Geospace Technologies (GEOS) 10-Q 6 Feb 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2019	Jan. 31, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Title of 12(b) Security	Common Stock
Trading Symbol	GEOS
Security Exchange Name	NASDAQ
Entity Registrant Name	GEOSPACE TECHNOLOGIES CORP
Entity Central Index Key	0001001115
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,661,489
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Number	001-13601
Entity Tax Identification Number	76-0447780
Entity Incorporation, State or Country Code	TX
Entity Address, Address Line One	7007 Pinemont
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77040
City Area Code	(713)
Local Phone Number	986-4444
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 10,141	$ 18,925
Trade accounts receivable, net	32,681	24,193
Financing receivables	2,517	3,233
Inventories	23,907	23,855
Property held for sale	691
Income tax receivable	11	7
Prepaid expenses and other current assets	1,960	1,001
Total current assets	71,908	71,214
Non-current financing receivables	116	184
Non-current inventories	19,223	21,524
Rental equipment, net	66,985	62,062
Property, plant and equipment, net	31,615	31,474
Operating right-of-use asset	184
Goodwill	5,008	5,008
Other intangible assets, net	9,630	10,063
Deferred income tax assets, net	262	236
Prepaid income taxes	65	64
Other assets	180	179
Total assets	205,176	202,008
Current liabilities:
Accounts payable trade	6,339	4,051
Accrued expenses and other current liabilities	6,241	6,370
Deferred revenue and customer deposits	3,658	2,724
Operating lease liability	160
Income tax payable	35	25
Total current liabilities	16,433	13,170
Contingent consideration	9,940	9,940
Non-current operating lease liability	42
Deferred income tax liabilities	46	51
Total liabilities	26,461	23,161
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding
Common stock, $.01 par value, 20,000,000 shares authorized, 13,661,489 and 13,630,666 shares issued and outstanding	137	136
Additional paid-in capital	89,250	88,660
Retained earnings	104,519	105,808
Accumulated other comprehensive loss	(15,191)	(15,757)
Total stockholders’ equity	178,715	178,847
Total liabilities and stockholders’ equity	$ 205,176	$ 202,008

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2019	Sep. 30, 2019
Statement Of Financial Position [Abstract]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	13,661,489	13,630,666
Common stock, shares outstanding	13,661,489	13,630,666

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue:
Products	$ 9,083,000	$ 10,459,000
Revenue, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember
Rental	$ 16,615,000	$ 7,416,000
Total revenue	25,698,000	17,875,000
Cost of revenue:
Products	$ 9,903,000	$ 11,220,000
Revenue, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember
Rental	$ 5,305,000	$ 3,565,000
Total cost of revenue	15,208,000	14,785,000
Gross profit	10,490,000	3,090,000
Operating expenses:
Selling, general and administrative	5,997,000	6,085,000
Research and development	4,296,000	3,171,000
Bad debt expense (recovery)	27,000	(103,000)
Total operating expenses	10,320,000	9,153,000
Income (loss) from operations	170,000	(6,063,000)
Other income (expense):
Interest expense	(12,000)	(34,000)
Interest income	134,000	272,000
Foreign exchange gains (losses), net	(132,000)	67,000
Other, net	(29,000)	(88,000)
Total other income (loss), net	(39,000)	217,000
Income (loss) before income taxes	131,000	(5,846,000)
Income tax expense	1,420,000	7,000
Net loss	$ (1,289,000)	$ (5,853,000)
Loss per common share:
Basic	$ (0.10)	$ (0.44)
Diluted	$ (0.10)	$ (0.44)
Weighted average common shares outstanding:
Basic	13,454,254	13,339,408
Diluted	13,454,254	13,339,408

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (1,289)	$ (5,853)
Other comprehensive income (loss):
Change in unrealized gains on available-for-sale securities, net of tax		64
Foreign currency translation adjustments	566	(218)
Total other comprehensive income (loss)	566	(154)
Total comprehensive loss	$ (723)	$ (6,007)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance at Sep. 30, 2018	$ 176,587	$ 136	$ 86,116	$ 105,954	$ (15,619)
Beginning Balance, Shares at Sep. 30, 2018		13,600,541
Net loss	(5,853)			(5,853)
Other comprehensive income (loss)	(154)				(154)
Issuance of restricted stock, Shares		8,000
Forfeiture of restricted stock, Shares		250
Issuance of common stock pursuant to the exercise of stock options	215		215
Issuance of common stock pursuant to the exercise of stock options, Shares		24,500
Stock-based compensation	602		602
Ending Balance at Dec. 31, 2018	171,397	$ 136	86,933	100,101	(15,773)
Beginning Balance, Shares at Dec. 31, 2018		13,632,791
Forfeiture of restricted stock, Shares		(250)
Beginning Balance at Sep. 30, 2019	$ 178,847	$ 136	88,660	105,808	(15,757)
Beginning Balance, Shares at Sep. 30, 2019	13,630,666	13,630,666
Net loss	$ (1,289)			(1,289)
Other comprehensive income (loss)	566				566
Issuance of common stock pursuant to the vesting of restricted stock units	1	$ 1
Issuance of common stock pursuant to the vesting of restricted stock units, Shares		30,823
Stock-based compensation	590		590
Ending Balance at Dec. 31, 2019	$ 178,715	$ 137	$ 89,250	$ 104,519	$ (15,191)
Beginning Balance, Shares at Dec. 31, 2019	13,661,489	13,661,489

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (1,289)	$ (5,853)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income tax benefit	(25)	(61)
Rental equipment depreciation	4,443	2,711
Property, plant and equipment depreciation	930	919
Amortization of intangible assets	433	362
Amortization of premiums on short-term investments		(7)
Stock-based compensation expense	590	602
Bad debt expense (recovery)	27	(103)
Inventory obsolescence expense	1,436	1,428
Gross profit from sale of used rental equipment	(284)
Gain on disposal of property, plant and equipment	(14)
Realized loss on short-term investments		59
Effects of changes in operating assets and liabilities:
Trade accounts and other receivables	(8,460)	1,824
Income tax receivable	4
Inventories	(3,126)	(6,302)
Prepaid expenses and other current assets	(949)	(1,472)
Prepaid income taxes	(1)	(12)
Accounts payable trade	2,284	4,240
Accrued expenses and other	(283)	2,008
Deferred revenue and customer deposits	925	879
Income tax payable	9	50
Net cash provided by (used in) operating activities	(3,358)	1,272
Cash flows from investing activities:
Purchase of property, plant and equipment	(1,670)	(717)
Proceeds from the sale of property, plant and equipment	40
Investment in rental equipment	(5,152)	(10,164)
Proceeds from the sale of used rental equipment	1,146	728
Proceeds from the sale of short-term investments		16,081
Business acquisition		(1,819)
Payments for damages related to insurance claim		(118)
Proceeds from insurance claim		78
Net cash provided by (used in) investing activities	(5,636)	4,069
Cash flows from financing activities:
Proceeds from the exercise of stock options		215
Net cash provided by financing activities		215
Effect of exchange rate changes on cash	210	(379)
Increase (decrease) in cash and cash equivalents	(8,784)	5,177
Cash and cash equivalents, beginning of fiscal year	18,925	11,934
Cash and cash equivalents, end of fiscal period	10,141	17,111
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	12	34
Cash paid for income taxes	1,440	7
Inventory transferred to rental equipment	$ 4,070	$ 7,353

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	1. Significant Accounting Policies Basis of Presentation The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2019 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2019 and the consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the three months ended December 31, 2019 and 2018 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. All intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2019 are not necessarily indicative of the operating results for a full year or of future operations. Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2019. Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications had no effect on previously reported 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 (“GAAP”) 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 consolidated financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, impairment of long-lived assets and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. While management believes current estimates are reasonable and appropriate, actual results may differ from these estimates under different conditions or assumptions. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents. At December 31, 2019, cash and cash equivalents included $6.9 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”). Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“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 Company adopted this guidance on October 1, 2019 using the optional transition method, which allows it to initially apply the new guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of this guidance had an immaterial impact on the Company’s consolidated financial statements, and there was no adjustment made to the opening balance of retained earnings. 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 Recently Issued Accounting Pronouncements 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 will 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 financial statements. 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. 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 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 will 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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Dec. 31, 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 when performance of contractual obligations are satisfied, generally when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The Company primarily derives product revenue from the sale of its manufactured products. Revenue from these product sales, including the sale of used rental equipment, is recognized when obligations under the terms of a contract are satisfied, control is transferred and collectability of the sales price is reasonably assured. In situations where collectability of the sales price is not reasonably assured, the Company recognizes the sales price on a cash basis. Transfer of control generally occurs with shipment or delivery, depending on the terms of the underlying contract. The Company’s products are generally sold without any customer acceptance provisions, and the Company’s standard terms of sale do not allow customers to return products for credit. Revenue from engineering services is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is generally priced on a per day rate. The Company also generates revenue from short-term rentals under operating leases of its manufactured products. Rental revenue is recognized as earned over the rental period and collectability of the rent is reasonably assured. Rentals of the Company’s equipment generally range from daily rentals to minimum rental periods of up to 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 have been one year or less. These costs are recorded in selling, general and administrative expenses. At December 31, 2019 and September 30, 2019, the Company had no deferred contract liabilities or deferred contract costs. During the three months ended December 31, 2019 and 2018, the Company recognized revenue of zero and $0.1 million, respectively, from deferred contract liabilities and cost of revenue of zero and $8,000, respectively, 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 (in thousands). Therefore, the table excludes all revenue earned from rental contracts. Three Months Ended December 31, 2019 December 31, 2018 Oil and Gas Markets Traditional exploration product revenue $ 2,330 $ 2,726 Wireless exploration product revenue 404 144 Reservoir product revenue 180 888 Total revenue 2,914 3,758 Adjacent Markets Industrial product revenue 3,596 3,562 Imaging product revenue 2,476 3,051 Total revenue 6,072 6,613 Emerging Markets Revenue 97 88 Total $ 9,083 $ 10,459 See note 13 for more information on the Company’s operating segments. For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts: Three Months Ended December 31, 2019 December 31, 2018 Asia $ 445 $ 1,558 Canada 473 288 Europe 1,413 915 United States 6,597 6,610 Other 155 1,088 Total $ 9,083 $ 10,459 Revenue is attributable to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is not known, revenue is attributable to countries based on the geographic location of the initial shipment.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Dec. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	3. Derivative Financial Instruments At December 31, 2019 and September 30, 2019, the Company’s Canadian subsidiary had CAD $8.3 million and CAD $9.3 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 December 31, 2019 and September 30, 2019, the Company had short-term hedge contracts of CAD $6.0 million and CAD $7.0 million, respectively, 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 the contract has 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 December 31, 2019 September 30, 2019 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 26 $ 4 The following table summarizes the Company’s realized gains (losses) on derivative instruments included in the consolidated statements of operations for the three months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Derivative Instrument Location December 31, 2019 December 31, 2018 Foreign Currency Forward Contracts Other Income (Expense) $ (98 ) $ 552

Trade Accounts Receivable and F

Trade Accounts Receivable and Financing Receivables	3 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Trade Accounts Receivable and Financing Receivables	4. Trade Accounts Receivable and Financing Receivables Trade accounts receivable, net are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Trade accounts receivable $ 33,641 $ 25,144 Allowance for doubtful accounts (960 ) (951 ) Total $ 32,681 $ 24,193 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 December 31, 2019 and September 30, 2019 includes $8.7 million and $8.5 million, respectively, due from an international seismic marine customer that, as of December 31, 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 and into the first quarter of fiscal year 2020 due to the customer’s inability to generate sufficient cash flows to pay its obligations in a timely manner. In November 2019, the Company accepted from the customer a plan to bring its unpaid invoices to a satisfactory status. The most recent payment made by the customer prior to the plan was $1.4 million in November 2019. The customer did not make any of the scheduled payments as detailed in that plan. In late November 2019, the Company ceased recognizing revenue from this customer and expects to continue to do so until the customer demonstrates its ability to routinely service its debts owed to the Company in the ordinary course of business. At December 31, 2019, the total debt contractually owed by the customer to the Company is $10.2 million; however, the trade accounts receivable of $8.7 million on the Company’s balance sheet at December 31, 2019 excludes $1.5 million of unrecognized revenue invoiced by the Company during the quarter ended December 31, 2019. Prior to the customer missing the first scheduled payment in late November, the Company recognized $2.5 million of revenue from this customer for the quarter ended December 31, 2019. Subsequent to December 31, 2019, the Company has commenced negotiations with the customer to enter into an agreement requiring the customer to pay a portion of the trade accounts receivable in the near term, to pay all rental payments going forward on a current basis and convert the remaining amount owed into a debt instrument secured by certain of the customer’s assets. The Company expects to finalize the agreement with the customer in its second quarter ending March 31, 2020. While the Company has significant concerns about the ultimate collection of its accounts receivable from this customer, the Company has not provided any additional bad debt reserves toward its outstanding accounts receivable balance from this customer due to the on-going negotiations. If it becomes probable (in the Company’s judgment) that the customer is unable to generate cash flows sufficient to satisfy the customer’s obligations from the variety of options available to it, the Company will record additional bad debt reserves. The current negotiations may not lead to a definitive agreement being entered into; or the fair market value of the collateral securing the debt under the agreement may not equal or exceed the balance of accounts receivable owed by the customer; or the customer may not meet it’s payment obligations. If any of these situations occur, the Company could record a significant bad debt reserve as soon as the second quarter of fiscal year 2020. Financing receivables are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Promissory notes $ 607 $ 780 Sales-type lease 2,054 2,692 Total financing receivables 2,661 3,472 Unearned income: Sales-type lease (28 ) (55 ) Total unearned income (28 ) (55 ) Total financing receivables, net of unearned income 2,633 3,417 Less current portion (2,517 ) (3,233 ) Non-current financing receivables $ 116 $ 184 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 December 31, 2019 were $2.1 million, including $0.1 million of unearned income. The future minimum lease payments are due in fiscal year 2020. Interest income earned on the lease for the three months ended December 31, 2019 and 2018 was $32,000 and $0.1 million, respectively. The ownership of the equipment will transfer to the lessee at the end of the lease term.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories consist of the following (in thousands): December 31, 2019 September 30, 2019 Finished goods $ 24,286 $ 17,967 Work in process 6,745 3,681 Raw materials 44,446 55,781 Obsolescence reserve (32,347 ) (32,050 ) 43,130 45,379 Less current portion (23,907 ) (23,855 ) Non-current portion $ 19,223 $ 21,524 Raw materials included semi-finished goods and component parts that totaled approximately $19.2 million and $25.2 million at December 31, 2019 and September 30, 2019, respectively.

Leases

Leases	3 Months Ended
	Dec. 31, 2019
Rental Equipment [Abstract]
Leases	6. Leases As Lessee The Company has elected not to record operating right-of-use assets or operating lease liabilities with a term of 12 months or less on its consolidated balance sheet. Such leases are expensed on a straight-line basis over the lease term. The Company has one operating right-of use asset on its consolidated balance sheet related to a leased facility in Austin, Texas. The lease commenced in May 2019 and is for a two-year term. Future minimum lease payments related to the operating lease is as follows (in thousands): For fiscal year ending September 30, 2020 (remainder) $ 124 2021 84 Future minimum lease payments 208 Less interest (6 ) Present value of future minimum lease payments 202 Less current portion (160 ) Non-current portion $ 42 The discount rate used on the lease was 5%, which represents the Company’s incremental borrowing rate. Operating lease costs are recorded in a single expense in the consolidated statements of operations and allocated to the right-of-use asset and the related lease liability as amortization expense and interest expense, respectively. Right-of-use asset operating lease costs of $38,000 and short-term lease costs of $76,000, both included as a component of total operating expenses, were recognized for the three months ended December 31, 2019. Supplemental cash flow information related to the operating lease is a follows (in thousands): Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liability $ 40 Operating lease asset obtained in exchange for new lease liability 219 As Lessor The Company leases equipment to customers primarily for terms of six months or less. The majority of the Company’s rental revenue is generated from its marine-based wireless seismic data acquisition system. All of the Company’s leasing arrangements as lessor are classified as operating leases except for one sales-type lease. See note 4 for more information on this lease. Rental revenue for the three months ended December 31, 2019 and 2018 was $16.6 million and $7.4 million, respectively. At December 31, 2019, future minimum leases payments due from the Company’s leasing customers (all in fiscal year 2020) were $3.2 million (not inclusive of lease deposits of $0.7 million). At December 31, 2019, the minimum lease term for the majority of the equipment on lease to customers was expired and was lea s Rental equipment consisted of the following (in thousands): December 31, 2019 September 30, 2019 Rental equipment, primarily wireless recording equipment $ 117,210 $ 107,645 Accumulated depreciation and impairment (50,225 ) (45,583 ) $ 66,985 $ 62,062

Property Held for Sale

Property Held for Sale	3 Months Ended
	Dec. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]
Property Held for Sale	7. Property Held for Sale The Company owns a property located in Bogot á

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	8. Goodwill and Other Intangible Assets The Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2019 September 30, 2019 Goodwill $ 5,008 $ 5,008 Other intangible assets: Developed technology 16.7 5,919 5,918 Customer relationships 2.7 3,900 3,900 Trade names 3.7 1,930 1,930 Non-compete agreements 2.7 170 170 Total other intangible assets 9.8 11,919 11,918 Accumulated amortization (2,289 ) (1,855 ) $ 9,630 $ 10,063 Other intangible assets amortization expense for each of the three months ended December 31, 2019 and 2018 was $0.4 million. As of December 31, 2019, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2020 (remainder) $ 1,299 2021 1,732 2022 1,624 2023 714 2024 342 Thereafter 3,919 $ 9,630

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2019
Stockholders Equity Note [Abstract]
Accumulated Other Comprehensive Loss	9. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following (in thousands): Three Month Ended December 31, 2019 Balance at October 1, 2019 $ (15,757 ) Foreign currency translation adjustments 566 Balance at December 31, 2019 $ (15,191 ) Three Month Ended December 31, 2018 Balance at October 1, 2018 $ (15,619 ) Changes in unrealized gain on available-for-sale securities, net of tax 64 Foreign currency translation adjustments (218 ) Balance at December 31, 2018 $ (15,773 )

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	10. Stock-Based Compensation During the three months ended December 31, 2019, the Company issued 146,850 restricted stock units (“RSUs”) under its 2014 Long Term Incentive Plan, as amended (the “Plan”). The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU was $14.76 per unit. The grant date fair value of the RSUs was $2.2 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. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. As of December 31, 2019, the Company had unrecognized compensation expense of $3.6 million relating to RSUs that is expected to be recognized over a weighted average period of 3.5 years. As of December 31, 2019, the Company had $1.8 million of unrecognized compensation expense related to restricted stock awards (“RSAs”) that is expected to be recognized over a weighted average period of 1.8 years. As of December 31, 2019, there were 253,320 RSUs, 125,849 RSAs and 165,600 nonqualified stock options outstanding.

Loss Per Common Share

Loss Per Common Share	3 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Loss Per Common Share	11. Loss Per Common Share The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data): Three Months Ended December 31, 2019 December 31, 2018 Net loss $ (1,289 ) $ (5,853 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for diluted earnings per share $ (1,289 ) $ (5,853 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,454,254 13,339,408 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 13,454,254 13,339,408 Loss per share: Basic $ (0.10 ) $ (0.44 ) Diluted $ (0.10 ) $ (0.44 ) For the calculation of diluted loss per share for the three months ended December 31, 2019, 165,600 stock options and 253,320 non-vested RSUs were excluded in the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive. For the calculation of diluted loss per share for the three months ended December 31, 2018, 165,600 stock options and 147,800 non-vested RSUs were excluded in the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies Contingent Consideration In connection with its acquisitions of Quantum Technology Sciences, Inc. (“Quantum”) and the OptoSeis ® 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 ending July 2022. The maximum amount of contingent payments is $23.5 million over the four-year earn-out period. Subsequent to the Quantum acquisition, 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 contingent 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 reviews and accesses the fair value of its contingent earn-out liabilities on a quarterly basis. At December 31, 2019, management re-accessed the Company’s projections of future eligible revenue and determined that the projections had not materially changed since September 30, 2019. Based on the assessment, no adjustments were made to the fair value of the Company’s contingent earn-out liabilities for the first fiscal quarter of 2020. Operating Leases The Company leases office space and certain equipment for terms of two years or less. For the remaining nine months of fiscal year 2020 and for fiscal year 2021, future minimum lease obligations for the Company’s operating right-of-use asset and the Company’s other short-term leases $0.2 million and $0.1 million, 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 such actions. However, management believes that the most probable, ultimate resolution of these pending matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Segment Information	13. Segment Information The Company reports and evaluates financial information for three operating segments: Oil and Gas Markets, Adjacent Markets and Emerging Markets. The Oil and Gas Markets segment products include wireless seismic data acquisition systems, reservoir characterization products and services, and traditional seismic exploration products such as geophones, hydrophones, leader wire, connectors, cables, marine streamer retrieval and steering devices and various other seismic products. The Adjacent Markets segment products include imaging equipment, water meter products, offshore cables, and 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 Company’s acquisition of Quantum, which designs and markets seismic products targeted at the border and perimeter security markets. The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2019 December 31, 2018 Revenue: Oil and Gas Markets $ 19,502 $ 11,004 Adjacent Markets 6,099 6,635 Emerging Markets 97 88 Corporate — 148 Total $ 25,698 $ 17,875 Income (loss) from operations: Oil and Gas Markets $ 4,099 $ (2,601 ) Adjacent Markets 851 982 Emerging Markets (1,365 ) (1,192 ) Corporate (3,415 ) (3,252 ) Total $ 170 $ (6,063 )

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	14. Income Taxes Consolidated income tax expense for the three months ended December 31, 2019 was $1.4 million compared to $7,000 for corresponding period of the prior fiscal year. The income tax expense for the three months ended December 31, 2019 primarily reflects foreign withholding tax on rental income earned in Nigeria and Brunei. During the three months ended December 31, 2019, a substantial portion of the Company’s rental activities were in international locations. 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.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2019 was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at December 31, 2019 and the consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the three months ended December 31, 2019 and 2018 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. All intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2019 are not necessarily indicative of the operating results for a full year or of future operations. Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2019.
Reclassifications	Reclassifications Certain amounts previously presented in the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications had no effect on previously reported 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 (“GAAP”) 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 consolidated financial statements. The Company continually evaluates its estimates, including those related to bad debt reserves, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, impairment of long-lived assets and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. While management believes current estimates are reasonable and appropriate, actual results may differ from these estimates under different conditions or assumptions.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents. At December 31, 2019, cash and cash equivalents included $6.9 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”).
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“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 Company adopted this guidance on October 1, 2019 using the optional transition method, which allows it to initially apply the new guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of this guidance had an immaterial impact on the Company’s consolidated financial statements, and there was no adjustment made to the opening balance of retained earnings. 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
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements 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 will 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 financial statements. 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. 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 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 will 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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Dec. 31, 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 (in thousands). Therefore, the table excludes all revenue earned from rental contracts. Three Months Ended December 31, 2019 December 31, 2018 Oil and Gas Markets Traditional exploration product revenue $ 2,330 $ 2,726 Wireless exploration product revenue 404 144 Reservoir product revenue 180 888 Total revenue 2,914 3,758 Adjacent Markets Industrial product revenue 3,596 3,562 Imaging product revenue 2,476 3,051 Total revenue 6,072 6,613 Emerging Markets Revenue 97 88 Total $ 9,083 $ 10,459
Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas	For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts: Three Months Ended December 31, 2019 December 31, 2018 Asia $ 445 $ 1,558 Canada 473 288 Europe 1,413 915 United States 6,597 6,610 Other 155 1,088 Total $ 9,083 $ 10,459

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 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 December 31, 2019 September 30, 2019 Foreign Currency Forward Contracts Accrued Expenses and Other Current Liabilities $ 26 $ 4
Company's Derivatives on Consolidated Financial Statements of Operations	The following table summarizes the Company’s realized gains (losses) on derivative instruments included in the consolidated statements of operations for the three months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Derivative Instrument Location December 31, 2019 December 31, 2018 Foreign Currency Forward Contracts Other Income (Expense) $ (98 ) $ 552

Trade Accounts Receivable and_2

Trade Accounts Receivable and Financing Receivables (Tables)	3 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Trade Accounts Receivable, Net	Trade accounts receivable, net are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Trade accounts receivable $ 33,641 $ 25,144 Allowance for doubtful accounts (960 ) (951 ) Total $ 32,681 $ 24,193
Financing Receivables	Financing receivables are reflected in the following table (in thousands): December 31, 2019 September 30, 2019 Promissory notes $ 607 $ 780 Sales-type lease 2,054 2,692 Total financing receivables 2,661 3,472 Unearned income: Sales-type lease (28 ) (55 ) Total unearned income (28 ) (55 ) Total financing receivables, net of unearned income 2,633 3,417 Less current portion (2,517 ) (3,233 ) Non-current financing receivables $ 116 $ 184

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following (in thousands): December 31, 2019 September 30, 2019 Finished goods $ 24,286 $ 17,967 Work in process 6,745 3,681 Raw materials 44,446 55,781 Obsolescence reserve (32,347 ) (32,050 ) 43,130 45,379 Less current portion (23,907 ) (23,855 ) Non-current portion $ 19,223 $ 21,524

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Future Minimum Lease Payments Related to Operating Lease	Future minimum lease payments related to the operating lease is as follows (in thousands): For fiscal year ending September 30, 2020 (remainder) $ 124 2021 84 Future minimum lease payments 208 Less interest (6 ) Present value of future minimum lease payments 202 Less current portion (160 ) Non-current portion $ 42
Supplemental Cash Flow Information Related to Operating Lease	Supplemental cash flow information related to the operating lease is a follows (in thousands): Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liability $ 40 Operating lease asset obtained in exchange for new lease liability 219
Rental Equipment	Rental equipment consisted of the following (in thousands): December 31, 2019 September 30, 2019 Rental equipment, primarily wireless recording equipment $ 117,210 $ 107,645 Accumulated depreciation and impairment (50,225 ) (45,583 ) $ 66,985 $ 62,062

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Goodwill and Other Intangible Assets	The Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands): Weighted- Average Remaining Useful Lives (in years) December 31, 2019 September 30, 2019 Goodwill $ 5,008 $ 5,008 Other intangible assets: Developed technology 16.7 5,919 5,918 Customer relationships 2.7 3,900 3,900 Trade names 3.7 1,930 1,930 Non-compete agreements 2.7 170 170 Total other intangible assets 9.8 11,919 11,918 Accumulated amortization (2,289 ) (1,855 ) $ 9,630 $ 10,063
Future Estimated Amortization Expense of Other intangible Assets	As of December 31, 2019, future estimated amortization expense of other intangible assets is as follows (in thousands): For fiscal years ending September 30, 2020 (remainder) $ 1,299 2021 1,732 2022 1,624 2023 714 2024 342 Thereafter 3,919 $ 9,630

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2019
Stockholders Equity Note [Abstract]
Accumulated Other Comprehensive Loss	Accumulated other comprehensive loss consisted of the following (in thousands): Three Month Ended December 31, 2019 Balance at October 1, 2019 $ (15,757 ) Foreign currency translation adjustments 566 Balance at December 31, 2019 $ (15,191 ) Three Month Ended December 31, 2018 Balance at October 1, 2018 $ (15,619 ) Changes in unrealized gain on available-for-sale securities, net of tax 64 Foreign currency translation adjustments (218 ) Balance at December 31, 2018 $ (15,773 )

Loss Per Common Share (Tables)

Loss Per Common Share (Tables)	3 Months Ended
	Dec. 31, 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 data): Three Months Ended December 31, 2019 December 31, 2018 Net loss $ (1,289 ) $ (5,853 ) Less: Loss allocable to unvested restricted stock — — Loss attributable to common shareholders for diluted earnings per share $ (1,289 ) $ (5,853 ) Weighted average number of common share equivalents: Common shares used in basic loss per share 13,454,254 13,339,408 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 13,454,254 13,339,408 Loss per share: Basic $ (0.10 ) $ (0.44 ) Diluted $ (0.10 ) $ (0.44 )

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Summary of Company's Segment Information	The following table summarizes the Company’s segment information (in thousands): Three Months Ended December 31, 2019 December 31, 2018 Revenue: Oil and Gas Markets $ 19,502 $ 11,004 Adjacent Markets 6,099 6,635 Emerging Markets 97 88 Corporate — 148 Total $ 25,698 $ 17,875 Income (loss) from operations: Oil and Gas Markets $ 4,099 $ (2,601 ) Adjacent Markets 851 982 Emerging Markets (1,365 ) (1,192 ) Corporate (3,415 ) (3,252 ) Total $ 170 $ (6,063 )

Significant Accounting Polici_3

Significant Accounting Policies - Additional Information (Details) $ in Millions	Dec. 31, 2019USD ($)
Accounting Policies [Abstract]
Cash and cash equivalents held by foreign subsidiaries and branch offices	$ 6.9

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Deferred contract liabilities	$ 0		$ 0
Deferred contract costs	0		$ 0
Revenue	9,083,000	$ 10,459,000
Cost of revenue recognized from deferred contract cost	0	8,000
Deferred Contract Liability
Disaggregation Of Revenue [Line Items]
Revenue	$ 0	$ 100,000

Revenue Recognition - Summary o

Revenue Recognition - Summary of Revenue from the Sale of Products and Performance of Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Total revenue	$ 9,083	$ 10,459
Operating Segments
Disaggregation Of Revenue [Line Items]
Total revenue	9,083	10,459
Operating Segments | Oil and Gas Markets
Disaggregation Of Revenue [Line Items]
Total revenue	2,914	3,758
Operating Segments | Oil and Gas Markets | Traditional Exploration Product Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	2,330	2,726
Operating Segments | Oil and Gas Markets | Wireless Exploration Product Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	404	144
Operating Segments | Oil and Gas Markets | Reservoir Product Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	180	888
Operating Segments | Adjacent Markets
Disaggregation Of Revenue [Line Items]
Total revenue	6,072	6,613
Operating Segments | Adjacent Markets | Industrial Product Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	3,596	3,562
Operating Segments | Adjacent Markets | Imaging Product Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	2,476	3,051
Operating Segments | Emerging Markets
Disaggregation Of Revenue [Line Items]
Total revenue	$ 97	$ 88

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Revenue from the Sale of Products and Services Under Contracts with Customers Excludes All Revenue Earned from Rental Contracts by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Total revenue	$ 9,083	$ 10,459
Operating Segments
Disaggregation Of Revenue [Line Items]
Total revenue	9,083	10,459
Operating Segments | Asia
Disaggregation Of Revenue [Line Items]
Total revenue	445	1,558
Operating Segments | Canada
Disaggregation Of Revenue [Line Items]
Total revenue	473	288
Operating Segments | Europe
Disaggregation Of Revenue [Line Items]
Total revenue	1,413	915
Operating Segments | United States
Disaggregation Of Revenue [Line Items]
Total revenue	6,597	6,610
Operating Segments | Other
Disaggregation Of Revenue [Line Items]
Total revenue	$ 155	$ 1,088

Derivative Financial Instrume_3

Derivative Financial Instruments - Additional Information (Details) - CAD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019
Canadian Dollar Forward Contract
Derivative [Line Items]
Foreign currency forward contract to hedge	$ 6	$ 7
Canadian Subsidiary
Derivative [Line Items]
Denominated intercompany accounts payable	$ 8.3	$ 9.3

Derivative Financial Instrume_4

Derivative Financial Instruments - Gross Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Foreign Currency Forward Contracts | Accrued Expenses and Other Current Liabilities
Derivatives Fair Value [Line Items]
Derivatives Liabilities	$ 26	$ 4

Derivative Financial Instrume_5

Derivative Financial Instruments - Company's Derivatives on Consolidated Financial Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 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	$ (98)	$ 552

Trade Accounts Receivable and_3

Trade Accounts Receivable and Financing Receivables - Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Current trade accounts receivable
Trade accounts receivable	$ 33,641	$ 25,144
Allowance for doubtful accounts	(960)	(951)
Total	$ 32,681	$ 24,193

Trade Accounts Receivable and_4

Trade Accounts Receivable and Financing Receivables - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Accounts Notes And Loans Receivable [Line Items]
Accounts receivable		$ 33,641,000		$ 25,144,000
Payment made by customer prior to the plan	$ 1,400,000
Revenue		$ 9,083,000	$ 10,459,000
Rental Equipment
Accounts Notes And Loans Receivable [Line Items]
Promissory notes receivable maximum interest rate		5.00%
Promissory notes receivable maturity month and year		2021-05
Term of sales-type lease		3 years
Future minimum lease payments		$ 2,100,000
Future minimum lease payments of unearned income		100,000
Interest income earned on lease		32,000	$ 100,000
Single Customer
Accounts Notes And Loans Receivable [Line Items]
Accounts receivable		10,200,000
Unrecognized revenue		1,500,000
Single Customer | Customer Concentration Risk
Accounts Notes And Loans Receivable [Line Items]
Revenue		2,500,000
Single Customer | Trade Accounts Receivable
Accounts Notes And Loans Receivable [Line Items]
Accounts receivable		$ 8,700,000		$ 8,500,000

Trade Accounts Receivable and_5

Trade Accounts Receivable and Financing Receivables - Financing Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Accounts Notes And Loans Receivable [Line Items]
Total financing receivables	$ 2,661	$ 3,472
Total unearned income	(28)	(55)
Total financing receivables, net of unearned income	2,633	3,417
Less current portion	(2,517)	(3,233)
Non-current financing receivables	116	184
Promissory Notes
Accounts Notes And Loans Receivable [Line Items]
Total financing receivables	607	780
Sales Type Lease
Accounts Notes And Loans Receivable [Line Items]
Total financing receivables	2,054	2,692
Total unearned income	$ (28)	$ (55)

Inventories - Inventories (Deta

Inventories - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 24,286	$ 17,967
Work in process	6,745	3,681
Raw materials	44,446	55,781
Obsolescence reserve	(32,347)	(32,050)
Total	43,130	45,379
Less current portion	(23,907)	(23,855)
Non-current portion	$ 19,223	$ 21,524

Inventories - Additional Inform

Inventories - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Inventory Disclosure [Abstract]
Raw materials included semi-finished goods and component parts	$ 19.2	$ 25.2

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments Related to Operating Lease (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2020 (remainder)	$ 124
2021	84
Future minimum lease payments	208
Less interest	(6)
Present value of future minimum lease payments	202
Less current portion	(160)
Non-current operating lease liability	$ 42

Leases - Additional Information

Leases - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases [Line Items]
Lessee operating lease, discount rate	5.00%
Right-of-use asset, operating lease costs	$ 38,000
Short-term lease costs	76,000
Rental revenue	16,615,000	$ 7,416,000
Future minimum leases payments to be received	3,200,000
Lease deposits	$ 700,000
Maximum
Leases [Line Items]
Lease term	6 months

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information Related to Operating Lease (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liability	$ 40
Operating lease asset obtained in exchange for new lease liability	$ 219

Leases - Rental Equipment (Deta

Leases - Rental Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Leases [Abstract]
Rental equipment, primarily wireless recording equipment	$ 117,210	$ 107,645
Accumulated depreciation and impairment	(50,225)	(45,583)
Rental equipment, net	$ 66,985	$ 62,062

Property Held for Sale - Additi

Property Held for Sale - Additional Information (Details) $ in Thousands	Dec. 31, 2019USD ($)
Discontinued Operations And Disposal Groups [Abstract]
Carrying value of property reclassified to property held for sale	$ 691

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2018
Goodwill And Other Intangible Assets [Line Items]
Goodwill	$ 5,008	$ 5,008	$ 5,008
Total other intangible assets	11,919		11,918
Accumulated amortization	(2,289)		(1,855)
Other intangible assets, net	$ 9,630	$ 10,063	10,063
Weighted-Average Remaining Useful Lives (in years)	9 years 9 months 18 days
Developed Technology
Goodwill And Other Intangible Assets [Line Items]
Total other intangible assets	$ 5,919		5,918
Weighted-Average Remaining Useful Lives (in years)	16 years 8 months 12 days
Customer Relationships
Goodwill And Other Intangible Assets [Line Items]
Total other intangible assets	$ 3,900		3,900
Weighted-Average Remaining Useful Lives (in years)	2 years 8 months 12 days
Trade Names
Goodwill And Other Intangible Assets [Line Items]
Total other intangible assets	$ 1,930		1,930
Weighted-Average Remaining Useful Lives (in years)	3 years 8 months 12 days
Non-compete Agreements
Goodwill And Other Intangible Assets [Line Items]
Total other intangible assets	$ 170		$ 170
Weighted-Average Remaining Useful Lives (in years)	2 years 8 months 12 days

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 433	$ 362

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Of Other intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
2020 (remainder)	$ 1,299
2021	1,732
2022	1,624
2023	714
2024	342
Thereafter	3,919
Other intangible assets, net	$ 9,630	$ 10,063	$ 10,063

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Beginning Balance	$ 178,847	$ 176,587
Changes in unrealized gain on available-for-sale securities, net of tax		64
Foreign currency translation adjustments	566	(218)
Ending Balance	178,715	171,397
Accumulated Other Comprehensive Loss
Beginning Balance	(15,757)	(15,619)
Ending Balance	$ (15,191)	$ (15,773)

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Nonqualified stock options unvested and outstanding	165,600
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share unvested and outstanding	253,320
Restricted Stock Units (RSUs) | 2014 Long Term Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued	146,850
Weighted average grant date fair value of the restricted stock | $ / shares	$ 14.76
Grant date fair value of restricted stock | $	$ 2.2
Restricted stock restriction period	4 years
Restricted stock units vesting rights	Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting.
Unrecognized compensation expense | $	$ 3.6
Expected period for recognition of unrecognized compensation expense	3 years 6 months
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense | $	$ 1.8
Expected period for recognition of unrecognized compensation expense	1 year 9 months 18 days
Share unvested and outstanding	125,849

Loss Per Common Share - Calcula

Loss Per Common Share - Calculation of Net Loss and Weighted Average Common Shares and Common Equivalent Shares Outstanding for Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net loss	$ (1,289)	$ (5,853)
Loss attributable to common shareholders for diluted earnings per share	$ (1,289)	$ (5,853)
Weighted average number of common share equivalents:
Common shares used in basic loss per share	13,454,254	13,339,408
Total weighted average common shares and common share equivalents used in diluted loss per share	13,454,254	13,339,408
Loss per share:
Basic	$ (0.10)	$ (0.44)
Diluted	$ (0.10)	$ (0.44)

Loss Per Common Share - Additio

Loss Per Common Share - Additional Information (Details) - shares	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Number of stock excluded from calculation of weighted average shares outstanding	165,600	165,600
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Number of stock excluded from calculation of weighted average shares outstanding	253,320	147,800

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	Nov. 13, 2018	Jul. 27, 2018	Sep. 30, 2019	Dec. 31, 2019
Commitments And Contingencies [Line Items]
Contingent earn-out liability			$ 9,940,000	$ 9,940,000
Future minimum lease obligations, remainder of fiscal year 2020				124,000
Future minimum lease obligations, fiscal year 2021				84,000
Office Space and Certain Equipment
Commitments And Contingencies [Line Items]
Future minimum lease obligations, remainder of fiscal year 2020				200,000
Future minimum lease obligations, fiscal year 2021				$ 100,000
Maximum | Office Space and Certain Equipment
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 earn-out period ending month and year		2022-07
Contingent payments maximum earn-out amount		$ 23,500,000
Adjustment to initial contingent earn-out liability			(2,900,000)
OptoSeis® Fiber Optic Sensing Technology Business
Commitments And Contingencies [Line Items]
Contingent earn-out liability	$ 4,300,000
Contingent payments earn-out period	5 years 6 months
Contingent payments earn-out period ending month and year	2024-05
Contingent payments maximum earn-out amount	$ 23,200,000
Adjustment to initial contingent earn-out liability			$ 800,000

Segment Information - Additiona

Segment Information - Additional Information (Details)	3 Months Ended
	Dec. 31, 2019Segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Summary o

Segment Information - Summary of Company's Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 25,698	$ 17,875
Income (loss) from operations	170	(6,063)
Operating Segments | Oil and Gas Markets
Segment Reporting Information [Line Items]
Revenue	19,502	11,004
Income (loss) from operations	4,099	(2,601)
Operating Segments | Adjacent Markets
Segment Reporting Information [Line Items]
Revenue	6,099	6,635
Income (loss) from operations	851	982
Operating Segments | Emerging Markets
Segment Reporting Information [Line Items]
Revenue	97	88
Income (loss) from operations	(1,365)	(1,192)
Corporate
Segment Reporting Information [Line Items]
Revenue		148
Income (loss) from operations	$ (3,415)	$ (3,252)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,420,000	$ 7,000