Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 05, 2023 | Mar. 31, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-24248 | ||
Entity Registrant Name | GENASYS INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 87-0361799 | ||
Entity Address, Address Line One | 16262 West Bernardo Drive, | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
16262 West Bernardo Drive, San Diego, California | 92127 | ||
City Area Code | 858 | ||
Local Phone Number | 676-1112 | ||
Title of 12(b) Security | Common stock, $0.00001 par value per share | ||
GNSS | GNSS | ||
Common stock, $0.00001 par value per share | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | true | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 94,166,457 | ||
Entity Common Stock, Shares Outstanding (in shares) | 44,027,121 | ||
Auditor Firm ID | 23 | ||
Auditor Name | BAKER TILLY US, LLP | ||
Auditor Location | San Diego, California | ||
Entity Central Index Key | 0000924383 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 8,665 | $ 12,736 |
Short-term marketable securities | 1,481 | 6,397 |
Restricted cash | 758 | 100 |
Accounts receivable, net of allowance for doubtful accounts of $66 and $181 | 5,952 | 6,744 |
Inventories, net | 6,501 | 6,008 |
Prepaid expenses and other | 1,851 | 3,577 |
Total current assets | 25,208 | 35,562 |
Long-term marketable securities | 0 | 781 |
Long-term restricted cash | 96 | 823 |
Deferred tax assets, net | 0 | 7,373 |
Property and equipment, net | 1,551 | 1,757 |
Goodwill | 10,282 | 10,118 |
Intangible assets, net | 8,427 | 10,505 |
Operating lease right of use assets | 3,886 | 4,541 |
Other assets | 455 | 394 |
Total assets | 49,905 | 71,854 |
Current liabilities: | ||
Accounts payable | 2,785 | 2,334 |
Accrued liabilities | 7,466 | 12,083 |
Operating lease liabilities, current portion | 1,008 | 948 |
Total current liabilities | 11,259 | 15,365 |
Other liabilities, noncurrent | 551 | 907 |
Operating lease liabilities, noncurrent | 4,283 | 5,189 |
Total liabilities | 16,093 | 21,461 |
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; 100,000,000 shares authorized; 36,611,240 and 36,403,833 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 110,379 | 108,551 |
Accumulated deficit | (76,062) | (57,366) |
Accumulated other comprehensive loss | (505) | (792) |
Total stockholders' equity | 33,812 | 50,393 |
Total liabilities and stockholders' equity | $ 49,905 | $ 71,854 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Allowance for doubtful accounts | $ 66 | $ 181 |
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 or Stated Value Per Share (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued (in shares) | 37,211,071 | 36,611,240 |
Common Stock, Shares, Outstanding (in shares) | 37,211,071 | 36,611,240 |
Common Stock, Shares, Issued (in shares) | 37,211,071 | 36,611,240 |
Common stock, outstanding (in shares) | 37,211,071 | 36,611,240 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||
Product sales | $ 46,663 | $ 54,035 |
Cost of revenues | 24,901 | 26,759 |
Gross profit | 21,762 | 27,276 |
Operating expenses | ||
Selling, general and administrative | 24,621 | 22,635 |
Goodwill impairment | 0 | 13,162 |
Research and development | 8,127 | 7,010 |
Total operating expenses | 32,748 | 42,807 |
(Loss) income from operations | (10,986) | (15,531) |
Other income, net | (10) | 60 |
(Loss) income before income taxes | (10,996) | (15,471) |
Income tax expense | 7,400 | 741 |
Net (loss) income | $ (18,396) | $ (16,212) |
Basic (in dollars per share) | $ (0.5) | $ (0.44) |
Weighted average common shares outstanding: | ||
Diluted (in shares) | 36,939,335 | 36,495,012 |
Product [Member] | ||
Revenues: | ||
Product sales | $ 40,128 | $ 48,637 |
Service [Member] | ||
Revenues: | ||
Product sales | $ 6,535 | $ 5,398 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Net (loss) income | $ (18,396) | $ (16,212) |
Unrealized loss on marketable securities | 80 | (90) |
Unrealized foreign currency translation (loss) gain | 207 | (704) |
Comprehensive (loss) income | $ (18,109) | $ (17,006) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Sep. 30, 2021 | 36,403,833 | ||||
Balance at Sep. 30, 2021 | $ 364 | $ 107,110 | $ (41,154) | $ 2 | $ 65,958 |
Share-based compensation expense | 2,227 | $ 2,227 | |||
Issuance of common stock upon exercise of stock options, net (in shares) | 145,235 | 145,235 | |||
Issuance of common stock upon exercise of stock options, net | $ 2 | 282 | $ 282 | ||
Issuance of common stock upon vesting of restricted stock units (in shares) | 270,262 | 270,262 | |||
Issuance of common stock upon vesting of restricted stock units | $ 2 | ||||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units (in shares) | (18,344) | ||||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units | (70) | $ (70) | |||
Issuance of common stock in business combination (in shares) | 259,310 | ||||
Issuance of common stock in business combination | $ 2 | 998 | 998 | ||
Release of obligation to issue commons stock | $ 0 | ||||
Accumulated other comprehensive income | (794) | (794) | |||
Net income | (16,212) | (16,212) | |||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units (in shares) | 18,344 | ||||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units | 70 | 70 | |||
Balance (in shares) at Sep. 30, 2022 | 36,611,240 | ||||
Balance at Sep. 30, 2022 | $ 366 | 108,551 | (57,366) | (792) | 50,393 |
Share-based compensation expense | 1,642 | $ 1,642 | |||
Issuance of common stock upon exercise of stock options, net (in shares) | 84,765 | 84,765 | |||
Issuance of common stock upon exercise of stock options, net | $ 1 | 138 | $ 138 | ||
Issuance of common stock upon vesting of restricted stock units (in shares) | 253,012 | ||||
Issuance of common stock upon vesting of restricted stock units | $ (2) | ||||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units (in shares) | 11,616 | ||||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units | (45) | (45) | |||
Accumulated other comprehensive income | 287 | 287 | |||
Net income | (18,396) | (18,396) | |||
Stock Issued During Period Shares Stock Options Exercised, Cashless (in shares) | 278,712 | ||||
Stock Issued During Period Value Stock Options Exercised, Cashless | $ 3 | 300 | (300) | ||
Shares Paid For Tax Withholding For Share Based Compensation, Cashless (in shares) | (74,606) | ||||
Adjustments Related To Tax Withholding For Cashless Share Based Compensation | $ (1) | (207) | (207) | ||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units (in shares) | (11,616) | ||||
Shares retained for payment of taxes in connection with net share settlement of restricted stock units | 45 | 45 | |||
Release of obligation to issue common stock (in shares) | 69,564 | ||||
Balance (in shares) at Sep. 30, 2023 | 37,211,071 | ||||
Balance at Sep. 30, 2023 | $ 372 | $ 110,379 | $ (76,062) | $ (505) | $ 33,812 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities: | ||
Net loss | $ (18,396) | $ (16,212) |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Impairment of goodwill | 0 | 13,162 |
Depreciation and amortization | 2,558 | 2,556 |
Amortization of debt issuance costs | 8 | 19 |
Provision for doubtful accounts | 0 | 55 |
Warranty provision | 31 | 86 |
Inventory obsolescence | 295 | 333 |
Stock-based compensation | 1,642 | 2,227 |
Deferred income taxes | 7,373 | 666 |
Loss on disposal of fixed asset | (4) | 0 |
Amortization of operating lease right of use asset | 772 | 746 |
Accretion of acquisition holdback liability | 49 | 48 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 827 | 836 |
Inventories, net | (788) | 75 |
Prepaid expenses and other | 1,671 | 242 |
Accounts payable | 425 | 199 |
Accrued and other liabilities | (6,064) | (4,570) |
Net cash provided by operating activities | (9,593) | 468 |
Investing Activities: | ||
Purchases of marketable securities | (3,641) | (6,830) |
Proceeds from maturities of marketable securities | 9,418 | 7,122 |
Capital expenditures | (239) | (381) |
Net cash provided by (used in) investing activities | 5,538 | (89) |
Financing Activities: | ||
Proceeds from exercise of stock options | 138 | 282 |
Repurchase of common stock | 0 | (998) |
Shares retained for payment of taxes in connection with settlement of restricted stock units | (45) | (70) |
Shares retained for payment of taxes in connection with the exercise of stock options | 207 | 0 |
Payments on promissory notes | 0 | (277) |
Net cash used in financing activities | (114) | (1,063) |
Effect of foreign exchange rate on cash | 29 | (185) |
Net decrease in cash, cash equivalents, and restricted cash | (4,140) | (869) |
Cash, cash equivalents and restricted cash, beginning of period | 13,659 | 14,528 |
Cash, cash equivalents and restricted cash, end of period | 9,519 | 13,659 |
Cash and cash equivalents | 8,665 | 12,736 |
Restricted cash, current portion | 758 | 100 |
Long-term restricted cash | 96 | 823 |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 9,519 | 13,659 |
Noncash investing and financing activities: | ||
Change in unrealized loss on marketable securities | 80 | (90) |
Obligation to issue common stock in connection with the Amika Mobile asset purchase | (416) | (832) |
Initial measurement of operating lease right of use assets | 79 | 466 |
Initial measurement of operating lease liabilities | 79 | 466 |
Shares surrendered from stock option exercises | $ 300 | $ 0 |
Note 1 - Operations
Note 1 - Operations | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. OPERATIONS Genasys Inc. is a global provider of Protective Communications solutions including its Genasys Protect software platform and Genasys Long Range Acoustical Devices (“LRAD”). The Company's unified platform receives information from a wide variety of sensors and Internet-of-Things (IoT) inputs to collect real-time information on developing and active emergency situations. The Company uses this information to create and disseminate alerts, warnings, notifications, and instructions through multiple channels before, during, and after public safety and enterprise threats, critical events, and other crisis situations. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
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 eight two 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, allowance for doubtful accounts, valuation of inventory, goodwill and intangible assets, warranty reserve, valuation of operating lease right of use assets and operating lease liabilities, 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. It is customary for the Company to require a deposit as collateral. As of September 30, 2023, accounts receivable from three The Company maintains cash and cash equivalent bank deposit accounts which, at times, may exceed federally insured limits guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses in such accounts. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions. The Company also invests cash in instruments that meet high credit quality standards, as specified in the Company’s 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 the Company’s policy to invest in instruments that have a final maturity of no longer than three 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. As of September 30, 2023 and 2022, the amount of cash and cash equivalents was $8,665 and $12,736, respectively. The Company considers any amounts pledged as collateral or otherwise restricted for use in current operations to be restricted cash. In addition, the Company excludes from cash and cash equivalents cash required to fund specific future contractual obligations related to business combinations. 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. As of September 30, 2023 and 2022, the amount of restricted cash was $854 and $923, respectively, which is included in “Restricted cash” and “Long-term restricted cash” in the consolidated balance sheet. MARKETABLE SECURITIES The Company’s investments in debt instruments are classified 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. 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 accounts receivable at historical cost, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates accounts receivable and establishes an allowance for doubtful accounts for estimated losses considering the following factors when determining if collection of a receivable is probable: customer creditworthiness, 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 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 probable, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. There was no 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 years 2023 and 2022, 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 seven BUSINESS COMBINATIONS The acquisition method of accounting for business combinations requires the Company to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which the Company may adjust the provisional amounts recognized for a business combination). Under the acquisition method of accounting the Company recognizes separately from goodwill the identifiable assets acquired, the liabilities assumed generally at the acquisition date fair value. The Company measures goodwill as of the acquisition date as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Costs that the Company incurs to complete the business combination such as investment banking, legal and other professional fees are not considered part of consideration and the Company charges them to general and administrative expense as they are incurred. Under the acquisition method of accounting for business combinations, if the Company identifies changes to acquired deferred tax asset valuation allowances or liabilities related to uncertain tax positions during the measurement period and they relate to new information obtained about facts and circumstances that existed as of the acquisition date, those changes are considered a measurement period adjustment and the Company records the offset to goodwill. The Company records all other changes to deferred tax asset valuation allowances and liabilities related to uncertain tax positions in current period income tax expense. GOODWILL AND INTANGIBLE ASSETS Identifiable intangible assets, which consist of technology, customer relationships, non-compete agreements, patents, tradenames and trademarks, are carried at cost less accumulated amortization. Intangible assets are amortized over their estimated useful lives, based on a number of assumptions including estimated periodic economic benefit and utilization. The estimated useful lives of identifiable intangible assets have been estimated to be between three fifteen Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets acquired. The Company evaluates goodwill for impairment on an annual basis in our fiscal fourth quarter or more frequently if indicators of impairment exist that would more likely than not reduce the fair value of a single reporting unit below the carrying amount. The Company assesses qualitative factors in order to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount. The qualitative factors evaluated by the Company include: macro-economic conditions of the business environment, overall financial performance, and other entity specific factors as deemed appropriate. If, through this qualitative assessment, the conclusion is made that it is more likely than not that a reporting unit’s fair value is less than its carrying amount, a two-step impairment test is performed. For reporting units where the Company performs the quantitative goodwill impairment test, an impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. In the fourth quarter of fiscal 2022, in conjunction with the annual impairment assessment, the Company recorded a $13,162 goodwill impairment charge associated with the software reporting unit. The Company did not record a goodwill impairment charge for the year ended September 30, 2023. Refer to Note 8, Goodwill and Intangible Assets for more information. LEASES The Company adopted Accounting Standards Codification (“ASC”) Topic 842, Leases 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 $289 and $640 for the fiscal years ended September 30, 2023 and 2022, respectively. Actual revenues from shipping and handling were $392 and $836 for the fiscal years ended September 30, 2023 and 2022, respectively. ADVERTISING Advertising costs are charged to expense as incurred and were $512 and $677 for the years ended September 30, 2023 and 2022, respectively. 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 $132 and $159 as of September 30, 2023 and 2022, 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 13, Income Taxes. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets and finite-lived 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 carrying value of an intangible asset exceeds the fair value, or if changes in facts and circumstances indicate impairment, an impairment loss is measured and recognized using the asset’s fair value. There was no impairment of long-lived assets for the years ended September 30, 2023 and September 30, 2022. Refer to Note 5, Fair Value Measurements and Note 8, Goodwill and Intangible Assets for additional information. SEGMENT INFORMATION The Company is a global provider of critical communications hardware and software solutions designed to alert, inform, and protect people. The Company operates in two NET (LOSS) INCOME PER SHARE Basic net (loss) income per share is computed by dividing net (loss) 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. Refer to Note 17, Net Loss Per Share, for additional information. FOREIGN CURRENCY TRANSLATION The Company’s reporting currency is U.S. dollars. The functional currency of the Company is the U.S. dollar. The functional currency of Genasys Spain is the Euro and the function currency of Genasys Canada is the Canadian dollar. The Company translates the assets and liabilities of Genasys Spain and Genasys Canada at the exchange rates in effect on the balance sheet date. The Company translates the revenue, costs and expenses of Genasys Spain and Genasys Canada at the average rates of exchange in effect during the period. The Company includes translation gains and losses in the stockholders’ equity section of the Company’s consolidated balance sheets in accumulated other comprehensive income or loss. Transactions undertaken in other currencies are translated using the exchange rate in effect as of the transaction date and any exchange gains and losses resulting from these transactions, are included in the consolidated statements of operations. The translation gain for the period was $207 resulting from transactions between Genasys U.S. and Genasys Spain and Genasys Canada, the timing of transactions in relation to changes in exchange rates and the fluctuation in the exchange rate between foreign currencies and the U.S. dollar. For the year ended September 30, 2022, there was a translation loss of $704. SHARE-BASED COMPENSATION The Company recognized share-based compensation expense related to qualified and non-qualified stock options issued to employees, directors and consultants 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. Refer to Note 15, Share-based Compensation, for additional information. RECLASSIFICATIONS Where necessary, the prior year’s information has been reclassified to conform to the fiscal year 2023 statement presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit. SUBSEQUENT EVENTS Management evaluated events subsequent to September 30, 2023, through the date the accompanying consolidated financial statements are filed with the Securities and Exchange Commission. Refer to Note 20, Subsequent Events for further information. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 3. RECENT ACCOUNTING PRONOUNCEMENTS New pronouncements pending adoption In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842) |
Note 4 - Revenue Recognition
Note 4 - Revenue Recognition | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 4. REVENUE RECOGNITION ASC 606, Revenue from Contracts with Customers 1. Identify the contract(s) with customers 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations 5. Recognize revenue when the performance obligations have been satisfied ASC 606 requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company derives its revenue from the sale of products to customers, contracts, software license fees, other services and freight. The Company sells its products through its direct sales force and through authorized resellers and system integrators. The Company recognizes revenue for goods including software when all the significant risks and rewards have been transferred to the customer, no continuing managerial involvement usually associated with ownership of the goods is retained, no effective control over the goods sold is retained, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transactions will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Software license revenue, maintenance and/or software development service fees may be bundled in one arrangement or may be sold separately. Product revenue Product revenue is recognized as a distinct single performance obligation when products are tendered to a carrier for delivery, which represents the point in time that the Company’s customer obtains control of the products. A smaller portion of product revenue is recognized when the customer receives delivery of the products. A portion of products are sold through resellers and system integrators based on firm commitments from an end user, and as a result, resellers and system integrators carry little or no inventory. The Company’s customers do not have a right to return product unless the product is found defective and therefore the Company’s estimate for returns has historically been insignificant. Perpetual licensed software The sale and/or license of software products is deemed to have occurred when a customer either has taken possession of, or has the ability to take immediate possession of, the software and the software key. Perpetual software licenses can include one-year maintenance and support services. In addition, the Company sells maintenance services on a stand-alone basis and is therefore capable of determining their fair value. On this basis, the amount of the embedded maintenance is separated from the fee for the perpetual license and is recognized on a straight-line basis over the period to which the maintenance relates. Time-based licensed software The time-based license agreements include the use of a software license for a fixed term, generally one-year, and maintenance and support services during the same period. The Company does not sell time-based licenses without maintenance and support services and therefore revenues for the entire arrangements are recognized on a straight-line basis over the term. Warranty, maintenance and services The Company offers extended warranty, maintenance and other services. Extended warranty and maintenance contracts are offered 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 warranty and maintenance contracts are recognized based on time elapsed over the service period and classified as contract and other revenues. Revenue from other services such as training or installation is recognized when the service is completed. Multiple element arrangements The Company has entered into a number of multiple element arrangements, such as the sale of a product or perpetual licenses that may include maintenance and support (included in price of perpetual licenses) and time-based licenses (that include embedded maintenance and support, both of which may be sold with software development services, training, and other product sales). In some cases, the Company delivers software development services bundled with the sale of the software. In multiple element arrangements, the Company uses either the stand-alone selling price or an expected cost plus margin approach to determine the fair value of each element within the arrangement, including software and software-related services such as maintenance and support. In general, elements in such arrangements are also sold on a stand-alone basis and stand-alone selling prices are available. Revenue is allocated to each deliverable based on the fair value of each individual element and is recognized when the revenue recognition criteria described above are met, except for time-based licenses which are not unbundled. When software development services are performed and are considered essential to the functionality of the software, the Company recognizes revenue from the software development services on a stage of completion basis, and the revenue from the software when the related development services have been completed. The Company disaggregates revenue by reporting segment (Hardware and Software) and geographically to depict the nature of revenue in a manner consistent with its business operations and to be consistent with other communications and public filings. Refer to Note 18, Segment Information and Note 19, Major Customers, Suppliers and Related Information for additional details of revenues by reporting segment and disaggregation of revenue. Contract assets and liabilities The Company enters into contracts to sell products and provide services and recognizes contract assets and liabilities that arise from these transactions. The Company recognizes revenue and corresponding accounts receivable according to ASC 606 and, at times, recognizes revenue in advance of the time when contracts give the Company the right to invoice a customer. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Subscription related commission costs are deferred and then amortized on a straight-line basis over the period of benefit. The Company may also receive consideration, per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a contract liability. Additionally, the Company may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met. The table below reflects the balances of contract liabilities as of September 30, 2023 and September 30, 2022, including the change between the periods. There were no The Company’s contract liabilities were as follows: Customer deposits Deferred revenue Total contract liabilities Balance as of September 30, 2022 $ 4,724 $ 2,054 $ 6,778 New performance obligations 12,550 4,456 17,006 Recognition of revenue as a result of satisfying performance obligations (16,510 ) (3,278 ) (19,788 ) Effect of exchange rate on deferred revenue 2 22 24 Balance as of September 30, 2023 $ 766 $ 3,254 $ 4,020 Less: non-current portion - (551 ) (551 ) Current portion as of September 30, 2023 $ 766 $ 2,703 $ 3,469 Remaining Performance Obligations Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations under an original contract with a term greater than one year which are fully or partially unsatisfied at the end of the period. As of September 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4,020. The Company expects to recognize revenue on approximately $3,469, or 86%, of the remaining performance obligations over the next 12 months, and the remainder is expected to be recognized thereafter. Practical Expedients In cases where the Company is responsible for shipping after the customer has obtained control of the goods, the Company has elected to treat these activities as fulfillment activities rather than as a separate performance obligation. Additionally, the Company has elected to capitalize the cost to obtain a contract only if the period of amortization would be longer than one year. The Company only gives consideration to whether a customer agreement has a financing component if the period of time between transfer of goods and services and customer payment is greater than one year. The Company also utilizes the “as invoiced” practical expedient in certain cases where performance obligations are satisfied over time and the invoiced amount corresponds directly with the value provided to the customer. |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. 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 were determined based on Level 1 and Level 2 inputs. The valuation techniques used to measure the fair value of the “Level 2” instruments were valued based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. 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. The Company did not Instruments Measured at Fair Value on a Recurring Basis Cash equivalents and marketable securities September 30, 2023 Cost Basis Unrealized Loss Fair Value Cash Equivalents Short-term Securities Long-term Securities Level 1: Money market funds $ 2,307 $ - $ 2,307 $ 2,307 $ - $ - Level 2: Certificates of deposit 301 - 301 - 301 - Municipal securities 926 (7 ) 919 - 919 - Corporate bonds 264 (3 ) 261 - 261 - Subtotal 1,491 (10 ) 1,481 - 1,481 - Total $ 3,798 $ (10 ) $ 3,788 $ 2,307 $ 1,481 $ - September 30, 2022 Cost Basis Unrealized Loss Fair Value Cash Equivalents Short-term Securities Long-term Securities Level 1: Money market funds $ 1,316 $ - $ 1,316 $ 1,316 $ - $ - Level 2: Certificates of deposit 800 - 800 - 498 302 Municipal securities 4,066 (65 ) 4,001 - 3,772 229 Corporate bonds 2,402 (25 ) 2,377 - 2,127 250 Subtotal 7,268 (90 ) 7,178 - 6,397 781 Total $ 8,584 $ (90 ) $ 8,494 $ 1,316 $ 6,397 $ 781 Instruments measured at Fair Value on a Non-Recurring Basis Nonfinancial assets Goodwill and intangible assets are recognized at fair value during the period in which an acquisition is completed, from updated estimates during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for goodwill and intangible assets acquired, were based on Level 3 inputs. The Company estimates the fair value of long-lived assets on a non-recurring basis based on a market valuation approach, engaging independent valuation experts to assist in the determination of fair value. In the fourth quarter of fiscal 2022, in conjunction with the annual impairment assessment, the Company determined that the fair value of the software reporting unit was less than the carrying value. In addition to increased costs and continued losses in the software reporting unit, the Company considered macroeconomic conditions including a deterioration in the equity markets evidenced by sustained declines in the Company’s stock price, peer companies, and major market indices since September 30, 2021. The Company engaged independent valuation experts to assist in determining the fair value of the software reporting unit. As a result of this analysis, the Company recorded a $13,162 goodwill impairment charge associated with the software reporting unit. There was no goodwill impairment charge for the year ended September 30, 2023. The following table presents nonfinancial assets that were subject to fair value measurement during the twelve months ended September 30, 2023. There were no business combinations during the twelve months ended September 30, 2023. Certain intangible assets, operating lease ROU assets and goodwill are subject to foreign currency translation adjustments. Carrying Active Markets for Identifiable Assets Observable Inputs Unobservable Inputs Non-Cash Impairment Carrying Value Value (Level 1) (Level 2) (Level 3) Loss Operating Lease ROU Asset 79 $ - $ - $ 79 $ - The following table presents nonfinancial assets that were subject to fair value measurement during the twelve months ended September 30, 2022. Certain intangible assets, operating lease ROU assets and goodwill are subject to foreign currency translation adjustments. Carrying Active Markets for Identifiable Assets Observable Inputs Unobservable Inputs Non-Cash Impairment Carrying Value Value (Level 1) (Level 2) (Level 3) Loss Goodwill from software reporting unit $ 10,118 $ - $ - $ 23,280 $ (13,162 ) Operating Lease ROU Asset $ 466 $ - $ - $ 466 $ - Holdback Liability 1,000 736 three Balance as of September 30, 2022 $ 680 Accretion 48 Currency translation 8 Balance as of September 30, 2023 $ 736 |
Note 6 - Inventories
Note 6 - Inventories | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6. INVENTORIES Inventories consisted of the following: September 30, 2023 2022 Raw materials $ 5,086 $ 5,277 Finished goods 1,029 844 Work in process 1,218 744 Inventories, gross 7,333 6,865 Reserve for obsolescence (832 ) (857 ) Inventories, net $ 6,501 $ 6,008 |
Note 7 - Property and Equipment
Note 7 - Property and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 7. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: September 30, 2023 2022 Office furniture and equipment $ 1,582 $ 1,432 Machinery and equipment 1,441 1,391 Leasehold improvements 2,302 2,172 Construction in progress - 104 Property and equipment, gross 5,325 5,099 Accumulated depreciation (3,774 ) (3,342 ) Property and equipment, net $ 1,551 $ 1,757 Years Ended September 30, 2023 2022 Depreciation expense $ 450 $ 403 |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. GOODWILL AND INTANGIBLE ASSETS Goodwill is attributable to the acquisitions of Genasys Spain and Zonehaven, and the Amika Mobile asset purchase and is due to combining the integrated emergency critical communications, mass messaging solutions and software development capabilities with existing hardware products for enhanced offerings and the skill level of the acquired workforces. The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. In the fourth quarter of fiscal 2022, in conjunction with the annual impairment assessment, the Company determined that the fair value of the software reporting unit was less than the carrying value. The Company engaged independent valuation experts to assist in determining the fair value of the software reporting unit and recorded a $13,162 goodwill impairment charge. As of September 30, 2023 and September 30, 2022, goodwill was $10,282 and $10,118 respectively. There were no impairments to goodwill during the year ended September 30, 2023. Intangible assets and goodwill related to Genasys Spain are translated from Euro to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the period related to goodwill and intangible assets was an increase of $194. The changes in the carrying amount of goodwill by segment for the year ended September 30, 2023, are as follows: Hardware Software Total Balance as of September 30, 2022 $ - $ 10,118 $ 10,118 Currency translation - 164 164 Balance as of September 30, 2023 $ - $ 10,282 $ 10,282 The Company’s intangible assets consisted of the following: September 30, 2023 2022 Technology $ 11,930 $ 11,886 Customer relationships 1,790 1,715 Trade name portfolio 605 590 Non-compete agreements 223 206 Patents 72 72 14,620 14,469 Accumulated amortization (6,193 ) (3,964 ) $ 8,427 $ 10,505 The changes in the carrying amount of intangible assets by segment for the year ended September 30, 2023, are as follows: Hardware Software Total Balance as of September 30, 2022 $ 21 $ 10,484 $ 10,505 Amortization (4 ) (2,104 ) (2,108 ) Currency translation - 30 30 Balance as of September 30, 2023 $ 17 $ 8,410 $ 8,427 Years ended September 30, 2023 2022 Amortization expense $ 2,108 $ 2,154 Estimated amortization expense for the fiscal year ending September 30, Fiscal year ending September 30, 2024 $ 2,094 2025 1,977 2026 1,842 2027 1,669 2028 841 Thereafter 4 Total estimated amortization expense $ 8,427 |
Note 9 - Prepaid Expenses and O
Note 9 - Prepaid Expenses and Other | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Prepaid Expenses And Other Disclosure [Text Block] | 9. PREPAID EXPENSES AND OTHER September 30, 2023 2022 Deposits for inventory $ 301 $ 461 Prepaid insurance 264 360 Dues and subscriptions 261 182 Prepaid professional services 136 - Prepaid commissions 417 228 Trade shows and travel 150 471 Canadian goods and services and harmonized sales tax receivable 123 1,631 Other 199 244 $ 1,851 $ 3,577 Deposits for inventory Deposits for inventory consisted of cash payments to vendors for inventory to be delivered in the future. Prepaid insurance Prepaid insurance consisted of premiums paid for health, commercial and corporate insurance. These premiums are amortized on a straight-line basis over the term of the agreements. Dues and subscriptions Dues and subscriptions consist of payments made in advance for software subscriptions and trade and professional organizations. These payments are amortized on a straight-line basis over the term of the agreements. Prepaid professional services Prepaid professional services consist of payments made in advance for services such as accounting and legal services. Prepaid commissions Prepaid commissions represent the current portion of sales commissions paid in connection with obtaining a contract with a customer. These costs are deferred and are amortized on a straight-line basis over the period of benefit, which is three five Trade shows and travel Trade shows and travel consists of payments made in advance for trade show events. Canadian goods and services and harmonized sales tax receivable The goods and services tax and harmonized sales tax (“GST/HST”) is a Canadian value-added tax that applies to many goods and services. Registrants may claim refundable tax credits for GST/HST incurred through filing periodic tax returns. This GST/HST receivable is a receivable from the Canadian Revenue Agency. |
Note 10 - Accrued and Other Lia
Note 10 - Accrued and Other Liabilities | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Current and Noncurrent Accrued Liabilities [Text Block] | 10. ACCRUED AND OTHER LIABILITIES Accrued liabilities consisted of the following: September 30, 2023 2022 Payroll and related $ 2,237 $ 3,003 Deferred revenue 2,703 1,827 Customer deposits 766 4,724 Accrued contract costs 825 809 Warranty reserve 132 159 Canadian goods and services and harmonized sales tax payable - 1,556 Asset purchase holdback liability 736 - Other 67 5 Total $ 7,466 $ 12,083 Other liabilities - noncurrent consisted of the following: September 30, 2023 2022 Deferred revenue $ 551 $ 227 Asset purchase holdback liability - 680 Total $ 551 $ 907 Payroll and related Accrued payroll and related consisted primarily of accrued bonus, accrued vacation, accrued sales commissions and benefits. Deferred revenue Deferred revenue as of September 30, 2023, included prepayments from customers for services, including extended warranty, scheduled to be performed in the year ending September 30, 2024. Customer deposits Customer deposits represent amounts paid by customers as a down payment on hardware orders to be delivered during the year ending September 30, 2024. 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 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. A new contract was signed with the customer in May 2019 to continue repair and maintenance services through May 2024. These services are being recorded in cost of revenues to correspond with the revenues for these services. Warranty reserve Details of the estimated warranty reserve were as follows: September 30, 2023 2022 Beginning balance $ 159 $ 146 Warranty provision 40 86 Warranty settlements (67 ) (73 ) Ending balance $ 132 $ 159 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 and adjusts the accrued warranty liability to an amount equal to estimated warranty expense for products currently under warranty. Canadian goods and services and harmonized sales tax payable The GST/HST is a Canadian value-added tax that applies to many goods and services. This represents amounts owed to the Canadian Revenue Agency by the Company’s Canadian subsidiary. Deferred extended warranty revenue Deferred extended warranty revenue consists of warranties purchased in excess of the Company’s standard warranty. Extended warranties typically range from one two Asset purchase holdback liability In connection with the Amika Mobile asset purchase, the Company recorded a holdback liability related to potential future adjustments to assets and liabilities, misrepresentations and indemnifications against third-party claims. Adjustments of up to CAD$ 1,000 736 three |
Note 11 - Debt
Note 11 - Debt | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11. DEBT Revolving line of credit On March 8, 2021, the Company entered into an agreement with MUFG Union Bank, N.A. for a $10,000 revolving line of credit. The maturity date of this revolving line of credit was March 31, 2023. The Company did not renew the revolving line of credit and there were no borrowings on the revolving line of credit. The Company incurred and capitalized $38 of issuance costs related to this revolving line of credit. These issuance costs were recorded in prepaid expenses and other assets in the condensed consolidated balance sheet and were amortized on a straight-line basis over the term of the loan. |
Note 12 - Leases
Note 12 - Leases | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 12. LEASES The Company determines if an arrangement is a lease at inception. The guidance in ASC 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Additionally, the portfolio approach is used in determining the discount rate used to present value lease payments. The ROU asset includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company is party to operating leases for office and production facilities and equipment under agreements that expire at various dates through 2028. The Company elected the package of practical expedients permitted under the new lease standard. In electing the practical expedient package, the Company is not required to reassess whether an existing or expired contract is or contains a lease, reassess the lease classification for expired or existing leases nor reassess the initial direct costs for leases that commenced before the adoption of ASC 842. The Company also elected the short-term lease exemption such that the new lease standard was applied to leases greater than one year in duration. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For leases beginning on or after October 1, 2019, lease components are accounted for separately from non-lease components for all asset classes. Certain of the Company’s leases contain renewal provisions and escalating rental clauses and generally require the Company to pay utilities, insurance, taxes and other operating expenses. The renewal provisions of existing lease agreements were not included in the determination of the operating lease liabilities and the ROU assets. Variable payments such as excess usage fees on existing equipment leases were not included in the determination of the lease liabilities and the ROU assets as the achievement of the specified target that triggers the variable lease payment is not considered probable. In addition, the Company’s facility lease in Spain has an escalating lease clause based on a consumer price index which is considered a variable lease payment and is not included in the determination of the lease liability and ROU asset. A 10% increase in the index would increase the total lease liability approximately $42. The Company’s leases do not contain any residual value guarantees or material restrictive covenants. During the year ended September 30, 2023, the Company added an additional operating ROU asset of $79 and operating lease liabilities of $79 for office space. During the year ended September 30, 2022, the Company added an additional operating ROU asset of $466 and operating lease liabilities of $466 for office space and equipment. The tables below show the operating ROU assets and liabilities as of September 30, 2022, and the balances as of September 30, 2023, including the changes during the periods. Operating lease ROU assets Operating lease ROU assets as of September 30, 2022 $ 4,541 Additional operating lease ROU assets 79 Less amortization of operating lease ROU assets (772 ) Effect of exchange rate on operating lease ROU assets 38 Operating lease ROU assets as of September 30, 2023 $ 3,886 Operating lease liabilities Operating lease liabilities as of September 30, 2022 $ 6,137 Additional operating lease liabilities 79 Less lease principal payments on operating lease liabilities (964 ) Effect of exchange rate on operating lease liabilities 39 Operating lease liabilities as of September 30, 2023 5,291 Less non-current portion (4,283 ) Current portion as of September 30, 2023 $ 1,008 As of September 30, 2023, the Company’s operating leases have a weighted-average remaining lease term of 4.8 years and a weighted-average discount rate of 4.2%. The maturities of the operating lease liabilities are as follows: Fiscal year ending September 30, 2024 $ 1,205 2025 1,181 2026 1,195 2027 1,217 2028 1,047 Thereafter - Total undiscounted operating lease payments 5,845 Less imputed interest (554 ) Present value of operating lease liabilities $ 5,291 For the years ended September 30, 2023 and 2022, total lease expense under operating leases was approximately $1,003 and $1,002, respectively. The Company recorded short-term lease expense of $19 for the year ended September 30, 2023. The Company did not have any short-term lease expense during the year ended September 30, 2022. |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 13. INCOME TAXES Income taxes consisted of the following: Years ended September 30, 2023 2022 Current tax provision Federal $ - $ - State 16 3 Foreign 11 70 Total current tax provision 27 73 Deferred provision Federal 6,266 568 State 1,107 100 Total deferred provision 7,373 668 Provision for income taxes $ 7,400 $ 741 A reconciliation of income taxes at the federal statutory rate of 21% to the effective tax rate was as follows: Years ended September 30, 2023 2022 Income taxes computed at the federal statutory rate $ (2,309 ) $ (3,314 ) Change in valuation allowance 10,376 1,065 Nondeductible compensation, interest expense and other 232 4,101 State income taxes, net of federal tax benefit (605 ) (859 ) Change in R&D credit carryover (433 ) (186 ) Stock options and other prior year true-ups 111 25 Foreign rate differential & foreign taxes 28 (1 ) State business credit utilization - (90 ) $ 7,400 $ 741 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 as of September 30, 2023 and 2022 were as follows: September 30, 2023 2022 Deferred tax assets Net operating loss carryforwards $ 10,665 $ 10,054 Research and development credit 4,929 4,712 Share-based compensation 650 688 Patents 2,203 2,331 Accruals and other 2,071 2,245 Capitalized R&E expenses 1,916 - Allowances 237 280 Gross deferred tax assets 22,671 20,310 Deferred tax liabilities Equipment (274 ) (313 ) Operating ROU assets (907 ) (1,066 ) Acquired intangible assets (1,736 ) (2,180 ) Gross deferred tax liabilities (2,917 ) (3,559 ) Less valuation allowance (19,754 ) (9,378 ) Net deferred tax assets and liabilities $ - $ 7,373 As of September 30, 2023, the Company had net deferred tax assets and liabilities of approximately $0 due to the establishment of a full valuation allowance against its net deferred tax assets. The deferred tax assets are primarily comprised of federal and state NOL carryforwards and federal and state research and development (“R&D”) tax credit carryforwards offset by valuation allowance. As of September 30, 2023, the Company had federal NOL carryforwards of approximately $32,390, which expire from tax years September 30, 2024 through 2037, except for $1,526 which have an indefinite carryforward period. The Company also has an estimated $2,844 and $306 of federal and California R&D tax credits, respectively, as of September 30, 2023, where a portion of federal R&D tax credits will begin to expire in 2024. The California R&D tax credits do not expire. 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. As of September 30, 2023, the Company does not believe that it is more likely than not that its deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the accompanying balance sheet. As of September 30, 2023, 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. Pursuant to Internal Revenue Code (IRC) Sections 382 and 383, the annual use of the Company’s net operating loss and R&D tax credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company has not completed an IRC Section 382/383 analysis regarding the limitation of net operating loss and research and development credit carryforwards. Due to the existence of the valuation allowance, any permanent limitations on the use of the Company’s net operating loss and research and development credit carryforwards will not impact the Company’s effective tax rate. The Company is subject to taxation in the U.S. and various foreign jurisdictions. The Company's U.S. federal tax returns since September 30, 2004 are subject to examination by the Internal Revenue Service due to the generation of U.S. federal NOL and credit carryforwards. The Company's U.S. state returns are generally subject to examination for four years after the filing date. The Tax Cuts and Jobs Act resulted in significant changes to the treatment of research & experimental ("R&E") costs under IRC Section 174. For tax years beginning after December 31, 2021, taxpayers are required to capitalize and amortize all R&E costs that are paid or incurred in connection with their trade or business which represent costs in the experimental or laboratory sense. Specifically, costs for U.S. based R&E activities must be amortized over five years and costs for foreign R&E activities must be amortized over 15 years; both using a mid-year convention. The Company has incorporated the impact of this new tax legislation into its 2022 consolidated financial statements and established a $1,916 deferred tax asset for the remaining amortizable tax basis in its 2022 R&E costs in the table of deferred taxes above. The impact on the Company’s consolidated financial statements was immaterial given the full valuation allowance against the Company’s U.S. net deferred tax assets. |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 14. COMMITMENTS AND CONTINGENCIES Leases The Company leases office equipment and operating facilities. During the year ended September 30, 2019, these leases were categorized as operating leases. On October 1, 2019, the Company adopted ASC 842 which required lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. Refer to Note 12, Leases for further detail on lease commitments. Employment Agreements The Company entered into an employment agreement with our 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 the fiscal year and vesting of a share of stock options held by him that are subject to performance-based vesting. The agreement also has a change in control clause whereby the chief executive officer would be entitled to receive specific severance and equity vesting benefits if specified termination events occur. There were no other employment agreements with executive officers or other employees providing future benefits or severance arrangements. Bonus Plan The Company has a bonus plan for employees, in accordance with their terms of employment, whereby they can earn a percentage of their salary based on meeting targeted objectives for orders received, revenue, operating income, and operating cash flow. For the year ended September 30, 2023, the Company recorded $194 of bonus expense. For the year ended September 30, 2022, the Company recorded $1,733 of bonus expense. 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 years ended September 30, 2023 and 2022, the Company made matching contributions of $398 and $324, respectively. Litigation The Company may at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in management’s estimation, record adequate reserves in the Company’s financial statements for pending litigation. Amika Mobile asset purchase In connection with the Amika Mobile asset purchase, the Company recorded a holdback liability related to potential future adjustments to assets and liabilities, misrepresentations and indemnifications against third-party claims. Adjustments of up to CAD$ 1,000 three The Company also agreed to issue 191,267 shares of the Company’s common stock to the seller of the Amika Mobile assets on each of the first, second and third anniversaries of the closing date. The total number of shares of common stock the Company is obligated to issue is 573,801 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, 2023 and 2022. 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. 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, 2023 and 2022. |
Note 15 - Share-based Compensat
Note 15 - Share-based Compensation | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 15. SHARE-BASED COMPENSATION Stock Option Plans The Amended and Restated 2015 Equity Incentive Plan (“2015 Equity Plan”) was adopted by the Company’s Board of Directors on December 6, 2016, and approved by the Company’s stockholders on March 14, 2017. The 2015 Equity Plan was amended by the Company’s Board of Directors on December 8, 2020, to increase the number of shares authorized for issuance from 5,000,000 to 10,000,000. On March 16, 2021, the Company’s stockholders approved the plan amendment. The 2015 Equity Plan authorizes the issuance of stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs”) and performance awards, to an aggregate of 10,000,000 new shares of common stock to employees, directors, advisors or consultants. As of September 30, 2023, there were options and restricted stock units outstanding covering 3,284,119 shares of common stock under the 2015 Equity Plan, and 3,175,077 shares of common stock available for grant, for a total of 6,459,196 shares of common stock authorized and unissued under the plan. Share-Based Compensation The Company’s 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. Share-based compensation is accounted for in accordance with ASC Topic 718: Compensation - Stock Compensation There were 1,907,500 options granted during the year ended September 30, 2023, and 1,367,000 granted during the year ended September 30, 2022. Stock options that do not contain market-based vesting conditions are valued using the Black-Scholes option pricing model. The weighted average estimated fair value of employee stock options granted, that vest without a market condition, during the years ended September 30, 2023 and 2022, was calculated with the following weighted average assumptions (annualized percentages): Years ended September 30, 2023 2022 Volatility 52.4 % 50.8 % Risk-free interest rate 4.0 % 2.6 % Dividend yield 0.0 % 0.0 % Expected term in years 5.8 5.2 Expected volatility is based on the historical volatility of the Company’s common stock over the period commensurate with the expected term 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 not For stock options that contain market-based vesting conditions, the fair value of these options was determined using a Monte Carlo valuation approach and calculated by an independent valuation specialist. As of September 30, 2023, there was approximately $1,638 of total unrecognized compensation costs related to outstanding stock options. This amount is expected to be recognized over a weighted average period of 2.32 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 October 4, 2019, the Company awarded a performance-based stock option (PVO) to purchase 800,000 shares of the Company’s common stock to a key executive, with a contractual term of seven On August 10, 2022, the Company granted PVOs to purchase up to 750,000 shares of the Company’s common stock to a key member of management, with a contractual term of seven not On October 8, 2022, the Company awarded additional performance-based stock options to purchase 800,000 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 2025 and 2026 including a minimum free cash flow margin and net revenue targets. Additionally, vesting is subject to the executive being employed by the Company at the time the Company achieves such financial targets. The Company did not record compensation expense related to these options for the year ended September 30, 2023. On March 20, 2023, the Company granted PVOs to purchase up to 450,000 shares of the Company’s stock to a key member of management with a contractual term of seven years. Vesting is based upon the achievement of certain performance criteria for each of the first three twelve-month periods following the employee’s start date, including targets related to growth in the institutional ownership of the Company’s common stock and growth in the trading volume of the Company’s common stock during such periods. Additionally, vesting is subject to the employee being employed by the Company on each of the first three anniversaries of the employee’s start date. 225,000 of these options contain a market-based vesting condition and accounting principles do not require the market condition to be achieved in order for compensation expense to be recognized. The Company recorded $7 of compensation expense related to these options during the year ended September 30, 2023. Restricted Stock Units In fiscal 2020, 81,270 RSUs were granted to employees that vested over three years on the anniversary date of the grant. These were issued at a market value of $258 and have been expensed on a straight-line basis over the three-year life of the grants. During fiscal 2021, 145,950 RSUs were granted to employees that will vest over three years on the anniversary date of the grant. These were issued at a market value of $989, which have and will be expensed on a straight-line basis over the three-year life of the grants. On March 15, 2022, each non-employee member of the Board of Directors received a grant of 30,000 RSUs that vested on the first anniversary of the grant date. These were issued at a market value of $407, and expensed on a straight-line basis through the March 15, 2023, vest date. On November 1, 2021, 10,000 RSUs were granted to a non-employee advisor that vested on the first anniversary of the grant date. These were issued at a market value of $51, which were expensed on a straight-line basis though the November 1, 2022, vest date. On November 1, 2022, 10,000 RSUs were granted to a non-employee advisor that vest on the first anniversary of the grant date. These were issued at a market value of $29, which have and will be expensed on a straight-line basis though the November 1, 2023, vest date. On March 14, 2023, each non-employee member of the Board of Directors received a grant of 30,000 RSUs that will vest on the first anniversary of the grant date. These RSUs were granted at a market value of $417 and have and will be expensed on a straight-line basis through the March 14, 2024, vest date. On February 14, 2023, 145,600 RSUs were granted to employees that will vest over three years on the anniversary date of the grant. These RSUs were issued at a market value of $582, which have and will be expensed on a straight-line basis over the three-year life of the grants. On March 20, 2023, 20,000 RSUs were granted to an employee with immediate vesting. These were issued at a market value of $66 and were expensed immediately. Compensation expense for RSUs was $986 for the year ended September 30, 2023. Compensation expense for RSUs was $1,410 for the year ended September 30, 2022. As of September 30, 2023, there was approximately $933 of total unrecognized compensation costs related to outstanding RSUs. This amount is expected to be recognized over a weighted average period of 1.3 years. Restricted Stock Unit Summary Information A summary of restricted stock units of the Company as of September 30, 2023, is presented below: ` Number of Shares Weighted Average Grant Date Fair Value Outstanding September 30, 2022 342,841 $ 4.11 Granted 295,600 $ 3.63 Released (253,012 ) $ 3.73 Forfeited/cancelled (5,832 ) $ 7.20 Outstanding September 30, 2023 379,597 $ 3.99 Stock Option Summary Information A summary of the activity in options to purchase the capital stock of the Company as of September 30, 2023, is presented below: Number of Shares Weighted Average Exercise Price Outstanding September 30, 2022 3,940,899 $ 3.31 Granted 1,907,500 $ 2.92 Forfeited/expired (1,891,612 ) $ 3.86 Exercised (1,052,265 ) $ 1.95 Outstanding September 30, 2023 2,904,522 $ 3.19 Exercisable September 30, 2023 842,667 $ 3.51 The aggregate intrinsic value for options outstanding and options exercisable as of September 30, 2023 was $35 and $35, 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 $2.01 per share, and the exercise price multiplied by the number of applicable options. The total value of stock options exercised during the year ended September 30, 2023, was $2,980 and proceeds from these exercises was $138. The total value of stock options exercised during the year ended September 30, 2022, was $491 and proceeds from these exercises was $282. The Company recognized $815 and $208 as a tax benefit in the income tax provision for the years ended September 30, 2023 and 2022, respectively. The following table summarizes information about stock options outstanding as of September 30, 2023: Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Term Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $1.51 - $2.68 217,517 3.22 $ 2.12 129,157 $ 1.74 $2.69 - $2.69 1,100,000 6.02 $ 2.69 - $ - $3.09 - $3.39 759,138 5.56 $ 3.29 191,825 $ 3.39 $3.40 - $8.03 828,227 4.48 $ 4.05 521,685 $ 4.00 2,904,882 5.25 $ 3.19 842,667 $ 3.51 The Company recorded $656 and $817 of stock option compensation expense for employees, directors and consultants for the years ended September 30, 2023, and 2022, respectively. The amounts of share-based compensation expense for restricted stock units and stock options are classified in the Consolidated Statements of Operations as follows: Years ended September 30, 2023 2022 Cost of revenues $ 111 $ 77 Selling, general and administrative 1,428 2,080 Research and development 103 70 $ 1,642 $ 2,227 |
Note 16 - Stockholders' Equity
Note 16 - Stockholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | 16. STOCKHOLDERS EQUITY Common Stock Activity On March 18, 2021, the Company filed an amendment to its Certificate of Incorporation, as amended, with the Secretary of State of Delaware to increase the authorized number of shares of common stock of the Company from 50,000,000 to 100,000,000 shares (the “Amended Certificate”). The Amended Certificate was approved by the Company’s stockholders at the Company’s Annual Meeting of Stockholders on March 16, 2021. During the year ended September 30, 2023, the Company issued 84,765 shares of common stock and obtained gross proceeds of $138 in connection with the exercise of stock options. During the year ended September 30, 2023, 816,747 non-qualified stock options were exercised in net share settlement transactions. 579,300 shares were used as consideration for the exercise of these options and 74,606 shares were retained for taxes associated with these option exercises, resulting in 162,841 shares being issued. Also, during the year ended September 30, 2023, an employee used 109,488 shares of common stock as consideration for the exercise of 150,753 incentive stock options. All shares of common stock surrendered for options exercises have been retired. During the year ended September 30, 2022, the Company issued 145,235 shares of common stock and obtained gross proceeds of $282 in connection with the exercise of stock options. During the year ended September 30, 2023, the Company issued 253,012 shares of common stock upon full vesting of RSUs. During the year ended September 30, 2022, the Company issued 270,262 shares of common stock upon full vesting of RSUs. In connection with the Amika Mobile asset purchase, the Company also agreed to issue 191,267 shares of the Company’s common stock to the seller of the Amika Mobile assets on each of the first, second and third anniversaries of the closing date. The total number of shares of common stock the Company is obligated to issue is 573,801. The fair value of the Company’s common stock on the closing date was $5.98, resulting in the addition of $3,431 to additional paid-in-capital. During the year ended September 30, 2021, the Company accelerated the issuance of 365,109 of such shares of common stock to the seller of the Amika Mobile assets. During the year ended September 30, 2023, the Company issued 69,564 shares of common stock to the seller of the Amika Mobile assets. There are 69,564 remaining shares of the Company’s common stock subject to issuance under this obligation as of September 30, 2023. These shares were issued on October 2. 2023. 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 Share Buyback Program In December 2022, the Board of Directors extended the Company’s share buyback program through December 31, 2024. Under the program, the Company was authorized to repurchase up to $5,000 of its outstanding common shares. During the year ended September 30, 2022, 259,310 shares were repurchased for $998. There were no shares repurchased during the year ended September 30, 2023. As of September 30, 2023, all repurchased shares were retired. |
Note 17 - Net (Loss) Income Per
Note 17 - Net (Loss) Income Per Share | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 17. NET LOSS 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 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 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 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: Years ended September 30, 2023 2022 Net loss $ (18,396 ) $ (16,212 ) Basic and diluted loss per share $ (0.50 ) $ (0.44 ) Weighted average shares outstanding - basic 36,939,335 36,495,012 Assumed exercise of dilutive options - - Weighted average shares outstanding - diluted 36,939,335 36,495,012 Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive: Options 2,904,522 3,940,899 RSU 385,429 343,175 Obligation to issue common stock 69,564 139,128 Total 3,359,515 4,423,202 |
Note 18 - Segment Information
Note 18 - Segment Information | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 18. SEGMENT INFORMATION The Company is engaged in the design, development and commercialization of critical communications hardware and software solutions designed to alert, inform, and protect. The Company operates in two The following table presents the Company’s segment disclosures: Years ended September 30, 2023 2022 Revenue from external customers Hardware $ 42,864 $ 50,938 Software 3,799 3,097 $ 46,663 $ 54,035 Intersegment revenues Hardware $ - Software 4,803 3,287 $ 4,803 $ 3,287 Segment operating (loss) income Hardware $ 3,240 $ 9,260 Software (14,226 ) (24,791 ) $ (10,986 ) $ (15,531 ) Other expenses: Depreciation and amortization expense Hardware $ 398 $ 380 Software 2,160 2,176 $ 2,558 $ 2,556 Goodwill impairment Hardware $ - $ - Software - 13,162 $ - $ 13,162 Income tax expense (benefit) Hardware $ 7,425 $ 1,065 Software (25 ) (324 ) $ 7,400 $ 741 Years ended September 30, 2023 2022 Long-lived assets Hardware $ 1,427 $ 1,677 Software 8,551 10,585 $ 9,978 $ 12,262 Total assets Hardware $ 28,878 $ 47,237 Software 21,027 24,617 $ 49,905 $ 71,854 |
Note 19 - Major Customers, Supp
Note 19 - Major Customers, Suppliers and Related Information | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 19. MAJOR CUSTOMERS, SUPPLIERS AND RELATED INFORMATION Major Customers For the fiscal year ended September 30, 2023, revenues from one Revenue from customers in the United States was $36,286 for the year ended September 30, 2023. Revenue from customers in the United States was $45,703 for the year ended September 30, 2022. The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location. Years ended September 30, 2023 2022 Americas $ 39,273 $ 47,129 Asia Pacific 4,117 3,394 Europe, Middle East and Africa 3,273 3,512 Total Revenues $ 46,663 $ 54,035 The following table summarized long lived assets by geographic region. September 30, 2023 2022 United States $ 9,624 $ 11,800 Americas (excluding the United States) 7 16 Europe, Middle East and Africa 347 446 Total long lived assets $ 9,978 $ 12,262 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. |
Note 20 - Subsequent Events
Note 20 - Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events, Policy [Policy Text Block] | 20. SUBSEQUENT EVENTS On October 4, 2023, the Company completed the acquisition of all of the membership interests in Evertel Technologies, LLC., pursuant to a Membership Interest Purchase Agreement (“Purchase Agreement”) with Word Systems Operations, LLC (“Seller”) and Evertel Technologies, LLC (“Evertel”). Evertel offers a secure and compliant mission-critical collaboration platform for the public safety market that connects public safety personnel, information, and tools in one space. Pursuant to the terms of the Purchase Agreement, the Company issued to Seller 986,486 shares of the Company’s common stock and $807 in cash as partial payment of the purchase price. The remainder of the purchase price is subject to future performance criteria and customary adjustments such as working capital and an indemnification holdback as outlined in the Purchase Agreement. The Company is in the initial stages of determining the accounting treatment for the transaction, specifically related to the fair value of earnout provisions, acquired tangible and intangible assets, liabilities assumed and the related tax impact. On October 4, 2023, the Company completed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $2.00 per share of common stock. The Company received gross proceeds of approximately $11,500 from the offering, before underwriting discounts and commissions and offering expenses of $915. The Company intends to use the net proceeds from this offering for general corporate purposes, including funding organic growth, working capital, capital expenditures, and continued research and development with respect to products and technologies, as well as costs related to post-closing integration with the Company of the Evertel business and research and development activities related to the integrated business. |
Note 4 - Revenue Recognition (T
Note 4 - Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Customer deposits Deferred revenue Total contract liabilities Balance as of September 30, 2022 $ 4,724 $ 2,054 $ 6,778 New performance obligations 12,550 4,456 17,006 Recognition of revenue as a result of satisfying performance obligations (16,510 ) (3,278 ) (19,788 ) Effect of exchange rate on deferred revenue 2 22 24 Balance as of September 30, 2023 $ 766 $ 3,254 $ 4,020 Less: non-current portion - (551 ) (551 ) Current portion as of September 30, 2023 $ 766 $ 2,703 $ 3,469 |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | September 30, 2023 Cost Basis Unrealized Loss Fair Value Cash Equivalents Short-term Securities Long-term Securities Level 1: Money market funds $ 2,307 $ - $ 2,307 $ 2,307 $ - $ - Level 2: Certificates of deposit 301 - 301 - 301 - Municipal securities 926 (7 ) 919 - 919 - Corporate bonds 264 (3 ) 261 - 261 - Subtotal 1,491 (10 ) 1,481 - 1,481 - Total $ 3,798 $ (10 ) $ 3,788 $ 2,307 $ 1,481 $ - September 30, 2022 Cost Basis Unrealized Loss Fair Value Cash Equivalents Short-term Securities Long-term Securities Level 1: Money market funds $ 1,316 $ - $ 1,316 $ 1,316 $ - $ - Level 2: Certificates of deposit 800 - 800 - 498 302 Municipal securities 4,066 (65 ) 4,001 - 3,772 229 Corporate bonds 2,402 (25 ) 2,377 - 2,127 250 Subtotal 7,268 (90 ) 7,178 - 6,397 781 Total $ 8,584 $ (90 ) $ 8,494 $ 1,316 $ 6,397 $ 781 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Carrying Active Markets for Identifiable Assets Observable Inputs Unobservable Inputs Non-Cash Impairment Carrying Value Value (Level 1) (Level 2) (Level 3) Loss Operating Lease ROU Asset 79 $ - $ - $ 79 $ - Carrying Active Markets for Identifiable Assets Observable Inputs Unobservable Inputs Non-Cash Impairment Carrying Value Value (Level 1) (Level 2) (Level 3) Loss Goodwill from software reporting unit $ 10,118 $ - $ - $ 23,280 $ (13,162 ) Operating Lease ROU Asset $ 466 $ - $ - $ 466 $ - |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | Balance as of September 30, 2022 $ 680 Accretion 48 Currency translation 8 Balance as of September 30, 2023 $ 736 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2023 2022 Raw materials $ 5,086 $ 5,277 Finished goods 1,029 844 Work in process 1,218 744 Inventories, gross 7,333 6,865 Reserve for obsolescence (832 ) (857 ) Inventories, net $ 6,501 $ 6,008 |
Note 7 - Property and Equipme_2
Note 7 - Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, 2023 2022 Office furniture and equipment $ 1,582 $ 1,432 Machinery and equipment 1,441 1,391 Leasehold improvements 2,302 2,172 Construction in progress - 104 Property and equipment, gross 5,325 5,099 Accumulated depreciation (3,774 ) (3,342 ) Property and equipment, net $ 1,551 $ 1,757 Years Ended September 30, 2023 2022 Depreciation expense $ 450 $ 403 |
Note 8 - Goodwill and Intangi_2
Note 8 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Changes in Finite Lived Intangible Assets [Table Text Block] | Hardware Software Total Balance as of September 30, 2022 $ - $ 10,118 $ 10,118 Currency translation - 164 164 Balance as of September 30, 2023 $ - $ 10,282 $ 10,282 Hardware Software Total Balance as of September 30, 2022 $ 21 $ 10,484 $ 10,505 Amortization (4 ) (2,104 ) (2,108 ) Currency translation - 30 30 Balance as of September 30, 2023 $ 17 $ 8,410 $ 8,427 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2023 2022 Technology $ 11,930 $ 11,886 Customer relationships 1,790 1,715 Trade name portfolio 605 590 Non-compete agreements 223 206 Patents 72 72 14,620 14,469 Accumulated amortization (6,193 ) (3,964 ) $ 8,427 $ 10,505 Years ended September 30, 2023 2022 Amortization expense $ 2,108 $ 2,154 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal year ending September 30, 2024 $ 2,094 2025 1,977 2026 1,842 2027 1,669 2028 841 Thereafter 4 Total estimated amortization expense $ 8,427 |
Note 9 - Prepaid Expenses and_2
Note 9 - Prepaid Expenses and Other (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | September 30, 2023 2022 Deposits for inventory $ 301 $ 461 Prepaid insurance 264 360 Dues and subscriptions 261 182 Prepaid professional services 136 - Prepaid commissions 417 228 Trade shows and travel 150 471 Canadian goods and services and harmonized sales tax receivable 123 1,631 Other 199 244 $ 1,851 $ 3,577 |
Note 10 - Accrued and Other L_2
Note 10 - Accrued and Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, 2023 2022 Payroll and related $ 2,237 $ 3,003 Deferred revenue 2,703 1,827 Customer deposits 766 4,724 Accrued contract costs 825 809 Warranty reserve 132 159 Canadian goods and services and harmonized sales tax payable - 1,556 Asset purchase holdback liability 736 - Other 67 5 Total $ 7,466 $ 12,083 |
Other Noncurrent Liabilities [Table Text Block] | September 30, 2023 2022 Deferred revenue $ 551 $ 227 Asset purchase holdback liability - 680 Total $ 551 $ 907 |
Schedule of Product Warranty Liability [Table Text Block] | September 30, 2023 2022 Beginning balance $ 159 $ 146 Warranty provision 40 86 Warranty settlements (67 ) (73 ) Ending balance $ 132 $ 159 |
Note 12 - Leases (Tables)
Note 12 - Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Initial Measurement of Operating Lease [Table Text Block] | Operating lease ROU assets Operating lease ROU assets as of September 30, 2022 $ 4,541 Additional operating lease ROU assets 79 Less amortization of operating lease ROU assets (772 ) Effect of exchange rate on operating lease ROU assets 38 Operating lease ROU assets as of September 30, 2023 $ 3,886 Operating lease liabilities Operating lease liabilities as of September 30, 2022 $ 6,137 Additional operating lease liabilities 79 Less lease principal payments on operating lease liabilities (964 ) Effect of exchange rate on operating lease liabilities 39 Operating lease liabilities as of September 30, 2023 5,291 Less non-current portion (4,283 ) Current portion as of September 30, 2023 $ 1,008 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Fiscal year ending September 30, 2024 $ 1,205 2025 1,181 2026 1,195 2027 1,217 2028 1,047 Thereafter - Total undiscounted operating lease payments 5,845 Less imputed interest (554 ) Present value of operating lease liabilities $ 5,291 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years ended September 30, 2023 2022 Current tax provision Federal $ - $ - State 16 3 Foreign 11 70 Total current tax provision 27 73 Deferred provision Federal 6,266 568 State 1,107 100 Total deferred provision 7,373 668 Provision for income taxes $ 7,400 $ 741 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended September 30, 2023 2022 Income taxes computed at the federal statutory rate $ (2,309 ) $ (3,314 ) Change in valuation allowance 10,376 1,065 Nondeductible compensation, interest expense and other 232 4,101 State income taxes, net of federal tax benefit (605 ) (859 ) Change in R&D credit carryover (433 ) (186 ) Stock options and other prior year true-ups 111 25 Foreign rate differential & foreign taxes 28 (1 ) State business credit utilization - (90 ) $ 7,400 $ 741 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | September 30, 2023 2022 Deferred tax assets Net operating loss carryforwards $ 10,665 $ 10,054 Research and development credit 4,929 4,712 Share-based compensation 650 688 Patents 2,203 2,331 Accruals and other 2,071 2,245 Capitalized R&E expenses 1,916 - Allowances 237 280 Gross deferred tax assets 22,671 20,310 Deferred tax liabilities Equipment (274 ) (313 ) Operating ROU assets (907 ) (1,066 ) Acquired intangible assets (1,736 ) (2,180 ) Gross deferred tax liabilities (2,917 ) (3,559 ) Less valuation allowance (19,754 ) (9,378 ) Net deferred tax assets and liabilities $ - $ 7,373 |
Note 15 - Share-based Compens_2
Note 15 - Share-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Years ended September 30, 2023 2022 Volatility 52.4 % 50.8 % Risk-free interest rate 4.0 % 2.6 % Dividend yield 0.0 % 0.0 % Expected term in years 5.8 5.2 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ` Number of Shares Weighted Average Grant Date Fair Value Outstanding September 30, 2022 342,841 $ 4.11 Granted 295,600 $ 3.63 Released (253,012 ) $ 3.73 Forfeited/cancelled (5,832 ) $ 7.20 Outstanding September 30, 2023 379,597 $ 3.99 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of Shares Weighted Average Exercise Price Outstanding September 30, 2022 3,940,899 $ 3.31 Granted 1,907,500 $ 2.92 Forfeited/expired (1,891,612 ) $ 3.86 Exercised (1,052,265 ) $ 1.95 Outstanding September 30, 2023 2,904,522 $ 3.19 Exercisable September 30, 2023 842,667 $ 3.51 |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Term Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $1.51 - $2.68 217,517 3.22 $ 2.12 129,157 $ 1.74 $2.69 - $2.69 1,100,000 6.02 $ 2.69 - $ - $3.09 - $3.39 759,138 5.56 $ 3.29 191,825 $ 3.39 $3.40 - $8.03 828,227 4.48 $ 4.05 521,685 $ 4.00 2,904,882 5.25 $ 3.19 842,667 $ 3.51 |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Years ended September 30, 2023 2022 Cost of revenues $ 111 $ 77 Selling, general and administrative 1,428 2,080 Research and development 103 70 $ 1,642 $ 2,227 |
Note 17 - Net (Loss) Income P_2
Note 17 - Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years ended September 30, 2023 2022 Net loss $ (18,396 ) $ (16,212 ) Basic and diluted loss per share $ (0.50 ) $ (0.44 ) Weighted average shares outstanding - basic 36,939,335 36,495,012 Assumed exercise of dilutive options - - Weighted average shares outstanding - diluted 36,939,335 36,495,012 Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive: Options 2,904,522 3,940,899 RSU 385,429 343,175 Obligation to issue common stock 69,564 139,128 Total 3,359,515 4,423,202 |
Note 18 - Segment Information (
Note 18 - Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years ended September 30, 2023 2022 Revenue from external customers Hardware $ 42,864 $ 50,938 Software 3,799 3,097 $ 46,663 $ 54,035 Intersegment revenues Hardware $ - Software 4,803 3,287 $ 4,803 $ 3,287 Segment operating (loss) income Hardware $ 3,240 $ 9,260 Software (14,226 ) (24,791 ) $ (10,986 ) $ (15,531 ) Other expenses: Depreciation and amortization expense Hardware $ 398 $ 380 Software 2,160 2,176 $ 2,558 $ 2,556 Goodwill impairment Hardware $ - $ - Software - 13,162 $ - $ 13,162 Income tax expense (benefit) Hardware $ 7,425 $ 1,065 Software (25 ) (324 ) $ 7,400 $ 741 Years ended September 30, 2023 2022 Long-lived assets Hardware $ 1,427 $ 1,677 Software 8,551 10,585 $ 9,978 $ 12,262 Total assets Hardware $ 28,878 $ 47,237 Software 21,027 24,617 $ 49,905 $ 71,854 |
Note 19 - Major Customers, Su_2
Note 19 - Major Customers, Suppliers and Related Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Years ended September 30, 2023 2022 Americas $ 39,273 $ 47,129 Asia Pacific 4,117 3,394 Europe, Middle East and Africa 3,273 3,512 Total Revenues $ 46,663 $ 54,035 |
Long-Lived Assets by Geographic Areas [Table Text Block] | September 30, 2023 2022 United States $ 9,624 $ 11,800 Americas (excluding the United States) 7 16 Europe, Middle East and Africa 347 446 Total long lived assets $ 9,978 $ 12,262 |
Note 2 - Basis of Presentatio_2
Note 2 - Basis of Presentation and Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Number of Wholly Owned Subsidiaries | 8 | ||
Number of Additional Inactive Subsidiaries | 2 | ||
Investments, Typical Final Maturity Maximum (Year) | 3 years | ||
Investments, Typical Portfolio Weighted Average Maturity (Month) | 18 months | ||
Cash and Cash Equivalents, at Carrying Value, Total | $ 8,665 | $ 12,736 | |
Restricted Cash, Total | 854 | 923 | |
Deferred Revenue for Collection Issues | 0 | 0 | |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 66 | 181 | |
Inventory Obsolescence Write Down (Recoveries) | 319 | 295 | |
Inventory Obsolescence Write Down (Recoveries) | (319) | (295) | |
Cost of Revenue | 24,901 | 26,759 | |
Advertising Expense | 512 | 677 | |
Standard and Extended Product Warranty Accrual | $ 132 | 159 | $ 146 |
Number of Reportable Segments | 2 | ||
Gain (Loss), Foreign Currency Transaction, before Tax | $ 207 | 704 | |
Shipping and Handling [Member] | |||
Cost of Revenue | $ 392 | $ 836 | |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 2 years | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 7 years | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Number Of Major Customers | 3 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer 1 [Member] | |||
Concentration Risk, Percentage | 22% | 43% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer 2 [Member] | |||
Concentration Risk, Percentage | 10% | 19% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer 3 [Member] | |||
Concentration Risk, Percentage | 10% |
Note 4 - Revenue Recognition 1
Note 4 - Revenue Recognition 1 (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Contract with Customer, Asset, after Allowance for Credit Loss, Total | $ 0 | $ 0 |
Revenue, Remaining Performance Obligation, Amount | $ 4,020 |
Note 4 - Revenue Recognition 2
Note 4 - Revenue Recognition 2 (Details Textual) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 4,020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Amount | $ 3,469 |
Revenue, Remaining Performance Obligation, Percentage | 86% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Note 4 - Revenue Recognition -
Note 4 - Revenue Recognition - Contract Asset and Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Balance as of September 30, 2022 | $ 6,778 |
New performance obligations | 17,006 |
Recognition of revenue as a result of satisfying performance obligations | (19,788) |
Effect of exchange rate on deferred revenue | 24 |
Balance as of September 30, 2023 | 4,020 |
Less: non-current portion | (551) |
Current portion as of September 30, 2023 | 3,469 |
Customer Deposits [Member] | |
Balance as of September 30, 2022 | 4,724 |
New performance obligations | 12,550 |
Recognition of revenue as a result of satisfying performance obligations | (16,510) |
Effect of exchange rate on deferred revenue | 2 |
Balance as of September 30, 2023 | 766 |
Less: non-current portion | 0 |
Current portion as of September 30, 2023 | 766 |
Deferred Revenue [Member] | |
Balance as of September 30, 2022 | 2,054 |
New performance obligations | 4,456 |
Recognition of revenue as a result of satisfying performance obligations | (3,278) |
Effect of exchange rate on deferred revenue | 22 |
Balance as of September 30, 2023 | 3,254 |
Less: non-current portion | (551) |
Current portion as of September 30, 2023 | $ 2,703 |
Note 5 - Fair Value Measureme_3
Note 5 - Fair Value Measurements (Details Textual) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Oct. 02, 2020 USD ($) | Oct. 02, 2020 CAD ($) | Oct. 02, 2020 CAD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CAD ($) | Sep. 30, 2022 USD ($) | |
Marketable Securities, Total | $ 0 | $ 0 | ||||
Assets Acquisition of Amika Mobile Corporation [Member] | ||||||
Asset Purchase Agreement, Deduction From Liability | $ 736 | $ 1 | $ 1 | $ 799 | $ 1 | |
Asset Acquisition, Adjustments from Purchase Holdback Liability, Period (Year) | 3 years | 3 years |
Note 5 - Fair Value Measureme_4
Note 5 - Fair Value Measurements - Fair Value by Major Security Type (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Short-term marketable securities | $ 1,481 | $ 6,397 |
Certificates of deposit | 0 | 781 |
Fair Value, Nonrecurring [Member] | ||
Cost basis | 3,798 | 8,584 |
Unrealized loss | (10) | 90 |
Money market funds | 10 | (90) |
Fair value | 3,788 | 8,494 |
Cash equivalents | 2,307 | 1,316 |
Short-term marketable securities | 1,481 | 6,397 |
Certificates of deposit | 0 | 781 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Cost basis | 2,307 | 1,316 |
Unrealized loss | 0 | 0 |
Money market funds | 0 | 0 |
Fair value | 2,307 | 1,316 |
Cash equivalents | 2,307 | 1,316 |
Short-term marketable securities | 0 | |
Certificates of deposit | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Cost basis | 1,491 | 7,268 |
Unrealized loss | (10) | 90 |
Money market funds | 10 | (90) |
Fair value | 1,481 | 7,178 |
Cash equivalents | 0 | 0 |
Short-term marketable securities | 1,481 | 6,397 |
Certificates of deposit | 0 | 781 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | Certificates of Deposit [Member] | ||
Cost basis | 301 | 800 |
Unrealized loss | 0 | 0 |
Money market funds | 0 | 0 |
Fair value | 301 | 800 |
Cash equivalents | 0 | 0 |
Short-term marketable securities | 301 | 498 |
Certificates of deposit | 0 | 302 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Cost basis | 926 | 4,066 |
Unrealized loss | (7) | 65 |
Money market funds | 7 | (65) |
Fair value | 919 | 4,001 |
Cash equivalents | 0 | 0 |
Short-term marketable securities | 919 | 3,772 |
Certificates of deposit | 0 | 229 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | Corporate Debt Securities [Member] | ||
Cost basis | 2,402 | |
Unrealized loss | 25 | |
Money market funds | (25) | |
Fair value | 2,377 | |
Cash equivalents | 0 | |
Short-term marketable securities | 2,127 | |
Certificates of deposit | $ 250 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | Corporate Segment [Member] | ||
Cost basis | 264 | |
Unrealized loss | (3) | |
Money market funds | 3 | |
Fair value | 261 | |
Cash equivalents | 0 | |
Short-term marketable securities | 261 | |
Certificates of deposit | $ 0 |
Note 5 - Fair Value Measureme_5
Note 5 - Fair Value Measurements - Operating Lease Right of Use Assets Currency Translation Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease right of use assets | $ 3,886 | $ 4,541 |
Goodwill from software reporting unit, gain (loss) | 0 | (13,162) |
Software [Member] | ||
Goodwill from software reporting unit, gain (loss) | (13,162) | |
Assets Acquisition of Amika Mobile Corporation [Member] | ||
Operating lease right of use assets | 79 | 466 |
Fair Value, Nonrecurring [Member] | Software [Member] | ||
Goodwill from software reporting unit, gain (loss) | (13,162) | |
Fair Value, Nonrecurring [Member] | Reported Value Measurement [Member] | Software [Member] | ||
Goodwill from software reporting unit | 10,118 | |
Fair Value, Nonrecurring [Member] | Estimate of Fair Value Measurement [Member] | Software [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Goodwill from software reporting unit | 0 | |
Fair Value, Nonrecurring [Member] | Estimate of Fair Value Measurement [Member] | Software [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Goodwill from software reporting unit | 0 | |
Fair Value, Nonrecurring [Member] | Estimate of Fair Value Measurement [Member] | Software [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Goodwill from software reporting unit | 23,280 | |
Fair Value, Nonrecurring [Member] | Assets Acquisition of Amika Mobile Corporation [Member] | Operating Lease, Right-of-use Asset [Member] | ||
Operating lease ROU asset, adjustment | 0 | 0 |
Fair Value, Nonrecurring [Member] | Assets Acquisition of Amika Mobile Corporation [Member] | Reported Value Measurement [Member] | ||
Operating lease right of use assets | 79 | 466 |
Fair Value, Nonrecurring [Member] | Assets Acquisition of Amika Mobile Corporation [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Operating lease ROU asset, fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Assets Acquisition of Amika Mobile Corporation [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Operating lease ROU asset, fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Assets Acquisition of Amika Mobile Corporation [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Operating lease ROU asset, fair value | $ 79 | $ 466 |
Note 5 - Fair Value Measureme_6
Note 5 - Fair Value Measurements - Holdback Liability Measured at Fair Value on a Non-recurring Basis (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Balance as of September 30, 2022 | $ 736 |
Fair Value, Nonrecurring [Member] | Assets Acquisition of Amika Mobile Corporation [Member] | Holdback Liability [Member] | |
Balance as of September 30, 2021 | 680 |
Accretion | 48 |
Currency translation | $ 8 |
Note 6 - Inventories - Schedule
Note 6 - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Raw materials | $ 5,086 | $ 5,277 |
Finished goods | 1,029 | 844 |
Work in process | 1,218 | 744 |
Inventories, gross | 7,333 | 6,865 |
Reserve for obsolescence | (832) | (857) |
Inventories, net | $ 6,501 | $ 6,008 |
Note 7 - Property and Equipme_3
Note 7 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property and equipment | $ 5,325 | $ 5,099 |
Depreciation expense | 450 | 403 |
Accumulated depreciation and amortization | (3,774) | (3,342) |
Property and equipment, net | 1,551 | 1,757 |
Furniture and Fixtures [Member] | ||
Property and equipment | 1,582 | 1,432 |
Machinery and Equipment [Member] | ||
Property and equipment | 1,441 | 1,391 |
Leasehold Improvements [Member] | ||
Property and equipment | 2,302 | 2,172 |
Construction in Progress [Member] | ||
Property and equipment | $ 0 | $ 104 |
Note 8 - Goodwill and Intangi_3
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Impairment of goodwill | $ 0 | $ 13,162 |
Goodwill, Gross | 10,282 | $ 10,118 |
Genasys Spain [Member] | ||
Goodwill and Intangible Assets, Foreign Currency Translation Gain (Loss) | 194 | |
Software [Member] | ||
Impairment of goodwill | $ 13,162 |
Note 8 - Goodwill and Intangi_4
Note 8 - Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balance as of September 30, 2021 | $ 10,118 | |
Balance as of September 30, 2021 | 10,505 | |
Currency translation, goodwill | 164 | |
Amortization | (2,108) | $ (2,154) |
Balance as of September 30, 2022 | 10,282 | 10,118 |
Currency translation | 30 | |
Balance as of September 30, 2022 | 8,427 | 10,505 |
Hardware [Member] | ||
Balance as of September 30, 2021 | 0 | |
Balance as of September 30, 2021 | 21 | |
Currency translation, goodwill | 0 | |
Amortization | (4) | |
Balance as of September 30, 2022 | 0 | 0 |
Currency translation | 0 | |
Balance as of September 30, 2022 | 17 | 21 |
Software [Member] | ||
Balance as of September 30, 2021 | 10,118 | |
Balance as of September 30, 2021 | 10,484 | |
Currency translation, goodwill | 164 | |
Amortization | (2,104) | |
Balance as of September 30, 2022 | 10,282 | 10,118 |
Currency translation | 30 | |
Balance as of September 30, 2022 | $ 8,410 | $ 10,484 |
Note 8 - Goodwill and Intangi_5
Note 8 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Technology | $ 14,620 | $ 14,469 |
Amortization expense | 2,108 | 2,154 |
Accumulated amortization | (6,193) | (3,964) |
Finite-Lived Intangible Assets, Net | 8,427 | 10,505 |
Developed Technology Rights [Member] | ||
Technology | 11,930 | 11,886 |
Customer Relationships [Member] | ||
Technology | 1,790 | 1,715 |
Trade Names [Member] | ||
Technology | 605 | 590 |
Noncompete Agreements [Member] | ||
Technology | 223 | 206 |
Patents [Member] | ||
Technology | $ 72 | $ 72 |
Note 8 - Goodwill and Intangi_6
Note 8 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
2024 | $ 2,094 |
2025 | 1,977 |
2026 | 1,842 |
2027 | 1,669 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 841 |
Thereafter | 4 |
Total estimated amortization expense | $ 8,427 |
Note 9 - Prepaid Expenses and_3
Note 9 - Prepaid Expenses and Other (Details Textual) | Sep. 30, 2023 |
Minimum [Member] | |
Capitalized Contract Cost, Amortization Period | 3 years |
Maximum [Member] | |
Capitalized Contract Cost, Amortization Period | 5 years |
Note 9 - Prepaid Expenses and_4
Note 9 - Prepaid Expenses and Other - Summary of Prepaid Expenses and Others (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Deposits for inventory | $ 301 | $ 461 |
Prepaid insurance | 264 | 360 |
Dues and subscriptions | 261 | 182 |
Prepaid professional services | 136 | 0 |
Prepaid commissions | 417 | 228 |
Trade shows and travel | 150 | 471 |
Canadian goods and services and harmonized sales tax receivable | 123 | 1,631 |
Other | 199 | 244 |
Prepaid Expense and Other Assets | $ 1,851 | $ 3,577 |
Note 10 - Accrued and Other L_3
Note 10 - Accrued and Other Liabilities (Details Textual) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Oct. 02, 2020 CAD ($) | Oct. 02, 2020 USD ($) | Oct. 02, 2020 CAD ($) | Oct. 02, 2023 | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CAD ($) | |
Assets Acquisition of Amika Mobile Corporation [Member] | ||||||
Asset Purchase Agreement, Deduction From Liability | $ 1 | $ 736 | $ 1 | $ 799 | $ 1 | |
Asset Purchase Agreement, Deduction, Term (Year) | 3 years | 3 years | 3 years | |||
Minimum [Member] | ||||||
Extended Product Warranty Term (Year) | 1 year | 1 year | ||||
Maximum [Member] | ||||||
Extended Product Warranty Term (Year) | 2 years | 2 years |
Note 10 - Accrued and Other L_4
Note 10 - Accrued and Other Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Payroll and related | $ 2,237 | $ 3,003 |
Deferred revenue | 3,469 | |
Accrued contract costs | 825 | 809 |
Warranty reserve | 132 | 159 |
Canadian goods and services and harmonized sales tax payable | 0 | 1,556 |
Asset purchase holdback liability | 736 | 0 |
Other | 67 | 5 |
Total | 7,466 | 12,083 |
Service [Member] | ||
Deferred revenue | 2,703 | 1,827 |
Hardware [Member] | ||
Deferred revenue | $ 766 | $ 4,724 |
Note 10 - Accrued and Other L_5
Note 10 - Accrued and Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred extended warranty revenue | $ 551 | |
Asset purchase holdback liability | 0 | $ 680 |
Total | 551 | 907 |
Service [Member] | ||
Deferred extended warranty revenue | $ 551 | $ 227 |
Note 10 - Accrued and Other L_6
Note 10 - Accrued and Other Liabilities - Changes in Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Beginning balance | $ 159 | $ 146 |
Warranty provision | 40 | 86 |
Warranty settlements | (67) | (73) |
Ending balance | $ 132 | $ 159 |
Note 11 - Debt (Details Textual
Note 11 - Debt (Details Textual) - Revolving Credit Facility [Member] - MUFG Union Bank, N.A. [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 08, 2021 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |
Debt Issuance Costs, Gross | $ 38 |
Note 12 - Leases (Details Textu
Note 12 - Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Increase in Lease Liability with 10% Increase in Index | $ 42 | |
Operating Lease, Right-of-Use Asset | 3,886 | $ 4,541 |
Operating Lease, Liability | $ 5,291 | 6,137 |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 4 years 9 months 18 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.20% | |
Operating Lease, Expense | $ 1,003 | 1,002 |
Short-Term Lease, Cost | 19 | |
Assets Acquisition of Amika Mobile Corporation [Member] | ||
Operating Lease, Right-of-Use Asset | 79 | 466 |
Operating Lease, Liability | $ 79 | $ 466 |
Note 12 - Leases - Initial Meas
Note 12 - Leases - Initial Measurement of Operating Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease ROU assets as of September 30, 2021 | $ 4,541 | |
Operating lease liabilities | 6,137 | |
Additional operating lease ROU assets | 79 | |
Less amortization of operating lease ROU assets | (772) | $ (746) |
Less lease principal payments on operating lease liabilities | (964) | |
Effect of exchange rate on operating lease ROU assets | 38 | |
Effect of exchange rate on operating lease liabilities | 39 | |
Operating lease ROU assets as of September 30, 2022 | 3,886 | 4,541 |
Operating lease liabilities | 5,291 | 6,137 |
Less non-current portion | (4,283) | (5,189) |
Current portion as of September 30, 2022 | $ 1,008 | $ 948 |
Note 12 - Leases - Maturities o
Note 12 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 1,205 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 1,181 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 1,195 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 1,217 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 1,047 | |
Thereafter | 0 | |
Total undiscounted operating lease payments | 5,845 | |
Less imputed interest | (554) | |
Operating Lease, Liability | $ 5,291 | $ 6,137 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Research and development credit | $ 4,929 | $ 4,712 |
Capitalized Research And Experimental | 1,916 | $ 0 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Deferred Tax Assets, Net | 0 | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 32,390 | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 1,526 | |
Research and development credit | 2,844 | |
State and Local Jurisdiction [Member] | ||
Research and development credit | $ 306 |
Note 13 - Income Taxes - Summar
Note 13 - Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Federal | $ 0 | $ 0 |
State | 16 | 3 |
Foreign | 11 | 70 |
Total current tax provision | 27 | 73 |
Federal | 6,266 | 568 |
State | 1,107 | 100 |
Total deferred provision | 7,373 | 668 |
Provision (benefit) for income taxes | $ 7,400 | $ 741 |
Note 13 - Income Taxes - Reconc
Note 13 - Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income taxes computed at the federal statutory rate | $ (2,309) | $ (3,314) |
Change in valuation allowance | 10,376 | 1,065 |
Nondeductible compensation, interest expense and other | 232 | 4,101 |
State income taxes, net of federal tax benefit | (605) | (859) |
Change in R&D credit carryover | (433) | (186) |
Stock options and other prior year true-ups | 111 | 25 |
Foreign rate differential | 28 | (1) |
State business credit utilization | 0 | (90) |
Provision (benefit) for income taxes | $ 7,400 | $ 741 |
Note 13 - Income Taxes - Signif
Note 13 - Income Taxes - Significant Portion of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Net operating loss carryforwards | $ 10,665 | $ 10,054 |
Research and development credit | 4,929 | 4,712 |
Share-based compensation | 650 | 688 |
Patents | 2,203 | 2,331 |
Accruals and other | 2,071 | 2,245 |
Capitalized R&E expenses | 1,916 | 0 |
Allowances | 237 | 280 |
Gross deferred tax assets | 22,671 | 20,310 |
Equipment | (274) | (313) |
Operating ROU assets | (907) | (1,066) |
Acquired intangible assets | (1,736) | (2,180) |
Gross deferred tax liabilities | (2,917) | (3,559) |
Less valuation allowance | (19,754) | (9,378) |
Net deferred tax assets and liabilities | $ 0 | $ 7,373 |
Note 14 - Commitments and Con_2
Note 14 - Commitments and Contingencies (Details Textual) $ / shares in Units, $ in Thousands, $ in Millions | 12 Months Ended | |||||||
Oct. 02, 2020 USD ($) $ / shares shares | Oct. 02, 2020 CAD ($) shares | Oct. 02, 2020 CAD ($) | Oct. 02, 2023 | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2023 CAD ($) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | |
Increase (Decrease) in Other Employee-Related Liabilities | $ | $ 194 | $ 1,733 | ||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | $ 398 | $ 324 | ||||||
Share Price | $ / shares | $ 5.98 | $ 2,010 | ||||||
Assets Acquisition of Amika Mobile Corporation [Member] | ||||||||
Asset Purchase Agreement, Deduction From Liability | $ 736 | $ 1 | $ 1 | $ 799 | $ 1 | |||
Asset Purchase Agreement, Deduction, Term (Year) | 3 years | 3 years | 3 years | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares, Each Anniversaries | shares | 191,267 | 191,267 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 573,801 | 573,801 | 69,564 | 69,564 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ | $ 3,431 | $ 3,431 | ||||||
Assets Acquisition of Amika Mobile Corporation [Member] | Former Owner of Amika Mobile [Member] | ||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 69,564 | 69,564 | 69,564 | 365,109 |
Note 15 - Share-based Compens_3
Note 15 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||||||||
Mar. 20, 2023 | Mar. 14, 2023 | Feb. 14, 2023 | Nov. 01, 2022 | Oct. 08, 2022 | Aug. 10, 2022 | Mar. 15, 2022 | Nov. 01, 2021 | Oct. 04, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 16, 2021 | Dec. 08, 2020 | Oct. 02, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 6,459,196 | |||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,907,500 | 1,367,000 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 7 years | |||||||||||||||
Dividends, Total | $ 0 | $ 0 | ||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 1,638 | |||||||||||||||
Share-Based Payment Arrangement, Expense | 1,642 | $ 2,227 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 35 | |||||||||||||||
Share Price | $ 2,010 | $ 5.98 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 2,980 | 491 | ||||||||||||||
Gross Proceeds from Stock Options Exercised | 138 | 282 | ||||||||||||||
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 815 | 208 | ||||||||||||||
Common Stock Award [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 3,175,077 | |||||||||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 25 days | |||||||||||||||
Share-Based Payment Arrangement, Option [Member] | Employees, Directors, and Consultants [Member] | ||||||||||||||||
Share-Based Payment Arrangement, Expense | $ 656 | 817 | ||||||||||||||
Performance Shares [Member] | Key Executive [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 800,000 | |||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 7 years | |||||||||||||||
Share-Based Payment Arrangement, Expense | 209 | |||||||||||||||
Performance Shares [Member] | Management [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 450,000 | 750,000 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 7 years | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 7 | 0 | ||||||||||||||
Performance Shares [Member] | Management [Member] | Vesting Based on Market Conditions [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 225,000 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 months 18 days | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 986 | $ 1,410 | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 295,600 | |||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 933 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 800,000 | |||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 10,000 | |||||||||||||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 29 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 30,000 | 145,950 | 81,270 | |||||||||||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 407 | $ 989 | $ 258 | |||||||||||||
Restricted Stock Units (RSUs) [Member] | Non-employee Advisors [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | |||||||||||||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 51 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Non-employee Directors [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 30,000 | |||||||||||||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 417 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Employees [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 145,600 | |||||||||||||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 582 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Employees [Member] | Vests Immediately [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 20,000,000 | |||||||||||||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 66 | |||||||||||||||
2015 Equity Plan [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 10,000,000 | 5,000,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Proposed Number of Shares Authorized | 10,000,000 | |||||||||||||||
2015 Equity Plan [Member] | Options and RSUs [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Equity Instruments Other than Options, Outstanding, Number | 3,284,119 |
Note 15 - Share-based Compens_4
Note 15 - Share-based Compensation - Weighted-average Assumptions (Details) | 12 Months Ended | |
Sep. 30, 2023 Rate | Sep. 30, 2022 Rate | |
Volatility (Rate) | 52.40% | 50.80% |
Risk-free interest rate (Rate) | 4% | 2.60% |
Dividend yield (Rate) | 0% | 0% |
Expected term in years (Year) | 5 years 9 months 18 days | 5 years 2 months 12 days |
Note 15 - Share-based Compens_5
Note 15 - Share-based Compensation - Restricted Stock Activity (Details) | 12 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares Outstanding (in shares) | shares | 379,597 |
Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ / shares | $ 3.99 |
Restricted Stock Units (RSUs) [Member] | |
Number of Shares Outstanding (in shares) | shares | 342,841 |
Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ / shares | $ 4.11 |
Number of Shares Granted (in shares) | shares | 295,600 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | $ 3.63 |
Number of Shares Released (in shares) | shares | (253,012) |
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares | $ 3.73 |
Forfeited/Cancelled, shares (in shares) | shares | (5,832) |
Weighted Average Grant Date Fair Value, Forfeited/cancelled (in dollars per share) | $ / shares | $ 7.2 |
Note 15 - Share-based Compens_6
Note 15 - Share-based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Number of Shares Outstanding, Beginning Balance (in shares) | 3,940,899 | |
Weighted Average Exercise Price, Shares Outstanding, Beginning Balance (in dollars per share) | $ 3.31 | |
Number of Shares Granted (in shares) | 1,907,500 | 1,367,000 |
Weighted Average Exercise Price, Shares Granted (in dollars per share) | $ 2.92 | |
Number of Shares Forfeited/expired (in shares) | 1,891,612 | |
Weighted Average Exercise Price, Shares Forfeited/expired (in dollars per share) | $ 3.86 | |
Number of Shares Exercised (in shares) | 1,052,265 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ 1.95 | |
Number of Shares Outstanding, Ending Balance (in shares) | 2,904,522 | 3,940,899 |
Weighted Average Exercise Price, Shares Outstanding, Ending Balance (in dollars per share) | $ 3.19 | $ 3.31 |
Number of Shares Exercisable (in shares) | 842,667 | |
Weighted Average Exercise Price, Shares Exercisable (in dollars per share) | $ 3.51 |
Note 15 - Share-based Compens_7
Note 15 - Share-based Compensation - Stock Options Outstanding (Details) | 12 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 2,904,882 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 5 years 3 months |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 3.19 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 842,667 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 3.51 |
Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 1.51 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 2.68 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 217,517 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 3 years 2 months 19 days |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 2.12 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 129,157 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 1.74 |
Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 2.69 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 2.69 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 1,100,000 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 6 years 7 days |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 2.69 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 0 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 0 |
Range Three [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 3.09 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 3.39 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 759,138 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 5 years 6 months 21 days |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 3.29 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 191,825 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 3.39 |
Range Four [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 3.4 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 8.03 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 828,227 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 4 years 5 months 23 days |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 4.05 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 521,685 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 4 |
Note 15 - Share-based Compens_8
Note 15 - Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement, Expense | $ 1,642 | $ 2,227 |
Cost of Sales [Member] | ||
Share-Based Payment Arrangement, Expense | 111 | 77 |
Selling, General and Administrative Expenses [Member] | ||
Share-Based Payment Arrangement, Expense | 1,428 | 2,080 |
Research and Development Expense [Member] | ||
Share-Based Payment Arrangement, Expense | $ 103 | $ 70 |
Note 16 - Stockholders' Equity
Note 16 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Oct. 02, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 18, 2021 | Mar. 17, 2021 | Dec. 31, 2018 | |
Common Stock, Shares Authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 50,000,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 84,765 | 145,235 | |||||
Gross Proceeds from Stock Options Exercised | $ 138 | $ 282 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 270,262 | ||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |||||
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 | |||||
Share Buyback Program [Member] | |||||||
Stock Repurchased and Retired During Period, Shares | 259,310 | ||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||
Stock Repurchased During Period, Value | $ 998 | ||||||
Assets Acquisition of Amika Mobile Corporation [Member] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares, Each Anniversaries | 191,267 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 573,801 | 69,564 | |||||
Business Acquisition, Share Price | $ 5.98 | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 3,431 | $ 3,431 | |||||
Assets Acquisition of Amika Mobile Corporation [Member] | Former Owner of Amika Mobile [Member] | |||||||
Stock Issued During Period, Shares, Acquisitions | 69,564 | 69,564 | 365,109 | ||||
Restricted Stock Units (RSUs) [Member] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 253,012 | ||||||
Share-Based Payment Arrangement, Employee [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 162,841 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises, Net Share Settlement Transaction | 816,747 | ||||||
Stock Used as Consideration of Option Exercises | 579,300 | ||||||
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 74,606 | ||||||
Share-Based Payment Arrangement, Employee [Member] | Incentive Stock Options [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 150,753 | ||||||
Stock Repurchased and Retired During Period, Shares | 109,488 |
Note 17 - Net (Loss) Income P_3
Note 17 - Net (Loss) Income Per Share - Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Net (loss) income | $ (18,396) | $ (16,212) |
Diluted (loss)income per share (in dollars per share) | $ (0.5) | $ (0.44) |
Weighted average shares outstanding - basic (in shares) | 36,939,335 | 36,495,012 |
Assumed exercise of dilutive options (in shares) | 0 | 0 |
Weighted average shares outstanding - diluted (in shares) | 36,939,335 | 36,495,012 |
Options (in shares) | 3,359,515 | 4,423,202 |
Share-Based Payment Arrangement, Option [Member] | ||
Options (in shares) | 2,904,522 | 3,940,899 |
Restricted Stock Units (RSUs) [Member] | ||
Options (in shares) | 385,429 | 343,175 |
Obligation to Issue Common Stock [Member] | ||
Options (in shares) | 69,564 | 139,128 |
Note 18 - Segment Information_2
Note 18 - Segment Information (Details Textual) | 12 Months Ended |
Sep. 30, 2023 | |
Number of Reportable Segments | 2 |
Note 18 - Segment Information -
Note 18 - Segment Information - Segment Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | $ 46,663 | $ 54,035 |
Long-lived assets | 9,978 | 12,262 |
Total assets | 49,905 | 71,854 |
Operating Income (Loss) | (10,986) | (15,531) |
Depreciation and amortization | 2,558 | 2,556 |
Impairment of goodwill | 0 | 13,162 |
Income Tax (Benefit) Expense | 7,400 | 741 |
Intersegment Eliminations [Member] | ||
Revenues | 4,803 | 3,287 |
Hardware [Member] | ||
Revenues | 42,864 | 50,938 |
Long-lived assets | 1,427 | 1,677 |
Total assets | 28,878 | 47,237 |
Operating Income (Loss) | 3,240 | 9,260 |
Depreciation and amortization | 398 | 380 |
Impairment of goodwill | 0 | 0 |
Income Tax (Benefit) Expense | 7,425 | 1,065 |
Hardware [Member] | Intersegment Eliminations [Member] | ||
Revenues | 0 | |
Software [Member] | ||
Revenues | 3,799 | 3,097 |
Long-lived assets | 8,551 | 10,585 |
Total assets | 21,027 | 24,617 |
Operating Income (Loss) | (14,226) | (24,791) |
Depreciation and amortization | 2,160 | 2,176 |
Impairment of goodwill | 0 | |
Income Tax (Benefit) Expense | (25) | (324) |
Software [Member] | Intersegment Eliminations [Member] | ||
Revenues | $ 4,803 | $ 3,287 |
Note 19 - Major Customers, Su_3
Note 19 - Major Customers, Suppliers and Related Information (Details Textual) | 12 Months Ended | |
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Revenues | $ 46,663,000 | $ 54,035,000 |
UNITED STATES | ||
Revenues | $ 36,286 | $ 45,703 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Number Of Major Customers | 1 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||
Concentration Risk, Percentage | 54% | 68% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Number Of Major Customers | 3 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||
Concentration Risk, Percentage | 22% | 43% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | ||
Concentration Risk, Percentage | 10% | 19% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||
Concentration Risk, Percentage | 10% |
Note 19 - Major Customers, Su_4
Note 19 - Major Customers, Suppliers and Related Information - Schedule of Major Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Product sales | $ 46,663 | $ 54,035 |
Americas [Member] | ||
Product sales | 39,273 | 47,129 |
Asia Pacific [Member] | ||
Product sales | 4,117 | 3,394 |
EMEA [Member] | ||
Product sales | $ 3,273 | $ 3,512 |
Note 19 - Major Customers, Su_5
Note 19 - Major Customers, Suppliers and Related Information - Schedule of Long-lived Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Long-lived assets | $ 9,978 | $ 12,262 |
UNITED STATES | ||
Long-lived assets | 9,624 | 11,800 |
Non-US [Member] | ||
Long-lived assets | 7 | 16 |
EMEA [Member] | ||
Long-lived assets | $ 347 | $ 446 |
Note 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 04, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 84,765 | 145,235 | |
Underwritten Public Offering, Common Stock | 5,750,000 | ||
Price Per Share, Underwritten Agreement | $ 2 | ||
Gross Proceeds From Underwritten Public Offering, Common Stock | $ 11,500 | ||
Subsequent Event [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 986,486 |