Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Oct. 31, 2019 | Mar. 29, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | GEOSPACE TECHNOLOGIES CORP | ||
Entity Central Index Key | 0001001115 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | GEOS | ||
Security Exchange Name | NASDAQ | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 170 | ||
Entity Common Stock, Shares Outstanding | 13,630,666 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity File Number | 001-13601 | ||
Entity Tax Identification Number | 76-0447780 | ||
Entity Address, Address Line One | 7007 Pinemont Drive | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77040-6601 | ||
City Area Code | (713) | ||
Local Phone Number | 986-4444 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 18,925 | $ 11,934 |
Short-term investments | 0 | 25,471 |
Trade accounts receivable, net of allowance of $951 and $1,453 | 24,193 | 14,323 |
Financing receivables | 3,233 | 4,258 |
Inventories | 23,855 | 18,812 |
Prepaid expenses and other current assets | 1,001 | 1,856 |
Total current assets | 71,207 | 76,654 |
Non-current financing receivables, net of allowance of $0 and $1,849 | 184 | 4,740 |
Non-current inventories | 21,524 | 31,655 |
Rental equipment, net | 62,062 | 39,545 |
Property, plant and equipment, net | 31,474 | 33,624 |
Goodwill | 5,008 | 4,343 |
Other intangible assets, net | 10,063 | 8,006 |
Deferred income tax assets, net | 236 | 246 |
Prepaid income taxes | 64 | 54 |
Other assets | 179 | 213 |
Total assets | 202,001 | 199,080 |
Current liabilities: | ||
Accounts payable trade | 4,051 | 4,106 |
Accrued expenses and other current liabilities | 6,370 | 6,826 |
Deferred revenue | 2,724 | 3,752 |
Income tax payable | 18 | 51 |
Total current liabilities | 13,163 | 14,735 |
Contingent consideration | 9,940 | 7,713 |
Deferred income tax liabilities | 51 | 45 |
Total liabilities | 23,154 | 22,493 |
Commitments and contingencies (Note 19) | ||
Stockholders’ equity: | ||
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $.01 par value, 20,000,000 shares authorized, 13,630,666 and 13,600,541 shares issued and outstanding | 136 | 136 |
Additional paid-in capital | 88,660 | 86,116 |
Retained earnings | 105,808 | 105,954 |
Accumulated other comprehensive loss | (15,757) | (15,619) |
Total stockholders’ equity | 178,847 | 176,587 |
Total liabilities and stockholders’ equity | $ 202,001 | $ 199,080 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Trade accounts receivable, net of allowance | $ 951 | $ 1,453 |
Non current financing receivables, net of allowance | $ 0 | $ 1,849 |
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 | 13,630,666 | 13,600,541 |
Common stock, shares outstanding | 13,630,666 | 13,600,541 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||
Products | $ 45,847 | $ 53,306 |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Rental equipment | $ 49,962 | $ 22,442 |
Total revenue | 95,809 | 75,748 |
Cost of revenue: | ||
Products | $ 46,059 | $ 51,913 |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Rental equipment | $ 18,322 | $ 12,863 |
Total cost of revenue | 64,381 | 64,776 |
Gross profit | 31,428 | 10,972 |
Operating expenses: | ||
Selling, general and administrative | 23,626 | 19,874 |
Research and development | 15,495 | 10,832 |
Change in estimated fair value of contingent consideration | (2,115) | |
Bad debt expense | 436 | 1,009 |
Total operating expenses | 37,442 | 31,715 |
Gain on disposal of property | 7,047 | |
Income (loss) from operations | 1,033 | (20,743) |
Other income (expense): | ||
Interest expense | (99) | (336) |
Interest income | 1,308 | 1,083 |
Foreign exchange gains | 241 | 324 |
Other, net | (212) | (120) |
Total other income, net | 1,238 | 951 |
Income (loss) before income taxes | 2,271 | (19,792) |
Income tax expense (benefit) | 2,417 | (580) |
Net loss | $ (146) | $ (19,212) |
Loss per common share: | ||
Basic | $ (0.01) | $ (1.45) |
Diluted | $ (0.01) | $ (1.45) |
Weighted average common shares outstanding: | ||
Basic | 13,388,626 | 13,250,867 |
Diluted | 13,388,626 | 13,250,867 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (146) | $ (19,212) |
Other comprehensive income (loss): | ||
Change in unrealized losses on available-for-sale securities, net of tax | 82 | (24) |
Foreign currency translation adjustments | (220) | (1,365) |
Other comprehensive loss | (138) | (1,389) |
Total comprehensive loss | $ (284) | $ (20,601) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Sep. 30, 2017 | $ 194,803 | $ 134 | $ 83,733 | $ 125,166 | $ (14,230) |
Beginning Balance, Shares at Sep. 30, 2017 | 13,438,316 | ||||
Net loss | (19,212) | (19,212) | |||
Other comprehensive loss | (1,389) | (1,389) | |||
Issuance of restricted stock | $ 2 | (2) | |||
Issuance of restricted stock, Shares | 176,450 | ||||
Forfeiture of restricted stock, Shares | (21,925) | ||||
Issuance of common stock pursuant to exercise of options | $ 67 | 67 | |||
Issuance of common stock pursuant to the exercise of stock options, Shares | 7,700 | 7,700 | |||
Stock-based compensation | $ 2,318 | 2,318 | |||
Ending Balance at Sep. 30, 2018 | $ 176,587 | $ 136 | 86,116 | 105,954 | (15,619) |
Ending Balance, Shares at Sep. 30, 2018 | 13,600,541 | 13,600,541 | |||
Net loss | $ (146) | (146) | |||
Other comprehensive loss | (138) | (138) | |||
Issuance of restricted stock, Shares | 8,000 | ||||
Forfeiture of restricted stock, Shares | (2,875) | ||||
Issuance of common stock pursuant to the vesting of restricted stock units, Shares | 500 | ||||
Issuance of common stock pursuant to exercise of options | $ 215 | 215 | |||
Issuance of common stock pursuant to the exercise of stock options, Shares | 24,500 | 24,500 | |||
Stock-based compensation | $ 2,329 | 2,329 | |||
Ending Balance at Sep. 30, 2019 | $ 178,847 | $ 136 | $ 88,660 | $ 105,808 | $ (15,757) |
Ending Balance, Shares at Sep. 30, 2019 | 13,630,666 | 13,630,666 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (146,000) | $ (19,212,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Deferred income tax expense (benefit) | 16,000 | (18,000) |
Rental equipment depreciation | 13,713,000 | 10,178,000 |
Property, plant and equipment depreciation | 3,965,000 | 4,040,000 |
Amortization of intangible assets | 1,661,000 | 194,000 |
Impairment of long-lived assets | 573,000 | |
Accretion of discounts (amortization of premiums) on short-term investments | (9,000) | 27,000 |
Stock-based compensation expense | 2,329,000 | 2,318,000 |
Bad debt expense | 436,000 | 1,009,000 |
Inventory obsolescence expense | 4,614,000 | 4,353,000 |
Change in estimated fair value of contingent consideration | (2,115,000) | |
Gross profit from sale of used rental equipment | (652,000) | (6,809,000) |
Gain on disposal of property | (7,047,000) | |
Gain on disposal of equipment | (100,000) | (27,000) |
Realized loss on short-term investments | 66,000 | 11,000 |
Effects of changes in operating assets and liabilities: | ||
Trade accounts and other receivables | (9,159,000) | (5,090,000) |
Income tax receivable | 270,000 | |
Inventories | (1,865,000) | (7,824,000) |
Prepaid expenses and other current assets | 325,000 | 93,000 |
Prepaid income taxes | 18,000 | 55,000 |
Accounts payable trade | (44,000) | 1,333,000 |
Accrued expenses and other | 660,000 | 1,011,000 |
Deferred revenue | (1,016,000) | 3,063,000 |
Income taxes payable | (21,000) | 51,000 |
Net cash provided by (used in) operating activities | 5,629,000 | (10,401,000) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (1,936,000) | (1,721,000) |
Investment in rental equipment | (34,070,000) | (6,513,000) |
Proceeds from the sale of property | 8,265,000 | |
Proceeds from the sale of equipment | 142,000 | 202,000 |
Proceeds from the sale of used rental equipment | 4,856,000 | 9,918,000 |
Purchases of short-term investments | (17,922,000) | |
Proceeds from the sale of short-term investments | 25,606,000 | 28,463,000 |
Business acquisition, net of acquired cash | (1,819,000) | (4,352,000) |
Payments for damages related to insurance claim | (650,000) | (2,353,000) |
Proceeds from insurance claim | 1,166,000 | 1,749,000 |
Increase in insurance claim receivable | 306,000 | |
Net cash provided by investing activities | 1,560,000 | 7,777,000 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options and other | 215,000 | 63,000 |
Net cash provided by financing activities | 215,000 | 63,000 |
Effect of exchange rate changes on cash | (413,000) | (597,000) |
Increase (decrease) in cash and cash equivalents | 6,991,000 | (3,158,000) |
Cash and cash equivalents, beginning of fiscal year | 11,934,000 | 15,092,000 |
Cash and cash equivalents, end of fiscal year | $ 18,925,000 | $ 11,934,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | The Company Geospace Technologies Corporation (“Geospace”) designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. Geospace also designs and manufactures Adjacent Markets products, including industrial products and imaging equipment, and Emerging Market products consisting of border and perimeter security products. Geospace and its subsidiaries are referred to collectively as the “Company”. Basis of Presentation The accompanying financial statements present the consolidated financial position, results of operations and cash flows of the Company in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated. Reclassifications The Company reclassified certain components of revenue and cost of revenue on its consolidated statement of operations for the fiscal year ended September 30, 2018 to conform to the current year presentation. The reclassifications had no effect on previously reported total revenue, total cost of revenue, net loss, stockholders’ equity or cash flows. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 bad debt reserves, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, useful lives of long-lived assets, impairment of long-lived assets and 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. 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 September 30, 2019 cash and cash equivalents included $7.0 million held by the Company’s foreign subsidiaries and branch offices. If the Company were to repatriate the cash held by its foreign subsidiaries, it would be required to accrue and pay taxes on any amount repatriated under rates enacted by The Tax Cuts and Jobs Act (“2017 Tax Act’). Short-term Investments The Company classifies its short-term investments consisting of corporate bonds, government bonds and other such similar investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized holding gains and losses reported each period as a component of accumulated other comprehensive loss in stockholders’ equity. See Note 4 to these consolidated financial statements for additional information. Concentrations of Credit and Supplier Risk The Company maintains its cash in bank deposit accounts that, at times, exceed federally insured limits. Management of the Company believes that the financial strength of the financial institutions holding such deposits minimizes the credit risk of such deposits. The Company sells products to customers throughout the United States and various foreign countries. The Company’s normal credit terms for trade receivables are 30 days. In certain situations, credit terms may be extended to 60 days or longer. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for its trade receivables. Additionally, the Company provides long-term financing in the form of promissory notes and sales-type leases when competitive conditions require such financing. In such cases, the Company may require collateral. Allowances are recognized for potential credit losses. Three customers comprised 19.7%, 5.2% and 20.0% of the Company’s revenue during fiscal year 2019. At September 30, 2019, the Company had trade account receivables due from these three customers of $6.7 million, $3.6 million and $8.5 million, respectively. With respect to the Company’s revenue and trade account receivables, the latter two customers are affiliated with a common parent company. One customer comprised 10.4% of the Company’s revenue during fiscal year 2018. At September 30, 2018, the Company had a combined trade account and financing receivable due from this customer of $9.0 million. Certain models of the Company’s oil and gas marine wireless products require a timing device it purchases from a United States manufacturer. The Company currently does not possess the ability to manufacture this component and has no other reliable source for this device. If this manufacturer were to discontinue its production of this timing device, were to become unwilling to contract with the Company on competitive terms or were unable to supply the component in sufficient quantities to meet its requirements, the Company’s ability to compete in the marine wireless marketplace could be impaired, which could adversely affect its financial performance. The Company purchases all of its thermal film from a European manufacturer for its imaging products. Except for the film sold to the Company by this manufacturer, the Company knows of no other source for thermal film that performs as well in its imaging equipment. If the European manufacturer were to discontinue producing thermal film, were to become unwilling to contract with the Company on competitive terms or were unable to supply thermal film in sufficient quantities to meet its requirements, the Company’s ability to compete in the direct thermal imaging marketplace could be impaired, which could adversely affect its financial performance. Inventories The Company records a write-down of its inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method, except that certain of the Company’s foreign subsidiaries use an average cost method to value their inventories. The Company periodically reviews the composition of its inventories to determine if market demand, product modifications, technology changes, excessive quantities on-hand and other factors hinder our ability to recover its investment in such inventories. The Company’s assessment is based upon historical product demand, estimated future product demand and various other judgments and estimates. Inventory obsolescence reserves are recorded when such assessments reveal that portions or components of the Company’s inventory investment will not be realized in its operating activities. The Company reviews it inventories for classification purposes. The value of inventories not expected to be realized in cash, sold or consumed during its next operating cycle are classified as noncurrent assets. Property, Plant and Equipment and Rental Equipment Property, plant and equipment and rental equipment are stated at cost. Depreciation expense is calculated using the straight-line method over the following estimated useful lives: Years Rental equipment 2-5 Property, plant and equipment: Machinery and equipment 3-15 Buildings and building improvements 10-50 Other 5-10 Expenditures for renewals and betterments are capitalized. Repairs and maintenance expenditures are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss thereon is reflected in the statements of operations. Impairment of Long-lived Assets The Company’s long-lived assets are reviewed for impairment whenever an event or change in circumstances indicates the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of 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. Impairment charges are included as a component of cost of revenue in the Company’s consolidated statements of operations. Goodwill The Company conducts its evaluation of goodwill at the reporting unit level on an annual basis as of September 30 and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. The guidance on the testing of goodwill for impairment provides the option to first assess qualitative factors to determine if the annual two-step test of goodwill for impairment must be performed . At September 30, 2019, the Company performed the two-step analysis on its Oil & Gas and Emerging Markets reporting units and determined there was no impairment since the value of the goodwill was more than its carrying amount. Other Intangible Assets Intangible assets are carried at cost, net of accumulated amortization. The estimated useful life of the Company’s other intangible assets are evaluated each reporting period to determine whether events or circumstances warrant a revision to the remaining amortization period. If the estimate of an intangible asset’s remaining useful life is changed, the amortization period should be changed prospectively. Amortization expense is calculated using the straight-line method over the following estimated useful lives: Years Developed technology 18 Trade names 5 Customer relationships 4 Non-compete agreements 4 Revenue Recognition See Note 2 to these consolidated financial statements. Deferred Revenue The Company records deferred revenue when customer funds are billed or received prior to the recognition of the associated revenue. Contingent Consideration The Company established earn-out liabilities in connection with its business acquisitions in the fourth quarter of fiscal year 2018 and the first quarter of fiscal year 2019. The Company engaged the services of a valuation firm to measure the initial fair value of the earn-out liabilities as of the acquisition date for each business. The valuation technique used to measure the fair value of the liability was derived from models utilizing market observable inputs. The Company records the fair value of its contingent earn-out liabilities on a quarterly basis. Adjustments to the liabilities, if any, are included as a component of earnings in the consolidated statements of operations. See Note 19 to these consolidated financial statements for additional information. Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs include salaries, employee benefit costs, department supplies, direct project costs and other related costs. Product Warranties Most of the Company’s products do not require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management’s estimates. Reserves for future warranty costs are included within accrued expenses and other current liabilities on the consolidated balance sheets. Changes in the product warranty reserve are reflected in the following table (in thousands): Balance at October 1, 2017 $ 508 Accruals for warranties issued during the year 1,074 Settlements made (in cash or in kind) during the year (894 ) Balance at September 30, 2018 688 Accruals for warranties issued during the year 386 Settlements made (in cash or in kind) during the year (845 ) Balance at September 30, 2019 $ 229 Stock-Based Compensation The Company accounts for stock-based compensation, including grants of restricted awards and unqualified stock options in accordance with Accounting Standards Codification Topic 718, which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in the Company’s consolidated statements of operations based on their fair values on the award date and the estimated number of shares it ultimately expects to vest. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award. The Company’s stock-based compensation plan and awards are more fully described in Note 16 to these consolidated financial statements. Foreign Currency Gains and Losses The assets and liabilities of the Company’s foreign subsidiaries that have a foreign currency as their functional currency have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Results of operations have been translated using the average exchange rates during the year. Resulting translation adjustments have been recorded as a component of accumulated other comprehensive loss in stockholders’ equity. Foreign currency transaction gains and losses are included in the statements of operations as they occur. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in “accumulated other comprehensive loss” on our consolidated balance sheets. Shipping and Handling Costs 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 sales. The Company had shipping and handling expenses of $0.5 million and $0.5 million, respectively, for the fiscal years ended September 30, 2019 and 2018, respectively. Fair Value Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. U.S. generally accepted accounting principles (“GAAP”) has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Level 1 represents unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 represents quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly. Level 3 represents valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Income Taxes Income taxes are presented in accordance with the Accounting Standards Codification Topic 740 (“Topic 740”) guidance for accounting for income taxes. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying consolidated balance sheets, as well as operating loss and tax credit carrybacks and carryforwards are recorded. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities (temporary differences) and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company periodically reviews the recoverability of tax assets recorded on the balance sheet and provides valuation allowances if it is more likely than not that such assets will not be realized. The Company follows the guidance of Topic 740 to analyze all tax positions that are less than certain. Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In accordance with Topic 740, the Company recognizes in its financial statements the impact of a tax position if that position is “more likely than not” to be sustained on audit, based on the technical merits of the position. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. The Company classifies interest and penalties associated with the payment of income taxes, if any, in the Other Income (Expense) section of its consolidated statements of operations. The Company incurred no interest or penalties for the fiscal years ended September 30, 2019 and 2018. Recently Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance was adopted by the Company in its first quarter of fiscal year 2019. The adoption of this guidance had no effect on the Company’s consolidated financial statements since it currently holds no restricted cash balances. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This new standard supersedes existing revenue recognition guidance and requires changes to the revenue recognition process, financial statement presentation and footnote disclosures. The Company adopted this standard on October 1, 2018 using the modified retrospective method. The adoption of this standard did not result in a cumulative adjustment as of October 1, 2018 nor did it have any impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In June 2018, the FASB issued guidance expanding the scope of ASC Topic 718, Compensation - Stock Compensation In August 2018, the FASB issued guidance requiring certain existing disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures In January 2017, the FASB issued guidance simplifying the current two-step goodwill impairment test by eliminating Step 2 of the test. The guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for the interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and disclosures. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles (“GAAP”). 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. The standard is effective for fiscal years reporting periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption for a fiscal year beginning after December 15, 2018 is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company expects to adopt this standard during the first quarter of its fiscal year ending September 30, 2021 and is currently evaluating the impact of this new guidance on its consolidated financial statements. In February 2016, the FASB issued guidance requiring a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement and presentation of expense and cash flows arising from a lease by a lessee primarily will depend on its classification of the lease as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will also require operating leases of the lessee to be recognized on the balance sheet if the operating lease term is more than 12 months. The guidance also requires disclosures to help investors and other financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2018 and is to be applied using the modified retrospective approach. The Company will adopt this guidance in its first quarter of its fiscal year ending September 30, 2020. Effective May 1, 2019, the Company became a lessee under an office lease agreement with a term longer than one year and will follow the guidance of the new standard regarding this lease contract. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition On October 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers. Under the new standard, the Company recognizes revenue from product sales and services 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 is recognized when obligations under the terms of a contract are satisfied, control is transferred and collectability of the sales price is reasonably assured. Transfer of control generally occurs with shipment or delivery, depending on the terms of the underlying contract. Most of the Company’s products do not require installation assistance or sophisticated instruction. 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. We offer a standard product warranty, which obligates us, in certain circumstance, to repair or replace our products having manufacturing defects. We maintain a reserve for future warranty costs based on historical experience or, in the absence of historical experience, management estimates. 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. Rentals of the Company’s equipment generally range from daily rentals to minimum rental periods of up to six months or longer. The Company has determined that the new standard does not apply to rental contracts, which are within the scope of other revenue recognition accounting standards. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of October 1, 2018 resulting from the adoption of the new standard was not material and did not impact beginning retained earnings. The impact on the timing of sales and services for the fiscal year ended September 30, 2019 resulting from the application of the new standard was not material. As permissible under the new standard, 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 be one year or less. These costs are recorded in selling, general and administrative expenses. At September 30, 2019 and September 30, 2018 the Company had deferred contract liabilities of zero and $0.2 million, respectively, included as a component of deferred revenue. The Company had deferred contract costs of zero and $27,000 at September 30, 2019 and September 30, 2018, respectively, included as a component of prepaid expenses and other current assets. During the fiscal year ended September 30, 2019, the Company recognized revenue of $0.2 million from deferred contract liabilities and cost of revenue of $27,000 from deferred contract costs. 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. The table excludes all revenue earned from rental contracts (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Oil and Gas Markets Product and Services Revenue: Traditional exploration $ 8,712 $ 11,795 Wireless exploration 4,362 6,851 Reservoir 2,554 4,533 Total revenue 15,628 23,179 Adjacent Markets Product and Services Revenue: Industrial 18,324 18,352 Imaging 11,736 11,489 Total revenue 30,060 29,841 Emerging Markets Product and Services Revenue: Revenue 159 286 Total $ 45,847 $ 53,306 See Note 21 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: YEAR ENDED SEPTEMBER 30, 2019 2018 Asia $ 6,025 $ 2,143 Canada 2,558 13,044 Europe 6,569 4,652 United States 28,763 31,296 Other 1,932 2,171 $ 45,847 $ 53,306 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. Business Acquisitions OptoSeis ® On November 13, 2018, the Company acquired all of the intellectual property and related assets of the OptoSeis ® ® In connection with the OptoSeis ® Legal costs of $0.2 million related to the OptoSeis ® For the fiscal year ended September 30, 2019, the estimated fair value of the acquired OptoSeis ® Quantum Technology Sciences, Inc. On July 27, 2018, the Company acquired Quantum Technology Sciences, Inc., a Florida-based tactical security and surveillance systems solutions provider (“Quantum”) through a merger of the Company’s subsidiary with and into Quantum, with Quantum as the surviving corporation. The acquisition represented the Company’s strategy to expand its product revenues, as well as its engineering and manufacturing competencies, to markets outside the oil and gas industry. The acquisition purchase price for Quantum consisted of a cash down payment at closing of approximately $4.4 million and contingent earn-out payments of up to $23.5 million over a four-year period. In connection with the acquisition the Company recorded goodwill of $4.3 million (not deductible for tax purposes) and other intangible assets of $8.2 million and established an initial contingent earn-out liability of $7.7 million. Current assets and current liabilities of $0.2 million and $0.6 million were acquired in the transaction. The contingent earn-out payments, if any, which may be paid in the form of cash or Company stock, will be derived from certain eligible revenue that may be generated during the four-year earn-out period. Acquisition related costs of $0.3 million incurred in connection with the transaction are included in selling, general and administrative expenses in the Company’s consolidated financial statements. |
Short-term Investments
Short-term Investments | 12 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Short-term Investments | 4. Short-term Investments During the fiscal years ended September 30, 2019 and 2018 the Company realized losses of $66,000 and $11,000, respectively, from the sale of short-term investments. These realized losses are recorded in Other Income on the consolidated statements of operations. The Company had no short-term investments at September 30, 2019. At September 30, 2018, the Company’s short-term investments were composed of the following (in thousands): AS OF SEPTEMBER 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 17,851 $ — $ (60 ) $ 17,791 Government bonds 7,702 — (22 ) 7,680 Total $ 25,553 $ — $ (82 ) $ 25,471 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivative Financial Instruments At September 30, 2019 and 2018, the Company’s Canadian subsidiary had CAN$9.3 million and CAN$20.4 million, respectively, of Canadian dollar denominated intercompany accounts payable owed to one of the Company’s U.S subsidiaries. In order to mitigate its exposure to movements in foreign currency rates between the U.S. dollar and Canadian dollar, the Company routinely enters into foreign currency forward contracts to hedge a portion of its exposure to changes in the value of the Canadian dollar. At September 30, 2019 and 2018, the Company had short-term hedge contracts of CAN$7.0 million and CAN$30.0 with a United States bank to reduce the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate, but have not been designated as a hedge for accounting purposes. The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands): Derivative Instrument Location AS OF SEPTEMBER 30, 2019 2018 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 4 $ 270 The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations (in thousands): YEAR ENDED SEPTEMBER 30, Derivative Instrument Location 2019 2018 Foreign Other Income (Expense) $ 552 $ 779 Amounts in the above table include realized and unrealized derivative gains and losses. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments The Company’s financial instruments generally included cash and cash equivalents, short-term investments, a foreign currency forward contract, trade, notes and financing lease receivables and accounts payable. Due to the short-term maturities of cash and cash equivalents, trade and other receivables and accounts payable, the carrying amounts approximate fair value on the respective balance sheet dates. The valuation technique used to measure the fair value of the contingent consideration was derived from models utilizing market observable inputs. The Company measures short-term investments and derivatives at fair value on a recurring basis. The following tables present the fair value of the Company’s short-term investments, contingent consideration and foreign currency forward contracts by valuation hierarchy and input (in thousands): AS OF SEPTEMBER 30, 2019 Quoted Prices in Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Totals Contingent consideration $ — $ — $ (9,940 ) $ (9,940 ) Foreign currency forward contract — (4 ) — (4 ) Total $ - $ (4 ) $ (9,940 ) $ (9,944 ) AS OF SEPTEMBER 30, 2018 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Totals Short-term investments Corporate bonds $ 17,791 $ — $ — $ 17,791 Government bonds 7,680 — — 7,680 Contingent consideration — — (7,713 ) (7,713 ) Foreign currency forward contract — (270 ) — (270 ) Total $ 25,471 $ (270 ) $ (7,713 ) $ 17,488 Assets and liabilities measured on a nonrecurring basis The measurements utilized to determine the implied fair value of the Company’s long-lived assets and contingent consideration as of September 30, 2019 represented significant unobservable inputs (Level 3). The following table summarizes changes in the fair value of the Company’s Level 3 financial instruments for the fiscal year ended September 30, 2019: Balance at October 1, 2018 $ 7,713 Contingent consideration pursuant to acquisitions 4,342 Fair value adjustments (2,115 ) Balance at September 30, 2019 $ 9,940 Adjustments to the fair value of the contingent consideration are based on Monte Carlo simulations utilizing inputs which include market comparable information and management assessments regarding potential future scenarios. The Company believes its estimates and assumptions are reasonable, however, there is significant judgement involved. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | 7. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following (in thousands): Unrealized (Losses) on Available-for-Sale Securities Foreign Currency Translation Adjustments Total Balance at October 1, 2017 $ (58 ) $ (14,172 ) $ (14,230 ) Other comprehensive loss (24 ) (1,365 ) (1,389 ) Balance at September 30, 2018 (82 ) (15,537 ) (15,619 ) Other comprehensive income (loss) 82 (220 ) (138 ) Balance at September 30, 2019 $ - $ (15,757 ) $ (15,757 ) |
Accounts and Financing Receivab
Accounts and Financing Receivables | 12 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Accounts and Financing Receivables | 8. Accounts and Financing Receivables Trade accounts receivable consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Trade accounts receivable $ 25,144 $ 15,776 Allowance for doubtful accounts (951 ) (1,453 ) $ 24,193 $ 14,323 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 accounts receivable balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable. Trade accounts receivable at September 30, 2019 includes $8.5 million due from an international seismic marine customer that, as of September 30, 2019 rented a significant amount of marine nodal equipment from the Company. The Company has experienced cash collection difficulties with this customer throughout fiscal year 2019 due to the customer’s inability to generate enough cash flow to pay its obligations in a timely manner. In November 2019, the Company accepted from the customer a plan to bring the Company’s current and future unpaid invoices to a satisfactory status. This plan contemplates completion during the Company’s second fiscal quarter ending March 31, 2020, and is premised upon the customer’s (i) projections of free cash flows from an existing contract with a third-party and (ii) potential access to capital transactions and/or future borrowing availability from its bank. While the Company has significant concerns about the ultimate collection of its accounts receivable from this customer, it has not, and does not currently intend to, provide any significant bad debt reserves toward its outstanding accounts receivable balance from this customer unless and until it becomes probable (in the Company’s judgement) that the customer cannot (i) generate free cash flows from its existing contract and (ii) complete capital transactions and/or borrow from its bank. See Note 1 to these consolidated financial statements for information on concentrations of credit risk. Financing receivables are reflected in the following table (in thousands): AS OF SEPTEMBER 30, 2019 2018 Promissory notes $ 780 $ 5,646 Sales-type lease 2,692 5,533 Total financing receivables 3,472 11,179 Unearned income: Promissory notes — (95 ) Sales-type lease (55 ) (237 ) Total unearned income (55 ) (332 ) Total financing receivables, net of unearned income 3,417 10,847 Allowance for doubtful promissory notes — (1,849 ) Less current portion (3,233 ) (4,258 ) Non-current financing receivables $ 184 $ 4,740 Promissory notes receivable are generally collateralized by the products sold, and bear interest at rates ranging up to 5% per year. The promissory notes receivable mature at various times through May 2021. The Company has, on occasion, extended or renewed notes receivable as they mature, but there is no obligation to do so. The Company entered into a sales-type lease in September 2017 resulting from the sale of rental equipment. The sales-type lease has a term of three years. Future minimum lease payments required under the lease at September 30, 2019 were $2.9 million, including $0.1 million of unearned income. The future minimum lease payments are due in fiscal year 2020. The ownership of the equipment will transfer to the lessee at the end of the lease term. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 9. Inventories Inventories consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Finished goods $ 17,967 $ 18,802 Work in process 3,681 7,926 Raw materials 55,781 54,290 Obsolescence reserve (32,050 ) (30,551 ) 45,379 50,467 Less current portion 23,855 18,812 Non-current portion $ 21,524 $ 31,655 Inventory obsolescence expense totaled approximately $4.6 million and $4.4 million during fiscal years 2019 and 2018, respectively. Raw materials include semi-finished goods and component parts that totaled approximately $25.2 million and $29.0 million at September 30, 2019 and 2018, respectively. |
Rental Equipment
Rental Equipment | 12 Months Ended |
Sep. 30, 2019 | |
Rental Equipment [Abstract] | |
Rental Equipment | 10. Rental Equipment Rental equipment consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Rental equipment, primarily wireless recording equipment $ 107,645 $ 76,245 Accumulated depreciation and impairment (45,583 ) (36,700 ) $ 62,062 $ 39,545 Rental equipment depreciation expense was $13.7 million and $10.2 million in fiscal years 2019 and 2018, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 11. Property, Plant and Equipment On August 1, 2019, the Company sold its real property located at 7334-7340 Gessner Road, Houston, Texas for a cash price of $8.3 million and realized a gain on disposal of property of $7.0 million. The property was unencumbered. Property, plant and equipment consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Land and land improvements $ 7,933 $ 8,552 Building and building improvements 24,582 31,070 Machinery and equipment 54,760 52,523 Furniture and fixtures 1,376 1,362 Tools and molds 2,710 2,256 Construction in progress 512 503 Leasehold improvements 85 — Transportation equipment 75 31 92,033 96,297 Accumulated depreciation and impairment (60,559 ) (62,673 ) $ 31,474 $ 33,624 Property, plant and equipment depreciation expense was $4.0 million and $4.0 million in fiscal years 2019 and 2018, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 12. Goodwill and Other Intangible Assets In connection with the November 2018 acquisition of all the intellectual property and related assets of the OptoSeis ® In connection with the acquisition of Quantum in July 2018, the Company recorded goodwill of $4.3 million and other intangible assets of $8.2 million. Goodwill represents the excess cost of the businesses acquired over the fair market value of identifiable net assets at the dates of acquisition. At September 30, 2019, the Company evaluated its goodwill and other intangible assets for impairment and determined there was no impairment. The determination of the fair value requires estimates and projections of future revenue. These estimates and projections can be unpredictable, particularly for Quantum as an emerging business. Also see Note 1 to these consolidated financial statements. As a result of these acquisitions, the Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted-Average Remaining Useful Lives (in years) AS OF SEPTEMBER 30, 2019 2018 Goodwill $ 5,008 $ 4,343 Other intangible assets: Developed technology 16.9 5,918 4,200 Customer relationships 2.9 3,900 2,500 Trade names 3.9 1,930 1,400 Non-compete agreements 3.0 170 100 Total other intangible assets 10.0 11,918 8,200 Accumulated amortization (1,855 ) (194 ) $ 10,063 $ 8,006 Other intangible assets amortization expense was $1.7 million and $0.2 million in fiscal years 2019 and 2018, respectively. As of September 30, 2019, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2020 $ 1,732 2021 1,732 2022 1,624 2023 714 2024 342 Thereafter 3,919 $ 10,063 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 13. Long-Term Debt The Company had no long-term debt outstanding at September 30, 2019 and 2018. On March 2, 2011, the Company entered into a credit agreement with Frost Bank (the “Original Credit Agreement”). The Original Credit Agreement has been amended periodically since 2011 (as so amended, the “Credit Agreement”). In November 2018, the Company extended the maturity of the Credit Agreement from April 2019 to April 2020. In March 2019, the Company entered into an amendment to the Credit Agreement that altered the unencumbered liquid assets covenant to (i) reduce the minimum threshold from $10 million to $5 million and (ii) include unencumbered assets held outside the United States. The amendment also added another financial covenant that requires the Company to maintain a tangible net worth of not less than $140 million. Additionally, pursuant to the amendment, the Company’s principal place of business and the related real estate, located at 7007 Pinemont Drive, Houston, Texas was added as collateral securing its obligations under the credit agreement. In November 2019, we further amended the credit agreement to (i) extend the maturity date from April 2020 to April 2022, (ii) increase the unencumbered liquid assets covenant threshold from $5 million to $10 million effective in the first quarter of fiscal year 2021, (iii) to increase the tangible net worth requirement from $140 million to $145 million in the first quarter of fiscal year 2021 and (iv) remove the requirement that we obtain the consent of Frost Bank prior to paying dividends or repurchasing stock so long as we are in compliance with the covenants of the credit agreement. Under the Credit Agreement, the Company can borrow up to $30.0 million with amounts available for borrowing determined by a borrowing base. The borrowing base is determined based upon certain of the Company’s assets which include (i) 80% of certain accounts receivable plus (ii) 50% of certain notes receivable (such result not to exceed $10 million) plus (iii) 25% of certain inventories (such result not to exceed $20 million). Subject to the borrowing base calculation, as of September 30, 2019, the amount available for borrowing was $27.0 million. Several of the Company’s domestic subsidiaries have guaranteed the obligations of the Company under the Credit Agreement and such subsidiaries have secured their obligations under such guarantees by the pledge of substantially all of the assets of such subsidiaries. The Company is required to make monthly interest payments on borrowed funds. The Credit Agreement limits the incurrence of additional indebtedness and contains other covenants customary in agreements of this type. The interest rate for borrowings under the Credit Agreement is based on the Wall Street Journal prime rate, which was 5.0% at September 30, 2019. At September 30, 2019, the Company was in compliance with all covenants under the Credit Agreement. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 14. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Product warranty $ 229 $ 688 Compensated absences 1,603 1,329 Legal and professional fees 356 434 Payroll 1,031 960 Property and sales taxes 1,972 1,977 Medical claims 496 450 Other 683 988 $ 6,370 $ 6,826 The Company is self-insured for certain losses related to employee medical claims. The Company has purchased stop-loss coverage for individual claims in excess of $175,000 per claimant per year in order to limit its exposure to any significant levels of employee medical claims. Self-insured losses are accrued based on the Company’s historical experience and on estimates of aggregate liability for uninsured claims incurred using certain actuarial assumptions followed in the insurance industry. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 15. Employee Benefits The Company’s U.S. employees are participants in the Geospace Technologies Corporation’s Employee’s 401(k) Retirement Plan (the “Plan”), which covers substantially all eligible employees in the United States. The Plan is a qualified salary reduction plan in which all eligible participants may elect to have a percentage of their compensation contributed to the Plan, subject to certain guidelines issued by the Internal Revenue Service. The Company’s share of discretionary matching contributions was approximately $0.9 million and $0.8 million in fiscal years 2019 and 2018, respectively. The Company’s stock incentive plans in which key employees may participate are discussed in Note 16 to these consolidated financial statements. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 16. Stockholders’ Equity In September 1997, the board of directors and stockholders approved the 1997 Key Employee Stock Option Plan (as amended the “1997 Plan”) and, following amendments thereto, there has been reserved an aggregate of 2,250,000 shares of common stock for issuance thereunder. The 1997 Plan expired in November 2017. In February 2014, the board of directors and stockholders approved the 2014 Long Term Incentive Plan (the “2014 Plan”), which replaced the 1997 Plan. Under the 2014 Plan, an aggregate of 1,500,000 shares of common stock may be issued. The Company is authorized to issue nonqualified and incentive stock options to purchase common stock, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) to key employees, directors and consultants under the 2014 Plan. Options have a term not to exceed ten years, with the exception of incentive stock options granted to employees owning ten percent or more of the outstanding shares of common stock, which have a term not to exceed five years. The exercise price of any option may not be less than the fair market value of the common stock on the date of grant. In the case of incentive stock options granted to an employee owning ten percent or more of the outstanding shares of common stock, the exercise price of such option may not be less than 110% of the fair market value of the common stock on the date of grant. An RSU represents a contingent right to receive one share of the common stock upon vesting. Under the 2014 Plan, the Company may issue RSAs and RSUs to employees for no payment by the employee or for a payment below the fair market value on the date of grant. The RSAs and RSUs are subject to certain restrictions described in the 2014 Plan. At September 30, 2019, an aggregate of 477,015 shares of common stock were available for issuance under the 2014 Plan. No further awards of stock options may be made under the 1997 Plan. The following table summarizes the combined activity under the equity incentive plans for the indicated periods: Number of Nonqualified Options Outstanding Weighted Average Exercise Price per Share Number of RSAs Weighted Average Grant-date Fair Value per Share Number of RSUs Weighted Average Grant-date Fair Value per Unit Outstanding at October 1, 2017 201,800 $ 17.47 288,800 $ 28.92 — $ — Granted — — 176,450 15.13 — — Exercised (7,700 ) 8.78 — — — — Forfeited (4,000 ) 17.63 (21,925 ) 18.75 — — Vested — — (116,100 ) 45.19 — — Outstanding at September 30, 2018 190,100 17.81 327,225 16.42 — — Granted — — 8,000 14.59 161,800 15.17 Exercised (24,500 ) 8.78 — — (500 ) 15.17 Forfeited — — (2,875 ) 14.60 (24,010 ) 15.17 Vested — — (111,938 ) 16.18 — — Outstanding at September 30, 2019 165,600 $ 19.15 220,412 $ 16.50 137,290 $ 15.17 During fiscal years 2019 and 2018, the Company issued 8,000 and 176,450 RSAs, respectively, to certain of its employees under the 2014 Plan, as amended. The weighted average grant date fair value of each RSA issued for fiscal year 2019 and 2018 was $14.59 and $15.13 per share, respectively. The total grant date fair value of all RSAs issued for fiscal years 2019 and 2018 was $0.1 million and $2.7 million, respectively, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for the RSAs was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of shares that are anticipated to fully vest. Recipients of RSAs are entitled to vote such shares and are entitled to dividends, if paid. During fiscal year 2019, the Company issued 161,800 RSUs to certain of its employees, executive officers and directors under the 2014 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 $15.11 per unit. The total grant date fair value of all RSUs issued was $2.4 million, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for 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. All RSAs and RSUs outstanding at September 30, 2019 and 2018 were issued from the 2014 Plan. 45,000 stock options outstanding at September 30, 2019 were issued under the 1997 Plan. All remaining stock options outstanding were issued under the 2014 Plan. All stock options outstanding are nonqualified options. The total intrinsic value of the Company’s nonqualified stock options exercised during fiscal year 2019 and 2018 was $0.1 million and $41,000, respectively. The following table summarizes information about stock options outstanding and exercisable at September 30, 2019: Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Term (in Weighted Average Exercise Price Intrinsic Value Shares Weighted Average Remaining Term (in years) Weighted Average Exercise Price Intrinsic Value $14.87 69,300 6.1 $ 14.87 $ 34,650 — — $ — $ — $21.42 to $21.95 84,300 4.5 21.63 — 33,000 0.4 21.95 — $26.48 to $26.48 12,000 0.9 26.48 — 12,000 0.9 26.48 — 165,600 4.9 $ 19.15 $ 34,650 45,000 0.5 $ 23.16 $ — The Company recognized $2.3 million and $2.3 million of stock-based compensation expense for the fiscal years ended September 30, 2019 and 2018, respectively. As of September 30, 2019, the Company had unrecognized compensation expense of $2.2 million relating to RSAs which is expected to be recognized over a weighted average period of 2.0 years. As of September 30, 2019, the Company had unrecognized compensation expense of $1.7 million relating to RSUs which is expected to be recognized over a weighted average period of 3.2 years. In addition, the Company had $8,000 of unrecognized compensation expense related to nonqualified stock option awards which is expected to be recognized over a weighted average period of 0.1 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes: Components of income (loss) before income taxes were as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 United States $ 4,105 $ (19,231 ) Foreign (1,834 ) (561 ) $ 2,271 $ (19,792 ) The provision (benefit) for income taxes consisted of the following (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Current Federal $ (16 ) $ (613 ) Foreign 2,401 51 State 16 — 2,401 (562 ) Deferred: Federal — — Foreign 16 (18 ) 16 (18 ) $ 2,417 $ (580 ) Actual income tax expense (benefit) differs from income tax expense computed by applying the U.S. statutory federal tax rate of 21% and 24% (blended) for the fiscal years ended September 30, 2019 and 2018 as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Expense (benefit) for U.S federal income tax at statutory rate $ 477 $ (4,849 ) Effect of foreign income taxes (101 ) (47 ) Research and experimentation tax credit (812 ) (320 ) State income taxes, net of federal income tax benefit (161 ) (23 ) Nondeductible expenses 105 33 Resolution of prior years’ tax matters 14 (657 ) Change in valuation allowance 964 (4,237 ) Impact on deferred taxes due to change in tax rate — 8,116 Difference in U.S. tax rate from assumed rate — 511 Change in fair value of contingent consideration (444 ) — Foreign income tax withholding 2,358 11 Disallowance of stock compensation adjustments in excess of book 31 895 Other items (14 ) (13 ) $ 2,417 $ (580 ) Effective tax rate 106.4 % 2.9 % The income tax expense for fiscal year 2019 primarily reflects foreign withholding tax on rental income earned in Nigeria and Brunei. The income tax benefit for fiscal year 2018 primarily reflects a $0.7 million tax refund resulting from the filing of an amended U.S. tax return. The Company is currently unable to record any tax benefits for its tax losses in the U.S. and Canada due to the uncertainty surrounding its ability to utilize such losses in the future to offset taxable income. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax asset were as follows (in thousands): AS OF SEPTEMBER 30, 2019 AS OF SEPTEMBER 30, 2018 U.S. Non U.S. Total U.S. Non U.S. Total Deferred income tax assets: Allowance for doubtful accounts $ 189 $ 3 $ 192 $ 545 $ 8 $ 553 Inventories 7,652 79 7,731 6,870 68 6,938 Loss and tax credit carry-forwards 18,156 4,221 22,377 17,056 4,151 21,207 Stock-based compensation 691 — 691 614 — 614 Accrued product warranty 43 4 47 136 8 144 Accrued compensated absences 313 — 313 259 — 259 Property and equipment — 462 462 — 457 457 Prepaid income taxes 753 — 753 714 — 714 Other reserves 13 8 21 56 6 62 27,810 4,777 32,587 26,250 4,698 30,948 Deferred income tax liabilities: Allowance for doubtful accounts — — — — (6 ) (6 ) Intangible assets (1,386 ) (5 ) (1,391 ) (1,681 ) — (1,681 ) Property, plant and equipment and other (4,919 ) (59 ) (4,978 ) (3,622 ) (59 ) (3,681 ) Subtotal deferred income tax assets 21,505 4,713 26,218 20,947 4,633 25,580 Valuation allowance (21,502 ) (4,531 ) (26,033 ) (20,931 ) (4,448 ) (25,379 ) Net deferred income tax assets $ 3 $ 182 $ 185 $ 16 $ 185 $ 201 Deferred income tax assets and liabilities are reported as follows in the accompanying consolidated balance sheets (in thousands): AS OF SEPTEMBER 30, 2019 2018 Deferred income tax assets, net $ 236 $ 246 Deferred income tax liabilities, net (51 ) (45 ) $ 185 $ 201 The 2017 Tax Act was enacted in December 2017. The 2017 Tax Act, among other things, reduces the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018, creates new taxes on certain foreign earnings and may require companies to pay a one-time transition tax on undistributed earnings of certain foreign subsidiaries that were previously tax deferred. The Company is not required to pay a one-time transition tax on earnings of our foreign subsidiaries since there were no accumulated earnings on a consolidated basis. As a result of the 2017 Tax Act, during the fiscal year ended September 30, 2018, the Company revalued its U.S. deferred tax assets based on a U.S. federal tax rate of 21%, which resulted in a reduction to our deferred tax assets of approximately $8.1 The financial reporting basis of investments in foreign subsidiaries exceed their tax basis. A deferred tax liability is not recorded for this temporary difference because the investment is deemed to be permanent. A reversal of the Company’s plans to permanently invest in these foreign operations would cause the excess to become taxable. At September 30, 2019, the Company had $7.0 million of cash and cash equivalents held by its foreign subsidiaries. At September 30, 2019 and 2018, the temporary difference related to undistributed earnings for which no deferred taxes have been provided was approximately $12.9 million and $12.9 million, respectively. Tax return filings which are subject to review by local tax authorities by major jurisdiction are as follows: • United States—fiscal years ended September 30, 2016 through 2019 • State of Texas—fiscal years ended September 30, 2016 through 2019 • State of New York—fiscal years ended September 30, 2017 • State of California – fiscal years ended September 30, 2016 through 2019 • State of Pennsylvania – fiscal years ended September 30, 2017 • Russian Federation—calendar years 2017 through 2019 • Canada—fiscal years ended September 30, 2016 through 2019 • United Kingdom—fiscal years ended September 30, 2018 through 2019 • Colombia—calendar years 2017 through 2019 The Company had no unrecognized tax liabilities as of September 30, 2019 and 2018. Management of the Company has concluded that it was more-likely-than-not that its U.S. and Canadian net deferred tax assets will not be realized in accordance with U.S. GAAP. At September 30, 2019 and September 30, 2018, the Company had a valuation allowance against its U.S. net deferred tax assets of $21.5 million and $20.9 million, respectively, and a valuation allowance against its Canadian net deferred tax assets of $4.5 million and $4.4 million, respectively. |
Loss Per Common Share
Loss Per Common Share | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 18. Loss Per Common Share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares used in basic loss per share during the period. Diluted loss per share is determined on the assumption that outstanding RSUs have been exchanged for common stock and outstanding dilutive stock options have been exercised and the aggregate proceeds as defined were used to reacquire common stock using the average price of such common stock for the period. 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 amounts): YEAR ENDED SEPTEMBER 30, 2019 2018 Net loss $ (146 ) $ (19,212 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for diluted earnings per share $ (146 ) $ (19,212 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,388,626 13,250,867 Common share equivalents outstanding related to stock options and RSUs — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,388,626 13,250,867 Loss per shares: Basic $ (0.01 ) $ (1.45 ) Diluted $ (0.01 ) $ (1.45 ) For the calculation of diluted loss per share for fiscal years 2019 and 2018, stock options of 165,600 and 190,600, respectively, and RSUs of 137,290 and zero, respectively, were excluded in the calculation of weighted average shares outstanding as a result of their impact being antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies Contingent Consideration In connection with its acquisitions of Quantum and OptoSeis, the Company recorded contingent purchase price payments, or contingent consideration, that may be owed in the future. For both acquisitions, the contingent payments are based on future receipt of contracts awards and the resulting revenue derived from such contracts. The Company has utilized the services of an independent valuation consultant to assist it with the estimation of the fair value of this contingent consideration. The determination of fair value is inherently unpredictable since it requires estimates and projections of future revenue, including the size, length, timing and, in the case of Quantum, the extent of gross profits earned under its future contracts. As a result, the Company anticipates future fair value adjustments to these liabilities over the respective earn-out periods, and these adjustments will result in either charges or credits to the Company’s operating expenses when the fair value of the contingent consideration increases or decreases, respectively. The Company recorded an initial contingent earn-out liability of $7.7 million in connection with its July 2018 acquisition of Quantum. Contingent payments, if any, may be paid in the form of cash or Company stock and will be derived from eligible revenue generated during a four-year earn-out period subsequent to the closing of the acquisition. The maximum amount of contingent payments is $23.5 million over the earn-out period. For the fiscal year ended September 30, 2019, the Company recorded a $2.9 million adjustment to decrease the initial earn-out liability to its estimated fair value. The Company recorded an initial continent earn-out liability of $4.3 million in connection with its November 2018 acquisition of all the intellectual property and related assets of the OptoSeis ® ® The Company will reassess the earn-out calculations related to this contingent consideration in future periods. Operating Leases The Company leases office space and certain equipment for terms of two years or less. Rent expense was approximately $0.6 million and $0.1 million during fiscal years 2019 and 2018, respectively. Future minimum lease obligations for the fiscal years ending September 30, 2020 and 2021 are $0.4 million and $36,000, respectively. 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. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 20. Supplemental Cash Flow Information Supplemental cash flow information is as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Cash paid for interest $ 99 $ 336 Cash paid (refunded) for income taxes 2,402 (649 ) Non-cash investing and financing activities: Inventory transferred to rental equipment 1,861 29,248 Inventory transferred to property, plant and equipment 126 109 Financing receivables in connection with sale of used rental equipment — 3,984 Property, plant and equipment acquired in connection with business acquisition 1,721 — Extinguishment of financing receivable in connection with repossession of equipment added to rental fleet 750 — |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 21 . Effective September 30, 2018, the Company began reporting and evaluating financial information for three operating business segments: Oil and Gas Markets, Adjacent Markets and Emerging Markets. The Oil and Gas Markets segment was previously referred to as our Seismic segment. This 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. Our Adjacent Markets segment was previously referred to as our Non-Seismic segment. This segment’s products include imaging equipment, water meter products, offshore cables, as well as seismic sensors used for vibration monitoring and geotechnical applications such as mine safety applications and earthquake detection. The Emerging Markets segment was added in conjunction with the acquisition of Quantum, which designs and markets seismic products targeted at the border and perimeter security markets. The following tables summarize the Company’s segment information: YEAR ENDED SEPTEMBER 30, 2019 2018 Revenue: Oil and Gas Markets $ 64,966 $ 44,951 Adjacent Markets 30,156 29,932 Emerging Markets 159 286 Corporate 528 579 Total 95,809 75,748 Income (loss) from operations: Oil and Gas Markets 3,095 (14,070 ) Adjacent Markets 6,234 5,345 Emerging Markets (2,306 ) (718 ) Corporate (5,990 ) (11,300 ) Total 1,033 (20,743 ) Depreciation and amortization expenses: Oil and Gas Markets 16,865 13,348 Adjacent Markets 466 490 Emerging Markets 1,164 194 Corporate 844 380 Total 19,339 14,412 Impairment, inventory obsolescence and stock-based compensation expenses: Oil and Gas Markets 6,046 6,243 Adjacent Markets 92 164 Emerging Markets 68 14 Corporate 737 823 Total 6,943 7,244 Interest income: Oil and Gas Markets 1,033 614 Adjacent Markets 1 — Emerging Markets — — Corporate 274 469 Total 1,308 1,083 Interest expense: Oil and Gas Markets — 2 Adjacent Markets — — Emerging Markets — 1 Corporate 99 333 Total 99 336 The Company’s manufacturing operations for its business segments are combined. Therefore, the Company does not segregate and report separate balance sheet accounts for each of its segments and, therefore, no such segment balance sheet information is presented in the table above. “Corporate” revenue consists of rental revenue earned from an operating lease of a surplus building located in Houston, Texas. “Corporate” loss from operations primarily consists of the Company’s Houston headquarters general and administrative expenses. The Company generates revenue from product sales, rentals and services from its subsidiaries located in the United States, Canada, Colombia, the Russian Federation and the United Kingdom. Revenue information for the Company is as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 United States $ 91,222 $ 79,019 Canada 5,266 8,311 Colombia 408 300 Russian Federation 4,286 3,539 United Kingdom 2,905 3,095 Eliminations (8,278 ) (18,516 ) $ 95,809 $ 75,748 A summary of revenue by geographic area is as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Africa $ 20,192 $ 5 Asia 10,171 2,143 Canada 5,232 15,945 Europe 25,860 4,743 United States 32,397 50,522 Other 1,957 2,390 $ 95,809 $ 75,748 Revenue is attributed to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is not known, revenue is attributed to countries based on the geographic location of the initial shipment. Long-lived assets, excluding deferred tax assets, were as follows (in thousands): AS OF SEPTEMBER 30, 2019 2018 United States $ 118,064 $ 106,079 Canada 10,419 13,515 Colombia 671 1,002 Russian Federation 961 1,143 United Kingdom 430 428 China 13 13 $ 130,558 $ 122,180 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Geospace Technologies Corporation and Subsidiaries Valuation and Qualifying Accounts (In thousands) Balance at Beginning of Period Charged to Costs and Expenses, net of Recoveries Charged to Other Assets (Deductions) and Additions Balance at End of Period Year ended September 30, 2019 Allowance for doubtful accounts on accounts and financing receivables $ 3,302 $ 436 $ — $ (2,787 ) $ 951 Year ended September 30, 2018 Allowance for doubtful accounts on accounts and financing receivables $ 2,415 $ 1,009 $ — $ (122 ) $ 3,302 Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Assets (Deductions) and Additions Balance at End of Period Year ended September 30, 2019 Inventory obsolescence reserve $ 30,551 $ 4,614 $ — $ (3,115 ) $ 32,050 Year ended September 30, 2018 Inventory obsolescence reserve $ 29,614 $ 4,353 $ — $ (3,416 ) $ 30,551 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements present the consolidated financial position, results of operations and cash flows of the Company in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated. |
Reclassifications | Reclassifications The Company reclassified certain components of revenue and cost of revenue on its consolidated statement of operations for the fiscal year ended September 30, 2018 to conform to the current year presentation. The reclassifications had no effect on previously reported total revenue, total cost of revenue, net loss, stockholders’ equity or cash flows. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 bad debt reserves, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, useful lives of long-lived assets, impairment of long-lived assets and 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. 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 September 30, 2019 cash and cash equivalents included $7.0 million held by the Company’s foreign subsidiaries and branch offices. If the Company were to repatriate the cash held by its foreign subsidiaries, it would be required to accrue and pay taxes on any amount repatriated under rates enacted by The Tax Cuts and Jobs Act (“2017 Tax Act’). |
Short-term Investments | Short-term Investments The Company classifies its short-term investments consisting of corporate bonds, government bonds and other such similar investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized holding gains and losses reported each period as a component of accumulated other comprehensive loss in stockholders’ equity. See Note 4 to these consolidated financial statements for additional information. |
Concentrations of Credit Risk | Concentrations of Credit and Supplier Risk The Company maintains its cash in bank deposit accounts that, at times, exceed federally insured limits. Management of the Company believes that the financial strength of the financial institutions holding such deposits minimizes the credit risk of such deposits. The Company sells products to customers throughout the United States and various foreign countries. The Company’s normal credit terms for trade receivables are 30 days. In certain situations, credit terms may be extended to 60 days or longer. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for its trade receivables. Additionally, the Company provides long-term financing in the form of promissory notes and sales-type leases when competitive conditions require such financing. In such cases, the Company may require collateral. Allowances are recognized for potential credit losses. Three customers comprised 19.7%, 5.2% and 20.0% of the Company’s revenue during fiscal year 2019. At September 30, 2019, the Company had trade account receivables due from these three customers of $6.7 million, $3.6 million and $8.5 million, respectively. With respect to the Company’s revenue and trade account receivables, the latter two customers are affiliated with a common parent company. One customer comprised 10.4% of the Company’s revenue during fiscal year 2018. At September 30, 2018, the Company had a combined trade account and financing receivable due from this customer of $9.0 million. Certain models of the Company’s oil and gas marine wireless products require a timing device it purchases from a United States manufacturer. The Company currently does not possess the ability to manufacture this component and has no other reliable source for this device. If this manufacturer were to discontinue its production of this timing device, were to become unwilling to contract with the Company on competitive terms or were unable to supply the component in sufficient quantities to meet its requirements, the Company’s ability to compete in the marine wireless marketplace could be impaired, which could adversely affect its financial performance. The Company purchases all of its thermal film from a European manufacturer for its imaging products. Except for the film sold to the Company by this manufacturer, the Company knows of no other source for thermal film that performs as well in its imaging equipment. If the European manufacturer were to discontinue producing thermal film, were to become unwilling to contract with the Company on competitive terms or were unable to supply thermal film in sufficient quantities to meet its requirements, the Company’s ability to compete in the direct thermal imaging marketplace could be impaired, which could adversely affect its financial performance. |
Inventories | Inventories The Company records a write-down of its inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method, except that certain of the Company’s foreign subsidiaries use an average cost method to value their inventories. The Company periodically reviews the composition of its inventories to determine if market demand, product modifications, technology changes, excessive quantities on-hand and other factors hinder our ability to recover its investment in such inventories. The Company’s assessment is based upon historical product demand, estimated future product demand and various other judgments and estimates. Inventory obsolescence reserves are recorded when such assessments reveal that portions or components of the Company’s inventory investment will not be realized in its operating activities. The Company reviews it inventories for classification purposes. The value of inventories not expected to be realized in cash, sold or consumed during its next operating cycle are classified as noncurrent assets. |
Property, Plant and Equipment and Rental Equipment | Property, Plant and Equipment and Rental Equipment Property, plant and equipment and rental equipment are stated at cost. Depreciation expense is calculated using the straight-line method over the following estimated useful lives: Years Rental equipment 2-5 Property, plant and equipment: Machinery and equipment 3-15 Buildings and building improvements 10-50 Other 5-10 Expenditures for renewals and betterments are capitalized. Repairs and maintenance expenditures are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss thereon is reflected in the statements of operations. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company’s long-lived assets are reviewed for impairment whenever an event or change in circumstances indicates the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of 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. Impairment charges are included as a component of cost of revenue in the Company’s consolidated statements of operations. |
Goodwill | Goodwill The Company conducts its evaluation of goodwill at the reporting unit level on an annual basis as of September 30 and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. The guidance on the testing of goodwill for impairment provides the option to first assess qualitative factors to determine if the annual two-step test of goodwill for impairment must be performed . At September 30, 2019, the Company performed the two-step analysis on its Oil & Gas and Emerging Markets reporting units and determined there was no impairment since the value of the goodwill was more than its carrying amount. |
Other Intangible Assets | Other Intangible Assets Intangible assets are carried at cost, net of accumulated amortization. The estimated useful life of the Company’s other intangible assets are evaluated each reporting period to determine whether events or circumstances warrant a revision to the remaining amortization period. If the estimate of an intangible asset’s remaining useful life is changed, the amortization period should be changed prospectively. Amortization expense is calculated using the straight-line method over the following estimated useful lives: Years Developed technology 18 Trade names 5 Customer relationships 4 Non-compete agreements 4 |
Revenue Recognition | Revenue Recognition See Note 2 to these consolidated financial statements. |
Deferred Revenue | Deferred Revenue The Company records deferred revenue when customer funds are billed or received prior to the recognition of the associated revenue. |
Contingent Consideration | Contingent Consideration The Company established earn-out liabilities in connection with its business acquisitions in the fourth quarter of fiscal year 2018 and the first quarter of fiscal year 2019. The Company engaged the services of a valuation firm to measure the initial fair value of the earn-out liabilities as of the acquisition date for each business. The valuation technique used to measure the fair value of the liability was derived from models utilizing market observable inputs. The Company records the fair value of its contingent earn-out liabilities on a quarterly basis. Adjustments to the liabilities, if any, are included as a component of earnings in the consolidated statements of operations. See Note 19 to these consolidated financial statements for additional information. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs include salaries, employee benefit costs, department supplies, direct project costs and other related costs. |
Product Warranties | Product Warranties Most of the Company’s products do not require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management’s estimates. Reserves for future warranty costs are included within accrued expenses and other current liabilities on the consolidated balance sheets. Changes in the product warranty reserve are reflected in the following table (in thousands): Balance at October 1, 2017 $ 508 Accruals for warranties issued during the year 1,074 Settlements made (in cash or in kind) during the year (894 ) Balance at September 30, 2018 688 Accruals for warranties issued during the year 386 Settlements made (in cash or in kind) during the year (845 ) Balance at September 30, 2019 $ 229 |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation, including grants of restricted awards and unqualified stock options in accordance with Accounting Standards Codification Topic 718, which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in the Company’s consolidated statements of operations based on their fair values on the award date and the estimated number of shares it ultimately expects to vest. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award. The Company’s stock-based compensation plan and awards are more fully described in Note 16 to these consolidated financial statements. |
Foreign Currency Gains and Losses | Foreign Currency Gains and Losses The assets and liabilities of the Company’s foreign subsidiaries that have a foreign currency as their functional currency have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Results of operations have been translated using the average exchange rates during the year. Resulting translation adjustments have been recorded as a component of accumulated other comprehensive loss in stockholders’ equity. Foreign currency transaction gains and losses are included in the statements of operations as they occur. Transaction gains and losses on intra-entity foreign currency transactions and balances including advances and demand notes payable, on which settlement is not planned or anticipated in the foreseeable future, are recorded in “accumulated other comprehensive loss” on our consolidated balance sheets. |
Shipping and Handling Costs | Shipping and Handling Costs 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 sales. The Company had shipping and handling expenses of $0.5 million and $0.5 million, respectively, for the fiscal years ended September 30, 2019 and 2018, respectively. |
Fair Value | Fair Value Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. U.S. generally accepted accounting principles (“GAAP”) has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Level 1 represents unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 represents quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly. Level 3 represents valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Income Taxes | Income Taxes Income taxes are presented in accordance with the Accounting Standards Codification Topic 740 (“Topic 740”) guidance for accounting for income taxes. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying consolidated balance sheets, as well as operating loss and tax credit carrybacks and carryforwards are recorded. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities (temporary differences) and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company periodically reviews the recoverability of tax assets recorded on the balance sheet and provides valuation allowances if it is more likely than not that such assets will not be realized. The Company follows the guidance of Topic 740 to analyze all tax positions that are less than certain. Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In accordance with Topic 740, the Company recognizes in its financial statements the impact of a tax position if that position is “more likely than not” to be sustained on audit, based on the technical merits of the position. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. The Company classifies interest and penalties associated with the payment of income taxes, if any, in the Other Income (Expense) section of its consolidated statements of operations. The Company incurred no interest or penalties for the fiscal years ended September 30, 2019 and 2018. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance was adopted by the Company in its first quarter of fiscal year 2019. The adoption of this guidance had no effect on the Company’s consolidated financial statements since it currently holds no restricted cash balances. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This new standard supersedes existing revenue recognition guidance and requires changes to the revenue recognition process, financial statement presentation and footnote disclosures. The Company adopted this standard on October 1, 2018 using the modified retrospective method. The adoption of this standard did not result in a cumulative adjustment as of October 1, 2018 nor did it have any impact on the Company’s consolidated financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2018, the FASB issued guidance expanding the scope of ASC Topic 718, Compensation - Stock Compensation In August 2018, the FASB issued guidance requiring certain existing disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures In January 2017, the FASB issued guidance simplifying the current two-step goodwill impairment test by eliminating Step 2 of the test. The guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for the interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and disclosures. In June 2016, the FASB issued guidance surrounding credit losses for financial instruments that replaces the incurred loss impairment methodology in generally accepted accounting principles (“GAAP”). 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. The standard is effective for fiscal years reporting periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption for a fiscal year beginning after December 15, 2018 is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company expects to adopt this standard during the first quarter of its fiscal year ending September 30, 2021 and is currently evaluating the impact of this new guidance on its consolidated financial statements. In February 2016, the FASB issued guidance requiring a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement and presentation of expense and cash flows arising from a lease by a lessee primarily will depend on its classification of the lease as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will also require operating leases of the lessee to be recognized on the balance sheet if the operating lease term is more than 12 months. The guidance also requires disclosures to help investors and other financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2018 and is to be applied using the modified retrospective approach. The Company will adopt this guidance in its first quarter of its fiscal year ending September 30, 2020. Effective May 1, 2019, the Company became a lessee under an office lease agreement with a term longer than one year and will follow the guidance of the new standard regarding this lease contract. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment Estimated Useful Life | Property, plant and equipment and rental equipment are stated at cost. Depreciation expense is calculated using the straight-line method over the following estimated useful lives: Years Rental equipment 2-5 Property, plant and equipment: Machinery and equipment 3-15 Buildings and building improvements 10-50 Other 5-10 |
Schedule of Estimated Useful Lives of Other Intangible Assets | Amortization expense is calculated using the straight-line method over the following estimated useful lives: Years Developed technology 18 Trade names 5 Customer relationships 4 Non-compete agreements 4 |
Changes in Product Warranty Reserve | Changes in the product warranty reserve are reflected in the following table (in thousands): Balance at October 1, 2017 $ 508 Accruals for warranties issued during the year 1,074 Settlements made (in cash or in kind) during the year (894 ) Balance at September 30, 2018 688 Accruals for warranties issued during the year 386 Settlements made (in cash or in kind) during the year (845 ) Balance at September 30, 2019 $ 229 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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. The table excludes all revenue earned from rental contracts (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Oil and Gas Markets Product and Services Revenue: Traditional exploration $ 8,712 $ 11,795 Wireless exploration 4,362 6,851 Reservoir 2,554 4,533 Total revenue 15,628 23,179 Adjacent Markets Product and Services Revenue: Industrial 18,324 18,352 Imaging 11,736 11,489 Total revenue 30,060 29,841 Emerging Markets Product and Services Revenue: Revenue 159 286 Total $ 45,847 $ 53,306 |
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: YEAR ENDED SEPTEMBER 30, 2019 2018 Asia $ 6,025 $ 2,143 Canada 2,558 13,044 Europe 6,569 4,652 United States 28,763 31,296 Other 1,932 2,171 $ 45,847 $ 53,306 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Short-term Investments | At September 30, 2018, the Company’s short-term investments were composed of the following (in thousands): AS OF SEPTEMBER 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 17,851 $ — $ (60 ) $ 17,791 Government bonds 7,702 — (22 ) 7,680 Total $ 25,553 $ — $ (82 ) $ 25,471 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Gross Fair Value of all Derivative Instruments | The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands): Derivative Instrument Location AS OF SEPTEMBER 30, 2019 2018 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 4 $ 270 |
Company's Derivatives on Consolidated Financial Statements of Operations | The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations (in thousands): YEAR ENDED SEPTEMBER 30, Derivative Instrument Location 2019 2018 Foreign Other Income (Expense) $ 552 $ 779 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Company's Short-term Investments, Contingent Consideration And Foreign Currency Forward Contracts | The following tables present the fair value of the Company’s short-term investments, contingent consideration and foreign currency forward contracts by valuation hierarchy and input (in thousands): AS OF SEPTEMBER 30, 2019 Quoted Prices in Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Totals Contingent consideration $ — $ — $ (9,940 ) $ (9,940 ) Foreign currency forward contract — (4 ) — (4 ) Total $ - $ (4 ) $ (9,940 ) $ (9,944 ) AS OF SEPTEMBER 30, 2018 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) Totals Short-term investments Corporate bonds $ 17,791 $ — $ — $ 17,791 Government bonds 7,680 — — 7,680 Contingent consideration — — (7,713 ) (7,713 ) Foreign currency forward contract — (270 ) — (270 ) Total $ 25,471 $ (270 ) $ (7,713 ) $ 17,488 |
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 fiscal year ended September 30, 2019: Balance at October 1, 2018 $ 7,713 Contingent consideration pursuant to acquisitions 4,342 Fair value adjustments (2,115 ) Balance at September 30, 2019 $ 9,940 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following (in thousands): Unrealized (Losses) on Available-for-Sale Securities Foreign Currency Translation Adjustments Total Balance at October 1, 2017 $ (58 ) $ (14,172 ) $ (14,230 ) Other comprehensive loss (24 ) (1,365 ) (1,389 ) Balance at September 30, 2018 (82 ) (15,537 ) (15,619 ) Other comprehensive income (loss) 82 (220 ) (138 ) Balance at September 30, 2019 $ - $ (15,757 ) $ (15,757 ) |
Accounts and Financing Receiv_2
Accounts and Financing Receivables (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Trade Accounts Receivable | Trade accounts receivable consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Trade accounts receivable $ 25,144 $ 15,776 Allowance for doubtful accounts (951 ) (1,453 ) $ 24,193 $ 14,323 |
Financing Receivables | Financing receivables are reflected in the following table (in thousands): AS OF SEPTEMBER 30, 2019 2018 Promissory notes $ 780 $ 5,646 Sales-type lease 2,692 5,533 Total financing receivables 3,472 11,179 Unearned income: Promissory notes — (95 ) Sales-type lease (55 ) (237 ) Total unearned income (55 ) (332 ) Total financing receivables, net of unearned income 3,417 10,847 Allowance for doubtful promissory notes — (1,849 ) Less current portion (3,233 ) (4,258 ) Non-current financing receivables $ 184 $ 4,740 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Finished goods $ 17,967 $ 18,802 Work in process 3,681 7,926 Raw materials 55,781 54,290 Obsolescence reserve (32,050 ) (30,551 ) 45,379 50,467 Less current portion 23,855 18,812 Non-current portion $ 21,524 $ 31,655 |
Rental Equipment (Tables)
Rental Equipment (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Rental Equipment [Abstract] | |
Rental Equipment | Rental equipment consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Rental equipment, primarily wireless recording equipment $ 107,645 $ 76,245 Accumulated depreciation and impairment (45,583 ) (36,700 ) $ 62,062 $ 39,545 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Land and land improvements $ 7,933 $ 8,552 Building and building improvements 24,582 31,070 Machinery and equipment 54,760 52,523 Furniture and fixtures 1,376 1,362 Tools and molds 2,710 2,256 Construction in progress 512 503 Leasehold improvements 85 — Transportation equipment 75 31 92,033 96,297 Accumulated depreciation and impairment (60,559 ) (62,673 ) $ 31,474 $ 33,624 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | As a result of these acquisitions, the Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted-Average Remaining Useful Lives (in years) AS OF SEPTEMBER 30, 2019 2018 Goodwill $ 5,008 $ 4,343 Other intangible assets: Developed technology 16.9 5,918 4,200 Customer relationships 2.9 3,900 2,500 Trade names 3.9 1,930 1,400 Non-compete agreements 3.0 170 100 Total other intangible assets 10.0 11,918 8,200 Accumulated amortization (1,855 ) (194 ) $ 10,063 $ 8,006 |
Future Estimated Amortization Expense of Other intangible Assets | As of September 30, 2019, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2020 $ 1,732 2021 1,732 2022 1,624 2023 714 2024 342 Thereafter 3,919 $ 10,063 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): AS OF SEPTEMBER 30, 2019 2018 Product warranty $ 229 $ 688 Compensated absences 1,603 1,329 Legal and professional fees 356 434 Payroll 1,031 960 Property and sales taxes 1,972 1,977 Medical claims 496 450 Other 683 988 $ 6,370 $ 6,826 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Summary of Combined Activity Under Equity Incentive Plans | The following table summarizes the combined activity under the equity incentive plans for the indicated periods: Number of Nonqualified Options Outstanding Weighted Average Exercise Price per Share Number of RSAs Weighted Average Grant-date Fair Value per Share Number of RSUs Weighted Average Grant-date Fair Value per Unit Outstanding at October 1, 2017 201,800 $ 17.47 288,800 $ 28.92 — $ — Granted — — 176,450 15.13 — — Exercised (7,700 ) 8.78 — — — — Forfeited (4,000 ) 17.63 (21,925 ) 18.75 — — Vested — — (116,100 ) 45.19 — — Outstanding at September 30, 2018 190,100 17.81 327,225 16.42 — — Granted — — 8,000 14.59 161,800 15.17 Exercised (24,500 ) 8.78 — — (500 ) 15.17 Forfeited — — (2,875 ) 14.60 (24,010 ) 15.17 Vested — — (111,938 ) 16.18 — — Outstanding at September 30, 2019 165,600 $ 19.15 220,412 $ 16.50 137,290 $ 15.17 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at September 30, 2019: Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Term (in Weighted Average Exercise Price Intrinsic Value Shares Weighted Average Remaining Term (in years) Weighted Average Exercise Price Intrinsic Value $14.87 69,300 6.1 $ 14.87 $ 34,650 — — $ — $ — $21.42 to $21.95 84,300 4.5 21.63 — 33,000 0.4 21.95 — $26.48 to $26.48 12,000 0.9 26.48 — 12,000 0.9 26.48 — 165,600 4.9 $ 19.15 $ 34,650 45,000 0.5 $ 23.16 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | Components of income (loss) before income taxes were as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 United States $ 4,105 $ (19,231 ) Foreign (1,834 ) (561 ) $ 2,271 $ (19,792 ) |
Computation of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consisted of the following (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Current Federal $ (16 ) $ (613 ) Foreign 2,401 51 State 16 — 2,401 (562 ) Deferred: Federal — — Foreign 16 (18 ) 16 (18 ) $ 2,417 $ (580 ) |
Reconciliation of Actual Income Tax Expenses (Benefits) | Actual income tax expense (benefit) differs from income tax expense computed by applying the U.S. statutory federal tax rate of 21% and 24% (blended) for the fiscal years ended September 30, 2019 and 2018 as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Expense (benefit) for U.S federal income tax at statutory rate $ 477 $ (4,849 ) Effect of foreign income taxes (101 ) (47 ) Research and experimentation tax credit (812 ) (320 ) State income taxes, net of federal income tax benefit (161 ) (23 ) Nondeductible expenses 105 33 Resolution of prior years’ tax matters 14 (657 ) Change in valuation allowance 964 (4,237 ) Impact on deferred taxes due to change in tax rate — 8,116 Difference in U.S. tax rate from assumed rate — 511 Change in fair value of contingent consideration (444 ) — Foreign income tax withholding 2,358 11 Disallowance of stock compensation adjustments in excess of book 31 895 Other items (14 ) (13 ) $ 2,417 $ (580 ) Effective tax rate 106.4 % 2.9 % |
Components of Net Deferred Income Tax Asset | The income tax expense for fiscal year 2019 primarily reflects foreign withholding tax on rental income earned in Nigeria and Brunei. The income tax benefit for fiscal year 2018 primarily reflects a $0.7 million tax refund resulting from the filing of an amended U.S. tax return. The Company is currently unable to record any tax benefits for its tax losses in the U.S. and Canada due to the uncertainty surrounding its ability to utilize such losses in the future to offset taxable income. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax asset were as follows (in thousands): AS OF SEPTEMBER 30, 2019 AS OF SEPTEMBER 30, 2018 U.S. Non U.S. Total U.S. Non U.S. Total Deferred income tax assets: Allowance for doubtful accounts $ 189 $ 3 $ 192 $ 545 $ 8 $ 553 Inventories 7,652 79 7,731 6,870 68 6,938 Loss and tax credit carry-forwards 18,156 4,221 22,377 17,056 4,151 21,207 Stock-based compensation 691 — 691 614 — 614 Accrued product warranty 43 4 47 136 8 144 Accrued compensated absences 313 — 313 259 — 259 Property and equipment — 462 462 — 457 457 Prepaid income taxes 753 — 753 714 — 714 Other reserves 13 8 21 56 6 62 27,810 4,777 32,587 26,250 4,698 30,948 Deferred income tax liabilities: Allowance for doubtful accounts — — — — (6 ) (6 ) Intangible assets (1,386 ) (5 ) (1,391 ) (1,681 ) — (1,681 ) Property, plant and equipment and other (4,919 ) (59 ) (4,978 ) (3,622 ) (59 ) (3,681 ) Subtotal deferred income tax assets 21,505 4,713 26,218 20,947 4,633 25,580 Valuation allowance (21,502 ) (4,531 ) (26,033 ) (20,931 ) (4,448 ) (25,379 ) Net deferred income tax assets $ 3 $ 182 $ 185 $ 16 $ 185 $ 201 |
Net Classification of Deferred Income Tax Assets and Liabilities in Balance Sheet | Deferred income tax assets and liabilities are reported as follows in the accompanying consolidated balance sheets (in thousands): AS OF SEPTEMBER 30, 2019 2018 Deferred income tax assets, net $ 236 $ 246 Deferred income tax liabilities, net (51 ) (45 ) $ 185 $ 201 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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 amounts): YEAR ENDED SEPTEMBER 30, 2019 2018 Net loss $ (146 ) $ (19,212 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for diluted earnings per share $ (146 ) $ (19,212 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,388,626 13,250,867 Common share equivalents outstanding related to stock options and RSUs — — Total weighted average common shares and common share equivalents used in diluted loss per share 13,388,626 13,250,867 Loss per shares: Basic $ (0.01 ) $ (1.45 ) Diluted $ (0.01 ) $ (1.45 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information Components | Supplemental cash flow information is as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Cash paid for interest $ 99 $ 336 Cash paid (refunded) for income taxes 2,402 (649 ) Non-cash investing and financing activities: Inventory transferred to rental equipment 1,861 29,248 Inventory transferred to property, plant and equipment 126 109 Financing receivables in connection with sale of used rental equipment — 3,984 Property, plant and equipment acquired in connection with business acquisition 1,721 — Extinguishment of financing receivable in connection with repossession of equipment added to rental fleet 750 — |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Company's Segment Information | The following tables summarize the Company’s segment information: YEAR ENDED SEPTEMBER 30, 2019 2018 Revenue: Oil and Gas Markets $ 64,966 $ 44,951 Adjacent Markets 30,156 29,932 Emerging Markets 159 286 Corporate 528 579 Total 95,809 75,748 Income (loss) from operations: Oil and Gas Markets 3,095 (14,070 ) Adjacent Markets 6,234 5,345 Emerging Markets (2,306 ) (718 ) Corporate (5,990 ) (11,300 ) Total 1,033 (20,743 ) Depreciation and amortization expenses: Oil and Gas Markets 16,865 13,348 Adjacent Markets 466 490 Emerging Markets 1,164 194 Corporate 844 380 Total 19,339 14,412 Impairment, inventory obsolescence and stock-based compensation expenses: Oil and Gas Markets 6,046 6,243 Adjacent Markets 92 164 Emerging Markets 68 14 Corporate 737 823 Total 6,943 7,244 Interest income: Oil and Gas Markets 1,033 614 Adjacent Markets 1 — Emerging Markets — — Corporate 274 469 Total 1,308 1,083 Interest expense: Oil and Gas Markets — 2 Adjacent Markets — — Emerging Markets — 1 Corporate 99 333 Total 99 336 |
Details of Revenue | The Company generates revenue from product sales, rentals and services from its subsidiaries located in the United States, Canada, Colombia, the Russian Federation and the United Kingdom. Revenue information for the Company is as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 United States $ 91,222 $ 79,019 Canada 5,266 8,311 Colombia 408 300 Russian Federation 4,286 3,539 United Kingdom 2,905 3,095 Eliminations (8,278 ) (18,516 ) $ 95,809 $ 75,748 |
Summary of Revenue by Geographic Area | A summary of revenue by geographic area is as follows (in thousands): YEAR ENDED SEPTEMBER 30, 2019 2018 Africa $ 20,192 $ 5 Asia 10,171 2,143 Canada 5,232 15,945 Europe 25,860 4,743 United States 32,397 50,522 Other 1,957 2,390 $ 95,809 $ 75,748 |
Long-lived Assets, Excluding Deferred Tax Assets | Long-lived assets, excluding deferred tax assets, were as follows (in thousands): AS OF SEPTEMBER 30, 2019 2018 United States $ 118,064 $ 106,079 Canada 10,419 13,515 Colombia 671 1,002 Russian Federation 961 1,143 United Kingdom 430 428 China 13 13 $ 130,558 $ 122,180 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Sep. 30, 2019USD ($)Customer | Sep. 30, 2018USD ($) | |
Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents held by foreign subsidiaries and branch offices | $ 7,000,000 | |
Minimum credit limit | 30 days | |
Extended credit terms for trade receivables | 60 days | |
Number of customers affiliated with common parent | Customer | 2 | |
Goodwill impairment | $ 0 | |
Shipping and handling costs | 46,059,000 | $ 51,913,000 |
Income tax, Interest or penalties incurred | 0 | 0 |
Shipping and Handling | ||
Significant Accounting Policies [Line Items] | ||
Shipping and handling costs | 500,000 | 500,000 |
Customer one | ||
Significant Accounting Policies [Line Items] | ||
Trade account and financing receivable due | $ 6,700,000 | $ 9,000,000 |
Customer one | Customer Concentration Risk | Sales Revenue, Net | ||
Significant Accounting Policies [Line Items] | ||
Percentage of company revenue | 19.70% | 10.40% |
Customer two | ||
Significant Accounting Policies [Line Items] | ||
Trade account and financing receivable due | $ 3,600,000 | |
Customer two | Customer Concentration Risk | Sales Revenue, Net | ||
Significant Accounting Policies [Line Items] | ||
Percentage of company revenue | 5.20% | |
Customer three | ||
Significant Accounting Policies [Line Items] | ||
Trade account and financing receivable due | $ 8,500,000 | |
Customer three | Customer Concentration Risk | Sales Revenue, Net | ||
Significant Accounting Policies [Line Items] | ||
Percentage of company revenue | 20.00% |
Property, Plant and Equipment E
Property, Plant and Equipment Estimated Useful Life (Details) | 12 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Property Plant And Equipment [Line Items] | |
Rental Equipment | 2 years |
Maximum | |
Property Plant And Equipment [Line Items] | |
Rental Equipment | 5 years |
Machinery and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property useful lives | 3 years |
Machinery and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property useful lives | 15 years |
Buildings and building improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Property useful lives | 10 years |
Buildings and building improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Property useful lives | 50 years |
Other | Minimum | |
Property Plant And Equipment [Line Items] | |
Property useful lives | 5 years |
Other | Maximum | |
Property Plant And Equipment [Line Items] | |
Property useful lives | 10 years |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Other Intangible Assets (Details) | 12 Months Ended |
Sep. 30, 2019 | |
Developed Technology | |
Finite Lived Intangible Assets [Line Items] | |
Other intangible assets estimated useful life | 18 years |
Trade Names | |
Finite Lived Intangible Assets [Line Items] | |
Other intangible assets estimated useful life | 5 years |
Customer Relationships | |
Finite Lived Intangible Assets [Line Items] | |
Other intangible assets estimated useful life | 4 years |
Non-compete Agreements | |
Finite Lived Intangible Assets [Line Items] | |
Other intangible assets estimated useful life | 4 years |
Changes in Product Warranty Res
Changes in Product Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in product warranty reserve | ||
Balance at the beginning of the year | $ 688 | $ 508 |
Accruals for warranties issued during the year | 386 | 1,074 |
Settlements made (in cash or in kind) during the year | (845) | (894) |
Balance at the end of the year | $ 229 | $ 688 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 45,847,000 | $ 53,306,000 |
Cost of revenue recognized from deferred contract cost | 27,000 | |
Deferred Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred contract liabilities | 0 | 200,000 |
Prepaid Expenses and Other Current Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred contract costs | 0 | $ 27,000 |
Deferred Contract Liability | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 200,000 |
Summary of Revenue from the Sal
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 | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 45,847 | $ 53,306 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 45,847 | 53,306 |
Operating Segments | Oil and Gas Markets Product and Services Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 15,628 | 23,179 |
Operating Segments | Oil and Gas Markets Product and Services Revenue | Traditional Exploration | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8,712 | 11,795 |
Operating Segments | Oil and Gas Markets Product and Services Revenue | Wireless Exploration | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 4,362 | 6,851 |
Operating Segments | Oil and Gas Markets Product and Services Revenue | Reservoir | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,554 | 4,533 |
Operating Segments | Adjacent Markets Product and Services Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 30,060 | 29,841 |
Operating Segments | Adjacent Markets Product and Services Revenue | Industrial | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 18,324 | 18,352 |
Operating Segments | Adjacent Markets Product and Services Revenue | Imaging | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 11,736 | 11,489 |
Operating Segments | Emerging Markets Product and Services Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 159 | $ 286 |
Summary of Revenue from the S_2
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 | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 45,847 | $ 53,306 |
Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 45,847 | 53,306 |
Operating Segments | Asia | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,025 | 2,143 |
Operating Segments | Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,558 | 13,044 |
Operating Segments | Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,569 | 4,652 |
Operating Segments | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 28,763 | 31,296 |
Operating Segments | Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 1,932 | $ 2,171 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) | Nov. 13, 2018 | Jul. 27, 2018 | Sep. 30, 2019 | Nov. 30, 2018 | Sep. 30, 2018 | Jul. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Contingent earn-out liability | $ 9,940,000 | $ 7,713,000 | ||||
Goodwill (not deductible for tax purposes) | 5,008,000 | $ 4,343,000 | ||||
Optoseis Technology | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Nov. 13, 2018 | |||||
Acquisition purchase price | $ 1,800,000 | |||||
Contingent payments maximum earn-out amount | $ 23,200,000 | |||||
Contingent payments earn-out period | 5 years 6 months | |||||
Goodwill | $ 700,000 | |||||
Other intangible assets | 3,700,000 | |||||
Fixed assets | 1,700,000 | |||||
Contingent earn-out liability | 4,300,000 | |||||
Acquisition related costs | $ 200,000 | |||||
Goodwill, period increase (decrease) | 1,000,000 | |||||
Increase decrease in other intangible assets | 800,000 | |||||
Goodwill (not deductible for tax purposes) | $ 700,000 | |||||
Optoseis Technology | Machinery and Equipment | ||||||
Business Acquisition [Line Items] | ||||||
Property plant and equipment, Additions | $ 1,800,000 | |||||
Quantum | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Jul. 27, 2018 | |||||
Acquisition purchase price | $ 4,400,000 | |||||
Contingent payments maximum earn-out amount | $ 23,500,000 | |||||
Contingent payments earn-out period | 4 years | |||||
Other intangible assets | $ 8,200,000 | |||||
Contingent earn-out liability | 7,700,000 | |||||
Acquisition related costs | 300,000 | |||||
Goodwill (not deductible for tax purposes) | 4,300,000 | $ 4,300,000 | ||||
Current assets acquired | 200,000 | |||||
Current liabilities acquired | $ 600,000 |
Short-term Investments - Additi
Short-term Investments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Short Term Investments [Abstract] | ||
Realized investment losses | $ (66,000) | $ (11,000) |
Short-term investments | $ 0 | $ 25,471,000 |
Short-term Investments (Details
Short-term Investments (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Short-term Investments, Amortized Cost | $ 25,553 |
Short-term Investments, Unrealized Losses | (82) |
Short-term Investments, Estimated Fair Value | 25,471 |
Corporate bonds | |
Schedule Of Available For Sale Securities [Line Items] | |
Short-term Investments, Amortized Cost | 17,851 |
Short-term Investments, Unrealized Losses | (60) |
Short-term Investments, Estimated Fair Value | 17,791 |
Government bonds | |
Schedule Of Available For Sale Securities [Line Items] | |
Short-term Investments, Amortized Cost | 7,702 |
Short-term Investments, Unrealized Losses | (22) |
Short-term Investments, Estimated Fair Value | $ 7,680 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Canadian Dollar Forward Contract | ||
Derivative [Line Items] | ||
Foreign currency forward contract to hedge | $ 7 | $ 30 |
Canadian Subsidiary | ||
Derivative [Line Items] | ||
Denominated intercompany accounts payable | $ 9.3 | $ 20.4 |
Gross Fair Value of all Derivat
Gross Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Foreign Currency Forward Contracts | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivatives Liabilities | $ 4 | $ 270 |
Company's Derivatives on Consol
Company's Derivatives on Consolidated Financial Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Foreign Currency Forward Contracts | Other Income (Expense) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amount of (Loss) Gain Recognized in Income | $ 552 | $ 779 |
Fair Value of Company's Short-t
Fair Value of Company's Short-term Investments, Contingemt Earn-Out Liability and Foreign Currency Forward Contracts (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ (9,940) | $ (7,713) |
Total | (9,944) | 17,488 |
Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 17,791 | |
Government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 7,680 | |
Foreign Currency Forward Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency forward contract | (4) | (270) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 25,471 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 17,791 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term Investments, Estimated Fair Value | 7,680 | |
Significant Other Observable (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | (4) | (270) |
Significant Other Observable (Level 2) | Foreign Currency Forward Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency forward contract | (4) | (270) |
Significant Unobservable (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration | (9,940) | (7,713) |
Total | $ (9,940) | $ (7,713) |
Changes in Fair Value of Compan
Changes in Fair Value of Company Level 3 Financial Instruments (Details) - Nonrecurring - Significant Unobservable (Level 3) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance | $ 7,713 |
Contingent consideration pursuant to acquisitions | 4,342 |
Fair value adjustments | (2,115) |
Balance | $ 9,940 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Beginning Balance | $ 176,587 | $ 194,803 |
Other comprehensive income (loss) | (138) | (1,389) |
Ending Balance | 178,847 | 176,587 |
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Beginning Balance | (82) | (58) |
Other comprehensive income (loss) | 82 | (24) |
Ending Balance | (82) | |
Foreign Currency Translation Adjustments | ||
Beginning Balance | (15,537) | (14,172) |
Other comprehensive income (loss) | (220) | (1,365) |
Ending Balance | (15,757) | (15,537) |
Accumulated Other Comprehensive Loss | ||
Beginning Balance | (15,619) | (14,230) |
Other comprehensive income (loss) | (138) | (1,389) |
Ending Balance | $ (15,757) | $ (15,619) |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Current trade accounts receivable | ||
Trade accounts receivable | $ 25,144 | $ 15,776 |
Allowance for doubtful accounts | (951) | (1,453) |
Total current trade accounts receivable | $ 24,193 | $ 14,323 |
Accounts and Financing Receiv_3
Accounts and Financing Receivables - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Trade accounts receivable | $ 25,144 | $ 15,776 |
Rental Equipment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Interest rate | 5.00% | |
Term of sales-type lease | 3 years | |
Future minimum lease payments | $ 2,900 | |
Future minimum lease payments of unearned income | 100 | |
Single Customer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Trade accounts receivable | $ 8,500 |
Financing Receivables (Details)
Financing Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | $ 3,472 | $ 11,179 |
Total unearned income | (55) | (332) |
Total financing receivables, net of unearned income | 3,417 | 10,847 |
Allowance for doubtful promissory notes | 0 | (1,849) |
Less current portion | (3,233) | (4,258) |
Non-current financing receivables | 184 | 4,740 |
Promissory Notes | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | 780 | 5,646 |
Total unearned income | (95) | |
Sales Type Lease | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total financing receivables | 2,692 | 5,533 |
Total unearned income | $ (55) | $ (237) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 17,967 | $ 18,802 |
Work in process | 3,681 | 7,926 |
Raw materials | 55,781 | 54,290 |
Obsolescence reserve | (32,050) | (30,551) |
Total | 45,379 | 50,467 |
Inventories | 23,855 | 18,812 |
Non-current portion | $ 21,524 | $ 31,655 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | ||
Inventory obsolescence expense | $ 4,614 | $ 4,353 |
Raw materials include semi-finished goods and component parts | $ 25,200 | $ 29,000 |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Rental Equipment [Abstract] | ||
Rental equipment, primarily wireless recording equipment | $ 107,645 | $ 76,245 |
Accumulated depreciation and impairment | (45,583) | (36,700) |
Rental equipment, net | $ 62,062 | $ 39,545 |
Rental Equipment - Additional I
Rental Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Rental Equipment [Abstract] | ||
Rental equipment depreciation expense | $ 13,713 | $ 10,178 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | Aug. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Property Plant And Equipment [Line Items] | |||
Gain on disposal of property | $ 100 | $ 27 | |
Property, plant and equipment depreciation expense | $ 3,965 | $ 4,040 | |
Gessner Road, Houston, Texas [Member] | |||
Property Plant And Equipment [Line Items] | |||
Sale of real property for cash price | $ 8,300 | ||
Gain on disposal of property | $ 7,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property Plant And Equipment [Abstract] | ||
Land and land improvements | $ 7,933 | $ 8,552 |
Building and building improvements | 24,582 | 31,070 |
Machinery and equipment | 54,760 | 52,523 |
Furniture and fixtures | 1,376 | 1,362 |
Tools and molds | 2,710 | 2,256 |
Construction in progress | 512 | 503 |
Leasehold improvements | 85 | |
Transportation equipment | 75 | 31 |
Property plant and equipment gross | 92,033 | 96,297 |
Accumulated depreciation and impairment | (60,559) | (62,673) |
Property plant and equipment net | $ 31,474 | $ 33,624 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Nov. 30, 2018 | Jul. 31, 2018 | Jul. 27, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||||
Goodwill | $ 5,008,000 | $ 4,343,000 | |||
Goodwill impairment | 0 | ||||
Other intangible assets impairment | 0 | ||||
Amortization expense | $ 1,661,000 | $ 194,000 | |||
Optoseis Technology | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Goodwill | $ 700,000 | ||||
Other intangible assets | $ 3,700,000 | ||||
Quantum | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Goodwill | $ 4,300,000 | $ 4,300,000 | |||
Other intangible assets | $ 8,200,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | ||
Goodwill | $ 5,008 | $ 4,343 |
Other intangible assets, net | 10,063 | 8,006 |
Optoseis Technology and Quantum | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Goodwill | 5,008 | 4,343 |
Total other intangible assets | 11,918 | 8,200 |
Accumulated amortization | (1,855) | (194) |
Other intangible assets, net | $ 10,063 | 8,006 |
Weighted-Average Remaining Useful Lives (in years) | 10 years | |
Optoseis Technology and Quantum | Developed Technology | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 5,918 | 4,200 |
Weighted-Average Remaining Useful Lives (in years) | 16 years 10 months 24 days | |
Optoseis Technology and Quantum | Customer Relationships | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 3,900 | 2,500 |
Weighted-Average Remaining Useful Lives (in years) | 2 years 10 months 24 days | |
Optoseis Technology and Quantum | Trade Names | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 1,930 | 1,400 |
Weighted-Average Remaining Useful Lives (in years) | 3 years 10 months 24 days | |
Optoseis Technology and Quantum | Non-compete Agreements | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Total other intangible assets | $ 170 | $ 100 |
Weighted-Average Remaining Useful Lives (in years) | 3 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Of Other intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 1,732 | |
2021 | 1,732 | |
2022 | 1,624 | |
2023 | 714 | |
2024 | 342 | |
Thereafter | 3,919 | |
Other intangible assets, net | $ 10,063 | $ 8,006 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Nov. 22, 2019 | Nov. 08, 2018 | Mar. 02, 2011 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 |
Second Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Unencumbered liquid asset value | $ 10,000,000 | |||||
Fourth Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Unencumbered liquid asset value | $ 5,000,000 | |||||
Minimum tangible net worth | $ 140,000,000 | |||||
Fourth Amendment | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Unencumbered liquid asset value | $ 5,000,000 | |||||
Minimum tangible net worth | 140,000,000 | |||||
Fifth Amendment | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Unencumbered liquid asset value | 10,000,000 | |||||
Minimum tangible net worth | $ 145,000,000 | |||||
Frost Bank Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt outstanding | $ 0 | $ 0 | ||||
Line of credit borrowing capacity | $ 30,000,000 | |||||
Credit agreement borrowing availability | $ 27,000,000 | |||||
Frost Bank Credit Agreement | Second Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement expiration date | 2019-04 | |||||
Frost Bank Credit Agreement | Third Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement expiration date | 2020-04 | |||||
Frost Bank Credit Agreement | Fifth Amendment | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement expiration date | 2022-04 | |||||
Frost Bank Credit Agreement | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Marginal interest rate | 5.00% | |||||
Frost Bank Credit Agreement | Certain Accounts Receivable | Second Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing base as percentage of assets | 80.00% | |||||
Frost Bank Credit Agreement | New Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement date | Mar. 2, 2011 | |||||
Frost Bank Credit Agreement | New Agreement | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement date | Nov. 30, 2019 | |||||
Frost Bank Credit Agreement | Certain Notes Receivable | Second Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing base as percentage of assets | 50.00% | |||||
Maximum amount of borrowing based upon assets | $ 10,000,000 | |||||
Frost Bank Credit Agreement | Certain Inventories | Second Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing base as percentage of assets | 25.00% | |||||
Maximum amount of borrowing based upon assets | $ 20,000,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Payables And Accruals [Abstract] | |||
Product warranty | $ 229 | $ 688 | $ 508 |
Compensated absences | 1,603 | 1,329 | |
Legal and professional fees | 356 | 434 | |
Payroll | 1,031 | 960 | |
Property and sales taxes | 1,972 | 1,977 | |
Medical claims | 496 | 450 | |
Other | 683 | 988 | |
Accrued expenses and other current liabilities | $ 6,370 | $ 6,826 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Payables And Accruals [Abstract] | |
Purchased stop-loss coverage for individual claims | $ 175,000 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
401(k) Retirement Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Company's share of discretionary matching contributions | $ 0.9 | $ 0.8 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options outstanding | 165,600 | 190,100 | 201,800 |
Intrinsic value of nonqualified stock options exercised | $ 100,000 | $ 41,000 | |
Stock-based compensation expense | 2,300,000 | $ 2,300,000 | |
Unrecognized compensation expense | $ 8,000 | ||
Expected period for recognition of unrecognized compensation expense | 1 month 6 days | ||
Restricted Stock Awards (RSAs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued | 8,000 | 176,450 | |
Weighted average grant date fair value of the restricted stock issued | $ 14.59 | $ 15.13 | |
Unrecognized compensation expense | $ 2,200,000 | ||
Expected period for recognition of unrecognized compensation expense | 2 years | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued | 161,800 | ||
Weighted average grant date fair value of the restricted stock issued | $ 15.17 | ||
Unrecognized compensation expense | $ 1,700,000 | ||
Expected period for recognition of unrecognized compensation expense | 3 years 2 months 12 days | ||
1997 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 2,250,000 | ||
Expiration date | 2017-11 | ||
Common stock available for issuance | 0 | ||
Stock options outstanding | 45,000 | ||
2014 Long Term Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 1,500,000 | ||
Percent of outstanding common stock granted to employees | 10.00% | ||
Exercise price of stock option granted to employees | 110.00% | ||
Common stock available for issuance | 477,015 | ||
2014 Long Term Incentive Plan | Restricted Stock Awards (RSAs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued | 8,000 | 176,450 | |
Weighted average grant date fair value of the restricted stock issued | $ 14.59 | $ 15.13 | |
Grant date fair value of restricted stock issued | $ 100,000 | $ 2,700,000 | |
Restricted stock restriction period | 4 years | 4 years | |
2014 Long Term Incentive Plan | Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued | 161,800 | ||
Weighted average grant date fair value of the restricted stock issued | $ 15.11 | ||
Restricted stock restriction period | 4 years | ||
Grant date fair value of restricted stock | $ 2,400,000 | ||
2014 Long Term Incentive Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options have a term | 10 years | ||
Outstanding shares of common stock granted to employees expiry term | 5 years |
Summary of Combined Activity Un
Summary of Combined Activity Under Equity Incentive Plans (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding, Number of Nonqualified Options, Beginning Balance | 190,100 | 201,800 |
Exercised, Number of Nonqualified Options Outstanding | (24,500) | (7,700) |
Forfeited, Number of Nonqualified Options Outstanding | (4,000) | |
Vested, Number of Nonqualified Options Outstanding | 0 | 0 |
Outstanding, Number of Nonqualified Options, Ending Balance | 165,600 | 190,100 |
Options, Outstanding, Weighted Average Exercise Price per Share, Beginning Balance | $ 17.81 | $ 17.47 |
Exercised, Weighted Average Exercise Price per Share | 8.78 | 8.78 |
Forfeited, Weighted Average Exercise Price per Share | 17.63 | |
Options, Outstanding, Weighted Average Exercise Price per Share, Ending Balance | $ 19.15 | $ 17.81 |
Restricted Stock Awards (RSAs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options, Number of Restricted Stock Awards, Beginning Balance | 327,225 | 288,800 |
Granted, Number of Restricted Stock Awards | 8,000 | 176,450 |
Forfeited, Number of Restricted Stock Awards | (2,875) | (21,925) |
Vested, Number of Restricted Stock Awards | (111,938) | (116,100) |
Options, Number of Restricted Stock Awards, Ending Balance | 220,412 | 327,225 |
Outstanding, Weighted Average Grant-date fair- value per Share, Beginning Balance | $ 16.42 | $ 28.92 |
Granted, Weighted Average Grant-date fair- value per Share | 14.59 | 15.13 |
Forfeited, Weighted Average Grant-date fair- value per Share | 14.60 | 18.75 |
Vested, Weighted Average Grant-date fair- value per Share | 16.18 | 45.19 |
Outstanding, Weighted Average Grant-date fair- value per Share, Ending Balance | $ 16.50 | $ 16.42 |
Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, Number of Restricted Stock Awards | 161,800 | |
Exercised, Number of Restricted Stock Awards | (500) | |
Forfeited, Number of Restricted Stock Awards | (24,010) | |
Options, Number of Restricted Stock Awards, Ending Balance | 137,290 | |
Granted, Weighted Average Grant-date fair- value per Share | $ 15.17 | |
Exercised, Weighted Average Grant-date fair- value per Share | 15.17 | |
Forfeited, Weighted Average Grant-date fair- value per Share | 15.17 | |
Outstanding, Weighted Average Grant-date fair- value per Share, Ending Balance | $ 15.17 |
Summary of Stock Options Outsta
Summary of Stock Options Outstanding and Exercisable (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Options Outstanding Shares | 165,600 | 190,100 | 201,800 |
Options Outstanding, Weighted Average Remaining Term | 4 years 10 months 24 days | ||
Options Outstanding Weighted Average Exercise Price | $ 19.15 | $ 17.81 | $ 17.47 |
Options Outstanding Intrinsic Value | $ 34,650 | ||
Options Exercisable Shares | 45,000 | ||
Option Exercisable Weighted Average Remaining Term | 6 months | ||
Options Exercisable Weighted Average Exercise Price | $ 23.16 | ||
Range One | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices | $ 14.87 | ||
Options Outstanding Shares | 69,300 | ||
Options Outstanding, Weighted Average Remaining Term | 6 years 1 month 6 days | ||
Options Outstanding Weighted Average Exercise Price | $ 14.87 | ||
Options Outstanding Intrinsic Value | $ 34,650 | ||
Range Two | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices Minimum | $ 21.42 | ||
Range of Exercise Prices Maximum | $ 21.95 | ||
Options Outstanding Shares | 84,300 | ||
Options Outstanding, Weighted Average Remaining Term | 4 years 6 months | ||
Options Outstanding Weighted Average Exercise Price | $ 21.63 | ||
Options Exercisable Shares | 33,000 | ||
Option Exercisable Weighted Average Remaining Term | 4 months 24 days | ||
Options Exercisable Weighted Average Exercise Price | $ 21.95 | ||
Range Three | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices Minimum | 26.48 | ||
Range of Exercise Prices Maximum | $ 26.48 | ||
Options Outstanding Shares | 12,000 | ||
Options Outstanding, Weighted Average Remaining Term | 10 months 24 days | ||
Options Outstanding Weighted Average Exercise Price | $ 26.48 | ||
Options Exercisable Shares | 12,000 | ||
Option Exercisable Weighted Average Remaining Term | 10 months 24 days | ||
Options Exercisable Weighted Average Exercise Price | $ 26.48 |
Components of Income (Loss) Bef
Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
United States | $ 4,105 | $ (19,231) |
Foreign | (1,834) | (561) |
Income before income taxes | $ 2,271 | $ (19,792) |
Computation of Provision (Benef
Computation of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Current | ||
Current Federal | $ (16) | $ (613) |
Current Foreign | 2,401 | 51 |
Current State | 16 | |
Total current income tax expenses (benefits) | 2,401 | (562) |
Deferred: | ||
Deferred Foreign | 16 | (18) |
Total Deferred Income Tax Expense (benefits) | 16 | (18) |
Income tax expense | $ 2,417 | $ (580) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes [Line Items] | ||||
United States statutory tax rate | 35.00% | 21.00% | 24.00% | |
Tax refund resulting from filing of an amended U.S. tax return | $ 700 | |||
Decrease in deferred tax asset due to Tax Act | 8,100 | |||
Cash and cash equivalents held by foreign subsidiaries | $ 7,000 | |||
Temporary difference related to undistributed earnings | 12,900 | 12,900 | ||
unrecognized tax liabilities | 0 | 0 | ||
Valuation allowance against net deferred tax assets | 964 | (4,237) | ||
United States | ||||
Income Taxes [Line Items] | ||||
Net operating loss, carryforwards | 61,700 | $ 41,400 | ||
Net operating loss, carryforwards expiration year | 2028 | |||
Tax Cuts And Jobs Act Of 2017, change in tax rate income tax expense benefit | 17,500 | |||
Valuation allowance against net deferred tax assets | 21,500 | 20,900 | ||
Canada | ||||
Income Taxes [Line Items] | ||||
Net operating loss, carryforwards | $ 15,200 | |||
Net operating loss, carryforwards expiration year | 2033 | |||
Valuation allowance against net deferred tax assets | $ 4,500 | $ 4,400 | ||
Russia | ||||
Income Taxes [Line Items] | ||||
Net operating loss, carryforwards | $ 500 | |||
Net operating loss, carryforwards expiration year | 2026 |
Reconciliation of Actual Income
Reconciliation of Actual Income Tax Expenses (Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Expense (benefit) for U.S federal income tax at statutory rate | $ 477 | $ (4,849) |
Effect of foreign income taxes | (101) | (47) |
Research and experimentation tax credit | (812) | (320) |
State income taxes, net of federal income tax benefit | (161) | (23) |
Nondeductible expenses | 105 | 33 |
Resolution of prior years’ tax matters | 14 | (657) |
Change in valuation allowance | 964 | (4,237) |
Impact on deferred taxes due to change in tax rate | 8,116 | |
Difference in U.S. tax rate from assumed rate | 511 | |
Change in fair value of contingent consideration | (444) | |
Foreign income tax withholding | 2,358 | 11 |
Disallowance of stock compensation adjustments in excess of book | 31 | 895 |
Other items | (14) | (13) |
Income tax expense | $ 2,417 | $ (580) |
Effective tax rate | 106.40% | 2.90% |
Components of Net Deferred Inco
Components of Net Deferred Income Tax Asset (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred income tax assets: | ||
Allowance for doubtful accounts | $ 192 | $ 553 |
Inventories | 7,731 | 6,938 |
Loss and tax credit carry-forwards | 22,377 | 21,207 |
Stock-based compensation | 691 | 614 |
Accrued product warranty | 47 | 144 |
Accrued compensated absences | 313 | 259 |
Property and equipment | 462 | 457 |
Prepaid income taxes | 753 | 714 |
Other reserves | 21 | 62 |
Deferred Tax Assets, Gross, Total | 32,587 | 30,948 |
Deferred income tax liabilities: | ||
Allowance for doubtful accounts | (6) | |
Intangible assets | (1,391) | (1,681) |
Property, plant and equipment and other | (4,978) | (3,681) |
Subtotal deferred income tax assets | 26,218 | 25,580 |
Valuation allowance | (26,033) | (25,379) |
Net deferred income tax assets | 185 | 201 |
U.S. | ||
Deferred income tax assets: | ||
Allowance for doubtful accounts | 189 | 545 |
Inventories | 7,652 | 6,870 |
Loss and tax credit carry-forwards | 18,156 | 17,056 |
Stock-based compensation | 691 | 614 |
Accrued product warranty | 43 | 136 |
Accrued compensated absences | 313 | 259 |
Prepaid income taxes | 753 | 714 |
Other reserves | 13 | 56 |
Deferred Tax Assets, Gross, Total | 27,810 | 26,250 |
Deferred income tax liabilities: | ||
Intangible assets | (1,386) | (1,681) |
Property, plant and equipment and other | (4,919) | (3,622) |
Subtotal deferred income tax assets | 21,505 | 20,947 |
Valuation allowance | (21,502) | (20,931) |
Net deferred income tax assets | 3 | 16 |
Non U.S. | ||
Deferred income tax assets: | ||
Allowance for doubtful accounts | 3 | 8 |
Inventories | 79 | 68 |
Loss and tax credit carry-forwards | 4,221 | 4,151 |
Accrued product warranty | 4 | 8 |
Property and equipment | 462 | 457 |
Other reserves | 8 | 6 |
Deferred Tax Assets, Gross, Total | 4,777 | 4,698 |
Deferred income tax liabilities: | ||
Allowance for doubtful accounts | (6) | |
Intangible assets | (5) | |
Property, plant and equipment and other | (59) | (59) |
Subtotal deferred income tax assets | 4,713 | 4,633 |
Valuation allowance | (4,531) | (4,448) |
Net deferred income tax assets | $ 182 | $ 185 |
Net Classification of Deferred
Net Classification of Deferred Income Tax Assets and Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax assets, net | $ 236 | $ 246 |
Deferred income tax liabilities, net | (51) | (45) |
Net deferred income tax assets | $ 185 | $ 201 |
Loss Per Common Share - Additio
Loss Per Common Share - Additional Information (Details) | 12 Months Ended | |
Sep. 30, 2019shares | Sep. 30, 2018shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Split of common stock ratio | 2 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of stock excluded from calcuation of weighted average shares outstandiing | 165,600 | 190,600 |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of stock excluded from calcuation of weighted average shares outstandiing | 137,290 | 0 |
Calculation of Net Loss and Wei
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 | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (146) | $ (19,212) |
Loss attributable to common shareholders for diluted earnings per share | $ (146) | $ (19,212) |
Weighted average number of common share equivalents: | ||
Common shares used in basic loss per share | 13,388,626 | 13,250,867 |
Total weighted average common shares and common share equivalents used in diluted loss per share | 13,388,626 | 13,250,867 |
Loss per shares: | ||
Basic | $ (0.01) | $ (1.45) |
Diluted | $ (0.01) | $ (1.45) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Nov. 13, 2018 | Jul. 27, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 9,940,000 | $ 7,713,000 | ||
Adjustment to initial contingent earn-out liability | (2,115,000) | |||
Rent expense under Operating Leases | 600,000 | $ 100,000 | ||
Future minimum lease obligations, next twelve months | 400,000 | |||
Future minimum lease obligations, due in two years | $ 36,000 | |||
Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Operating lease term | 2 years | |||
Quantum | ||||
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 7,700,000 | |||
Contingent payments earn-out period | 4 years | |||
Contingent payments maximum earn-out amount | $ 23,500,000 | |||
Adjustment to initial contingent earn-out liability | $ (2,900,000) | |||
Optoseis Technology | ||||
Commitments And Contingencies [Line Items] | ||||
Contingent earn-out liability | $ 4,300,000 | |||
Contingent payments earn-out period | 5 years 6 months | |||
Contingent payments maximum earn-out amount | $ 23,200,000 | |||
Adjustment to initial contingent earn-out liability | $ 800,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 99 | $ 336 |
Cash paid (refunded) for income taxes | 2,402 | (649) |
Non-cash investing and financing activities: | ||
Inventory transferred to rental equipment | 1,861 | 29,248 |
Inventory transferred to property, plant and equipment | 126 | 109 |
Financing receivables in connection with sale of used rental equipment | $ 3,984 | |
Property, plant and equipment acquired in connection with business acquisition | 1,721 | |
Extinguishment of financing receivable in connection with repossession of equipment added to rental fleet | $ 750 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 12 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Summary of Company's Segment In
Summary of Company's Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 95,809 | $ 75,748 |
Income (loss) from operations | 1,033 | (20,743) |
Depreciation and amortization expenses | 19,339 | 14,412 |
Impairment, inventory obsolescence and stock-based compensation expenses | 6,943 | 7,244 |
Interest income | 1,308 | 1,083 |
Interest expense | 99 | 336 |
Operating Segments | Oil and Gas Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 64,966 | 44,951 |
Income (loss) from operations | 3,095 | (14,070) |
Depreciation and amortization expenses | 16,865 | 13,348 |
Impairment, inventory obsolescence and stock-based compensation expenses | 6,046 | 6,243 |
Interest income | 1,033 | 614 |
Interest expense | 2 | |
Operating Segments | Adjacent Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 30,156 | 29,932 |
Income (loss) from operations | 6,234 | 5,345 |
Depreciation and amortization expenses | 466 | 490 |
Impairment, inventory obsolescence and stock-based compensation expenses | 92 | 164 |
Interest income | 1 | |
Operating Segments | Emerging Markets | ||
Segment Reporting Information [Line Items] | ||
Revenue | 159 | 286 |
Income (loss) from operations | (2,306) | (718) |
Depreciation and amortization expenses | 1,164 | 194 |
Impairment, inventory obsolescence and stock-based compensation expenses | 68 | 14 |
Interest expense | 1 | |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | 528 | 579 |
Income (loss) from operations | (5,990) | (11,300) |
Depreciation and amortization expenses | 844 | 380 |
Impairment, inventory obsolescence and stock-based compensation expenses | 737 | 823 |
Interest income | 274 | 469 |
Interest expense | $ 99 | $ 333 |
Details of Revenue (Details)
Details of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 95,809 | $ 75,748 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 91,222 | 79,019 |
Canada | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 5,266 | 8,311 |
Colombia | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 408 | 300 |
Russian Federation | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 4,286 | 3,539 |
United Kingdom | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 2,905 | 3,095 |
Eliminations | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ (8,278) | $ (18,516) |
Summary of Revenue by Geographi
Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule Of Revenues From External Customers [Line Items] | ||
Revenue | $ 95,809 | $ 75,748 |
Africa | ||
Schedule Of Revenues From External Customers [Line Items] | ||
Revenue | 20,192 | 5 |
Asia | ||
Schedule Of Revenues From External Customers [Line Items] | ||
Revenue | 10,171 | 2,143 |
Canada | ||
Schedule Of Revenues From External Customers [Line Items] | ||
Revenue | 5,232 | 15,945 |
Europe | ||
Schedule Of Revenues From External Customers [Line Items] | ||
Revenue | 25,860 | 4,743 |
United States | ||
Schedule Of Revenues From External Customers [Line Items] | ||
Revenue | 32,397 | 50,522 |
Other | ||
Schedule Of Revenues From External Customers [Line Items] | ||
Revenue | $ 1,957 | $ 2,390 |
Long-lived Assets, Excluding De
Long-lived Assets, Excluding Deferred Tax Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Schedule Of Long Lived Assets [Line Items] | ||
Long-lived assets, excluding deferred tax assets | $ 130,558 | $ 122,180 |
United States | ||
Schedule Of Long Lived Assets [Line Items] | ||
Long-lived assets, excluding deferred tax assets | 118,064 | 106,079 |
Canada | ||
Schedule Of Long Lived Assets [Line Items] | ||
Long-lived assets, excluding deferred tax assets | 10,419 | 13,515 |
Colombia | ||
Schedule Of Long Lived Assets [Line Items] | ||
Long-lived assets, excluding deferred tax assets | 671 | 1,002 |
Russian Federation | ||
Schedule Of Long Lived Assets [Line Items] | ||
Long-lived assets, excluding deferred tax assets | 961 | 1,143 |
United Kingdom | ||
Schedule Of Long Lived Assets [Line Items] | ||
Long-lived assets, excluding deferred tax assets | 430 | 428 |
China | ||
Schedule Of Long Lived Assets [Line Items] | ||
Long-lived assets, excluding deferred tax assets | $ 13 | $ 13 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | $ 1,453 | |
Balance at Beginning of Period | 30,551 | |
Charged to Costs and Expenses, net of Recoveries | 436 | $ 1,009 |
Balance at End of Period | 951 | 1,453 |
Balance at End of Period | 32,050 | 30,551 |
Inventory Obsolescence Reserve | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 30,551 | 29,614 |
Charged to Costs and Expenses | 4,614 | 4,353 |
(Deductions) and Additions | (3,115) | (3,416) |
Balance at End of Period | 32,050 | 30,551 |
Allowance for Doubtful Accounts on Accounts and Financing Receivables | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 3,302 | 2,415 |
Charged to Costs and Expenses, net of Recoveries | 436 | 1,009 |
(Deductions) and Additions | (2,787) | (122) |
Balance at End of Period | $ 951 | $ 3,302 |