Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 30, 2016 | Mar. 31, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | LRAD Corp | ||
Entity Central Index Key | 924,383 | ||
Trading Symbol | lrad | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 31,800,103 | ||
Entity Public Float | $ 45,092,119 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 13,466,711 | $ 18,316,103 |
Short-term marketable securities | 2,936,124 | 1,251,947 |
Accounts receivable | 3,408,912 | 2,116,323 |
Inventories, net | 4,763,909 | 4,926,172 |
Prepaid expenses and other | 595,638 | 565,666 |
Total current assets | 25,171,294 | 27,176,211 |
Long-term marketable securities | 2,187,536 | 3,047,166 |
Deferred tax assets | 8,527,000 | 8,339,000 |
Property and equipment, net | 473,344 | 471,963 |
Intangible assets, net | 62,905 | 58,385 |
Prepaid expenses and other, noncurrent | 391,454 | 578,938 |
Total assets | 36,813,533 | 39,671,663 |
Current liabilities: | ||
Accounts payable | 574,566 | 703,942 |
Accrued liabilities | 1,503,044 | 870,555 |
Total current liabilities | 2,077,610 | 1,574,497 |
Other liabilities, noncurrent | 165,038 | 147,954 |
Total liabilities | 2,242,648 | 1,722,451 |
Stockholders' equity: | ||
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.00001 par value; 50,000,000 shares authorized; 31,800,103 and 32,898,461 shares issued and outstanding, respectively | 318 | 329 |
Additional paid-in capital | 86,467,215 | 87,608,034 |
Accumulated deficit | (51,895,099) | (49,658,850) |
Accumulated other comprehensive loss | (1,549) | (301) |
Total stockholders' equity | 34,570,885 | 37,949,212 |
Total liabilities and stockholders' equity | $ 36,813,533 | $ 39,671,663 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 31,800,103 | 32,898,461 |
Common stock, shares outstanding (in shares) | 31,800,103 | 32,898,461 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||
Product sales | $ 15,305,942 | $ 15,800,800 |
Contract and other | 1,055,063 | 983,420 |
Total revenues | 16,361,005 | 16,784,220 |
Cost of revenues | 8,689,484 | 8,255,663 |
Gross profit | 7,671,521 | 8,528,557 |
Operating expenses: | ||
Selling, general and administrative | 6,876,792 | 5,280,704 |
Research and development | 2,387,985 | 2,028,539 |
Total operating expenses | 9,264,777 | 7,309,243 |
(Loss) income from operations | (1,593,256) | 1,219,314 |
Other income | 125,497 | 121,836 |
(Loss) income from operations before income taxes | (1,467,759) | 1,341,150 |
Income tax benefit | (186,160) | (8,346,666) |
Net (loss) income | $ (1,281,599) | $ 9,687,816 |
Net (loss) income per common share - basic and diluted (in dollars per share) | $ (0.04) | $ 0.29 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 31,970,600 | 33,174,546 |
Diluted (in shares) | 31,970,600 | 33,574,919 |
Cash dividends declared per common share (in dollars per share) | $ 0.03 |
Consolidate Statements of Compr
Consolidate Statements of Comprehensive (Loss) Income - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net (loss) income | $ (1,281,599) | $ 9,687,816 |
Other comprehensive loss, net of tax: | ||
Unrealized loss on marketable securities, net of tax | (1,248) | (301) |
Other comprehensive loss | (1,248) | (301) |
Comprehensive (loss) income | $ (1,282,847) | $ 9,687,515 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Sep. 30, 2014 | 33,236,489 | ||||
Balances at Sep. 30, 2014 | $ 332 | $ 88,049,125 | $ (59,346,666) | $ 28,702,791 | |
Share-based compensation expense | 619,201 | $ 619,201 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 396,042 | 396,042 | |||
Issuance of common stock upon exercise of stock options, net | $ 4 | 504,367 | $ 504,371 | ||
Repurchase of common stock (in shares) | (734,070) | (734,070) | |||
Repurchase of common stock | $ (7) | (1,564,659) | $ (1,564,666) | ||
Other comprehensive loss | (301) | (301) | |||
Net income | 9,687,816 | 9,687,816 | |||
Balances (in shares) at Sep. 30, 2015 | 32,898,461 | ||||
Balances at Sep. 30, 2015 | $ 329 | 87,608,034 | (49,658,850) | (301) | $ 37,949,212 |
Issuance of common stock upon exercise of stock options, net (in shares) | 396,042 | 396,042 | |||
Share-based compensation expense | 605,426 | $ 605,426 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,250 | 1,250 | |||
Issuance of common stock upon exercise of stock options, net | 2,200 | $ 2,200 | |||
Repurchase of common stock (in shares) | (1,099,608) | (1,099,608) | |||
Repurchase of common stock | $ (11) | (1,748,445) | $ (1,748,456) | ||
Other comprehensive loss | (1,248) | (1,248) | |||
Net income | (1,281,599) | (1,281,599) | |||
Balances (in shares) at Sep. 30, 2016 | 31,800,103 | ||||
Balances at Sep. 30, 2016 | $ 318 | 86,467,215 | (51,895,099) | (1,549) | $ 34,570,885 |
Issuance of common stock upon exercise of stock options, net (in shares) | 1,250 | 1,250 | |||
Common stock cash dividends | $ (954,650) | $ (954,650) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities: | ||
Net (loss) income | $ (1,281,599) | $ 9,687,816 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 167,693 | 238,314 |
Warranty provision | 79,954 | 42,645 |
Inventory Obsolescence Write Down (Recoveries) | 159,954 | 65,692 |
Share-based Compensation | 605,426 | 619,201 |
Deferred income taxes | (188,000) | (8,339,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,292,589) | 2,167,728 |
Inventories | 2,309 | (1,096,128) |
Prepaid expenses and other | (29,972) | (41,719) |
Prepaid expenses and other, noncurrent | 187,484 | 187,485 |
Accounts payable | (129,376) | (126,561) |
Payroll and related | 51,929 | (2,702,307) |
Warranty settlements | (38,588) | (41,338) |
Accrued and other liabilities | 556,278 | (526,017) |
Net cash (used in) provided by operating activities | (1,149,097) | 135,811 |
Investing Activities: | ||
Purchases of marketable securities | (825,795) | (4,299,414) |
Capital expenditures | (162,322) | (344,266) |
Patent costs paid | (11,272) | (10,477) |
Net cash used in investing activities | (999,389) | (4,654,157) |
Financing Activities: | ||
Repurchase of common stock | (1,748,456) | (1,564,666) |
Proceeds from Stock Options Exercised | 2,200 | 504,371 |
Common stock cash dividends paid | (954,650) | |
Net cash used in financing activities | (2,700,906) | (1,060,295) |
Net decrease in cash | (4,849,392) | (5,578,641) |
Cash and cash equivalents, beginning of period | 18,316,103 | 23,894,744 |
Cash and cash equivalents, end of period | $ 13,466,711 | $ 18,316,103 |
Note 1 - Operations
Note 1 - Operations | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. OPERATIONS LRAD Corporation, a Delaware corporation (the “Company”), is engaged in design, development and commercialization of directed and omnidirectional sound technologies and products. The principal markets for the Company’s proprietary sound reproduction technologies and products are in North and South America, Europe, Middle East and Asia. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The Company has a currently inactive wholly owned subsidiary, LRAD International Corporation, which the Company formed to conduct international marketing, sales and distribution activities. The consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions (e.g., share-based compensation valuation, valuation of inventory and intangible assets, warranty reserve, accrued bonus and valuation allowance related to deferred tax assets) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. CONCENTRATION OF CREDIT RISK The Company sells its products to a large number of geographically diverse customers. The Company routinely assesses the financial strength of its customers and generally does not require collateral or other security to support customer receivables. At September 30, 2016, accounts receivable from three customers accounted for 27%, 24% and 12% of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. At September 30, 2015, accounts receivable from two customers accounted for 21% and 19% of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. The Company maintains cash and cash equivalent accounts with Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. We place our cash investments in instruments that meet high credit quality standards, as specified in our investment policy guidelines such as money market funds, corporate bonds, municipal bonds and Certificates of Deposit. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. It is generally our policy to invest in instruments that have a final maturity of no longer than three years , with a portfolio weighted average maturity of no longer than 18 months . CASH, CASH EQUIVALENTS, AND RESTRICTED CASH The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company considers any amounts pledged as collateral or otherwise restricted for use in current operations to be restricted cash. Restricted cash is classified as a current asset unless amounts are not expected to be released and available for use in operations within one year. At September 30, 2016 and 2015, the amount of restricted cash was $39,406. MARKETABLE SECURITIES The Company accounts for investments in debt instruments as available-for-sale. Management determines the appropriate classification of such securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Marketable securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), net of tax. The realized gains and losses on marketable securities are determined using the specific identification method. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS The Company carries its accounts receivable at their historical cost, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts for estimated losses considering the following factors when determining if collection of a receivable is reasonably assured: customer credit-worthiness, past transaction history with the customer, current economic industry trends and changes in customer payment terms. If the Company has no previous experience with the customer, the Company may obtain reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. There was no deferred revenue at September 30, 2016 or 2015 as a result of collection issues. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The Company determines allowances on a customer specific basis. The Company had no allowances for doubtful accounts at September 30, 2016 and 2015. CONTRACT MANUFACTURERS The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time, but recognizes no revenue or markup on such transactions. During fiscal year 2016, the Company performed assembly of products in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers. INVENTORIES Inventories are valued at the lower of cost or net realizable value. Cost is determined using a standard cost system whereby differences between the standard cost and purchase price are recorded as a purchase price variance in cost of revenues. Inventory is comprised of raw materials, assemblies and finished products intended for sale . EQUIPMENT AND DEPRECIATION Equipment is stated at cost. Depreciation on machinery and equipment and office furniture and equipment is computed over the estimated useful lives of two to seven years using the straight-line method. Leasehold improvements are amortized over the life of the lease. Upon retirement or disposition of equipment, the related cost and accumulated depreciation is removed, and a gain or loss is recorded. INTANGIBLES Intangible assets, which consist of patents and trademarks, are carried at cost less accumulated amortization. Intangible assets are amortized over their estimated useful lives, which have been estimated to be 15 years. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value. LEASES Leases entered into are classified as either capital or operating leases. At the time a capital lease is entered into, an asset is recorded, together with its related long-term obligation to reflect the purchase and financing. At September 30, 2016 and 2015, the Company had no capital lease obligations. REVENUE RECOGNITION The Company derives its revenue primarily from two sources: (i) product revenues, and (ii) contracts, license fees, other services, and freight. Product revenues from customers, including resellers and system integrators, are recognized in the periods that products are shipped (FOB shipping point) or received by customers (FOB destination), when the fee is fixed or determinable, when collection of resulting receivables is reasonably assured, and there are no remaining obligations for the Company. Most revenues to resellers and system integrators are based on firm commitments from the end user; as a result, resellers and system integrators carry little or no inventory. Revenues from associated engineering and installation contracts are recognized based on milestones or completion of the contracted services. The Company’s customers do not have the right to return product unless the product is found to be defective. The Company also sells extended repair and maintenance contracts with terms ranging from one to several years, which provide repair and maintenance services after expiration of the original one year warranty term. Revenues from separately priced extended repair and maintenance contracts are recognized on a straight-line basis over the contract period and classified as contract and other revenues. SHIPPING AND HANDLING COSTS Shipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs were $128,380 and $120,317 for the fiscal years ended September 30, 2016 and 2015, respectively. Actual revenues from shipping and handling were $78,975 and $99,584 for the fiscal years ended September 30, 2016 and 2015, respectively. ADVERTISING Advertising costs are charged to expense as incurred. The Company expensed $66,353 and $61,680 for the years ended September 30, 2016 and 2015, respectively, for advertising costs. RESEARCH AND DEVELOPMENT COSTS Research and development costs are expensed as incurred. WARRANTY RESERVES The Company warrants its products to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. Some agreements with OEM customers, from time to time, may require that certain quantities of product be made available for use as warranty replacements. International market warranties are generally similar to the U.S. market. The Company also sells extended warranty contracts and maintenance agreements. The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was $356,984 and $315,618 at September 30, 2016 and 2015, respectively. INCOME TAXES The Company determines its income tax provision using the asset and liability method. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. A valuation allowance is recorded by the Company to the extent it is more likely than not that some portion or all of the deferred tax asset will not be realized. Significant management judgment is required in assessing the ability to realize the Company’s deferred tax assets. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income and the tax rates in effect at that time. Additional information regarding income taxes appears in Note 10, Income Taxes. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset, or if changes in facts and circumstances indicate this, an impairment loss is measured and recognized using the asset’s fair value. SEGMENT INFORMATION The Company presents its business as one reportable segment due to the similarity in nature of products provided, financial performance measures (revenue growth and gross margin), methods of distribution (direct and indirect) and customer markets (each product is sold by the same personnel to government and commercial customers, domestically and internationally). The Company’s chief operating decision-making officer reviews financial information on sound products on a consolidated basis. See Note 15, Major Customers, Suppliers, Segment and Related Information, for additional information. NET (LOSS) INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution of securities that could occur if outstanding securities convertible into common stock were exercised or converted. See Note 14, Net (Loss) Income Per Share, for additional information. FOREIGN CURRENCY TRANSLATION The Company’s functional currency is U.S. dollars as substantially all of the Company’s operations use this denomination. Foreign sales to date have been denominated in U.S. dollars. Transactions undertaken in other currencies, which have not been material, are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the statements of operations. SHARE-BASED COMPENSATION The Company recognized share-based compensation expense related to qualified and non-qualified stock options issued to employees and directors over the expected vesting term of the stock-based instrument based on the grant date fair value. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates or if the Company updates its estimated forfeiture rate. See Note 12, Share-based Compensation, for additional information. RECLASSIFICATIONS Where necessary, the prior year’s information has been reclassified to conform to the fiscal year 2016 statement presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit. SUBSEQUENT EVENTS Management has evaluated events subsequent to September 30, 2016 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission and noted that there have been no events or transactions which would affect the Company’s consolidated financial statements for the year ended September 30, 2016. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In July 2015, the FASB deferred the effective date of the standard by an additional year; however, it provided companies the option to adopt one year earlier, commensurate with the original effective date. Accordingly, the standard will be effective for the Company in the fiscal year beginning October 1, 2018, with an option to adopt the standard for the fiscal year beginning October 1, 2017. The Company is currently evaluating this standard and has not yet selected a transition method or the effective date on which it plans to adopt the standard, nor has it determined the effect of the standard on its financial statements and related disclosures. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist principally of cash equivalents, short and long-term marketable securities, accounts receivable and accounts payable. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. Level 3: Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The fair value of the Company’s cash equivalents and marketable securities was determined based on Level 1 and Level 2 inputs. The Company did not have any marketable securities in the Level 3 category as of September 30, 2016 or September 30, 2015. The Company believes that the recorded values of its other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. Instruments Measured at Fair Value The following tables present the Company’s cash equivalents and marketable securities’ costs, gross unrealized gains and losses, and fair value by major security type recorded as cash equivalents or short-term or long-term marketable securities as of September 30, 2016 and 2015. September 30, 2016 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ - $ - $ 95,538 $ 95,538 $ - $ - Level 2: Certificates of deposit $ 3,236,168 $ - $ 3,236,168 $ - $ 1,299,133 $ 1,937,035 Municipal securities 140,637 - 140,637 - 140,637 - Corporate bonds 1,748,404 (1,549 ) 1,746,855 - 1,496,354 250,501 Subtotal 5,125,209 (1,549 ) 5,123,660 - 2,936,124 2,187,536 Total $ 5,125,209 $ (1,549 ) $ 5,219,198 $ 95,538 $ 2,936,124 $ 2,187,536 September 30, 2015 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ 301,193 $ - $ 301,193 $ 301,193 $ - $ - Level 2: Certificates of deposit 3,296,238 - 3,296,238 - 249,072 3,047,166 Municipal securities 654,205 293 654,498 160,058 494,440 - Corporate bonds 509,029 (594 ) 508,435 - 508,435 - Subtotal 4,459,472 (301 ) 4,459,171 160,058 1,251,947 3,047,166 Total $ 4,760,665 $ (301 ) $ 4,760,364 $ 461,251 $ 1,251,947 $ 3,047,166 |
Note 5 - Inventories
Note 5 - Inventories | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5 . INVENTORIES Inventories consisted of the following: September 30, 2016 2015 Raw materials $ 4,393,928 $ 4,562,535 Finished goods 775,628 763,227 Work in process 174,485 20,588 Inventories, gross 5,344,041 5,346,350 Reserve for obsolescence (580,132 ) (420,178 ) Inventories, net $ 4,763,909 $ 4,926,172 The Company had raw materials located at supplier locations of $97,515 and $80,098 at September 30, 2016 and 2015, respectively. The Company relies on one supplier for compression drivers for its LRAD product and is making efforts to obtain alternative suppliers to reduce such reliance. The Company’s ability to manufacture its LRAD product could be adversely affected if it were to lose this sole source supplier and was unable to find an alternative supplier. |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: September 30, 2016 2015 Machinery and equipment $ 957,829 $ 940,289 Office furniture and equipment 976,856 877,011 Leasehold improvements 71,738 67,913 Property and equipment, gross 2,006,423 1,885,213 Accumulated depreciation (1,533,079 ) (1,413,250 ) Property and equipment, net $ 473,344 $ 471,963 Year Ended September 30, 2016 2015 Depreciation expense $ 160,941 $ 232,387 |
Note 7 - Intangible Assets
Note 7 - Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 7. INTANGIBLE ASSETS Intangible assets related to patents and trademarks consisted of the following: September 30, 2016 2015 Cost $ 108,247 $ 96,975 Accumulated amortization (45,342 ) (38,590 ) Intangible assets, net $ 62,905 $ 58,385 Year ended September 30, 2016 2015 Amortization expense $ 6,752 $ 5,927 Estimated Amortization Expense Years Ended September 30, 2017 $ 7,092 2018 7,092 2019 7,092 2020 7,092 2021 7,092 Thereafter 27,445 Total estimated amortization expense $ 62,905 |
Note 8 - Prepaid Maintenance Ag
Note 8 - Prepaid Maintenance Agreement | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Prepaid Maintenance Agreement Disclosure [Text Block] | 8. PREPAID MAINTENANCE AGREEMENT At March 31, 2011, prepaid expenses included $1,500,000 paid to a third party service provider in connection with the Company’s obligations under a sales contract to a foreign military service to provide repair and maintenance services over an eight year period for products sold thereunder. The total prepaid expense is being amortized on a straight-line basis at an annual rate of $187,500 over the eight-year contract period to correspond with the revenues for these services, and is being recognized as a component of cost of sales. Accordingly, as of September 30, 2016, $187,500 of the total prepayment was classified as a current asset and $281,250 was classified as noncurrent. As of September 30, 2015, $187,500 of the total prepayment was classified as a current asset and $468,750 was classified as noncurrent. |
Note 9 - Accrued and Other Liab
Note 9 - Accrued and Other Liabilities - Noncurrent | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Current and Noncurrent Accrued Liabilities [Text Block] | 9. ACCRUED AND OTHER LIABILITIES—NONCURRENT Accrued liabilities consisted of the following: September 30, 2016 2015 Payroll and related $ 382,845 $ 330,916 Deferred revenue 637,763 51,345 Warranty reserve 285,402 289,660 Accrued contract costs 197,034 197,034 Other - 1,600 Total $ 1,503,044 $ 870,555 Other liabilities - noncurrent consisted of the following: Deferred rent $ 93,456 $ 121,996 Extended warranty 71,582 25,958 Total $ 165,038 $ 147,954 Payroll and related Accrued payroll and related consists primarily of accrued vacation, as well as accrued sales commissions and benefits at September 30, 2016 and 2015. Deferred Revenue Deferred revenue at September 30, 2016 included prepayments from customers on current orders scheduled for delivery in the year ended September 30, 2017. Warranty Reserve Details of the estimated warranty reserve were as follows: Years ended September 30, 2016 2015 Beginning balance $ 315,618 $ 314,311 Warranty provision 79,954 42,645 Warranty settlements (38,588 ) (41,338 ) Ending balance $ 356,984 $ 315,618 September 30, 2016 2015 Short-term warranty reserve $ 285,402 $ 289,660 Long-term warranty reserve 71,582 25,958 Total warranty reserve $ 356,984 $ 315,618 The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenue is recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. Accrued contract costs Accrued contract costs consist of accrued expenses for contracting a third party service provider to fulfill repair and maintenance obligations required under a contract through 2019 with a foreign military for units sold in the year ended September 30, 2011. Payments to the service provider will be made annually upon completion of each year of service. These services are being recorded in cost of revenues to correspond with the revenues for these services. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10. INCOME TAXES Income taxes consisted of the following: Years ended September 30, 2016 2015 Current tax benefit Federal $ - $ - State 1,840 (7,700 ) Total current tax benefit 1,840 (7,700 ) Deferred benefit Federal (159,800 ) (7,564,000 ) State (28,200 ) (775,000 ) Total deferred benefit (188,000 ) (8,339,000 ) Change in valuation allowance - - Provision for income taxes $ (186,160 ) $ (8,346,700 ) A reconciliation of income taxes at the federal statutory rate of 34% to the effective tax rate was as follows: Years ended September 30, 2016 2015 Income taxes computed at the federal statutory rate $ (499,000 ) $ 456,000 Change in valuation allowance (66,000 ) (8,316,000 ) Expired net operating loss carryforwards 487,000 598,000 Nondeductible compensation, interest expense and other 99,000 20,000 State income taxes, net of federal tax benefit (36,000 ) 24,000 Change in R&D credit carryover (98,000 ) (17,000 ) Stock options and other prior year true-ups (75,000 ) (1,103,000 ) Other 1,840 (8,700 ) Provision for income taxes $ (186,160 ) $ (8,346,700 ) The types of temporary differences between the tax basis of assets and liabilities and their approximate tax effects that give rise to a significant portion of the net deferred tax asset at September 30, 2016 and 2015 were as follows: At September 30, Deferred tax assets: 2016 2015 Net operating loss carryforwards $ 16,410,000 $ 16,966,000 Research and development credit 2,461,000 2,309,000 Share-based compensation 598,000 468,000 Equipment (23,000 ) (24,000 ) Patents 102,000 134,000 Accruals and other 832,000 465,000 State tax deduction (7,000 ) (6,000 ) Federal AMT Credit 52,000 52,000 Allowances 211,000 150,000 Gross deferred tax asset 20,636,000 20,514,000 Less valuation allowance (12,109,000 ) (12,175,000 ) Total deferred tax assets, net of valuation allowance $ 8,527,000 $ 8,339,000 At September 30, 2016, the Company had net deferred tax assets of approximately $20,636,000. The deferred tax assets are primarily composed of federal and state NOL carryforwards and federal and state research and development (“R&D”) credit carryforwards. At September 30, 2016, the Company had federal NOL carryforwards of approximately $46,127,000, which expire from 2022 through 2036. The Company also has an estimated $1,914,000 and $547,000 of federal and state R&D tax credits, respectively, at September 30, 2016, a portion of which will begin to expire in the 2018 tax year. The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for NOL carryforwards resulting from windfall tax benefits occurring from October 1, 2008 onward. At September 30, 2016, deferred tax assets do not include excess tax benefits from stock-based compensation of approximately $1,130,000. The Company reviews its ability to realize its deferred tax assets on a quarterly basis. In doing so, management considers historical and projected taxable income of the Company, along with any tax planning strategies and any other positive or negative evidence. Realization is dependent on generating sufficient taxable income prior to the expiration of the loss carryforwards and other deferred assets. The Company has sustained profitability over six of the seven most recent fiscal years. In the past few years, the Company has developed products and expanded its marketing efforts into the mass notification market, which is a very large and growing market. While the Company is still in the early stages of market penetration, it has increased its confidence in forecasted taxable income based on growth opportunities in this market. It has also increased its forecasted revenues and taxable income for its directional product opportunities, where it is the dominant player in the world market. As a result, du ring the quarter ended September 30, 2015, the Company determined it was more likely than not that a portion of the deferred tax assets will be realized and, accordingly, released a portion of the valuation allowance. While the Company incurred a net loss in the year ended September 30, 2016, the net loss was largely due to non-recurring expenses and the Company expects to utilize the deferred tax asset in the future. The Company adjusted its deferred tax asset value in the quarter ended September 30, 2016 and continues to maintain a valuation allowance of $12,109,000. Since future financial results may differ from previous estimates, periodic adjustments to the Company’s valuation allowances may be necessary. The Company recorded a tax provision for the minimum state tax requirement for the year ended September 30, 2016 as the Company’s annual effective tax rate is zero. During the quarter ended June 30, 2012, the Company amended its federal tax return for the year ended September 30, 2008 to make an election to carry back its fiscal year ended September 30, 2008 applicable NOL for a period of 3 years, and carry forward the loss for up to 20 years, as per Section 172(b)(1)(H) of the Internal Revenue Code of 1986 (“Section 172”), as amended per the American Recovery and Reinvestment Tax Act of 2009 for eligible small businesses. As of September 30, 2016, the Company had no unrecognized tax benefits. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company is subject to taxation in the U.S. and various state jurisdictions. All of the Company’s historical tax years are subject to examination by the Internal Revenue Service and various state jurisdictions due to the generation of NOL and credit carryforwards. |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 11. COMMITMENTS AND CONTINGENCIES Facility Lease On November 29, 2011, the Company entered into a lease for 31,360 square feet to replace the prior San Diego facility as the Company’s executive offices, research and development, assembly and operational facilities. The lease commenced July 1, 2012 and will expire June 30, 2018. The aggregate monthly payments, with abatements, averaged $16,306 per month in the first year, and is $25,088, $26,656, $28,224, $29,792 and $31,360 per month for the second through sixth years of the lease, plus certain other costs and charges as specified in the lease agreement, including the Company’s proportionate share of the building operating expenses and real estate taxes. Operating Leases Total operating lease expense, including facilities and business equipment commitments, recorded by the Company for the years ended September 30, 2016 and 2015 was $377,033 and $356,107, respectively. The obligations under all operating leases are as follows: Years ending September 30: 2017 $ 391,578 2018 298,797 2019 16,557 2020 15,177 2021 - Total lease obligations $ 722,109 Employment Agreements The Company entered into an employment agreement in August 2016 with its chief executive officer that provides for severance benefits including twelve months’ salary and health benefits, a pro-rata share of his annual cash bonus for the fiscal year in which the termination occurs to which he would have become entitled had he remained employed through the end of such fiscal year, and if his employment is terminated during fiscal year 2019 or later, vesting of a pro-rata share of the stock options held by him that are subject to performance-based vesting based on the extent to which the required performance criteria are achieved in the year of termination and on the portion of the year he was employed. The agreement also has a change of control clause whereby in the event of a specified termination event, the chief executive officer would be entitled to receive in a single lump sum (a) an amount equal to two times the sum of his base salary then in effect and his then target annual cash bonus, (b) a pro-rata share of his annual cash bonus for such year and (c) the cost of his and his dependents’ coverage under COBRA for an 18-month period. In addition, in such event, (i) all of the time-vesting stock options held will vest, unless the termination occurs within the first year of his employment, in which case only the number of options scheduled to vest on the first anniversary of his employment date will vest pro-rated for the period of time he was employed during such one-year period, (ii) 375,000 of the stock options held that are subject to performance-based vesting will vest and (iii) if employment is terminated during fiscal year 2019 or later, a pro-rata share of the stock options held that are subject to performance-based vesting will vest based on the extent to which the required performance criteria are achieved for the fiscal year in which the termination occurs and based on the period of time he was employed during such fiscal year prior to the termination. There are no other employment agreements with executive officers or other employees providing future benefits or severance arrangements. Bonus Plan The Company has established a bonus plan for its employees, in accordance with their terms of employment, whereby they can earn a percentage of their salary at three different levels based on meeting three different targeted objectives for earnings per share. The number of shares outstanding used for the calculation is as of October 1, 2015. In fiscal years 2016 and 2015, the Company did not meet the targeted objectives for earnings per share so a bonus accrual was not recorded. Change of Control Severance Benefit Plan The Company has a Change of Control Plan with its Chief Financial Officer that provides that in the event of a qualifying termination, the participating executive will be entitled to receive (i) a lump sum payment equal to twenty-four months’ base salary (less applicable tax and other withholdings), (ii) a lump sum payment equal to the officer’s target bonus for the year in which the officer is terminated, (iii) continuation of health benefits for twenty-four months and (iv) accelerated vesting of any unvested stock options and other securities or similar incentives held at the time of termination. A qualifying termination under the Change of Control Plan is any involuntary termination without cause or any voluntary termination for good reason, in each case occurring within three months before or twelve months after a change of control of the Company. Employee Benefit—401K Plan The Company has a defined contribution plan (401(k)) covering its employees. Matching contributions are made on behalf of all participants at the discretion of the board of directors. During the fiscal years ended September 30, 2016 and 2015, the Company made matching contributions of $157,081 and $135,229, respectively. Litigation The Company may at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in management’s estimation, record adequate reserves in the Company’s financial statements for pending litigation. Guarantees and Indemnifications The Company enters into indemnification provisions under (i) its agreements with other companies in its ordinary course of business, typically with business partners, contractors, customers and landlords and (ii) its agreements with investors. Under these arrangements, the Company may indemnify other parties such as business partners, customers, underwriters, and investors for certain losses suffered, claims of intellectual property infringement, negligence and intentional acts in the performance of services, and violations of laws including certain violations of securities laws. The Company’s obligation to provide such indemnification in such circumstances would arise if, for example, a third party sued a customer for intellectual property infringement and the Company agreed to indemnify the customer against such claims. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to such indemnification obligations. Some of the factors that would affect this assessment include, but are not limited to, the nature of the claim asserted, the relative merits of the claim, the financial ability of the parties, the nature and amount of damages claimed, insurance coverage that the Company may have to cover such claims, and the willingness of the parties to reach settlement, if any. Because of the uncertainty surrounding these circumstances, the Company’s indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements in the past, and the Company had no liabilities recorded for these agreements as of September 30, 2016, or 2015. Under its bylaws, the Company has agreed to indemnify its officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. In addition, the Company executed indemnification agreements in June 2013 with the then current Directors and Officers of the Company, indemnifying them from any expenses arising out of any claims. All directors and officers have executed indemnification agreements. The term of the indemnification period is for the officer or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. However, the Company has a director and officers’ liability insurance policy that limits its exposure and enables it to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company does not believe that a material loss exposure related to these agreements is either probable or can be reasonably estimated. Accordingly, the Company has no liability recorded for these agreements as of September 30, 2016 and 2015. |
Note 12 - Share-based Compensat
Note 12 - Share-based Compensation | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. SHARE-BASED COMPENSATION Stock Option Plans At September 30, 2016, the Company had two equity incentive plans. The 2005 Equity Incentive Plan (“2005 Equity Plan”) was terminated with respect to new grants in March 2015, but remains in effect for grants issued prior to that time. The 2015 Equity Incentive Plan (“2015 Equity Plan”) was approved by the Company’s Board of Directors on January 19, 2015 and by the Company’s stockholders on March 18, 2015. The 2015 Equity Plan authorizes for issuance as stock options, restricted stock, stock appreciation rights, restricted stock units and performance awards, an aggregate of 5,000,000 new shares of common stock to employees, directors, advisors or consultants. At September 30, 2016, there were options outstanding covering 2,480,252 and 1,923,750 shares of common stock under the 2005 Equity Plan and 2015 Equity Plan, respectively, and 2,953,000 shares of common stock available for grant for a total of 7,357,002 currently available under the two equity plans. Share-Based Compensation The Company’s employee stock options have various restrictions that reduce option value, including vesting provisions and restrictions on transfer and hedging, among others, and are often exercised prior to their contractual maturity. The Company recorded $605,426 and $619,201 of stock compensation expense for the years ended September 30, 2016 and 2015, respectively. The weighted average estimated fair value of employee stock options granted during the year ended September 30, 2016 and 2015 was calculated using the Black-Scholes option-pricing model with the following weighted average assumptions (annualized percentages): 2016 2015 Volatility 49.0% - 52.0% 51.0% - 62.0% Risk-free interest rate 1.0% - 1.7% 1.0% - 1.6% Forfeiture rate 10.0% 10.0% Dividend yield 2.2% - 2.7% 0.0% Expected life in years 3.2 - 4.6 3.2 - 4.6 Weighted average fair value of options granted during the period $0.70 $1.09 The Company paid a dividend during the year ended September 30, 2016. Expected volatility is based on the historical volatility of the Company’s common stock over the period commensurate with the expected life of the options. The risk-free interest rate is based on rates published by the Federal Reserve Board. The contractual term of the options was seven years. The expected life is based on observed and expected time to post-vesting exercise. The expected forfeiture rate is based on past experience and employee retention data. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates. Such revision adjustments to expense will be recorded as a cumulative adjustment in the period in which the estimate is changed. As of September 30, 2016, there was approximately $800,000 of total unrecognized compensation costs related to outstanding employee stock options. This amount is expected to be recognized over a weighted average period of 2.2 years. To the extent the forfeiture rate is different from what the Company anticipated, stock-based compensation related to these awards will be different from the Company’s expectations. Performance-Based Stock Options On August 1, 2016, the Company awarded a performance-based stock option (PVO) to purchase 750,000 shares of the Company’s common stock to a key executive, with a contractual term of seven years. Vesting is based upon the achievement of certain performance criteria for each of fiscal 2019 and 2020 (375,000 shares for each year) including a minimum Free Cash Flow margin and Net Revenue targets at four different target levels for each of the years. Additionally, vesting is subject to the executive being employed by the Company at the time the Company achieves such financial targets. The Company determined that it is probable that the performance condition will be achieved at the low end of the expected revenue level for each of the years, and therefore assumed that 187,500 shares of the PVO would vest. The weighted average grant date fair value for the PVO was $0.81 per share, which was estimated on the date of grant using the Black-Scholes option pricing model. Non-cash share-based compensation expense related to this award is recognized on a straight line basis and was $4,774 for the year ended September 30, 2016. The Company will continue to review these targets each quarter and will adjust the expected outcome as needed, recognizing compensation expense cumulatively in such period for the difference in expense. The Company did not grant any PVOs in the year ended September 30, 2015. Stock Option Summary Information A summary of activity for the Company’s stock option plans as of September 30, 2016 and 2015 is presented below: Number Weighted Average of Shares Exercise Price Outstanding October 1, 2015 2,852,419 $ 2.35 Granted 1,857,000 $ 1.93 Forfeited/expired (304,167 ) $ 2.18 Exercised (1,250 ) $ 1.76 Outstanding September 30, 2016 4,404,002 $ 2.18 Exercisable September 30, 2016 2,811,617 $ 2.30 The aggregate intrinsic value for options outstanding and options exercisable at September 30, 2016 was $279,705 and $232,375, respectively. The aggregate intrinsic value represents the difference between the Company’s closing stock price on the last day of trading during the year, which was $1.87 per share, and the exercise price multiplied by the number of applicable options. The total intrinsic value of stock options exercised during the year ended September 30, 2016 was $288 and cash received from these exercises was $2,200. The total intrinsic value of stock options exercised during the year ended September 30, 2015 was $438,484 and cash received from these exercises was $504,371. The Company recognized $288 and $438,484 as a tax benefit in the income tax provision for the years ended September 30, 2016 and 2015, respectively. The following table summarizes information about stock options outstanding at September 30, 2016: Weighted Average Weighted Weighted Range of Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price $0.93 - $1.76 969,752 5.05 $ 1.59 831,063 $ 1.59 $1.77 - $1.99 1,756,750 6.61 $ 1.94 365,362 $ 1.86 $2.00 - $2.85 906,250 5.03 $ 2.57 855,817 $ 2.56 $2.86 - $3.13 761,250 5.61 $ 3.00 755,000 $ 3.00 $3.14 - $3.17 10,000 5.14 $ 3.17 4,375 $ 3.17 $0.93 - $3.17 4,404,002 5.76 $ 2.18 2,811,617 $ 2.30 The Company recorded non-cash share-based compensation expense for employees, directors and consultants for the fiscal years ended September 30, 2016 and 2015. The amounts of share-based compensation expense are classified in the Consolidated Statements of Operations as follows: Years Ended September 30, 2016 2015 Cost of revenues $ 24,092 $ 25,355 Selling, general and administrative 478,695 473,118 Research and development 102,639 120,728 Total $ 605,426 $ 619,201 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 13. STOCKHOLDERS’ EQUITY Common Stock Activity During the year ended September 30, 2016, the Company issued 1,250 shares of common stock and obtained gross proceeds of $2,200 in connection with the exercise of stock options. During the year ended September 30, 2015, the Company issued 396,042 shares of common stock and obtained gross proceeds of $504,371 in connection with the exercise of stock options. Preferred Stock The Company is authorized under its certificate of incorporation and bylaws to issue 5,000,000 shares of preferred stock, $0.00001 par value, without any further action by the stockholders. The board of directors has the authority to divide any and all shares of preferred stock into series and to fix and determine the relative rights and preferences of the preferred stock, such as the designation of series and the number of shares constituting such series, dividend rights, redemption and sinking fund provisions, liquidation and dissolution preferences, conversion or exchange rights and voting rights, if any. Issuance of preferred stock by the board of directors could result in such shares having dividend and or liquidation preferences senior to the rights of the holders of common stock and could dilute the voting rights of the holders of common stock. No shares of preferred stock were outstanding during the fiscal years ended September 30, 2016 or 2015. Stock Purchase Warrants At September 30, 2015, the Company had 1,627,945 shares purchasable under outstanding warrants at an exercise price of $2.67. These warrants expired on February 4, 2016. Share Buyback Program The Board of Directors approved a share buyback program in 2013 under which the Company was authorized to repurchase up to $4 million of its outstanding common shares. This program expired on December 31, 2015 and in December 2015, the Board of Directors approved a new buyback program for calendar year 2016 under which the Company is authorized to repurchase up to $4 million of its outstanding common shares. During the year ended September 30, 2016, 1,099,608 shares were repurchased for $1,748,456 and in the year ended September 30, 2015, 734,070 shares were repurchased for $1,564,666. At September 30, 2016, all repurchased shares were retired. |
Note 14 - Net Income Per Share
Note 14 - Net Income Per Share | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14. NET (LOSS) INCOME PER SHARE Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period increased to include the number of dilutive potential common shares outstanding during the period. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method, which assumes that the proceeds from the exercise of the outstanding options and warrants are used to repurchase common stock at market value. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. If the Company has losses for the period, the inclusion of potential common stock instruments outstanding would be anti-dilutive. In addition, under the treasury stock method, the inclusion of stock options and warrants with an exercise price greater than the per-share market value would be antidilutive. Potential common shares that would be antidilutive are excluded from the calculation of diluted income per share. The following table sets forth the computation of basic and diluted earnings per share: Year Ended September 30, 2016 2015 Numerator: (Loss) income available to common stockholders $ (1,281,599 ) $ 9,687,816 Denominator: Weighted average common shares outstanding 31,970,600 33,174,546 Assumed exercise of dilutive options and warrants - 400,373 Weighted average dilutive shares outstanding 31,970,600 33,574,919 Basic (loss) income per common share $ (0.04 ) $ 0.29 Diluted (loss) income per common share $ (0.04 ) $ 0.29 Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 4,404,002 1,402,750 Warrants - 1,627,945 Total 4,404,002 3,030,695 |
Note 15 - Major Customers, Supp
Note 15 - Major Customers, Suppliers, Segment and Related Information | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 15. MAJOR CUSTOMERS, SUPPLIERS, SEGMENT AND RELATED INFORMATION Major Customers For the fiscal year ended September 30, 2016, the Company did not have any single customer representing more than 10% of total revenues. For the fiscal year ended September 30, 2015, revenues from one customer accounted for 15% of total revenues with no other single customer accounting for more than 10% of total revenues. Suppliers The Company has a large number of components and sub-assemblies produced by outside suppliers, some of which are sourced from a single supplier, which can magnify the risk of shortages and decrease the Company’s ability to negotiate with suppliers on the basis of price. In particular, the Company depends on one supplier of compression drivers for its LRAD products. If supplier shortages occur, or quality problems arise, then production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows. Segment and Related Information The Company presents its business as one reportable segment due to the similarity in nature of products marketed, financial performance measures (revenue growth and gross margin), methods of distribution (direct and indirect) and customer markets (each product is sold by the same personnel to government and commercial customers, domestically and internationally). The Company’s chief operating decision making officer reviews financial information on sound products on a consolidated basis. The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location. Years ended September 30, 2016 2015 Americas $ 7,582,545 $ 4,634,880 Europe, Middle East and Africa 1,035,559 1,740,659 Asia Pacific 7,742,901 10,408,681 Total Revenues $ 16,361,005 $ 16,784,220 |
Note 16 - Unusual and Infrequen
Note 16 - Unusual and Infrequent Expenses | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Unusual or Infrequent Items, or Both, Disclosure [Text Block] | 1 6 . UNUSUAL AND INFREQUENT EXPENSES The Company incurred expenses of $1,138,183 during the year ended September 30, 2016 which were unusual in nature and infrequent in occurrence. These expenses included legal and consulting costs resulting from a proxy contest initiated by a stockholder of the Company, severance and related benefit and tax expenses in accordance with a Separation Agreement and General Release related to the June 30, 2016 departure of the Company’s prior chief executive officer, and recruiting and hiring costs related to the search and hire of a new chief executive officer. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | PRINCIPLES OF CONSOLIDATION The Company has a currently inactive wholly owned subsidiary, LRAD International Corporation, which the Company formed to conduct international marketing, sales and distribution activities. The consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts. |
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions (e.g., share-based compensation valuation, valuation of inventory and intangible assets, warranty reserve, accrued bonus and valuation allowance related to deferred tax assets) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | CONCENTRATION OF CREDIT RISK The Company sells its products to a large number of geographically diverse customers. The Company routinely assesses the financial strength of its customers and generally does not require collateral or other security to support customer receivables. At September 30, 2016, accounts receivable from three customers accounted for 27%, 24% and 12% of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. At September 30, 2015, accounts receivable from two customers accounted for 21% and 19% of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. The Company maintains cash and cash equivalent accounts with Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. We place our cash investments in instruments that meet high credit quality standards, as specified in our investment policy guidelines such as money market funds, corporate bonds, municipal bonds and Certificates of Deposit. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. It is generally our policy to invest in instruments that have a final maturity of no longer than three years , with a portfolio weighted average maturity of no longer than 18 months . |
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company considers any amounts pledged as collateral or otherwise restricted for use in current operations to be restricted cash. Restricted cash is classified as a current asset unless amounts are not expected to be released and available for use in operations within one year. At September 30, 2016 and 2015, the amount of restricted cash was $39,406. |
Marketable Securities, Policy [Policy Text Block] | MARKETABLE SECURITIES The Company accounts for investments in debt instruments as available-for-sale. Management determines the appropriate classification of such securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Marketable securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), net of tax. The realized gains and losses on marketable securities are determined using the specific identification method. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS The Company carries its accounts receivable at their historical cost, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts for estimated losses considering the following factors when determining if collection of a receivable is reasonably assured: customer credit-worthiness, past transaction history with the customer, current economic industry trends and changes in customer payment terms. If the Company has no previous experience with the customer, the Company may obtain reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. There was no deferred revenue at September 30, 2016 or 2015 as a result of collection issues. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The Company determines allowances on a customer specific basis. The Company had no allowances for doubtful accounts at September 30, 2016 and 2015. |
Contract Manufacturers, Policy [Policy Text Block] | CONTRACT MANUFACTURERS The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time, but recognizes no revenue or markup on such transactions. During fiscal year 2016, the Company performed assembly of products in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers. |
Inventory, Policy [Policy Text Block] | INVENTORIES Inventories are valued at the lower of cost or net realizable value. Cost is determined using a standard cost system whereby differences between the standard cost and purchase price are recorded as a purchase price variance in cost of revenues. Inventory is comprised of raw materials, assemblies and finished products intended for sale . |
Property, Plant and Equipment, Policy [Policy Text Block] | EQUIPMENT AND DEPRECIATION Equipment is stated at cost. Depreciation on machinery and equipment and office furniture and equipment is computed over the estimated useful lives of two to seven years using the straight-line method. Leasehold improvements are amortized over the life of the lease. Upon retirement or disposition of equipment, the related cost and accumulated depreciation is removed, and a gain or loss is recorded. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | INTANGIBLES Intangible assets, which consist of patents and trademarks, are carried at cost less accumulated amortization. Intangible assets are amortized over their estimated useful lives, which have been estimated to be 15 years. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value. |
Lease, Policy [Policy Text Block] | LEASES Leases entered into are classified as either capital or operating leases. At the time a capital lease is entered into, an asset is recorded, together with its related long-term obligation to reflect the purchase and financing. At September 30, 2016 and 2015, the Company had no capital lease obligations. |
Revenue Recognition, Policy [Policy Text Block] | REVENUE RECOGNITION The Company derives its revenue primarily from two sources: (i) product revenues, and (ii) contracts, license fees, other services, and freight. Product revenues from customers, including resellers and system integrators, are recognized in the periods that products are shipped (FOB shipping point) or received by customers (FOB destination), when the fee is fixed or determinable, when collection of resulting receivables is reasonably assured, and there are no remaining obligations for the Company. Most revenues to resellers and system integrators are based on firm commitments from the end user; as a result, resellers and system integrators carry little or no inventory. Revenues from associated engineering and installation contracts are recognized based on milestones or completion of the contracted services. The Company’s customers do not have the right to return product unless the product is found to be defective. The Company also sells extended repair and maintenance contracts with terms ranging from one to several years, which provide repair and maintenance services after expiration of the original one year warranty term. Revenues from separately priced extended repair and maintenance contracts are recognized on a straight-line basis over the contract period and classified as contract and other revenues. |
Shipping and Handling Cost, Policy [Policy Text Block] | SHIPPING AND HANDLING COSTS Shipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs were $128,380 and $120,317 for the fiscal years ended September 30, 2016 and 2015, respectively. Actual revenues from shipping and handling were $78,975 and $99,584 for the fiscal years ended September 30, 2016 and 2015, respectively. |
Advertising Costs, Policy [Policy Text Block] | ADVERTISING Advertising costs are charged to expense as incurred. The Company expensed $66,353 and $61,680 for the years ended September 30, 2016 and 2015, respectively, for advertising costs. |
Research and Development Expense, Policy [Policy Text Block] | RESEARCH AND DEVELOPMENT COSTS Research and development costs are expensed as incurred. |
Standard Product Warranty, Policy [Policy Text Block] | WARRANTY RESERVES The Company warrants its products to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. Some agreements with OEM customers, from time to time, may require that certain quantities of product be made available for use as warranty replacements. International market warranties are generally similar to the U.S. market. The Company also sells extended warranty contracts and maintenance agreements. The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was $356,984 and $315,618 at September 30, 2016 and 2015, respectively. |
Income Tax, Policy [Policy Text Block] | INCOME TAXES The Company determines its income tax provision using the asset and liability method. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. A valuation allowance is recorded by the Company to the extent it is more likely than not that some portion or all of the deferred tax asset will not be realized. Significant management judgment is required in assessing the ability to realize the Company’s deferred tax assets. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income and the tax rates in effect at that time. Additional information regarding income taxes appears in Note 10, Income Taxes. |
Property, Plant and Equipment, Impairment [Policy Text Block] | IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset, or if changes in facts and circumstances indicate this, an impairment loss is measured and recognized using the asset’s fair value. |
Segment Reporting, Policy [Policy Text Block] | SEGMENT INFORMATION The Company presents its business as one reportable segment due to the similarity in nature of products provided, financial performance measures (revenue growth and gross margin), methods of distribution (direct and indirect) and customer markets (each product is sold by the same personnel to government and commercial customers, domestically and internationally). The Company’s chief operating decision-making officer reviews financial information on sound products on a consolidated basis. See Note 15, Major Customers, Suppliers, Segment and Related Information, for additional information. |
Earnings Per Share, Policy [Policy Text Block] | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution of securities that could occur if outstanding securities convertible into common stock were exercised or converted. See Note 14, Net Income Per Share, for additional information. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | FOREIGN CURRENCY TRANSLATION The Company’s functional currency is U.S. dollars as substantially all of the Company’s operations use this denomination. Foreign sales to date have been denominated in U.S. dollars. Transactions undertaken in other currencies, which have not been material, are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the statements of operations. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | SHARE-BASED COMPENSATION The Company recognized share-based compensation expense related to qualified and non-qualified stock options issued to employees and directors over the expected vesting term of the stock-based instrument based on the grant date fair value. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates or if the Company updates its estimated forfeiture rate. See Note 12, Share-based Compensation, for additional information. |
Reclassification, Policy [Policy Text Block] | RECLASSIFICATIONS Where necessary, the prior year’s information has been reclassified to conform to the fiscal year 2016 statement presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit. |
Subsequent Events, Policy [Policy Text Block] | SUBSEQUENT EVENTS Management has evaluated events subsequent to September 30, 2016 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission and noted that there have been no events or transactions which would affect the Company’s consolidated financial statements for the year ended September 30, 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | 3. RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In July 2015, the FASB deferred the effective date of the standard by an additional year; however, it provided companies the option to adopt one year earlier, commensurate with the original effective date. Accordingly, the standard will be effective for the Company in the fiscal year beginning October 1, 2018, with an option to adopt the standard for the fiscal year beginning October 1, 2017. The Company is currently evaluating this standard and has not yet selected a transition method or the effective date on which it plans to adopt the standard, nor has it determined the effect of the standard on its financial statements and related disclosures. |
Note 4 - Fair Value Measureme25
Note 4 - Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | September 30, 2016 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ - $ - $ 95,538 $ 95,538 $ - $ - Level 2: Certificates of deposit $ 3,236,168 $ - $ 3,236,168 $ - $ 1,299,133 $ 1,937,035 Municipal securities 140,637 - 140,637 - 140,637 - Corporate bonds 1,748,404 (1,549 ) 1,746,855 - 1,496,354 250,501 Subtotal 5,125,209 (1,549 ) 5,123,660 - 2,936,124 2,187,536 Total $ 5,125,209 $ (1,549 ) $ 5,219,198 $ 95,538 $ 2,936,124 $ 2,187,536 September 30, 2015 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ 301,193 $ - $ 301,193 $ 301,193 $ - $ - Level 2: Certificates of deposit 3,296,238 - 3,296,238 - 249,072 3,047,166 Municipal securities 654,205 293 654,498 160,058 494,440 - Corporate bonds 509,029 (594 ) 508,435 - 508,435 - Subtotal 4,459,472 (301 ) 4,459,171 160,058 1,251,947 3,047,166 Total $ 4,760,665 $ (301 ) $ 4,760,364 $ 461,251 $ 1,251,947 $ 3,047,166 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2016 2015 Raw materials $ 4,393,928 $ 4,562,535 Finished goods 775,628 763,227 Work in process 174,485 20,588 Inventories, gross 5,344,041 5,346,350 Reserve for obsolescence (580,132 ) (420,178 ) Inventories, net $ 4,763,909 $ 4,926,172 |
Note 6 - Property and Equipme27
Note 6 - Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Depreciation Expense [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Year Ended September 30, 2016 2015 Depreciation expense $ 160,941 $ 232,387 |
Property, Plant and Equipment [Table Text Block] | September 30, 2016 2015 Machinery and equipment $ 957,829 $ 940,289 Office furniture and equipment 976,856 877,011 Leasehold improvements 71,738 67,913 Property and equipment, gross 2,006,423 1,885,213 Accumulated depreciation (1,533,079 ) (1,413,250 ) Property and equipment, net $ 473,344 $ 471,963 |
Note 7 - Intangible Assets (Tab
Note 7 - Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2016 2015 Cost $ 108,247 $ 96,975 Accumulated amortization (45,342 ) (38,590 ) Intangible assets, net $ 62,905 $ 58,385 Year ended September 30, 2016 2015 Amortization expense $ 6,752 $ 5,927 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated Amortization Expense Years Ended September 30, 2017 $ 7,092 2018 7,092 2019 7,092 2020 7,092 2021 7,092 Thereafter 27,445 Total estimated amortization expense $ 62,905 |
Note 9 - Accrued and Other Li29
Note 9 - Accrued and Other Liabilities - Noncurrent (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Warranty Reserves [Member] | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | September 30, 2016 2015 Short-term warranty reserve $ 285,402 $ 289,660 Long-term warranty reserve 71,582 25,958 Total warranty reserve $ 356,984 $ 315,618 |
Schedule of Accrued Liabilities [Table Text Block] | September 30, 2016 2015 Payroll and related $ 382,845 $ 330,916 Deferred revenue 637,763 51,345 Warranty reserve 285,402 289,660 Accrued contract costs 197,034 197,034 Other - 1,600 Total $ 1,503,044 $ 870,555 Deferred rent $ 93,456 $ 121,996 Extended warranty 71,582 25,958 Total $ 165,038 $ 147,954 |
Schedule of Product Warranty Liability [Table Text Block] | Years ended September 30, 2016 2015 Beginning balance $ 315,618 $ 314,311 Warranty provision 79,954 42,645 Warranty settlements (38,588 ) (41,338 ) Ending balance $ 356,984 $ 315,618 |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years ended September 30, 2016 2015 Current tax benefit Federal $ - $ - State 1,840 (7,700 ) Total current tax benefit 1,840 (7,700 ) Deferred benefit Federal (159,800 ) (7,564,000 ) State (28,200 ) (775,000 ) Total deferred benefit (188,000 ) (8,339,000 ) Change in valuation allowance - - Provision for income taxes $ (186,160 ) $ (8,346,700 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended September 30, 2016 2015 Income taxes computed at the federal statutory rate $ (499,000 ) $ 456,000 Change in valuation allowance (66,000 ) (8,316,000 ) Expired net operating loss carryforwards 487,000 598,000 Nondeductible compensation, interest expense and other 99,000 20,000 State income taxes, net of federal tax benefit (36,000 ) 24,000 Change in R&D credit carryover (98,000 ) (17,000 ) Stock options and other prior year true-ups (75,000 ) (1,103,000 ) Other 1,840 (8,700 ) Provision for income taxes $ (186,160 ) $ (8,346,700 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | At September 30, Deferred tax assets: 2016 2015 Net operating loss carryforwards $ 16,410,000 $ 16,966,000 Research and development credit 2,461,000 2,309,000 Share-based compensation 598,000 468,000 Equipment (23,000 ) (24,000 ) Patents 102,000 134,000 Accruals and other 832,000 465,000 State tax deduction (7,000 ) (6,000 ) Federal AMT Credit 52,000 52,000 Allowances 211,000 150,000 Gross deferred tax asset 20,636,000 20,514,000 Less valuation allowance (12,109,000 ) (12,175,000 ) Total deferred tax assets, net of valuation allowance $ 8,527,000 $ 8,339,000 |
Note 11 - Commitments and Con31
Note 11 - Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Years ending September 30: 2017 $ 391,578 2018 298,797 2019 16,557 2020 15,177 2021 - Total lease obligations $ 722,109 |
Note 12 - Share-based Compens32
Note 12 - Share-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2016 2015 Volatility 49.0% - 52.0% 51.0% - 62.0% Risk-free interest rate 1.0% - 1.7% 1.0% - 1.6% Forfeiture rate 10.0% 10.0% Dividend yield 2.2% - 2.7% 0.0% Expected life in years 3.2 - 4.6 3.2 - 4.6 Weighted average fair value of options granted during the period $0.70 $1.09 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Average of Shares Exercise Price Outstanding October 1, 2015 2,852,419 $ 2.35 Granted 1,857,000 $ 1.93 Forfeited/expired (304,167 ) $ 2.18 Exercised (1,250 ) $ 1.76 Outstanding September 30, 2016 4,404,002 $ 2.18 Exercisable September 30, 2016 2,811,617 $ 2.30 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Weighted Average Weighted Weighted Range of Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price $0.93 - $1.76 969,752 5.05 $ 1.59 831,063 $ 1.59 $1.77 - $1.99 1,756,750 6.61 $ 1.94 365,362 $ 1.86 $2.00 - $2.85 906,250 5.03 $ 2.57 855,817 $ 2.56 $2.86 - $3.13 761,250 5.61 $ 3.00 755,000 $ 3.00 $3.14 - $3.17 10,000 5.14 $ 3.17 4,375 $ 3.17 $0.93 - $3.17 4,404,002 5.76 $ 2.18 2,811,617 $ 2.30 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Years Ended September 30, 2016 2015 Cost of revenues $ 24,092 $ 25,355 Selling, general and administrative 478,695 473,118 Research and development 102,639 120,728 Total $ 605,426 $ 619,201 |
Note 14 - Net Income Per Share
Note 14 - Net Income Per Share (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended September 30, 2016 2015 Numerator: (Loss) income available to common stockholders $ (1,281,599 ) $ 9,687,816 Denominator: Weighted average common shares outstanding 31,970,600 33,174,546 Assumed exercise of dilutive options and warrants - 400,373 Weighted average dilutive shares outstanding 31,970,600 33,574,919 Basic (loss) income per common share $ (0.04 ) $ 0.29 Diluted (loss) income per common share $ (0.04 ) $ 0.29 Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 4,404,002 1,402,750 Warrants - 1,627,945 Total 4,404,002 3,030,695 |
Note 15 - Major Customers, Su34
Note 15 - Major Customers, Suppliers, Segment and Related Information (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Years ended September 30, 2016 2015 Americas $ 7,582,545 $ 4,634,880 Europe, Middle East and Africa 1,035,559 1,740,659 Asia Pacific 7,742,901 10,408,681 Total Revenues $ 16,361,005 $ 16,784,220 |
Note 2 - Basis of Presentatio35
Note 2 - Basis of Presentation and Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Customer Concentration Risk [Member] | Customer 1 [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 27.00% | 21.00% | |
Customer Concentration Risk [Member] | Customer 2 [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 24.00% | 19.00% | |
Customer Concentration Risk [Member] | Customer 3 [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 12.00% | ||
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Number of Major Customers Accounted for Accounts Receivable | 3 | 2 | |
Investments, Typical Final Maturity Maximum | 3 years | ||
Investments, Typical Portfolio Weighted Average Maturity | 1 year 180 days | ||
Restricted Cash and Cash Equivalents | $ 39,406 | $ 39,406 | |
Inventory Obsolescence Write Down (Recoveries) | $ 159,954 | 65,692 | |
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Product Warranty Period | 1 year | ||
Shipping, Handling and Transportation Costs | $ 128,380 | 120,317 | |
Shipping and Handling Revenue | 78,975 | 99,584 | |
Advertising Expense | 66,353 | 61,680 | |
Standard and Extended Product Warranty Accrual | $ 356,984 | 315,618 | $ 314,311 |
Number of Reportable Segments | 1 | ||
Deferred Revenue for Collection Issues | $ 0 | 0 | |
Allowance for Doubtful Accounts Receivable | 0 | 0 | |
Capital Lease Obligations | $ 0 | $ 0 |
Note 4 - Fair Value Measureme36
Note 4 - Fair Value Measurements - Fair Value by Major Security Type (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | $ 301,193 | |
Unrealized Gains (Losses) | ||
Fair Value | 95,538 | 301,193 |
Cash Equivalents | 95,538 | 301,193 |
Short-term marketable securities | ||
Long-term marketable securities | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Certificates of Deposit [Member] | ||
Cost Basis | 3,236,168 | 3,296,238 |
Unrealized Gains (Losses) | ||
Fair Value | 3,236,168 | 3,296,238 |
Short-term marketable securities | 1,299,133 | 249,072 |
Long-term marketable securities | 1,937,035 | 3,047,166 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Cost Basis | 140,637 | 654,205 |
Unrealized Gains (Losses) | 293 | |
Fair Value | 140,637 | 654,498 |
Cash Equivalents | 160,058 | |
Short-term marketable securities | 140,637 | 494,440 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Corporate Debt Securities [Member] | ||
Cost Basis | 1,748,404 | 509,029 |
Unrealized Gains (Losses) | (1,549) | (594) |
Fair Value | 1,746,855 | 508,435 |
Short-term marketable securities | 1,496,354 | 508,435 |
Long-term marketable securities | 250,501 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | 5,125,209 | 4,459,472 |
Unrealized Gains (Losses) | (1,549) | (301) |
Fair Value | 5,123,660 | 4,459,171 |
Cash Equivalents | 160,058 | |
Short-term marketable securities | 2,936,124 | 1,251,947 |
Long-term marketable securities | 2,187,536 | 3,047,166 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | 5,125,209 | 4,760,665 |
Unrealized Gains (Losses) | (1,549) | (301) |
Fair Value | 5,219,198 | 4,760,364 |
Cash Equivalents | 95,538 | 461,251 |
Short-term marketable securities | 2,936,124 | 1,251,947 |
Long-term marketable securities | 2,187,536 | 3,047,166 |
Short-term marketable securities | 2,936,124 | 1,251,947 |
Long-term marketable securities | $ 2,187,536 | $ 3,047,166 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Held at Supplier Location [Member] | ||
Inventory, Raw Materials, Gross | $ 97,515 | $ 80,098 |
Inventory, Raw Materials, Gross | $ 4,393,928 | $ 4,562,535 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Inventory, Raw Materials, Gross | $ 4,393,928 | $ 4,562,535 |
Finished goods | 775,628 | 763,227 |
Work in process | 174,485 | 20,588 |
Inventories, gross | 5,344,041 | 5,346,350 |
Reserve for obsolescence | (580,132) | (420,178) |
Inventories, net | $ 4,763,909 | $ 4,926,172 |
Note 6 - Property and Equipme39
Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Machinery and Equipment [Member] | ||
Property and equipment | $ 957,829 | $ 940,289 |
Furniture and Fixtures [Member] | ||
Property and equipment | 976,856 | 877,011 |
Leasehold Improvements [Member] | ||
Property and equipment | 71,738 | 67,913 |
Property and equipment | 2,006,423 | 1,885,213 |
Accumulated depreciation | (1,533,079) | (1,413,250) |
Property and equipment, net | $ 473,344 | $ 471,963 |
Note 6 - Property and Equipme40
Note 6 - Property and Equipment - Property and Equipment, Depreciation Expense (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Depreciation expense | $ 160,941 | $ 232,387 |
Note 7 - Intangible Assets - Su
Note 7 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cost | $ 108,247 | $ 96,975 |
Accumulated amortization | (45,342) | (38,590) |
Intangible assets, net | 62,905 | 58,385 |
Amortization expense | $ 6,752 | $ 5,927 |
Note 7 - Intangible Assets - Es
Note 7 - Intangible Assets - Estimated Amortization Expense (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
2,017 | $ 7,092 | |
2,018 | 7,092 | |
2,019 | 7,092 | |
2,020 | 7,092 | |
2,021 | 7,092 | |
Thereafter | 27,445 | |
Total estimated amortization expense | $ 62,905 | $ 58,385 |
Note 8 - Prepaid Maintenance 43
Note 8 - Prepaid Maintenance Agreement (Details Textual) - USD ($) | Mar. 31, 2011 | Sep. 30, 2016 | Sep. 30, 2015 |
Third Party Service Provider [Member] | |||
Prepaid Expense | $ 1,500,000 | ||
Prepaid Expense, Current | $ 187,500 | $ 187,500 | |
Prepaid Expense, Noncurrent | $ 281,250 | $ 468,750 | |
Amortization Period of Prepaid Maintenance Agreement | 8 years |
Note 9 - Accrued and Other Li44
Note 9 - Accrued and Other Liabilities - Noncurrent - Summary of Accrued Liabilities (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Payroll and related | $ 382,845 | $ 330,916 |
Deferred revenue | 637,763 | 51,345 |
Short-term warranty reserve | 285,402 | 289,660 |
Accrued contract costs | 197,034 | 197,034 |
Other | 1,600 | |
Total | 1,503,044 | 870,555 |
Deferred rent | 93,456 | 121,996 |
Long-term warranty reserve | 71,582 | 25,958 |
Total | $ 165,038 | $ 147,954 |
Note 9 - Accrued and Other Li45
Note 9 - Accrued and Other Liabilities - Noncurrent - Changes in Warranty Reserve (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Beginning balance | $ 315,618 | $ 314,311 |
Warranty provision | 79,954 | 42,645 |
Warranty settlements | (38,588) | (41,338) |
Ending balance | $ 356,984 | $ 315,618 |
Note 9 - Accrued and Other Li46
Note 9 - Accrued and Other Liabilities - Noncurrent - Short-term and Long-term Warranty Reserves (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Short-term warranty reserve | $ 285,402 | $ 289,660 | |
Long-term warranty reserve | 71,582 | 25,958 | |
Total warranty reserve | $ 356,984 | $ 315,618 | $ 314,311 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards | $ 46,127,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 1,914,000 | |
State and Local Jurisdiction [Member] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 547,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |
Deferred Tax Assets, Net | $ 20,636,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 2,461,000 | $ 2,309,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 1,130,000 | |
Sustained Profitability, Number of Years | 6 years | |
Deferred Tax Assets, Valuation Allowance | $ 12,109,000 | $ 12,175,000 |
Effective Income Tax Rate Reconciliation, Percent | 0.00% |
Note 10 - Income Taxes - Summar
Note 10 - Income Taxes - Summary of Income Taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
State | $ 1,840 | $ (7,700) |
Total current tax benefit | 1,840 | (7,700) |
Federal | (159,800) | (7,564,000) |
State | (28,200) | (775,000) |
Total deferred benefit | (188,000) | (8,339,000) |
Change in valuation allowance | ||
Provision for income taxes | $ (186,160) | $ (8,346,666) |
Note 10 - Income Taxes - Reconc
Note 10 - Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income taxes computed at the federal statutory rate | $ (499,000) | $ 456,000 |
Change in valuation allowance | (66,000) | (8,316,000) |
Expired net operating loss carryforwards | 487,000 | 598,000 |
Nondeductible compensation, interest expense and other | 99,000 | 20,000 |
State income taxes, net of federal tax benefit | (36,000) | 24,000 |
Change in R&D credit carryover | (98,000) | (17,000) |
Stock options and other prior year true-ups | (75,000) | (1,103,000) |
Other | 1,840 | (8,700) |
Provision for income taxes | $ (186,160) | $ (8,346,666) |
Note 10 - Income Taxes - Signif
Note 10 - Income Taxes - Significant Portion of Net Deferred Tax Asset (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Net operating loss carryforwards | $ 16,410,000 | $ 16,966,000 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 2,461,000 | 2,309,000 |
Share-based compensation | 598,000 | 468,000 |
Equipment | (23,000) | (24,000) |
Patents | 102,000 | 134,000 |
Accruals and other | 832,000 | 465,000 |
State tax deduction | (7,000) | (6,000) |
Federal AMT Credit | 52,000 | 52,000 |
Allowances | 211,000 | 150,000 |
Gross deferred tax asset | 20,636,000 | 20,514,000 |
Less valuation allowance | (12,109,000) | (12,175,000) |
Total deferred tax assets, net of valuation allowance | $ 8,527,000 | $ 8,339,000 |
Note 11 - Commitments and Con51
Note 11 - Commitments and Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2016shares | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Nov. 29, 2011a | |
Performance Shares [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vesting Upon Employee Termination and Change of Control, Number of Shares | shares | 375,000 | |||
Change of Control Severance Benefit Plan [Member] | ||||
Lump Sum Payment of Base Salary | 2 years | |||
Continuation of Health Benefits | 2 years | |||
Area of Leased Facility | a | 31,360 | |||
Operating Leases, Average Monthly Payments Due, Current | $ 16,306 | |||
Operating Leases, Average Monthly Payments, Due in Second Year | 25,088 | |||
Operating Leases, Average Monthly Payments, Due in Third Year | 26,656 | |||
Operating Leases, Average Monthly Payments, Due in Fourth Year | 28,224 | |||
Operating Leases, Average Monthly Payments, Due in Fifth Year | 29,792 | |||
Operating Leases, Average Monthly Payments, Due in Sixth Year | 31,360 | |||
Operating Leases, Rent Expense, Net | 377,033 | $ 356,107 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 157,081 | $ 135,229 |
Note 11 - Commitments and Con52
Note 11 - Commitments and Contingencies - Obligations Under Operating Leases (Details) | Sep. 30, 2016USD ($) |
2,017 | $ 391,578 |
2,018 | 298,797 |
2,019 | 16,557 |
2,020 | 15,177 |
2,021 | |
Total lease obligations | $ 722,109 |
Note 12 - Share-based Compens53
Note 12 - Share-based Compensation (Details Textual) - USD ($) | Aug. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
2015 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 5,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,923,750 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 7,357,002 | ||
2005 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,480,252 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,953,000 | ||
Employee Stock Option [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 800,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 73 days | ||
Performance Shares [Member] | Chief Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 750,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Performance Criteria, Maximum Vested Per Year, Number | 375,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 187,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 0.81 | ||
Share-based Compensation | $ 4,774 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,404,002 | 2,852,419 | |
Allocated Share-based Compensation Expense | $ 605,426 | $ 619,201 | |
Share-based Compensation | 605,426 | 619,201 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 279,705 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 232,375 | ||
Share Price | $ 1.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 288 | 438,484 | |
Proceeds from Stock Options Exercised | 2,200 | 504,371 | |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 288 | $ 438,484 |
Note 12 - Share-based Compens54
Note 12 - Share-based Compensation - Weighted-average Assumptions (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Minimum [Member] | ||
Volatility | 49.00% | 51.00% |
Risk-free interest rate | 1.00% | 1.00% |
Dividend yield | 2.20% | |
Expected life in years | 3 years 73 days | 3 years 73 days |
Maximum [Member] | ||
Volatility | 52.00% | 62.00% |
Risk-free interest rate | 1.70% | 1.60% |
Dividend yield | 2.70% | |
Expected life in years | 4 years 219 days | 4 years 219 days |
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | |
Weighted average fair value of options granted during the period (in dollars per share) | $ 0.70 | $ 1.09 |
Note 12 - Share-based Compens55
Note 12 - Share-based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Shares Outstanding, Beginning Balance (in shares) | 2,852,419 | |
Weighted Average Exercise Price, Shares Outstanding, Beginning Balance (in dollars per share) | $ 2.35 | |
Number of Shares Granted (in shares) | 1,857,000 | |
Weighted Average Exercise Price, Shares Granted (in dollars per share) | $ 1.93 | |
Number of Shares Forfeited/expired (in shares) | (304,167) | |
Weighted Average Exercise Price, Shares Forfeited/expired (in dollars per share) | $ 2.18 | |
Exercised (in shares) | (1,250) | (396,042) |
Exercised (in dollars per share) | $ 1.76 | |
Number of Shares Outstanding, Ending Balance (in shares) | 4,404,002 | 2,852,419 |
Weighted Average Exercise Price, Shares Outstanding, Ending Balance (in dollars per share) | $ 2.18 | $ 2.35 |
Number of Shares Exercisable (in shares) | 2,811,617 | |
Weighted Average Exercise Price, Shares Exercisable (in dollars per share) | $ 2.30 |
Note 12 - Share-based Compens56
Note 12 - Share-based Compensation - Stock Options Outstanding (Details) | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Range One [Member] | |
Lower Exercise Price (in dollars per share) | $ 0.93 |
Upper Exercise Price (in dollars per share) | $ 1.76 |
Number Outstanding (in shares) | shares | 969,752 |
Weighted Average Remaining Contractual Life | 5 years 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 1.59 |
Number Exercisable (in shares) | shares | 831,063 |
Weighted Average Exercise Price (in dollars per share) | $ 1.59 |
Range Two [Member] | |
Lower Exercise Price (in dollars per share) | 1.77 |
Upper Exercise Price (in dollars per share) | $ 1.99 |
Number Outstanding (in shares) | shares | 1,756,750 |
Weighted Average Remaining Contractual Life | 6 years 222 days |
Weighted Average Exercise Price (in dollars per share) | $ 1.94 |
Number Exercisable (in shares) | shares | 365,362 |
Weighted Average Exercise Price (in dollars per share) | $ 1.86 |
Range Three [Member] | |
Lower Exercise Price (in dollars per share) | 2 |
Upper Exercise Price (in dollars per share) | $ 2.85 |
Number Outstanding (in shares) | shares | 906,250 |
Weighted Average Remaining Contractual Life | 5 years 10 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.57 |
Number Exercisable (in shares) | shares | 855,817 |
Weighted Average Exercise Price (in dollars per share) | $ 2.56 |
Range Four [Member] | |
Lower Exercise Price (in dollars per share) | 2.86 |
Upper Exercise Price (in dollars per share) | $ 3.13 |
Number Outstanding (in shares) | shares | 761,250 |
Weighted Average Remaining Contractual Life | 5 years 222 days |
Weighted Average Exercise Price (in dollars per share) | $ 3 |
Number Exercisable (in shares) | shares | 755,000 |
Weighted Average Exercise Price (in dollars per share) | $ 3 |
Range Five [Member] | |
Lower Exercise Price (in dollars per share) | 3.14 |
Upper Exercise Price (in dollars per share) | $ 3.17 |
Number Outstanding (in shares) | shares | 10,000 |
Weighted Average Remaining Contractual Life | 5 years 51 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.17 |
Number Exercisable (in shares) | shares | 4,375 |
Weighted Average Exercise Price (in dollars per share) | $ 3.17 |
Range Six [Member] | |
Lower Exercise Price (in dollars per share) | 0.93 |
Upper Exercise Price (in dollars per share) | $ 3.17 |
Number Outstanding (in shares) | shares | 4,404,002 |
Weighted Average Remaining Contractual Life | 5 years 277 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.18 |
Number Exercisable (in shares) | shares | 2,811,617 |
Weighted Average Exercise Price (in dollars per share) | $ 2.30 |
Note 12 - Share-based Compens57
Note 12 - Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cost of Sales [Member] | ||
Share-based compensation expense | $ 24,092 | $ 25,355 |
Selling, General and Administrative Expenses [Member] | ||
Share-based compensation expense | 478,695 | 473,118 |
Research and Development Expense [Member] | ||
Share-based compensation expense | 102,639 | 120,728 |
Share-based compensation expense | $ 605,426 | $ 619,201 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share Buyback Program [Member] | ||
Stock Repurchase Program, Authorized Amount | $ 4,000,000 | |
New Share Buyback Program [Member] | ||
Stock Repurchase Program, Authorized Amount | $ 4,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,250 | 396,042 |
Proceeds from Stock Options Exercised | $ 2,200 | $ 504,371 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,627,945 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.67 | |
Stock Repurchased and Retired During Period, Shares | 1,099,608 | 734,070 |
Stock Repurchased During Period, Value | $ 1,748,456 | $ 1,564,666 |
Note 14 - Net Income Per Shar59
Note 14 - Net Income Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Equity Option [Member] | ||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Potentially dilutive securities (in shares) | 4,404,002 | 1,402,750 |
Warrant [Member] | ||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Potentially dilutive securities (in shares) | 1,627,945 | |
(Loss) income available to common stockholders | $ (1,281,599) | $ 9,687,816 |
Weighted average common shares outstanding (in shares) | 31,970,600 | 33,174,546 |
Assumed exercise of dilutive options and warrants (in shares) | 400,373 | |
Weighted average dilutive shares outstanding (in shares) | 31,970,600 | 33,574,919 |
Basic (loss) income per common share (in dollars per share) | $ (0.04) | $ 0.29 |
Diluted (loss) income per common share (in dollars per share) | $ (0.04) | $ 0.29 |
Potentially dilutive securities (in shares) | 4,404,002 | 3,030,695 |
Note 15 - Major Customers, Su60
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details Textual) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 15.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk, Percentage | 0.00% | |
Supplier Concentration Risk [Member] | ||
Number of Major Suppliers | 1 | |
Number of Reportable Segments | 1 |
Note 15 - Major Customers, Su61
Note 15 - Major Customers, Suppliers, Segment and Related Information - Major Customers, Suppliers, Segment and Related Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Americas [Member] | ||
Revenues | $ 7,582,545 | $ 4,634,880 |
EMEA [Member] | ||
Revenues | 1,035,559 | 1,740,659 |
Asia Pacific [Member] | ||
Revenues | 7,742,901 | 10,408,681 |
Revenues | $ 16,361,005 | $ 16,784,220 |
Note 16 - Unusual and Infrequ62
Note 16 - Unusual and Infrequent Expenses (Details Textual) | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Unusual or Infrequent Expense | $ 1,138,183 |