Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2022 | Jan. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GEOS | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | GEOSPACE TECHNOLOGIES CORP | |
Entity Central Index Key | 0001001115 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,130,989 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-13601 | |
Entity Tax Identification Number | 76-0447780 | |
Entity Incorporation, State or Country Code | TX | |
Entity Address, Address Line One | 7007 Pinemont | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77040 | |
City Area Code | 713 | |
Local Phone Number | 986-4444 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 11,355 | $ 16,109 |
Short-term investments | 896 | 894 |
Trade accounts and notes receivable, net | 31,424 | 20,886 |
Property held for sale | 2,403 | |
Inventories, net | 20,736 | 19,995 |
Prepaid expenses and other current assets | 1,756 | 2,077 |
Total current assets | 68,570 | 59,961 |
Non-current notes receivable | 306 | |
Non-current inventories, net | 15,604 | 12,526 |
Rental equipment, net | 23,242 | 28,199 |
Property, plant and equipment, net | 23,334 | 26,598 |
Operating right-of-use assets | 897 | 957 |
Goodwill | 736 | 736 |
Other intangible assets, net | 5,335 | 5,573 |
Other non-current assets | 409 | 506 |
Total assets | 138,433 | 135,056 |
Current liabilities: | ||
Accounts payable trade | 7,522 | 5,595 |
Contingent consideration | 175 | |
Operating lease liabilities | 245 | 241 |
Other current liabilities | 8,023 | 6,616 |
Total current liabilities | 15,790 | 12,627 |
Non-current operating lease liabilities | 701 | 769 |
Deferred tax liabilities, net | 7 | 13 |
Total liabilities | 16,498 | 13,409 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding | ||
Common Stock, $.01 par value, 20,000,000 shares authorized; 13,972,981 and 13,863,233 shares issued, respectively; and 13,130,989 and 13,021,241 shares outstanding, respectively | 140 | 139 |
Additional paid-in capital | 95,037 | 94,667 |
Retained earnings | 49,557 | 49,654 |
Accumulated other comprehensive loss | (15,299) | (15,313) |
Treasury stock, at cost, 841,992 shares | (7,500) | (7,500) |
Total stockholders’ equity | 121,935 | 121,647 |
Total liabilities and stockholders’ equity | $ 138,433 | $ 135,056 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2022 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 13,972,981 | 13,863,233 |
Common stock, shares outstanding | 13,130,989 | 13,021,241 |
Treasury stock, shares | 841,992 | 841,992 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | ||
Revenue | $ 19,548,000 | $ 13,032,000 |
Revenue, Product and Service [Extensible List] | Product | Product |
Rental | $ 11,561,000 | $ 4,959,000 |
Total revenue | 31,109,000 | 17,991,000 |
Cost of revenue: | ||
Products | $ 15,365,000 | $ 11,350,000 |
Revenue, Product and Service [Extensible List] | Product | Product |
Rental | $ 5,210,000 | $ 4,939,000 |
Total cost of revenue | 20,575,000 | 16,289,000 |
Gross profit | 10,534,000 | 1,702,000 |
Operating expenses: | ||
Selling, general and administrative | 6,435,000 | 5,744,000 |
Research and development | 4,258,000 | 5,269,000 |
Change in estimated fair value of contingent consideration | (2,440,000) | |
Bad debt expense | 120,000 | 15,000 |
Total operating expenses | 10,813,000 | 8,588,000 |
Loss from operations | (279,000) | (6,886,000) |
Other income (expense): | ||
Interest expense | (39,000) | |
Interest income | 156,000 | 194,000 |
Foreign exchange gains, net | 107,000 | 18,000 |
Other, net | (12,000) | (17,000) |
Total other income, net | 212,000 | 195,000 |
Loss before income taxes | (67,000) | (6,691,000) |
Income tax expense | 30,000 | 77,000 |
Net loss | $ (97,000) | $ (6,768,000) |
Loss per common share: | ||
Basic | $ (0.01) | $ (0.52) |
Diluted | $ (0.01) | $ (0.52) |
Weighted average common shares outstanding: | ||
Basic | 13,067,991 | 12,919,673 |
Diluted | 13,067,991 | 12,919,673 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (97) | $ (6,768) |
Other comprehensive income (loss): | ||
Change in unrealized losses on available-for-sale securities, net of tax | 8 | (9) |
Foreign currency translation adjustments | 6 | (133) |
Total other comprehensive income (loss) | 14 | (142) |
Total comprehensive loss | $ (83) | $ (6,910) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Sep. 30, 2021 | $ 142,457 | $ 137 | $ 92,935 | $ 72,510 | $ (16,320) | $ (6,805) |
Beginning Balance, Shares at Sep. 30, 2021 | 12,969,542 | |||||
Net loss | (6,768) | (6,768) | ||||
Other comprehensive income (loss) | (142) | (142) | ||||
Issuance of common stock pursuant to the vesting of restricted stock units | 1 | $ 1 | ||||
Issuance of common stock pursuant to the vesting of restricted stock units, Shares | 84,762 | |||||
Purchase of treasury stock | (695) | (695) | ||||
Purchase of treasury stock, Shares | (72,563) | |||||
Stock-based compensation | 536 | 536 | ||||
Ending Balance at Dec. 31, 2021 | 135,389 | $ 138 | 93,471 | 65,742 | (16,462) | (7,500) |
Ending Balance, Shares at Dec. 31, 2021 | 12,981,741 | |||||
Beginning Balance at Sep. 30, 2022 | $ 121,647 | $ 139 | 94,667 | 49,654 | (15,313) | (7,500) |
Beginning Balance, Shares at Sep. 30, 2022 | 13,021,241 | 13,021,241 | ||||
Net loss | $ (97) | (97) | ||||
Other comprehensive income (loss) | 14 | 14 | ||||
Issuance of common stock pursuant to the vesting of restricted stock units | 1 | $ 1 | ||||
Issuance of common stock pursuant to the vesting of restricted stock units, Shares | 109,748 | |||||
Stock-based compensation | 370 | 370 | ||||
Ending Balance at Dec. 31, 2022 | $ 121,935 | $ 140 | $ 95,037 | $ 49,557 | $ (15,299) | $ (7,500) |
Ending Balance, Shares at Dec. 31, 2022 | 13,130,989 | 13,130,989 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (97) | $ (6,768) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Deferred income tax benefit | (6) | (1) |
Rental equipment depreciation | 3,247 | 3,543 |
Property, plant and equipment depreciation | 1,017 | 1,105 |
Amortization of Intangible Assets | 238 | 446 |
Accretion of discounts on short-term investments | 5 | 52 |
Stock-based compensation expense | 370 | 536 |
Bad debt expense | 120 | 15 |
Inventory obsolescence expense | 1,380 | 671 |
Change in estimated fair value of contingent consideration | (2,440) | |
Gross profit from sale of used rental equipment | (3,092) | (2,612) |
Gain on disposal of property, plant and equipment | (47) | |
Realized loss on short-term investments | 7 | |
Effects of changes in operating assets and liabilities: | ||
Trade accounts and notes receivables | (6,846) | 1,477 |
Inventories | (5,188) | 74 |
Other assets | 886 | 157 |
Accounts payable trade | 1,924 | (2,623) |
Other liabilities | 1,225 | (965) |
Net cash used in operating activities | (4,864) | (7,326) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (265) | (145) |
Proceeds from the sale of property, plant and equipment | 47 | |
Investment in rental equipment | (162) | (782) |
Proceeds from the sale of used rental equipment | 622 | 1,048 |
Purchases of short-term investments | (450) | |
Proceeds from the sale of short-term investments | 2,249 | |
Net cash provided by investing activities | 242 | 1,920 |
Cash flows from financing activities: | ||
Payments on contingent consideration | (175) | (807) |
Purchase of treasury stock | (695) | |
Net cash used in financing activities | (175) | (1,502) |
Effect of exchange rate changes on cash | 43 | 5 |
Decrease in cash and cash equivalents | (4,754) | (6,903) |
Cash and cash equivalents, beginning of fiscal year | 16,109 | 14,066 |
Cash and cash equivalents, end of fiscal period | 11,355 | 7,163 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 82 | |
Accounts receivable related to sale of used rental equipment | 4,505 | |
Issuance of note receivable related to sale of used rental equipment | 3,745 | |
Inventory transferred to rental equipment | $ 7 | 863 |
Inventory transferred to property, plant and equipment | $ 172 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2022 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2022 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the three months ended December 31, 2022 and 2021 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. All intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2022 are not necessarily indicative of the operating results for a full year or of future operations. Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("U.S.") were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2022. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. The Company continually evaluates its estimates, including those related to revenue recognition, bad debt reserves, collectability of rental revenue, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, useful lives of long-lived assets, impairment of long-lived assets, impairment of goodwill and other intangible assets, contingent consideration and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. While management believes current estimates are reasonable and appropriate, actual results may differ from these estimates under different conditions or assumptions. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents. At December 31, 2022 and September 30, 2022, the Company had restricted cash of $ 0.2 million on deposit with a bank, which serves as collateral on employee issued credit cards. At December 31, 2022, cash and cash equivalents included $ 2.9 million held by the Company’s foreign subsidiaries and branch offices, including $ 2.2 million held by its subsidiary in the Russian Federation. In response to sanctions imposed by the U.S. and others on Russia, the Russian government has imposed restrictions on companies' abilities to repatriate or otherwise remit cash from their Russian-based operations to locations outside of Russia. As a result, this cash can be used in our Russian operations, but the Company may be unable to transfer it out of Russia without incurring substantial costs, if at all. In addition, if the Company were to repatriate the cash held by its Russian subsidiary, it would be required to accrue and pay taxes on any amount repatriated. Impairment of Long-lived Assets The Company's long-lived assets are reviewed for impairment whenever an event or circumstance indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of the expected future cash flows (undiscounted and without interest charges) to be generated by an asset group with the associated carrying value of the related assets. If the carrying value of the asset group exceeds the expected future cash flows, an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value. During the quarter ended December 31, 2022, no events or changes in circumstances were identified indicating the carrying value of any of the Company's asset groups may not be recoverable. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles. The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other financial instruments. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a smaller reporting company, the Company must adopt this standard no later than the first quarter of its fiscal year ending September 30, 2024, although early adoption is permitted. The standard’s provisions will be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company intends to adopt this standard during the first quarter of its fiscal year ending September 30, 2024 and is continuing to evaluate the impact of this new guidance on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when performance of contractual obligations are satisfied, generally when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The Company primarily derives product revenue from the sale of its manufactured products. Revenue from these product sales, including the sale of used rental equipment, is recognized when obligations under the terms of a contract are satisfied, control is transferred and collectability of the sales price is probable. The Company records deferred revenue when customer funds are received prior to shipment or delivery or performance has not yet occurred. The Company assesses collectability during the contract assessment phase. In situations where collectability of the sales price is not probable, the Company recognizes revenue when it determines that collectability is probable or when non-refundable cash is received from its customers and there is not a significant right of return. Transfer of control generally occurs with shipment or delivery, depending on the terms of the underlying contract. The Company’s products are generally sold without any customer acceptance provisions, and the Company’s standard terms of sale do not allow customers to return products for credit. Revenue from engineering services is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is generally priced on a per day rate. The Company also generates revenue from short-term rentals under operating leases of its manufactured products. Rental revenue is recognized as earned over the rental period if collectability of the rent is reasonably assured. Rentals of the Company’s equipment generally range from daily rentals to minimum rental periods of up to one year. The Company has determined that ASC 606 does not apply to rental contracts, which are within the scope of ASC Topic 842, Leases . As permissible under ASC 606, sales taxes and transaction-based taxes are excluded from revenue. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, the Company expenses costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses. The Company has elected to treat shipping and handling activities in a sales transaction after the customer obtains control of the goods as a fulfillment cost and not as a promised service. Accordingly, fulfillment costs related to the shipping and handling of goods are accrued at the time of shipment. Amounts billed to a customer in a sales transaction related to reimbursable shipping and handling costs are included in revenue and the associated costs incurred by the Company for reimbursable shipping and handling expenses are reported in cost of revenue. At December 31, 2022 and September 30, 2022, the Company had no deferred contract costs or deferred contract liabilities. During the three months ended December 31, 2022 and 2021, no revenue was recognized from deferred contract liabilities and no cost of revenue was recognized from deferred contract costs. At December 31, 2022, the Company had no unsatisfied performance obligations with an original duration of one year or less. For each of the Company’s operating segments, the following table presents revenue only from the sale of products and the performance of services under contracts with customers (in thousands). Therefore, the table excludes all revenue earned from rental contracts. Three Months Ended December 31, 2022 December 31, 2021 Oil and Gas Markets Traditional exploration product revenue $ 2,755 $ 580 Wireless exploration product revenue 5,759 3,758 Reservoir product revenue 155 427 Total revenue 8,669 4,765 Adjacent Markets Industrial product revenue 7,930 5,014 Imaging product revenue 2,856 3,116 Total revenue 10,786 8,130 Emerging Markets Revenue 93 137 Total $ 19,548 $ 13,032 See Note 14 for more information on the Company’s operating segments. For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts: Three Months Ended December 31, 2022 December 31, 2021 Asia $ 6,534 $ 4,678 Canada 761 398 Europe 1,134 1,311 United States 10,591 6,019 Other 528 626 Total $ 19,548 $ 13,032 Revenue is attributable to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is not known, revenue is attributable to countries based on the geographic location of the initial shipment. |
Short-term Investments
Short-term Investments | 3 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | 3. Short-term Investments The Company classifies its short-term investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders’ equity. No gains or losses were realized during the three months ended December 31, 2022 from the sale of short-term investments. For the three months ended December 31, 2021, the Company realized losses of $ 7,000 from the sale of short-term investments. The Company’s short-term investments were composed of the following (in thousands): As of December 31, 2022 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Short-term investments: Corporate bonds $ 904 $ — $ ( 8 ) $ 896 As of September 30, 2022 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Short-term investments: Corporate bonds $ 909 $ — $ ( 15 ) $ 894 The Company’s short-term investments at December 31, 2022 had contractual maturities ranging from February 2023 to March 2023. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments generally include cash and cash equivalents, short-term investments, trade accounts and notes receivable and accounts payable. Due to the short-term maturities of cash and cash equivalents, trade accounts and notes receivable and accounts payable, the carrying amounts of these financial instruments are deemed to approximate their fair value on the respective balance sheet dates. The valuation technique used to measure the fair value of the contingent consideration was based on internal estimates and the use of internal projections of future revenue. The Company measures its short-term investments and contingent consideration at fair value on a recurring basis. The following tables present the fair value of the Company’s short-term investments and contingent consideration by valuation hierarchy and input (in thousands): As of December 31, 2022 Quoted Prices in Significant Significant Totals Short-term investments: Corporate bonds $ — $ 896 $ — $ 896 Total assets $ — $ 896 $ — $ 896 As of September 30, 2022 Quoted Prices in Significant Significant Totals Short-term investments: Corporate bonds $ — $ 894 $ — $ 894 Total assets $ — $ 894 $ — $ 894 Contingent consideration liabilities: $ — $ — $ 175 $ 175 Total liabilities $ — $ — $ 175 $ 175 The following table summarizes changes in the fair value of the Company’s Level 3 financial instruments for the three months ended December 31, 2022 and 2021 (in thousands): Contingent consideration balance at October 1, 2022 $ 175 Fair value adjustments — Payment of contingent consideration ( 175 ) Contingent consideration at December 31, 2022 $ — Contingent consideration balance at October 1, 2021 $ 6,017 Fair value adjustments ( 2,440 ) Payment of contingent consideration ( 807 ) Contingent consideration balance at December 31, 2021 $ 2,770 Adjustments to the fair value of the contingent consideration were based on internal estimates and management assessments regarding potential future scenarios which involved significant judgment. As of December 31, 2022, the Company had no contingent consideration payable. |
Trade Accounts and Notes Receiv
Trade Accounts and Notes Receivable | 3 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Trade Accounts and Notes Receivable | 5. Trade Accounts and Notes Receivable Trade accounts receivable, net (excluding notes receivable) are reflected in the following table (in thousands): December 31, 2022 September 30, 2022 Trade accounts receivable $ 24,629 $ 13,252 Allowance for doubtful accounts ( 689 ) ( 591 ) Total $ 23,940 $ 12,661 The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses. The Company determines the allowance based upon historical experience and a current review of its trade accounts receivable balances. Trade accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable. Notes receivable are reflected in the following table (in thousands): December 31, 2022 September 30, 2022 Notes receivable $ 7,790 $ 8,225 Less current portion ( 7,484 ) ( 8,225 ) Non-current notes receivable $ 306 $ — Promissory notes receivable are generally collateralized by the products sold, and bear interest at rates ranging from 7.0 % to 9.5 % per year. The promissory notes receivable mature at various times through January 2024 . The Company has, on occasion, extended or renewed notes receivable as they mature, but there is no obligation to do so. During the second quarter of fiscal year 2022, the Company partially financed a $ 10.0 million sale of rental equipment by entering into a $ 8.0 million promissory note with a customer. The note has a one-year term, with principal and interest payments due quarterly until maturity. The balance outstanding on the promissory note at December 31, 2022 was $ 4.0 million During the first quarter of fiscal year 2022, the Company financed a sale of rental equipment by entering into a $ 3.7 million promissory note with a customer. The note has a term of nine months , with principal and interest payments due monthly until maturity. The balance outstanding on the promissory note at December 31, 2022 was $ 0.8 million. The balance outstanding was paid in January 2023. During the second quarter of fiscal year 2020, the Company partially financed a $ 12.5 million product sale by entering into a $ 10.0 million promissory note with the customer. The note has a three-year term with monthly principal and interest payments of $ 0.3 million. During the fourth quarter of fiscal year 2021, the Company granted the customer a six-month principal payment forbearance. The customer recommenced its monthly payments to the Company in the second quarter of fiscal year 2022. In October 2022, the Company granted the customer an additional six-month principal payment forbearance. The customer has made payments totaling $ 9.5 million (exclusive of interest) as of December 31, 2022 related to the product sale, and the balance outstanding on the promissory note at December 31, 2022 was $ 3.0 million. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): December 31, 2022 September 30, 2022 Finished goods $ 15,614 $ 14,653 Work in process 6,905 6,230 Raw materials 27,761 25,609 Obsolescence reserve (net realizable value adjustment) ( 13,940 ) ( 13,971 ) 36,340 32,521 Less current portion 20,736 19,995 Non-current portion $ 15,604 $ 12,526 Raw materials include semi-finished goods and component parts that totaled $ 21.3 million and $ 20.7 million at December 31, 2022 and September 30, 2022, respectively. |
Asset Held for Sale
Asset Held for Sale | 3 Months Ended |
Dec. 31, 2022 | |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |
Assets Held For Sale | 7. Asset Held for Sale During the first quarter of fiscal year 2023, the Company entered into a contract to sell its property located at 6410 Langfield Road in Houston, Texas. The facility provides additional warehousing and maintenance and repair capacity for the Company's marine rental equipment operations. The Company plans on relocating the operations of this facility to its 7700 Pinemont Drive facility in Houston, Texas as part of its cost reductions efforts. The property's carrying value at December 31, 2022 was $ 2.4 million. The Company believes the fair market value of the property exceeds its carrying value. The contract provides for closing to occur before the end of the Company's second quarter of fiscal year 2023. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | . Leases As Lessee The Company has elected not to record operating right-of-use assets or operating lease liabilities on its consolidated balance sheet for leases having a minimum term of 12 months or less. Such leases are expensed on a straight-line basis over the lease term. Variable lease payments are excluded from the measurement of operating right-of-use assets and operating lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As of December 31, 2022, the Company has two operating right-of-use assets related to leased facilities in Austin, Texas and Melbourne, Florida. Maturities of the operating lease liabilities as of December 31, 2022 were as follows: (in thousands): For fiscal years ending September 30, 2023 (remainder) $ 198 2024 278 2025 186 2026 130 2027 134 2028 91 Future minimum lease payments 1,017 Less interest ( 71 ) Present value of minimum lease payments 946 Less current portion ( 245 ) Long-term portion $ 701 Lease costs recognized in the consolidated statements of operations for the three months ended December 31, 2022 and 2021 were as follows (in thousands): Three Months Ended December 31, 2022 December 31, 2021 Right-of-use operating lease costs $ 68 $ 68 Short-term lease costs 42 44 Total $ 110 $ 112 Right-of use operating lease costs and short-term lease costs are included as a component of total operating expenses. Other information related to operating leases is as follows (in thousands): Three Months Ended December 31, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 72 $ 70 Weighted average remaining lease term 4.5 years 5.3 years Weighted average discount rate 3.25 % 3.25 % The discount rate used on the operating right-of-use assets represented the Company’s incremental borrowing rate at lease inception. As Lessor Equipment The Company leases equipment to customers which generally range from daily rentals to minimum rental periods of up to one year . All of the Company’s current leasing arrangements, which the Company acting as lessor, are classified as operating leases. The majority of the Company’s rental revenue is generated from its marine-based wireless seismic data acquisition systems. The Company regularly evaluates the collectability of its lease receivables on a lease-by-lease basis. The evaluation primarily consists of reviewing past due account balances and other factors such as the credit quality of the customer, historical trends of the customer and current economic conditions. The Company suspends revenue recognition when the collectability of amounts due are no longer probable and concurrently records a direct write-off of the lease receivable to rental revenue and limits future rental revenue recognition to cash received. As of December 31, 2022, the Company’s trade accounts receivables included lease receivables of $ 9.0 million. Rental revenue related to leased equipment for the three months ended December 31, 2022 and 2021 was $ 11.5 million and $ 4.9 million, respectively. Future minimum lease obligations due from the Company’s leasing customers on operating leases executed as of December 30, 2022 were $ 27.1 million, all of which is expected to be due within the next 12 months. Rental equipment consisted of the following (in thousands): December 31, 2022 September 30, 2022 Rental equipment, primarily wireless recording equipment $ 80,395 $ 83,887 Accumulated depreciation and impairment ( 57,153 ) ( 55,688 ) $ 23,242 $ 28,199 Property During the first quarter of fiscal year 2022, the Company leased a portion of its property located in Calgary, Alberta, Canada and fully leased its warehouse in Bogotá, Colombia. The lease in Canada commenced in November 2021 and is for a five-year term. The lease on the warehouse in Bogotá commenced in December 2021 and is currently on a month-to-month basis. Rental revenue related to these two property leases for the three months ended December 31, 2022 was $ 46,000 and $ 29,000 , respectively. Future minimum lease payments due to the Company as of December 31, 2022 on these two leases were as follows (in thousands): For fiscal years ending September 30, 2023 (remainder) $ 93 2024 128 2025 131 2026 132 2027 11 $ 495 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2022 September 30, 2022 Goodwill: Emerging Markets reporting unit $ 4,336 $ 4,336 Adjacent Markets reporting unit 736 736 Total goodwill 5,072 5,072 Accumulated impairment losses ( 4,336 ) ( 4,336 ) $ 736 $ 736 Other intangible assets: Developed technology 13.9 $ 6,475 $ 6,475 Customer relationships -- 3,900 3,900 Trade names 0.8 2,022 2,022 Non-compete agreements 0.2 186 186 Total other intangible assets 7.3 12,583 12,583 Accumulated amortization ( 7,248 ) ( 7,010 ) $ 5,335 $ 5,573 At December 31, 2022, the Company had goodwill of $ 0.7 million and other intangible assets, net of $ 0.6 million attributable to its Adjacent Markets reporting unit; other intangible assets, net of $ 3.3 million attributable to its Emerging Markets reporting unit; and other intangible assets, net of $ 1.4 million attributable to its Oil and Gas Markets reporting unit. Goodwill represents the excess cost of a business acquired over the fair market value of identifiable net assets at the date of acquisition. At December 31, 2022, the Company determined there were no triggering events requiring an impairment assessment of its goodwill and other intangible assets. The Company performs its annual goodwill impairment test in the fourth quarter. If the Company determines that the future cash flows anticipated to be generated from its reporting units will not be sufficient to recover the carrying amount of the respective reporting unit, it will need to recognize an impairment charge equal to the difference between the carrying amount of the reporting unit and its fair value, not to exceed the carrying amount of the goodwill. Other intangible asset amortization expense for the three months ended December 31, 2022 and 2021 was $ 0.2 million and $ 0.4 million, respectively. As of December 31, 2022, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2023 (remainder) $ 529 2024 395 2025 381 2026 374 2027 360 Thereafter 3,296 $ 5,335 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | . Long-Term Debt The Company had no long-term debt outstanding at December 31, 2022 and September 30, 2022. In May 2022, the Company entered into a credit agreement (the “Agreement”) with Amerisource Funding, Inc, as administrative agent and as a lender, and Woodforest National Bank, as a lender. Available borrowings under the Agreement are determined by a borrowing base with a maximum availability of $ 10 million. The borrowing base is determined based upon certain of the Company's domestic assets which include (i) 70 % loan to value of the Company's property located at 6410 Langfield Road in Houston, Texas (the “Property”), (ii) 50 % of forced liquidation value of equipment, (iii) 80 % of certain accounts receivable and (iv) 50 % of forced liquidation value of certain inventory (inventory borrowing base limited to 100 % of borrowing base credit given toward accounts receivable). The Agreement is for a two-year term with all funds borrowed due at the expiration of the term. The interest rate on borrowed funds is the Wall Street prime rate (with a minimum of 3.25 %) plus 4.00 %. The Company is required to make monthly interest payments on borrowed funds. Borrowings under the Agreement will be principally secured by the Property and the Company's domestic equipment, inventory and accounts receivables. In addition, certain domestic subsidiaries of the Company have guaranteed the obligations of the Company under the Agreement and such subsidiaries have secured the obligations by pledging certain assets. The Agreement requires the Company to maintain a minimum consolidated tangible net worth of $ 100 million. At December 31, 2022, the Company was compliant with all covenants under the Agreement and its borrowing availability was $ 8.5 million. As discussed in Note 7, the Property is under contract to sell at December 31, 2022. The Company is currently in discussions with its lenders to collateralize the Agreement with alternative domestic assets. Debt issuance costs of $ 0.2 million were incurred in connection with the Agreement. These costs were capitalized in other assets on the consolidated balance sheet and are being amortized to interest expense over the term of the Agreement. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation During the three months ended December 31, 2022, the Company issued 174,250 restricted stock units (“RSUs”) under its 2014 Long Term Incentive Plan, as amended. The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU was $ 4.50 per unit. The grant date fair value of the RSUs was $ 0.8 million, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for the RSUs was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of units that are anticipated to fully vest. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. As of December 31, 2022, there were 382,111 RSUs outstanding. As of December 31, 2022, the Company had unrecognized compensation expense of $ 2.2 million relating to RSUs that is expected to be recognized over a weighted average period of 3.1 years. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 12. Loss Per Common Share The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2022 December 31, 2021 Net loss $ ( 97 ) $ ( 6,768 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for $ ( 97 ) $ ( 6,768 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,067,991 12,919,673 Common share equivalents outstanding related to RSUs — — Total weighted average common shares and common 13,067,991 12,919,673 Loss per share: Basic $ ( 0.01 ) $ ( 0.52 ) Diluted $ ( 0.01 ) $ ( 0.52 ) For the calculation of diluted loss per share for the three months ended December 31, 2022, 382,111 non-vested RSUs were excluded in the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive. For the calculation of diluted loss per share for the three months ended December 31, 2021, 376,466 non-vested RSUs were excluded in the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Contingent Compensation Costs In connection with the acquisition of Aquana, LLC (“Aquana”) in July 2021, the Company is subject to additional contingent cash payments to the former members of Aquana over a six-year earn-out period. The contingent payments, if any, will be derived from certain eligible revenue generated during the earn-out period from products and services sold by Aquana. There is no maximum limit to the contingent cash payments that could be made. The merger agreement with Aquana requires the continued employment of a certain key employee and former member of Aquana for the first four years of the six year earn-out period in order for any of Aquana’s former members to be eligible for any earn-out payments. Due to the continued employment requirement, no liability has been recorded for the estimated fair value of earn-out payments for this transaction. Earn-outs achieved, if any, will be recorded as compensation expense when incurred. Legal Proceedings The Company is involved in various pending legal actions in the ordinary course of its business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty of such actions. However, management believes that the most probable, ultimate resolution of current pending matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information The Company reports and evaluates financial information for three operating business segments: Oil and Gas Markets, Adjacent Markets and Emerging Markets. The Oil and Gas Markets segment's products include wireless seismic data acquisition systems, reservoir characterization products and services, and traditional seismic exploration products such as geophones, hydrophones, leader wire, connectors, cables, marine streamer retrieval and steering devices and various other seismic products. The Adjacent Markets segment's products include imaging equipment, water meter products, remote shut-off valves and Internet of Things (IoT) platform, as well as and seismic sensors used for vibration monitoring and geotechnical applications such as mine safety applications and earthquake detection. The Emerging Markets segment designs and markets seismic products targeted at the border and perimeter security markets. The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2022 December 31, 2021 Revenue: Oil and Gas Markets $ 20,148 $ 9,654 Adjacent Markets 10,822 8,171 Emerging Markets 93 137 Corporate 46 29 Total $ 31,109 $ 17,991 Income (loss) from operations: Oil and Gas Markets $ 2,406 $ ( 4,170 ) Adjacent Markets 1,747 1,208 Emerging Markets ( 1,213 ) ( 820 ) Corporate ( 3,219 ) ( 3,104 ) Total $ ( 279 ) $ ( 6,886 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Consolidated income tax expense for the three months ended December 31, 2022 and 2021 was $ 30,000 and $ 0.1 million, respectively. The Company is currently unable to record any tax benefits from the tax losses it incurs in the U.S., Canada and the Russian Federation due to the uncertainty surrounding its ability to utilize such losses in the future to offset taxable income. |
Risks and Uncertainties
Risks and Uncertainties | 3 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 16. Risks and Uncertainties Concentration of Credit Risk As of December 31, 2022, the Company had combined trade accounts and notes receivable from four customers of $ 9.2 million, $ 6.0 million, $ 4.1 million and $ 4.0 million, respectively. During the three months ended December 31, 2022, revenue recognized from these four customers was $ 8.0 million, $ 2.7 million, $ 4.0 million and $ 1.7 million, respectively. During the three months ended December 31, 2021, revenue recognized from these four customers was $ 3.2 million, $ 0.7 million, zero , and $ 4.6 million, respectively. COVID-19 Pandemic The ongoing COVID-19 pandemic has spread across the globe and has negatively impacted worldwide economic activity and continues to create challenges in the Company’s markets. COVID-19 and the related mitigation measures have disrupted the Company’s supply chain, resulting in longer lead times in materials available from suppliers and extended the shipping time for these materials to reach the Company’s facilities. If COVID–19 continues to spread or the response to contain the COVID–19 pandemic is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and liquidity. Oil Commodity Price Levels Demand for many of the Company’s products and the profitability of its operations depend primarily on the level of worldwide oil and gas exploration activity. Prevailing oil and gas prices, with an emphasis on crude oil prices, and market expectations regarding potential changes in such prices significantly affect the level of worldwide oil and gas exploration activity. During periods of improved energy commodity prices, the capital spending budgets of oil and natural gas operators tend to expand, which results in increased demand for our customers services leading to increased demand in the Company’s products. Conversely, in periods when these energy commodity prices deteriorate, capital spending budgets of oil and natural gas operators tend to contract causing demand for the Company’s products to weaken. Historically, the markets for oil and gas have been volatile and are subject to wide fluctuations in response to changes in the supply of and demand for oil and gas, market uncertainty and a variety of additional factors that are beyond its control. These factors include the level of consumer demand, regional and international economic conditions, weather conditions, domestic and foreign governmental regulations (including those related to climate change), price and availability of alternative fuels, political conditions, the war between Russian and Ukraine, instability and hostilities in the Middle East and other significant oil-producing regions, increases and decreases in the supply of oil and gas, the effect of worldwide energy conservation measures and the ability of the Organization of Petroleum Exporting Countries ("OPEC') to set and maintain production levels and prices of foreign imports. Crude oil prices held above $ 70 per barrel throughout 2022 , which may result in higher cash flows for exploration and production companies. Any material changes in oil and gas prices or other market trends, like slowing growth of the global economy, could adversely impact seismic exploration activity and would likely affect the demand for the Company's products and could materially and adversely affect its results of operations and liquidity. Generally, imbalances in the supply and demand for oil and gas will affect oil and gas prices and, in such circumstances, demand for the Company’s oil and gas products may be adversely affected when world supplies exceed demand. Armed Conflict Between Russia and Ukraine A portion of the Company's oil and gas product manufacturing is conducted through its wholly-owned subsidiary Geospace Technologies Eurasia LLC ("GTE"), which is based in the Russian Federation. In February 2022, the Russian Federation launched a full-scale military invasion of Ukraine, and Russia and Ukraine continue to engage in active and armed conflict. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions in addition to any direct impact on the Company's operations in Russia. As a result of the invasion, the governments of several western nations, including the U.S., Canada, the United Kingdom and the European Union, implemented new and/or expanded economic sanctions and export restrictions against Russia, Russian-backed separatist regions in Ukraine, certain banks, companies, government officials, and other individuals in Russia and Belarus. The implementation of these sanctions and exports restrictions, in combination with the withdrawal of numerous private companies from the Russian market, has had, and is likely to continue to have, a negative impact on the Company's business in the region. In fiscal year 2022, the Company imported $ 1.9 million of products from GTE for resale elsewhere in the world. The rapid changes in rules and implementation of new rules on imports and exports of goods involving Russia has also led to serious delays in getting goods to or from Russia as port authorities struggle to keep up with the changing environment. If imports of these products from the Russian Federation are restricted by government regulation, the Company may be forced to find other sources for the manufacturing of these products at potentially higher costs. Likewise, restrictions on the Company's ability to send products to our subsidiary in Russia, may force our subsidiary to have to find other sources for the manufacturing of these products at potentially higher costs; however, the Company's exports to GTE have historically been limited. Boycotts, protests, unfavorable regulations, additional governmental sanctions and other actions in the region could also adversely affect the Company's ability to operate profitably. Delays in obtaining governmental approvals can affect the Company's ability to timely deliver its products pursuant to contractual obligations, which could result in the Company being liable to its customers for damages. The risk of doing business in the Russian Federation and other economically or politically volatile areas could adversely affect the Company's operations and earnings. It is possible that increasing sanctions, export controls, restrictions on access to financial institutions, supply and transportation challenges, or other circumstances or considerations could necessitate a reduction, or even discontinuation, of operations by GTE or other business in Russia. The Company is actively monitoring the situation in Ukraine and Russia and assessing its impact on its business, including GTE. The net carrying value of this subsidiary on the Company's consolidated balance sheet at December 31, 2022 was $ 5.5 million, including cash of $ 2.2 million. In response to sanctions imposed by the U.S. and others on Russia, the Russian government has imposed restrictions on companies' abilities to repatriate or otherwise remit cash from their Russian-based operations to locations outside of Russia. As a result, this cash can be used in our Russian operations, but we may be unable to transfer it out of Russia without incurring substantial costs, if at all. In addition to the $ 1.9 million of products the Company imported from GTE in fiscal year 2022, the subsidiary generated $ 1.9 million in revenue from domestic sales in fiscal year 2022. The Company has no way to predict the duration, progress or outcome of the military conflict in Ukraine. The extent and duration of the military action, sanctions, and resulting market disruptions could be significant and could potentially have substantial impact on the global economy and the Company's business for an unknown period of time. |
Exit Or Disposal Activities
Exit Or Disposal Activities | 3 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Exit and Disposal Activities | 17. Exit and Disposal Activities During the first quarter of fiscal year 2023, the Company implemented a plan to discontinue the manufacture of certain low margin, low revenue products and reconfigure our production facilities to lower our costs and raise efficiencies. As part of the plan, reductions were made to the Company's workforce which are expected to yield an annual savings of more than $ 2 million. In connection with the plan, the Company incurred costs of $ 0.6 million in the first quarter of fiscal year 2023, primarily termination costs related to the workforce reduction. The costs were recorded both to cost of revenue and operating expenses in the consolidated statement of operations. No significant future costs are expected. Outstanding liabilities related to the plan was $ 0.2 million as of December 31, 2022. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2022 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2022 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the three months ended December 31, 2022 and 2021 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. All intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2022 are not necessarily indicative of the operating results for a full year or of future operations. Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("U.S.") were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2022. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company considers many factors in selecting appropriate operational and financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. The Company continually evaluates its estimates, including those related to revenue recognition, bad debt reserves, collectability of rental revenue, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, useful lives of long-lived assets, impairment of long-lived assets, impairment of goodwill and other intangible assets, contingent consideration and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. While management believes current estimates are reasonable and appropriate, actual results may differ from these estimates under different conditions or assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents. At December 31, 2022 and September 30, 2022, the Company had restricted cash of $ 0.2 million on deposit with a bank, which serves as collateral on employee issued credit cards. At December 31, 2022, cash and cash equivalents included $ 2.9 million held by the Company’s foreign subsidiaries and branch offices, including $ 2.2 million held by its subsidiary in the Russian Federation. In response to sanctions imposed by the U.S. and others on Russia, the Russian government has imposed restrictions on companies' abilities to repatriate or otherwise remit cash from their Russian-based operations to locations outside of Russia. As a result, this cash can be used in our Russian operations, but the Company may be unable to transfer it out of Russia without incurring substantial costs, if at all. In addition, if the Company were to repatriate the cash held by its Russian subsidiary, it would be required to accrue and pay taxes on any amount repatriated. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company's long-lived assets are reviewed for impairment whenever an event or circumstance indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of the expected future cash flows (undiscounted and without interest charges) to be generated by an asset group with the associated carrying value of the related assets. If the carrying value of the asset group exceeds the expected future cash flows, an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value. During the quarter ended December 31, 2022, no events or changes in circumstances were identified indicating the carrying value of any of the Company's asset groups may not be recoverable. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles. The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other financial instruments. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a smaller reporting company, the Company must adopt this standard no later than the first quarter of its fiscal year ending September 30, 2024, although early adoption is permitted. The standard’s provisions will be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company intends to adopt this standard during the first quarter of its fiscal year ending September 30, 2024 and is continuing to evaluate the impact of this new guidance on its consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from the Sale of Products and Performance of Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Operating Segments | For each of the Company’s operating segments, the following table presents revenue only from the sale of products and the performance of services under contracts with customers (in thousands). Therefore, the table excludes all revenue earned from rental contracts. Three Months Ended December 31, 2022 December 31, 2021 Oil and Gas Markets Traditional exploration product revenue $ 2,755 $ 580 Wireless exploration product revenue 5,759 3,758 Reservoir product revenue 155 427 Total revenue 8,669 4,765 Adjacent Markets Industrial product revenue 7,930 5,014 Imaging product revenue 2,856 3,116 Total revenue 10,786 8,130 Emerging Markets Revenue 93 137 Total $ 19,548 $ 13,032 |
Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas | For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts: Three Months Ended December 31, 2022 December 31, 2021 Asia $ 6,534 $ 4,678 Canada 761 398 Europe 1,134 1,311 United States 10,591 6,019 Other 528 626 Total $ 19,548 $ 13,032 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-Term Investments | The Company’s short-term investments were composed of the following (in thousands): As of December 31, 2022 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Short-term investments: Corporate bonds $ 904 $ — $ ( 8 ) $ 896 As of September 30, 2022 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Short-term investments: Corporate bonds $ 909 $ — $ ( 15 ) $ 894 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Company's Short-Term Investment and Contingent Consideration by Valuation Hierarchy | The following tables present the fair value of the Company’s short-term investments and contingent consideration by valuation hierarchy and input (in thousands): As of December 31, 2022 Quoted Prices in Significant Significant Totals Short-term investments: Corporate bonds $ — $ 896 $ — $ 896 Total assets $ — $ 896 $ — $ 896 As of September 30, 2022 Quoted Prices in Significant Significant Totals Short-term investments: Corporate bonds $ — $ 894 $ — $ 894 Total assets $ — $ 894 $ — $ 894 Contingent consideration liabilities: $ — $ — $ 175 $ 175 Total liabilities $ — $ — $ 175 $ 175 |
Changes in Fair Value of Company Level 3 Financial Instruments | The following table summarizes changes in the fair value of the Company’s Level 3 financial instruments for the three months ended December 31, 2022 and 2021 (in thousands): Contingent consideration balance at October 1, 2022 $ 175 Fair value adjustments — Payment of contingent consideration ( 175 ) Contingent consideration at December 31, 2022 $ — Contingent consideration balance at October 1, 2021 $ 6,017 Fair value adjustments ( 2,440 ) Payment of contingent consideration ( 807 ) Contingent consideration balance at December 31, 2021 $ 2,770 |
Trade Accounts and Notes Rece_2
Trade Accounts and Notes Receivable (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Trade Accounts Receivable, Net | Trade accounts receivable, net (excluding notes receivable) are reflected in the following table (in thousands): December 31, 2022 September 30, 2022 Trade accounts receivable $ 24,629 $ 13,252 Allowance for doubtful accounts ( 689 ) ( 591 ) Total $ 23,940 $ 12,661 |
Notes receivable | Notes receivable are reflected in the following table (in thousands): December 31, 2022 September 30, 2022 Notes receivable $ 7,790 $ 8,225 Less current portion ( 7,484 ) ( 8,225 ) Non-current notes receivable $ 306 $ — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2022 September 30, 2022 Finished goods $ 15,614 $ 14,653 Work in process 6,905 6,230 Raw materials 27,761 25,609 Obsolescence reserve (net realizable value adjustment) ( 13,940 ) ( 13,971 ) 36,340 32,521 Less current portion 20,736 19,995 Non-current portion $ 15,604 $ 12,526 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Maturities of Operating Lease Liabilities | Maturities of the operating lease liabilities as of December 31, 2022 were as follows: (in thousands): For fiscal years ending September 30, 2023 (remainder) $ 198 2024 278 2025 186 2026 130 2027 134 2028 91 Future minimum lease payments 1,017 Less interest ( 71 ) Present value of minimum lease payments 946 Less current portion ( 245 ) Long-term portion $ 701 |
Summary of Lease Costs | Lease costs recognized in the consolidated statements of operations for the three months ended December 31, 2022 and 2021 were as follows (in thousands): Three Months Ended December 31, 2022 December 31, 2021 Right-of-use operating lease costs $ 68 $ 68 Short-term lease costs 42 44 Total $ 110 $ 112 |
Summary of Other Information Related to Operating Leases | Three Months Ended December 31, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 72 $ 70 Weighted average remaining lease term 4.5 years 5.3 years Weighted average discount rate 3.25 % 3.25 % |
Rental Equipment | Rental equipment consisted of the following (in thousands): December 31, 2022 September 30, 2022 Rental equipment, primarily wireless recording equipment $ 80,395 $ 83,887 Accumulated depreciation and impairment ( 57,153 ) ( 55,688 ) $ 23,242 $ 28,199 |
Future Minimum Lease Payment | Future minimum lease payments due to the Company as of December 31, 2022 on these two leases were as follows (in thousands): For fiscal years ending September 30, 2023 (remainder) $ 93 2024 128 2025 131 2026 132 2027 11 $ 495 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | The Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2022 September 30, 2022 Goodwill: Emerging Markets reporting unit $ 4,336 $ 4,336 Adjacent Markets reporting unit 736 736 Total goodwill 5,072 5,072 Accumulated impairment losses ( 4,336 ) ( 4,336 ) $ 736 $ 736 Other intangible assets: Developed technology 13.9 $ 6,475 $ 6,475 Customer relationships -- 3,900 3,900 Trade names 0.8 2,022 2,022 Non-compete agreements 0.2 186 186 Total other intangible assets 7.3 12,583 12,583 Accumulated amortization ( 7,248 ) ( 7,010 ) $ 5,335 $ 5,573 |
Future Estimated Amortization Expense of Other intangible Assets | As of December 31, 2022, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2023 (remainder) $ 529 2024 395 2025 381 2026 374 2027 360 Thereafter 3,296 $ 5,335 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share | The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2022 December 31, 2021 Net loss $ ( 97 ) $ ( 6,768 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for $ ( 97 ) $ ( 6,768 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,067,991 12,919,673 Common share equivalents outstanding related to RSUs — — Total weighted average common shares and common 13,067,991 12,919,673 Loss per share: Basic $ ( 0.01 ) $ ( 0.52 ) Diluted $ ( 0.01 ) $ ( 0.52 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Company's Segment Information | The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2022 December 31, 2021 Revenue: Oil and Gas Markets $ 20,148 $ 9,654 Adjacent Markets 10,822 8,171 Emerging Markets 93 137 Corporate 46 29 Total $ 31,109 $ 17,991 Income (loss) from operations: Oil and Gas Markets $ 2,406 $ ( 4,170 ) Adjacent Markets 1,747 1,208 Emerging Markets ( 1,213 ) ( 820 ) Corporate ( 3,219 ) ( 3,104 ) Total $ ( 279 ) $ ( 6,886 ) |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Significant Accounting Policies [Line Items] | ||
Restricted cash on deposit | $ 0.2 | $ 0.2 |
Cash and cash equivalents held by foreign subsidiaries | 2.9 | |
Russian Federation Subsidiary | ||
Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents held by foreign subsidiaries | $ 2.2 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Deferred contract liabilities | $ 0 | $ 0 | |
Revenue | 19,548,000 | $ 13,032,000 | |
Cost of revenue | 20,575,000 | 16,289,000 | |
Deferred Contract Liability | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Cost of revenue | $ 0 | $ 0 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue from the Sale of Products and Performance of Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 19,548 | $ 13,032 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 19,548 | 13,032 |
Operating Segments | Oil and Gas Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8,669 | 4,765 |
Operating Segments | Oil and Gas Markets | Traditional Exploration Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,755 | 580 |
Operating Segments | Oil and Gas Markets | Wireless Exploration Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 5,759 | 3,758 |
Operating Segments | Oil and Gas Markets | Reservoir Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 155 | 427 |
Operating Segments | Adjacent Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 10,786 | 8,130 |
Operating Segments | Adjacent Markets | Industrial Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 7,930 | 5,014 |
Operating Segments | Adjacent Markets | Imaging Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,856 | 3,116 |
Operating Segments | Emerging Markets | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 93 | $ 137 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 19,548 | $ 13,032 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 19,548 | 13,032 |
Operating Segments | Asia | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,534 | 4,678 |
Operating Segments | Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 761 | 398 |
Operating Segments | Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,134 | 1,311 |
Operating Segments | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 10,591 | 6,019 |
Operating Segments | Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 528 | $ 626 |
Short-term Investments - Additi
Short-term Investments - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Realized gains or (losses) from sale of short-term investments | $ 0 | $ (7,000) |
Short-term Investments - Summar
Short-term Investments - Summary of Short-Term Investments (Details) - Corporate Bonds - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 904 | $ 909 |
Unrealized Losses | (8) | (15) |
Estimated Fair Value | $ 896 | $ 894 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Company's Short-Term Investment and Contingent Consideration by Valuation Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Current portion contingent consideration liabilities | $ 175 | |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 896 | 894 |
Current portion contingent consideration liabilities | 175 | |
Total liabilities | 175 | |
Fair Value, Measurements, Recurring | Significant Other Observable (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 896 | 894 |
Fair Value, Measurements, Recurring | Significant Unobservable (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Current portion contingent consideration liabilities | 175 | |
Total liabilities | 175 | |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 896 | 894 |
Corporate bonds | Fair Value, Measurements, Recurring | Significant Other Observable (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 896 | $ 894 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Changes in Fair Value of Company Level 3 Financial Instruments (Details) - Nonrecurring - Significant Unobservable (Level 3) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance | $ 175,000 | $ 6,017,000 |
Fair value adjustments | (2,440,000) | |
Payment of contingent consideration | (175,000) | (807,000) |
Balance | $ 0 | $ 2,770,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Nonrecurring | Significant Unobservable (Level 3) | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration payable | $ 0 | $ 175,000 | $ 2,770,000 | $ 6,017,000 |
Trade Accounts and Notes Rece_3
Trade Accounts and Notes Receivable - Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Current trade accounts receivable | ||
Trade accounts receivable | $ 24,629 | $ 13,252 |
Allowance for doubtful accounts | (689) | (591) |
Total | $ 23,940 | $ 12,661 |
Trade Accounts and Notes Rece_4
Trade Accounts and Notes Receivable - Notes Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Notes receivable | $ 7,790 | $ 8,225 |
Less current portion | (7,484) | $ (8,225) |
Non-current notes receivable | $ 306 |
Trade Accounts and Notes Rece_5
Trade Accounts and Notes Receivable - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Value of notes with customer | $ 7,790 | $ 8,225 | |||
Outstanding promissory note | 4,000 | ||||
Secured Promissory Note | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Value of notes with customer | $ 8,000 | $ 3,700 | $ 10,000 | ||
Term of the notes | 1 year | 9 months | 3 years | ||
Outstanding promissory note | $ 800 | ||||
Monthly principal and interest payments | $ 300 | ||||
Frequency of payments | monthly | ||||
Manufactured Rental Equipment | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Promissory notes receivable maturity month and year | 2024-01 | ||||
Manufactured Rental Equipment | Minimum | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Promissory notes receivable maximum interest rate | 7% | ||||
Manufactured Rental Equipment | Maximum | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Promissory notes receivable maximum interest rate | 9.50% | ||||
Product | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Partially financed product sale | $ 12,500 | ||||
Payments received from customer | $ 9,500 | ||||
Product | Secured Promissory Note | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Outstanding promissory note | $ 3,000 | ||||
Rental Equipment | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Partially financed product sale | $ 10,000 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 15,614 | $ 14,653 |
Work in process | 6,905 | 6,230 |
Raw materials | 27,761 | 25,609 |
Obsolescence reserve (net realizable value adjustment) | (13,940) | (13,971) |
Total | 36,340 | 32,521 |
Less current portion | (20,736) | (19,995) |
Non-current portion | $ 15,604 | $ 12,526 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials include semi-finished goods and component parts | $ 21.3 | $ 20.7 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended | |
Dec. 31, 2022 USD ($) PropertyLeases OperatingRightOfUseAsset | Dec. 31, 2021 USD ($) | |
Leases [Line Items] | ||
Rental revenue | $ 11,561,000 | $ 4,959,000 |
Future minimum lease payments to be received | $ 495,000 | |
Number of operating rental revenue property lease | PropertyLeases | 2 | |
Equipment | ||
Leases [Line Items] | ||
Trade accounts receivables included lease receivables | $ 9,000,000 | |
Rental revenue | 11,500,000 | 4,900,000 |
Future minimum lease payments to be received | 27,100,000 | |
Property | ||
Leases [Line Items] | ||
Rental revenue | $ 46,000 | $ 29,000 |
Maximum | Equipment | ||
Leases [Line Items] | ||
Lease term | 1 year | |
Austin, Texas | ||
Leases [Line Items] | ||
Number of operating right-of use asset related to leased facility | OperatingRightOfUseAsset | 2 | |
Calgary | Property | ||
Leases [Line Items] | ||
Lease term | 5 years | |
Lessor Operating Lease Commenced Date | 2021-11 | |
Bogota | Property | ||
Leases [Line Items] | ||
Lessor Operating Lease Commenced Date | 2021-12 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Leases [Abstract] | ||
2023 (remainder) | $ 198 | |
2024 | 278 | |
2025 | 186 | |
2026 | 130 | |
2027 | 134 | |
2028 | 91 | |
Future minimum lease payments | 1,017 | |
Less interest | (71) | |
Present value of minimum lease payments | 946 | |
Less current portion | (245) | $ (241) |
Long-term portion | $ 701 | $ 769 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Right-of-use operating lease costs | $ 68 | $ 68 |
Short-term lease costs | 42 | 44 |
Total | $ 110 | $ 112 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 72 | $ 70 |
Weighted average remaining lease term | 4 years 6 months | 5 years 3 months 18 days |
Weighted average discount rate | 3.25% | 3.25% |
Asset Held for Sale (Additional
Asset Held for Sale (Additional Information) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |
Property carrying value | $ 2.4 |
Leases - Rental Equipment (Deta
Leases - Rental Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Rental Equipment [Abstract] | ||
Rental equipment, primarily wireless recording equipment | $ 80,395 | $ 83,887 |
Accumulated depreciation and impairment | (57,153) | (55,688) |
Rental equipment, net | $ 23,242 | $ 28,199 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payment (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Lessor, Operating Lease, Payments to be Received, Fiscal Year Maturity [Abstract] | |
2023 (remainder) | $ 93 |
2024 | 128 |
2025 | 131 |
2026 | 132 |
2027 | 11 |
Total | $ 495 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Goodwill And Other Intangible Assets [Line Items] | ||
Total goodwill | $ 5,072 | $ 5,072 |
Accumulated impairment losses | (4,336) | (4,336) |
Goodwill, Total | 736 | 736 |
Total other intangible assets | 12,583 | 12,583 |
Accumulated amortization | (7,248) | (7,010) |
Other intangible assets, net | $ 5,335 | 5,573 |
Weighted-Average Remaining Useful Lives (in years) | 7 years 3 months 18 days | |
Developed Technology | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 6,475 | 6,475 |
Weighted-Average Remaining Useful Lives (in years) | 13 years 10 months 24 days | |
Customer Relationships | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 3,900 | 3,900 |
Trade Names | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 2,022 | 2,022 |
Weighted-Average Remaining Useful Lives (in years) | 9 months 18 days | |
Non-compete Agreements | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 186 | 186 |
Weighted-Average Remaining Useful Lives (in years) | 2 months 12 days | |
Emerging Markets [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total goodwill | $ 4,336 | 4,336 |
Adjacent Markets [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total goodwill | $ 736 | $ 736 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill | $ 736 | $ 736 | |
Other intangible assets | 12,583 | $ 12,583 | |
Amortization expense | 238 | $ 446 | |
Aquana, LLC | Adjacent Markets | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill | 700 | ||
Other intangible assets | 600 | ||
Aquana, LLC | Emerging Markets | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Other intangible assets | 3,300 | ||
Aquana, LLC | Oil and Gas Markets | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Other intangible assets | $ 1,400 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Of Other intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 (remainder) | $ 529 | |
2024 | 360 | |
2025 | 395 | |
2026 | 381 | |
2027 | 374 | |
Thereafter | 3,296 | |
Other intangible assets, net | $ 5,335 | $ 5,573 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | May 06, 2022 | Dec. 31, 2022 | Sep. 30, 2022 |
Debt Instrument [Line Items] | |||
Total long-term debt outstanding | $ 0 | $ 0 | |
The Agreement | |||
Debt Instrument [Line Items] | |||
Maximum amount of borrowing based upon assets | $ 10,000,000 | ||
Borrowing base as percentage of loan to value of property | 70% | ||
Borrowing base as percentage of forced liquidation value of equipment | 50% | ||
Borrowing base as percentage of assets | 80% | ||
Agreement term | 2 years | ||
Minimum consolidated tangible net worth | $ 100,000,000 | ||
Debt issuance costs | $ 200,000 | ||
Bborrowing availability | $ 8,500,000 | ||
The Agreement | Prime Rate | |||
Debt Instrument [Line Items] | |||
Interest rate on borrowed funds | 4% | ||
The Agreement | Prime Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate on borrowed funds | 3.25% | ||
The Agreement | Inventory | |||
Debt Instrument [Line Items] | |||
Borrowing base as percentage of assets | 50% | ||
Borrowing base as percent of credit towards accounts receivable | 100% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - Restricted Stock Units (RSUs) $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 2.2 |
Expected period for recognition of unrecognized compensation expense | 3 years 1 month 6 days |
Share unvested and outstanding | shares | 382,111 |
2014 Long Term Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued | shares | 174,250 |
Weighted average grant date fair value of the restricted stock | $ / shares | $ 4.50 |
Grant date fair value of restricted stock | $ | $ 0.8 |
Restricted stock restriction period | 4 years |
Restricted stock units vesting rights | Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. |
Loss Per Common Share - Calcula
Loss Per Common Share - Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (97) | $ (6,768) |
Loss attributable to common shareholders for diluted earnings per share | $ (97) | $ (6,768) |
Weighted average number of common share equivalents: | ||
Common shares used in basic loss per share | 13,067,991 | 12,919,673 |
Total weighted average common shares and common share equivalents used in diluted loss per share | 13,067,991 | 12,919,673 |
Loss per share basic: | ||
Basic | $ (0.01) | $ (0.52) |
Loss per share diluted: | ||
Diluted | $ (0.01) | $ (0.52) |
Loss Per Common Share - Additio
Loss Per Common Share - Additional Information (Details) - shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Non-vested Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of stock excluded from calculation of weighted average shares outstanding | 382,111 | 376,466 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Jul. 02, 2021 |
Aquana, LLC | |
Commitments And Contingencies [Line Items] | |
Contingent cash payments earn-out period | 6 years |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Company's Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 31,109 | $ 17,991 |
Income (loss) from operations | (279) | (6,886) |
Operating Segments | Oil and Gas Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 20,148 | 9,654 |
Income (loss) from operations | 2,406 | (4,170) |
Operating Segments | Adjacent Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 10,822 | 8,171 |
Income (loss) from operations | 1,747 | 1,208 |
Operating Segments | Emerging Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 93 | 137 |
Income (loss) from operations | (1,213) | (820) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | 46 | 29 |
Income (loss) from operations | $ (3,219) | $ (3,104) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 30,000 | $ 77,000 |
Risks and Uncertainties - Addit
Risks and Uncertainties - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2022 USD ($) Customer $ / bbl | Sep. 30, 2022 USD ($) | |
Concentration Risk [Line Items] | ||||
Trade accounts and notes receivable | $ 4,000,000 | $ 4,000,000 | ||
Revenue | 19,548,000 | $ 13,032,000 | ||
Crude oil prices held per barrel | $ / bbl | 70 | |||
Geospace Technologies Eurasia LLC | ||||
Concentration Risk [Line Items] | ||||
Imported product for resale. | $ 1,900,000 | |||
Net carrying value of subsidiary | 5,500,000 | $ 5,500,000 | ||
Cash | 2,200 | 2,200 | ||
Revenue from domestic sales | $ 1,900,000 | |||
Customer one | ||||
Concentration Risk [Line Items] | ||||
Trade accounts and notes receivable | 9,200,000 | 9,200,000 | ||
Customer two | ||||
Concentration Risk [Line Items] | ||||
Trade accounts and notes receivable | 6,000,000 | 6,000,000 | ||
Customer three | ||||
Concentration Risk [Line Items] | ||||
Trade accounts and notes receivable | 4,100,000 | 4,100,000 | ||
Customer four | ||||
Concentration Risk [Line Items] | ||||
Trade accounts and notes receivable | $ 4,000,000 | $ 4,000,000 | ||
Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Number of customers | Customer | 4 | 4 | ||
Sales Revenue, Net | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Number of customers | Customer | 4 | 4 | 4 | |
Sales Revenue, Net | Trade Accounts and Note Receivables | Customer Concentration Risk | Customer one | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 8,000,000 | $ 3,200,000 | ||
Sales Revenue, Net | Trade Accounts and Note Receivables | Customer Concentration Risk | Customer two | ||||
Concentration Risk [Line Items] | ||||
Revenue | 2,700,000 | 700,000 | ||
Sales Revenue, Net | Trade Accounts and Note Receivables | Customer Concentration Risk | Customer three | ||||
Concentration Risk [Line Items] | ||||
Revenue | 4,000,000 | 0 | ||
Sales Revenue, Net | Trade Accounts and Note Receivables | Customer Concentration Risk | Customer four | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 1,700,000 | $ 4,600,000 |
Exit and Disposal Activities -
Exit and Disposal Activities - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Outstanding liabilities related to plan | $ 0.2 |
Cost of Revenue and Operating Expenses | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Termination costs related to workforce reduction | 0.6 |
Minimum | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expected annual savings due to reduction in workforce | $ 2 |