Line Items] | ||
Operating Lease Option To Cancel Lease Minimum Duration Of Lease | 7 years | |
Lease Expiration Date | Dec. 31, 2023 |
DEBT ARRANGEMENTS (Details)
DEBT ARRANGEMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Debt Instrument [Line Items] | ||
Term loan payable to a bank, payable in monthly principal installments of $65. Interest is variable at LIBOR plus 325 basis points which was 3.4 % at September 30, 2016. Collateralized by underlying property. Due January 31, 2017. | $ 3,666 | $ 4,452 |
Less: Current portion | 3,666 | 786 |
Long term total | $ 0 | $ 3,666 |
DEBT ARRANGEMENTS (Details 1)
DEBT ARRANGEMENTS (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Debt Instrument [Line Items] | ||
2,017 | $ 3,666 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Total | $ 3,666 | $ 4,452 |
DEBT ARRANGEMENTS (Details Text
DEBT ARRANGEMENTS (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||||
Interest Paid, Total | $ 312 | $ 264 | |||
Deferred Finance Costs, Net | $ 10 | ||||
Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 60.00% | ||||
Huntington Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs | $ 134 | ||||
Deferred Finance Costs, Net | $ 10 | 94 | |||
Debt Instrument, Interest Rate, Increase (Decrease) | 5.00% | ||||
Amortization Of Financing Costs | $ 41 | $ 153 | 28 | ||
Interest Expense, Debt | $ 12 | ||||
Huntington Bank [Member] | Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Amortization Of Financing Costs | $ 10 | ||||
Term Loan Payable To Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Periodic Payment, Total | $ 65 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.40% | ||||
Debt Instrument Maturity Date | Jan. 31, 2017 | ||||
Term Loan Payable To Bank [Member] | Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||
Credit Facility Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Expense, Debt | $ 94 | ||||
Credit Facility Term Loan [Member] | Huntington Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Periodic Payment, Principal | 65 | ||||
Long-term Debt, Gross | $ 3,666 | 4,452 | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 325 basis points | ||||
Credit Facility Revolving Loan [Member] | Huntington Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 300 basis points | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000 | ||||
Line of Credit Facility, Commitment Fee Percentage | 25.00% | ||||
Line of Credit Facility, Covenant Terms | The revolving loan includes an annual clean-up provision that requires the Company to maintain a balance of not more than 20% of the maximum loan of $2,000 for a period of 30 days in any 12 month period while the revolving loan is outstanding. | ||||
Long-term Line of Credit | $ 1,358 | $ 86 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets: | ||
Inventory | $ 209 | $ 191 |
Accrued compensation and vacation | 90 | 120 |
Accrued expenses and other | 427 | 457 |
Domestic net operating loss carryforwards | 5,365 | 4,449 |
Stock compensation expense | 19 | 20 |
AMT credit carryover | 55 | 75 |
Total deferred tax assets | 6,165 | 5,312 |
Deferred tax liabilities: | ||
Prepaid expenses | (64) | (91) |
Unrealized gain/loss - warrant liability | 0 | (376) |
Basis difference for fixed assets | (412) | (352) |
Total deferred tax liabilities | (476) | (819) |
Total net deferred tax assets | 5,689 | 4,493 |
Valuation allowance for net deferred tax assets | (5,689) | (4,493) |
Net deferred tax asset (liability) | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Current: | ||
Federal | $ (20) | $ 16 |
State and local | 6 | (1) |
Deferred: | ||
Federal | 0 | 0 |
State and local | 0 | 0 |
Income tax expense | $ (14) | $ 15 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Federal statutory income tax rate | 34.00% | 34.00% |
Increases (decreases): | ||
State and local income taxes, net of Federal tax benefit, if applicable | (0.10%) | 0.00% |
Nondeductible goodwill impairment | (10.20%) | 0.00% |
Other nondeductible expenses | (0.80%) | 3.10% |
Valuation allowance changes | (22.50%) | (35.70%) |
Effective income tax rate | 0.40% | 1.40% |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Balance at beginning of year | $ 16 | $ 16 |
Additions based on tax positions related to the current year | 0 | |
Additions for tax positions or prior years | 0 | 0 |
Reductions for tax positions of prior years | 0 | |
Settlements | 0 | 0 |
Balance at end of year | $ 16 | $ 16 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Line Items] | |||
Income Taxes Paid | $ 0 | $ 4,000 | |
Unrecognized Tax Benefits, Beginning Balance | 16,000 | 16,000 | $ 16,000 |
Goodwill, Impairment Loss | 971,000 | 0 | |
Alternative Minimum Tax Credit Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Tax Credit Carryforward, Amount | 55,000 | ||
Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | 13,348,000 | ||
Operating Loss Carryforwards, Valuation Allowance | $ 5,689 | $ 4,493 | |
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2016 | ||
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2030 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 17,944,000 | ||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2016 | ||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Sep. 30, 2030 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - Employee Stock Option [Member] | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.58% | 2.15% |
Dividend yield | 0.00% | 0.00% |
Volatility of the expected market price of the Company's common shares, minimum | 97.50% | 95.70% |
Volatility of the expected market price of the Company's common shares, maximum | 97.50% | 100.10% |
Expected life of the options (years) | 8 years | 8 years |
STOCK-BASED COMPENSATION (Det59
STOCK-BASED COMPENSATION (Details 1) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Options (shares) Outstanding | 319 | 426 |
Options (shares) Exercised | (3) | (128) |
Options (shares) Granted | 10 | 65 |
Options (shares) Terminated | (64) | (44) |
Options (shares) Outstanding | 262 | 319 |
Options (shares) Exercisable | 209 | |
Weighted-Average Exercise Price Outstanding | $ 1.73 | $ 1.83 |
Weighted-Average Exercise Price Exercised | 1.14 | 1.38 |
Weighted-Average Exercise Price Granted | 0.94 | 2.07 |
Weighted-Average Exercise Price Terminated | 1.49 | 4.23 |
Weighted-Average Exercise Price Outstanding | 1.76 | 1.73 |
Weighted-Average Exercise Price Exercisable | 1.75 | |
Weighted-Average Grant Date Fair Value Exercised | 0.95 | 1.12 |
Weighted-Average Grant Date Fair Value Granted | 0.79 | 1.72 |
Weighted-Average Grant Date Fair Value Outstanding | 1.39 | $ 1.38 |
Weighted-Average Grant Date Fair Value Exercisable | $ 1.36 | |
Weighted-Average Remaining Contractual Life Outstanding | 6 years 4 months 24 days | |
Weighted-Average Remaining Contractual Life Exercisable | 5 years 9 months 18 days | |
Aggregate Intrinsic Value Outstanding | $ 11 | |
Aggregate Intrinsic Value Exercisable | $ 9 |
STOCK-BASED COMPENSATION (Det60
STOCK-BASED COMPENSATION (Details 2) shares in Thousands | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $ 0.79 |
Range of Exercise Prices, maximum | $ 1.50 |
Shares Outstanding | shares | 146 |
Weighted-Average Remaining Contractual Life | 5 years 10 months 6 days |
Weighted-Average Exercise Price | $ 1.20 |
Shares Exercisable | shares | 136 |
Weighted-Average Exercise Price, Exercisable | $ 1.22 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | 1.51 |
Range of Exercise Prices, maximum | $ 4 |
Shares Outstanding | shares | 100 |
Weighted-Average Remaining Contractual Life | 7 years 9 months 29 days |
Weighted-Average Exercise Price | $ 2.04 |
Shares Exercisable | shares | 57 |
Weighted-Average Exercise Price, Exercisable | $ 2.05 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | 4.01 |
Range of Exercise Prices, maximum | $ 8.79 |
Shares Outstanding | shares | 16 |
Weighted-Average Remaining Contractual Life | 1 year 11 months 5 days |
Weighted-Average Exercise Price | $ 5.09 |
Shares Exercisable | shares | 16 |
Weighted-Average Exercise Price, Exercisable | $ 5.09 |
STOCK-BASED COMPENSATION (Det61
STOCK-BASED COMPENSATION (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 228 | |
Share Based Compensation Options Outstanding Issued Outside Of Stock Option Plan | 15 | 30 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Options Outstanding Issued Outside Of Stock Option Plan | 15 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 68,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | |
Allocated Share-based Compensation Expense | $ 45 | $ 79 |
RETIREMENT PLAN (Details Textua
RETIREMENT PLAN (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | |
Defined Contribution Plan Employer Contribution Match Maximum Percent Of Employee Contribution | 6.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 30.00% | |
Contribution expense | $ 169 | $ 152 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue: | $ 20,441 | $ 22,698 |
Operating (loss) income : | (3,040) | 909 |
Interest Expense | (399) | (287) |
Decrease in fair value of warrant liability | 189 | 487 |
Other income | 6 | 5 |
Income (loss) before income taxes | (3,244) | 1,114 |
Identifiable assets | 21,139 | 23,815 |
Goodwill, net: | 38 | 1,009 |
Depreciation and amortization: | 1,556 | 1,437 |
Capital expenditures: | 1,256 | 1,467 |
Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue: | 15,924 | 17,768 |
Operating (loss) income : | (1,576) | 889 |
Identifiable assets | 12,413 | 14,709 |
Goodwill, net: | 38 | 1,009 |
Depreciation and amortization: | 1,242 | 1,228 |
Capital expenditures: | 945 | 1,073 |
Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue: | 4,517 | 4,930 |
Operating (loss) income : | (1,464) | 20 |
Identifiable assets | 5,562 | 5,821 |
Goodwill, net: | 0 | 0 |
Depreciation and amortization: | 314 | 209 |
Capital expenditures: | 311 | 394 |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 3,164 | $ 3,285 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, Total | $ 20,441 | $ 22,698 |
Long-Lived Assets | 16,211 | 17,124 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, Total | 18,385 | 19,732 |
Long-Lived Assets | 16,211 | 17,124 |
Other North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, Total | 297 | 1,099 |
Pacific Rim [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, Total | 1,148 | 646 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, Total | 447 | 908 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, Total | $ 164 | $ 313 |
SEGMENT INFORMATION (Details Te
SEGMENT INFORMATION (Details Textual) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 2 | |
Customer A [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 4.00% |
Customer A [Member] | Accounts Receivable [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 13.20% | 19.40% |
RESTRUCTURING (Details Textual)
RESTRUCTURING (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2013USD ($) | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Area of property | ft² | ft² | 120,000 | ||
Estimated rent income | $ 200 | ||
Other Restructuring Costs | $ 117 | ||
Lease Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserves | $ 1,000 | $ 1,000 |
SELF-INSURANCE (Details Textual
SELF-INSURANCE (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Self insurance exposure for individual claims | $ 75 | |
Minimum annual aggregate attachment point | 85 | |
Self-insured employee health plan expenses | $ 1,531 | $ 871 |
MEDIATION (Details Textual)
MEDIATION (Details Textual) $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Litigation Settlement, Expense | $ 35 |
Proceeds from Legal Settlements | $ 640 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details Textual) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Consulting Agreement [Member] | |
Related Party Transaction [Line Items] | |
Payments for Other Fees | $ 31 |