Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Oct. 28, 2019 | Mar. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SONIC FOUNDRY INC | ||
Entity Central Index Key | 0001029744 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 6,736,643 | ||
Entity Public Float | $ 3,112,319 | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 4,295 | $ 1,189 |
Accounts receivable, net of allowances of $135 and $524 | 6,532 | 7,418 |
Financing receivables, current, net of allowances of $526 | 0 | 100 |
Inventories | 558 | 1,027 |
Investment in sales-type lease, current | 163 | 150 |
Capitalized commissions, current | 464 | 0 |
Prepaid expenses and other current assets | 972 | 941 |
Total current assets | 12,984 | 10,825 |
Property and equipment: | ||
Leasehold improvements | 1,121 | 1,105 |
Computer equipment | 5,610 | 5,718 |
Furniture and fixtures | 1,233 | 1,099 |
Total property and equipment | 7,964 | 7,922 |
Less accumulated depreciation and amortization | 6,396 | 6,009 |
Property and equipment, net | 1,568 | 1,913 |
Other assets: | ||
Financing receivables, long-term | 0 | 181 |
Investment in sales-type lease, long-term | 134 | 249 |
Capitalized commissions, long-term | 106 | 0 |
Other long-term assets | 388 | 415 |
Total assets | 15,180 | 13,583 |
Current liabilities: | ||
Revolving lines of credit | 0 | 885 |
Accounts payable | 843 | 1,610 |
Accrued liabilities | 2,216 | 1,609 |
Unearned revenue | 9,610 | 11,645 |
Current portion of capital lease and financing arrangements | 194 | 248 |
Current portion of notes payable and warrant debt, net of discounts | 968 | 593 |
Total current liabilities | 13,831 | 16,590 |
Long-term portion of unearned revenue | 1,842 | 1,691 |
Long-term portion of capital lease and financing arrangements | 179 | 187 |
Long-term portion of notes payable and warrant debt, net of discounts | 5,429 | 1,357 |
Derivative liability, at fair value | 9 | 14 |
Other liabilities | 143 | 202 |
Total liabilities | 21,433 | 20,041 |
Commitments and contingencies | ||
Stockholders’ equity (deficit): | ||
Preferred stock | 0 | 0 |
Common stock, $.01 par value, authorized 10,000,000 shares; 6,749,359 and 5,113,400 shares issued and 6,736,643 and 5,100,684 shares outstanding | 67 | 51 |
Additional paid-in capital | 203,735 | 200,130 |
Accumulated deficit | (209,340) | (207,419) |
Accumulated other comprehensive loss | (546) | (676) |
Receivable for common stock issued | 0 | (26) |
Treasury stock, at cost, 12,716 shares | (169) | (169) |
Total stockholders’ equity (deficit) | (6,253) | (6,458) |
Total liabilities and stockholders’ equity (deficit) | 15,180 | 13,583 |
9% Preferred stock, Series A, voting, cumulative, convertible, $.01 par value (liquidation preference of $1,000 per share), authorized 4,500 shares; zero and 2,678 shares issued and outstanding, respectively, at amounts paid in | ||
Stockholders’ equity (deficit): | ||
Preferred stock | 0 | 1,651 |
5% Preferred stock, Series B, voting, cumulative, convertible, $.01 par value (liquidation preference at par), authorized 1,000,000 shares, none issued | ||
Stockholders’ equity (deficit): | ||
Preferred stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 6,749,359 | 5,113,400 |
Common stock, shares outstanding (in shares) | 6,736,643 | 5,100,684 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 12,716,000 | 12,716,000 |
Accounts receivable, allowances | $ 135 | $ 524 |
Financing receivables, allowances | $ 526 | $ 526 |
9% Preferred stock, Series A, voting, cumulative, convertible, $.01 par value (liquidation preference of $1,000 per share), authorized 4,500 shares; zero and 2,678 shares issued and outstanding, respectively, at amounts paid in | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 4,500 | 4,500 |
Preferred stock, issued (in shares) | 0 | 2,678 |
Preferred stock, outstanding (in shares) | 0 | 2,678 |
Preferred stock, dividend rate | 9.00% | 9.00% |
5% Preferred stock, Series B, voting, cumulative, convertible, $.01 par value (liquidation preference at par), authorized 1,000,000 shares, none issued | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, dividend rate | 5.00% | 5.00% |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | $ 34,781 | $ 34,544 |
Cost of revenue | 9,280 | 9,656 |
Gross margin | 25,501 | 24,888 |
Operating expenses: | ||
Selling and marketing | 14,727 | 15,622 |
General and administrative | 5,929 | 6,354 |
Product development | 7,353 | 7,142 |
Impairment of goodwill and intangible assets | 0 | 11,809 |
Total operating expenses | 28,009 | 40,927 |
Loss from operations | (2,508) | (16,039) |
Non-operating income (expenses): | ||
Interest expense, net | (897) | (601) |
Other income (expense), net | (117) | 142 |
Total non-operating expenses | (1,014) | (459) |
Loss before income taxes | (3,522) | (16,498) |
Income tax benefit (provision) | (90) | 4,332 |
Net loss | (3,612) | (12,166) |
Dividends on preferred stock | (122) | (257) |
Net loss attributable to common stockholders | $ (3,734) | $ (12,423) |
Loss per common share: | ||
Basic net loss per common share (usd per share) | $ (0.64) | $ (2.67) |
Diluted net loss per common share (usd per share) | $ (0.64) | $ (2.67) |
Weighted average common shares | ||
Weighted average common shares, basic (in shares) | 5,833,301 | 4,655,520 |
Weighted average common shares, diluted (in shares) | 5,833,301 | 4,655,520 |
Product and other | ||
Revenue | $ 11,631 | $ 12,311 |
Cost of revenue | 4,387 | 5,231 |
Services | ||
Revenue | 23,150 | 22,233 |
Cost of revenue | $ 4,893 | $ 4,425 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (3,612) | $ (12,166) |
Foreign currency translation adjustment | 130 | (81) |
Comprehensive loss | $ (3,482) | $ (12,247) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Preferred stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Receivable for common stock issued | Treasury stock | Preferred stock | Common stock |
Beginning balance at Sep. 30, 2017 | $ 3,118 | $ 45 | $ 1,280 | $ 197,836 | $ (195,253) | $ (595) | $ (26) | $ (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 245 | 245 | ||||||||
Issuance of stock | 500 | 500 | ||||||||
Preferred stock dividends | 0 | 44 | (44) | |||||||
Foreign currency translation adjustment | 20 | 20 | ||||||||
Net loss | 320 | |||||||||
Ending balance at Dec. 31, 2017 | 4,203 | 45 | 1,824 | 198,037 | (194,933) | (575) | (26) | (169) | ||
Beginning balance at Sep. 30, 2017 | 3,118 | 45 | 1,280 | 197,836 | (195,253) | (595) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 476 | 476 | ||||||||
Issuance of stock | 2 | 1,531 | 592 | $ 1,531 | $ 594 | |||||
Conversion of preferred stock | 0 | 4 | (1,390) | 1,386 | ||||||
Beneficial conversion feature on convertible debt | 70 | 70 | ||||||||
Preferred stock dividends | 0 | 230 | (230) | |||||||
Foreign currency translation adjustment | (81) | (81) | ||||||||
Net loss | (12,166) | (12,166) | ||||||||
Ending balance at Sep. 30, 2018 | (6,458) | 51 | 1,651 | 200,130 | (207,419) | (676) | (26) | (169) | ||
Beginning balance at Dec. 31, 2017 | 4,203 | 45 | 1,824 | 198,037 | (194,933) | (575) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 75 | 75 | ||||||||
Issuance of stock | 8 | 8 | ||||||||
Preferred stock dividends | 0 | 50 | (50) | |||||||
Foreign currency translation adjustment | 309 | 309 | ||||||||
Net loss | (1,449) | |||||||||
Ending balance at Mar. 31, 2018 | 3,146 | 45 | 1,874 | 198,070 | (196,382) | (266) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 73 | 73 | ||||||||
Issuance of stock | 2 | 1,031 | 498 | $ 1,031 | 500 | |||||
Conversion of preferred stock | 0 | 2 | (829) | 827 | ||||||
Beneficial conversion feature on convertible debt | 70 | 70 | ||||||||
Preferred stock dividends | 0 | 67 | (67) | |||||||
Foreign currency translation adjustment | (272) | (272) | ||||||||
Net loss | (1,020) | |||||||||
Ending balance at Jun. 30, 2018 | 3,528 | 49 | 2,143 | 199,471 | (197,402) | (538) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 83 | 83 | ||||||||
Issuance of stock | 86 | 86 | ||||||||
Conversion of preferred stock | 0 | 2 | (561) | 559 | ||||||
Preferred stock dividends | 0 | 69 | (69) | |||||||
Foreign currency translation adjustment | (138) | (138) | ||||||||
Net loss | (10,017) | |||||||||
Ending balance at Sep. 30, 2018 | (6,458) | 51 | 1,651 | 200,130 | (207,419) | (676) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 164 | 164 | ||||||||
Conversion of preferred stock | 0 | 2 | (563) | 561 | ||||||
Preferred stock dividends | 0 | 53 | (53) | |||||||
Foreign currency translation adjustment | 62 | 62 | ||||||||
Net loss | (1,788) | |||||||||
Ending balance at Dec. 31, 2018 | (6,329) | 53 | 1,141 | 200,802 | (207,516) | (614) | (26) | (169) | ||
Beginning balance at Sep. 30, 2018 | (6,458) | 51 | 1,651 | 200,130 | (207,419) | (676) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 177 | 177 | ||||||||
Issuance of stock | 10 | 1,109 | 1,119 | |||||||
Conversion of preferred stock | 0 | 6 | (1,773) | 1,767 | ||||||
Preferred stock dividends | 0 | 122 | (122) | |||||||
Cancellation of receivable for common stock issued | 26 | 26 | ||||||||
Foreign currency translation adjustment | 130 | 130 | ||||||||
Warrants issued in connection with subordinated notes payable | 674 | 674 | ||||||||
Net loss | (3,612) | |||||||||
Ending balance at Sep. 30, 2019 | (6,253) | 67 | 0 | 203,735 | (209,340) | (546) | 0 | (169) | ||
Beginning balance at Dec. 31, 2018 | (6,329) | 53 | 1,141 | 200,802 | (207,516) | (614) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | 56 | 56 | ||||||||
Issuance of stock | 4 | 4 | ||||||||
Preferred stock dividends | 0 | 46 | (46) | |||||||
Foreign currency translation adjustment | (17) | (17) | ||||||||
Warrants issued in connection with subordinated notes payable | 674 | 674 | ||||||||
Net loss | (1,486) | |||||||||
Ending balance at Mar. 31, 2019 | (7,098) | 53 | 1,187 | 201,490 | (209,002) | (631) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | (17) | (17) | ||||||||
Issuance of stock | 10 | 1,096 | 1,106 | |||||||
Conversion of preferred stock | 0 | 4 | (1,210) | 1,206 | ||||||
Preferred stock dividends | 0 | 23 | (23) | |||||||
Foreign currency translation adjustment | 89 | 89 | ||||||||
Net loss | (159) | |||||||||
Ending balance at Jun. 30, 2019 | (6,079) | 67 | 0 | 203,752 | (209,161) | (542) | (26) | (169) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock compensation | (25) | (25) | ||||||||
Issuance of stock | 8 | $ 8 | ||||||||
Cancellation of receivable for common stock issued | 26 | 26 | ||||||||
Foreign currency translation adjustment | (4) | (4) | ||||||||
Net loss | (179) | |||||||||
Ending balance at Sep. 30, 2019 | $ (6,253) | $ 67 | $ 0 | $ 203,735 | $ (209,340) | $ (546) | $ 0 | $ (169) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net loss | $ (3,612) | $ (12,166) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of other intangibles | 307 | 621 |
Depreciation and amortization of property and equipment | 970 | 1,118 |
Impairment of goodwill and intangible assets | 0 | 11,809 |
Loss on sale of fixed assets | 8 | 0 |
Provision for doubtful accounts - including financing receivables | 116 | 475 |
Deferred taxes | 0 | (4,450) |
Stock-based compensation expense related to stock options and warrants | 177 | 476 |
Stock issued for board of director's fees | 246 | 0 |
Deferred loan interest to related party | 259 | 0 |
Conversion of accrued interest to preferred stock | 0 | 31 |
Beneficial conversion feature recognized on debt converted to preferred stock | 0 | 70 |
Remeasurement gain on derivative liability | (8) | (28) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 950 | 348 |
Financing receivables | 293 | 1,630 |
Inventories | 472 | (41) |
Investment in lease | 120 | 158 |
Capitalized commissions | 123 | |
Prepaid expenses and other current assets | 15 | 132 |
Accounts payable and accrued liabilities | (204) | 268 |
Other long-term liabilities | (68) | (169) |
Unearned revenue | (900) | (920) |
Net cash used in operating activities | (736) | (638) |
Investing activities | ||
Purchases of property and equipment | (433) | (840) |
Net cash used in investing activities | (433) | (840) |
Financing activities | ||
Proceeds from notes payable | 5,500 | 3,000 |
Proceeds from lines of credit | 9,199 | 22,236 |
Payments on notes payable | (833) | (815) |
Payments on lines of credit | (10,098) | (23,422) |
Payments of debt issuance costs | (110) | (97) |
Payments to settle put on term debt | 0 | (200) |
Proceeds from issuance of preferred stock and common stock | 873 | 1,094 |
Payments on capital lease and financing arrangements | (250) | (298) |
Net cash provided by financing activities | 4,281 | 1,498 |
Changes in cash and cash equivalents due to changes in foreign currency | (6) | (42) |
Net increase (decrease) in cash and cash equivalents | 3,106 | (22) |
Cash and cash equivalents at beginning of year | 1,189 | 1,211 |
Cash and cash equivalents at end of year | 4,295 | 1,189 |
Supplemental cash flow information: | ||
Interest paid | 618 | 409 |
Income taxes paid, foreign | 99 | 112 |
Non-cash financing and investing activities: | ||
Property and equipment financed by capital lease or accounts payable | 186 | 460 |
Debt discount and warrant | 679 | 127 |
Deemed dividend for beneficial conversion feature of preferred stock | 0 | 28 |
Preferred stock dividend paid in additional shares | 122 | 230 |
Subordinated note payable converted to preferred stock | 0 | 1,000 |
Conversion of preferred shares to common shares | $ 1,773 | $ 1,390 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Business Sonic Foundry, Inc. (the Company) is in the business of providing enterprise solutions and services for the web communications market. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Sonic Foundry Media Systems, Inc., Sonic Foundry International B.V. (formerly Media Mission B.V.) and Mediasite K.K. All significant intercompany transactions and balances have been eliminated. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the period. Actual results could differ from those estimates. Assets Recognized From the Costs to Obtain a Contract With a Customer Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. Effective October 1, 2018, these costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which we have determined to be the contract period, typically around 12 months. Assets recorded are included in current assets and other long-term assets. Amortization expense is recorded in sales and marketing expense within our 2019 consolidated statement of operations. We calculate a quarterly average percentage based on actual commissions incurred on billings during the same period and apply that percentage to the respective periods’ unearned revenues to determine the capitalized commission amount. Revenue Recognition We generate revenues in the form of hardware sales of our Mediasite recorder and Mediasite related products, such as our server software and other software licenses and related customer support and services fees, including hosting, installations and training. Software license revenues include fees from sales of perpetual and term licenses. Maintenance and services revenues primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available), hosting, installation, training and other professional services. Invoices are billed when a customer contract, purchase order or signed quote is obtained from the customer. No revenue is recognized prior to such a customer authorization. In some renewal circumstances, we continue to provide services, typically customer support, during the period when our sales team is working to obtain a customer authorization to avoid customer attrition. Typically, we would bill for this period such that the customer support contract does not lapse. Consistent with historical company practices, we would recognize revenue for the periods where services have already been rendered once customer authorization has occurred. Products Products are considered delivered, and revenue is recognized, when title and risk of loss have been transferred to the customer or upon customer acceptance if non-delivered products or services are essential to the functionality of delivered products. Under the terms and conditions of the sale, this occurs at the time of shipment to the customer. Product revenue currently represents sales of our Mediasite recorder and Mediasite related products such as our server software and other software licenses. Services The Company sells support and content hosting contracts to our customers, typically one year in length, and records the related revenue ratably over the contractual period. Our support contracts cover phone and electronic technical support availability over and above the level provided by our distributors, software upgrades on a when and if available basis, advance hardware replacement and an extension of the standard hardware warranty from 90 days to one year. The manufacturers the Company contracts with to build the units provide a limited one-year warranty on the hardware. The Company also sells installation, training, event webcasting, and customer content hosting services. Revenue for those services is recognized when performed in the case of installation, training and event webcasting services. Occasionally, the Company will sell customization services to enhance the server software. Revenue from those services is recognized when performed, if perfunctory, or under contract accounting. Service amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue until the revenue recognition criteria are met. Revenue Recognition - ASC 606 Adopted Effective October 1, 2018 In accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this core principle, we apply the following five steps: 1. Identify the contract with a customer. A contract with a customer exists when: (1) we and the customer have approved the contract and both parties are committed to perform their respective obligations; (2) we can identify each party’s rights regarding the products or services to be transferred; (3) we can identify the payment terms for the products or services to be transferred; (4) the contract has commercial substance as our future cash flows are expected to change; and (5) it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the products or services. Any subsequent contract modifications are analyzed to determine the treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. 2. Identify the performance obligations in the contract. Performance obligations are promises to transfer a good or service to the customer. Performance obligations may be each individual promise in a contract, or may be groups of promises within a contract that significantly affect one another. To the extent a contract includes multiple promises, we must apply judgment to determine whether promises are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promises are accounted for as a combined performance obligation. 3. Determine the transaction price. The transaction price is the total amount of consideration to which we expect to be entitled in exchange for transferring promised products and services to a customer. 4. Allocate the transaction price to performance obligations in the contract. The allocation of the transaction price to performance obligations is generally done in proportion to their standalone selling prices (“SSP”). SSP is the price that we would sell a distinct product or service separately to a customer and is determined at contract inception. If SSP is not available through the analysis of observable inputs, this step is subject to significant judgment and additional analysis so that we can establish an estimated SSP. The estimated SSP considers historical information, including demand, trends and information about the customer or class of customers. 5. Recognize revenues when or as the company satisfies a performance obligation. We recognize revenues when, or as, distinct performance obligations are satisfied by transferring control of the product or service to the customer. A performance obligation is considered transferred when the customer obtains control of the product or service. Transfer of control is typically evaluated from the customer's perspective. At contract inception, we determine whether we satisfy the performance obligation over time or at a point in time. Revenue is recognized when performance obligations are satisfied. Our contract payment terms are typically net 30 days. We assess collectability based on a number of factors including collection history and creditworthiness of the customer, and we may mitigate exposures to credit risk by requiring payments in advance. If we determine that collectability related to a contract is not probable, we may not record revenue until collectability becomes probable at a later date. Our revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales taxes, which are collected on behalf of and remitted to governmental authorities. Nature of Products and Services Certain software licenses are sold either on-premise or through term-based hosting agreements. These hosting arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. We deliver our software licenses electronically. Electronic delivery occurs when we provide the customer with access to the software and license key via a secure portal. Revenue from on-premise software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Revenue from term-based hosted licenses are recognized ratably over the term of the agreement. Our contracts with customers for on-premise and hosted software licenses include maintenance services and may also include training and/or professional services. Maintenance services agreements consist of fees for providing software updates on an if and when available basis and for providing technical support for software products for a specified term. We believe that our software updates and technical support each have the same pattern of transfer to the customer and are substantially the same. Therefore, we consider these updates and technical support to be a single distinct performance obligation. Revenues allocated to maintenance services are recognized ratably over the term of the agreement. Revenues related to training services are billed on a fixed fee basis and are recognized as the services are delivered. Payments received in advance of services performed are deferred and recognized when the related services are performed. Revenues related to professional services are recognized as the services are performed. In the case of the Company’s hardware products with embedded software, the Company has determined that the hardware and software components function together to deliver the product’s essential functionality, and therefore, are considered to be one performance obligation. The revenue from the sale of these products along with other products and services we provide requires an allocation of transaction price based on the stand-alone selling price of each component. The Company also offers hosting services bundled with events services. The Company recognizes events revenue when the event takes place and recognizes the hosting revenue over the term of the hosting agreement. Judgments and Estimates Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately from one another sometimes requires judgment. Judgment is required to determine standalone selling prices (“SSP”) for each distinct performance obligation. We typically have more than one SSP for each of our products and services based on customer stratification, which is based on the size of the customer, their geographic region and market segment. We use a cost plus margin approach to determine SSPs for hardware. We use historical sales data to determine SSPs for perpetual software licenses. For both on-premise and term-hosted agreements, events services, training and professional services, SSPs are generally observable using internally developed pricing calculators and/or price sheets. For maintenance services, SSPs are generally observable using historical renewal data. Our revenue recognition accounting policy for ASC 605 is included below. Information presented for 2018 and prior years is in accordance with ASC 605 revenue recognition policies. Revenue Recognition - ASC 985-605 and 605 General Revenue is recognized when persuasive evidence of an arrangement exists, delivery occurs or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. Revenue is deferred when undelivered products or services are essential to the functionality of delivered products, customer acceptance is uncertain, significant obligations remain, or the fair value of undelivered elements is unknown. Typically, the Company does not offer customers the right to return product, other than for exchange or repair pursuant to a warranty or stock rotation. The Company’s policy is to reduce revenue if it incurs an obligation for price rebates or other such programs during the period the obligation is reasonably estimated to occur. The following policies apply to the Company’s major categories of revenue transactions. Revenue Arrangements that Include Multiple Elements Sales of software, with or without installation, training, and post customer support fall within the scope of the software revenue recognition rules. Under the software revenue recognition rules, the fee from a multiple-deliverable arrangement is allocated to each of the undelivered elements based upon vendor-specific objective evidence (VSOE), which is limited to the price charged when the same deliverable is sold separately, with the residual value from the arrangement allocated to the delivered element. The portion of the fee that is allocated to each deliverable is then recognized as revenue when the criteria for revenue recognition are met with respect to that deliverable. If VSOE does not exist for all of the undelivered elements, then all revenue from the arrangement is typically deferred until all elements have been delivered to the customer. In the case of the Company’s hardware products with embedded software, the Company has determined that the hardware and software components function together to deliver the product’s essential functionality, and therefore, the revenue from the sale of these products is accounted for under the revenue recognition rules for tangible products whereby the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon VSOE if available, from third-party evidence (TPE) if VSOE is not available, and best estimate of selling price (ESP) if neither VSOE nor TPE are available. TPE is the price of the Company’s or any competitor’s largely interchangeable products or services in stand-alone sales to similarly situated customers. ESP is the price at which the Company would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. All revenue arrangements, excluding the sale of all software-only products and associated services, have been accounted for under this guidance. The selling prices used in the relative selling price allocation method are as follows: (1)the Company’s products and services are based upon VSOE and (2) hardware products with embedded software, for which VSOE does not exist, are based upon ESP. The Company does not believe TPE exists for any of these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. Management establishes ESP for hardware products with embedded software using a cost plus margin approach with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product and the Company’s profit objectives. Management believes that ESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. When a sales transaction includes deliverables that are divided between Accounting Standards Codification (ASC) Topic 605 and ASC Subtopic 985-605, the Company allocates the selling price using the relative selling price method whereas value is allocated using an ESP for software developed using a percent of list price approach. The other deliverables are valued using ESP or VSOE as previously discussed. While the pricing model captures all critical variables, unforeseen changes due to external market forces may result in a revision of the inputs. These modifications may result in the consideration allocation differing from the one presently in use. Absent a significant change in the pricing inputs or the way in which the industry structures its transactions, future changes in the pricing model are not expected to materially affect our allocation of arrangement consideration. Management has established VSOE for hosting services. Billings for hosting are spread ratably over the term of the hosting agreement, with the typical hosting agreement having a term of 1 year , with renewal on an annual basis. The Company sells most hosting contracts without the inclusion of products. When the hosting arrangement is sold in conjunction with product, the product revenue is recognized immediately while the remaining hosting revenue is spread ratably over the term of the hosting agreement. The selling price is allocated between these elements using the relative selling price method. The Company uses ESP for development of the selling price for hardware products with embedded software. The Company also offers hosting services bundled with events services. The Company uses VSOE to establish relative selling prices for its events services. The Company recognizes events revenue when the event takes place and recognizes the hosting revenue over the term of the hosting agreement. The total amount of the arrangement is allocated to each element based on the relative selling price method. Reserves The Company reserves for stock rotations, price adjustments, rebates, and sales incentives to reduce revenue and accounts receivable for these and other credits granted to customers. Such reserves are recorded at the time of sale and are calculated based on historical information (such as rates of product stock rotations) and the specific terms of sales programs, taking into account any other known information about likely customer behavior. If actual customer behavior differs from our expectations, it may compromise our ability to recognize revenue to these distributors at the time of shipment. Also, if the Company determines that it can no longer accurately estimate amounts for stock rotations and sales incentives, the Company would not be able to recognize revenue until resellers sell the inventory to the final end user. Shipping and Handling The Company’s shipping and handling costs billed to customers are included in other revenue. Costs related to shipping and handling are included in cost of revenue and are recorded at the time of shipment to the customer. As a result of the adoption of ASC 606, shipping and handling revenue is included in the relative selling price allocation method effective October 1, 2018. Concentration of Credit Risk and Other Risks and Uncertainties As of September 30, 2019 , of the $4.3 million in cash and cash equivalents, $3.0 million is deposited with 2 major U.S. financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on such amounts and believes that it is not exposed to any significant credit risk on these balances. The remaining $1.3 million of cash and cash equivalents is held by our foreign subsidiaries in financial institutions in Japan and the Netherlands and held in their local currency. The cash held in foreign financial institutions is not guaranteed. If the funds held by our foreign subsidiaries were needed for our operations in the United States, the repatriation of some of these funds to the United States could require payment of additional U.S. taxes. The Company’s wholly-owned subsidiaries operate in Japan and the Netherlands, and utilize the Japanese Yen and Euro, respectively, as their functional currency. Assets and liabilities of the Company’s foreign operations are translated into US dollars at period end exchange rates whiles revenues and expenses are translated using average rates for the period. Gains and losses from the translation are deferred and included in accumulated other comprehensive loss on the consolidated statements of operations. During fiscal 2019 , the Company recorded an aggregate transaction loss of $157 thousand compared to an aggregate gain of $6 thousand during fiscal 2018 . The aggregate transaction gain or loss is included in the other expense line of the consolidated statements of operations. We assess the realization of our receivables by performing ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit ratings or bankruptcy. Our reserve requirements are based on the best facts available to us and are reevaluated and adjusted as additional information is received. Our reserves are also based on amounts determined by using percentages applied to certain aged receivable categories. These percentages are determined by a variety of factors including, but not limited to, current economic trends, historical payment and bad debt write-off experience. Allowance for doubtful accounts for accounts receivable and financing receivables was $661 thousand at September 30, 2019 and $1.0 million at September 30, 2018 . We had billings for Mediasite product and support services as a percentage of total billings to one distributor of less than 1% in 2019 and approximately 6% in 2018 and to a second distributor of less than 1% in 2019 and approximately 11% in 2018 . At September 30, 2019 and 2018 , these two distributors represented 0% and 28% of total accounts receivable, respectively. The reduction in both billings and accounts receivable concentration is a result of the planned reduction in inventory sold through distribution. Currently all of our product inventory purchases are from one third-party contract manufacturer. Although we believe there are multiple sources of supply from other contract manufacturers as well as multiple suppliers of component parts required by the contract manufacturers, a disruption of supply of component parts or completed products, even if short term, would have a material negative impact on our revenues. At September 30, 2019 and 2018 , this supplier represented 31% and 29% , respectively, of total accounts payable. We also license technology from third parties that is embedded in our software. We believe there are alternative sources of similar licensed technology from other third parties that we could also embed in our software, although it could create potential programming related issues that might require engineering resources. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Trade Accounts Receivable The majority of the Company’s accounts receivable are due from entities in, or distributors or value-added resellers to, the education, corporate and government sectors. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are typically due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered to be past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Interest is not accrued on past due receivables. Financing Receivables Financing receivables consist of customer receivables resulting from the sale of the Company's products and services, primarily software and long-term customer support contracts, and are presented net of allowance for losses. The Company has a single portfolio consisting of fixed-term receivables, which is further segregated into two classes based on type of product and lease. The Company generally determines its allowance for losses on financing receivables at the customer class level by considering a number of factors, including the length of time financing receivable are past due, historical and anticipated experience, the customer’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company writes-off financing receivables when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for financing receivable losses. Interest is not accrued on past due receivables. There was an allowance of $526 thousand at both September 30, 2019 and September 30, 2018 . The Company's financing receivables are aggregated into the following categories: Long-term customer support contracts: These contracts are typically entered into in conjunction with sale-type lease arrangements, over the life of which the Company agrees to provide support services similar to those offered within Mediasite Customer Care plans. Contract terms range from 3 - 5 years, and payments are generally due from the customer annually on the contract anniversary. All amounts due were current as of the balance sheet date and there are no credit losses expected to be incurred related to long-term support contracts. Product receivables: Amounts due primarily represent sales of perpetual software licenses to a single international distributor on invoices outstanding for product delivered from March 2016 through June 2017. The entire balance of product receivables as of September 30, 2019 is made up of the product finance receivable that is fully reserved. The entire allowance for losses on financing receivables of $526 thousand is considered attributable to this class of customer as of September 30, 2019 and 2018 . A balance of $281 thousand was outstanding on the product receivables, net of allowance, as of September 30, 2018 . Investment in Sales-Type Lease The Company has entered into sales-type lease arrangements with certain customers, consisting of recorders leased with terms ranging from 3 - 5 years. Investment in sales-type leases consisted of the following (in thousands) as of September 30, 2019 : Investment in sales-type lease, gross: 2020 $ 167 2021 134 Gross investment in sales-type lease 301 Less: Unearned income (4 ) Total investment in sales-type lease $ 297 Current portion of total investment in sales-type lease $ 163 Long-term portion of total investment in sales-type lease 134 $ 297 Inventory Inventory consists of raw materials and supplies used in the assembly of Mediasite recorders and finished units. Inventory of completed units and spare parts are carried at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. Inventory consists of the following (in thousands): September 30, 2019 2018 Raw materials and supplies $ 163 $ 358 Finished goods 395 669 $ 558 $ 1,027 Software Development Costs Software development costs incurred in conjunction with product development are charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the net realizable value of the related product. Typically, the period between achieving technological feasibility of the Company’s products and the general availability of the products has been short. Consequently, software development costs qualifying for capitalization are typically immaterial and are generally expensed to research and development costs. Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method for financial reporting purposes. The estimated useful lives used to calculate depreciation are as follows: Years Leasehold improvements 5 to 15 years Computer equipment 1.5 to 5 years Furniture and fixtures 3 to 15 years Depreciation expense is not included in cost of good sold. Impairment of Long-Lived Assets Goodwill had an indefinite useful life and was recorded at cost and not amortized but, instead, tested at least annually for impairment. We assessed the impairment of goodwill on an annual basis or whenever events or changes in circumstances indicated that the fair value of these assets was less than the carrying value. If a qualitative assessment was used and the Company determined that the fair value of goodwill was more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test would be performed. If goodwill was quantitatively assessed for impairment, the Company compared the estimated fair value of the reporting unit to which goodwill was allocated to its carrying value. The amount of impairment, if any, is equal to the amount by which the carrying value of the reporting unit exceeds its fair value. Long-lived assets and intangible assets other than goodwill are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable based on expected undiscounted cash flows attributable to that asset. Key assumptions utilized in the analysis of undiscounted cash flows for each asset or asset group being tested included 1) whether cash flows were attributable solely to the asset or group, or to an entire reporting unit; and 2) the useful lives of the asset or asset group. Forecasts used in the analysis were also consistent with those used in determining fair value of reporting units during goodwill impairment testing. Asset Retirement Obligation An asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset is recognized as a liability in the period in which it is incurred or becomes determinable, with an associated increase in the carrying amount of the related long-term asset. The cost of the tangible asset, including the initially recognized asset retirement cost, is depreciated over the useful life of the asset. As of September 30, 2019 , the Company has recorded a liability of $129 thousand for retirement obligations associated with returning the MSKK leased property to the respective lessors upon the termination of the lease arrangement. A summary of the changes in the ARO is included in the table below (amounts in thousands): Asset retirement obligation at September 30, 2017 $ 120 Accretion expense 1 Asset retirement obligation at September 30, 2018 121 Accretion expense 2 Foreign currency changes 6 Asset retirement obligation at September 30, 2019 $ 129 Comprehensive Loss Comprehensive loss includes disclosure of financial information that historically has not been recognized in the calculation of net income. Our comprehensive loss encompasses net loss and foreign currency translation adjustments. Assets and liabilities of international operations that have a functional currency that is not in U.S. dollars are translated into U.S. dollars at year-end exchange rates, and revenue and expense items are translated using weighted average exchange rates |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Capital Lease and Financing Agreements The Company leases certain equipment under capital lease and financing agreements expiring through June 2024 . Capital leases that are currently outstanding on equipment included in fixed assets have a cost of $1.4 million and accumulated depreciation of $1.1 million at September 30, 2019 compared to a cost of $1.3 million and accumulated depreciation of $892 thousand at September 30, 2018 . Minimum lease payments, including principal and interest, are summarized in the table below. Depreciation expense for assets under capital lease and financing agreements was $252 thousand for fiscal 2019 and $283 thousand for fiscal 2018 which is reflected in the depreciation and amortization of property and equipment. Fiscal Year (in thousands) Capital 2020 $ 210 2021 116 2022 63 2023 7 2024 5 Total payments 401 Less interest (28 ) Total $ 373 Operating Leases The Company leases certain facilities and equipment under operating lease agreements expiring at various times through March 31, 2022 . Total rent expense on all operating leases was approximately $1.2 million for both of the years ended September 30, 2019 and 2018 , respectively. The Company occupies office space related to a lease agreement entered into on June 28, 2011. The initial lease term was from November 2011 through December 2018 and in Q3 2018, the lease was extended for three years through December 31, 2021 . There are two additional three-year extensions included in the initial lease agreement. The lease includes a tenant improvement allowance of $613 thousand that was recorded as a leasehold improvement liability and is being amortized as a credit to rent expense on a straight-line basis over the lease term. At September 30, 2019 , the unamortized balance was zero compared to $7 thousand at September 30, 2018 . The Company also occupies office space related to a lease agreement entered into on August 1, 2016. The lease term is from October 2016 through December 2020. The lease includes five months of free rent of $130 thousand that was recorded as a deferred rent liability and is being amortized as a credit to rent expense on a straight-line basis over the lease term. At September 30, 2019 and 2018 , the unamortized balance was $44 thousand and $75 thousand , respectively. The following is a schedule by year of future minimum lease payments under operating leases: Fiscal Year (in thousands) Operating 2020 $ 1,289 2021 939 2022 209 Total $ 2,437 Other Commitments The Company enters into unconditional purchase commitments on a regular basis for the supply of Mediasite product. At September 30, 2019 , the Company has an obligation to purchase $464 thousand of Mediasite product, which is not recorded on the Company’s Consolidated Balance Sheet. |
Credit Arrangements
Credit Arrangements | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | Credit Arrangements Silicon Valley Bank The Company and its wholly owned subsidiary, Sonic Foundry Media Systems, Inc. (the “Companies”) entered into the Second Amended and Restated Loan and Security Agreement with Silicon Valley Bank, dated June 27, 2011, as amended by the First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh and Twelfth Amendments, dated May 31, 2013, January 10, 2014, March 31, 2014, January 27, 2015, May 13, 2015, October 5, 2015, February 8, 2016, December 9, 2016, March 22, 2017, May 10, 2017, December 22, 2017, and May 11, 2018 (the Second Amended and Restated Loan Agreement, as amended by the First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh, and Twelfth Amendments, collectively, the “Second Amended and Restated Loan Agreement”). The Second Amended and Restated Loan Agreement provided for a revolving line of credit in the maximum principal amount of $4,000,000 . Interest accrued on the revolving line of credit at the variable per annum rate equal to the Prime Rate (as defined) plus two percent ( 2.00% ). The Second Amended and Restated Loan Agreement provides for an advance rate on domestic receivables of 80% , and an advance rate on foreign receivables of 75% of the lesser of (x) Foreign Eligible Accounts (as defined) or (y) $1,000,000 . The maturity date of the revolving credit facility was January 31, 2019 . Under the Second Amended and Restated Loan Agreement, a term loan was entered into on January 27, 2015 in the original principal amount of $2,500,000 which accrued interest at the variable per annum rate equal to the Prime Rate (as defined) plus two and three-quarters percent, and was to be repaid in 36 equal monthly principal payments, beginning in February 2015. The Second Amended and Restated Loan Agreement also required Sonic Foundry to comply with certain financial covenants, including (i) a liquidity financial covenant, which required minimum Liquidity (as defined), tested with respect to the Company only, on a monthly basis, of at least 1.60 :1.00 for each month-end that is not the last day of a fiscal quarter, and 1.75 :1.00 for each month-end that is the last day of a fiscal quarter, and (ii) a covenant that required the Company to achieve minimum EBITDA (as defined) plus the net change in Deferred Revenue (i) for the quarterly period ended June 30, 2018, measured on a trailing six (6) month basis, to be no less than negative ( $1,100,000 ); (ii) for the quarterly period ended September 30, 2018, measured on a trailing six (6) month basis, to be no less than $500,000 , and (iii) for the quarterly period ended December 31, 2018, measured on a trailing six (6) month basis, to be no less than negative ( $250,000 ), and (iv) for the quarterly period ended March 31, 2019, measured on a trailing three (3) month basis, to be no less than negative ( $250,000 ). The Second Amended and Restated Loan Agreement also required Sonic Foundry to comply with certain financial and funding covenants. The line of credit, which matured on January 31, 2019 , was paid in full. The Company did not renew the line of credit. At September 30, 2018 , there was a balance of $621 thousand outstanding on the revolving line of credit with an effective interest rate of seven-and-one-quarter percent ( 7.25% ) Partners for Growth V, L.P. On May 11, 2018, Sonic Foundry, Inc., entered into a Loan and Security Agreement (the “2018 Loan and Security Agreement”) with Partners for Growth V, L.P. (“PFG V”). The 2018 Loan and Security Agreement provides for a Term Loan ("Term Loan") in the amount of $2,500,000 , which was disbursed in two (2) Tranches as follows: Tranche 1 was disbursed on May 14, 2018 in the amount of $2,000,000 ; and Tranche 2 in the amount of $500,000 , was disbursed on November 8, 2018. Each tranche of the Term Loan bears interest at 10.75% per annum. Tranche 1 of the Term Loan is payable interest only until November 30, 2018. Thereafter, principal is due in 30 equal monthly principal installments, plus accrued interest, beginning December 1, 2018 and continuing until May 1, 2021, when the principal balance is to be paid in full. Tranche 2 of the Term Loan is payable using the same repayment schedule as Tranche 1. Upon maturity, Sonic Foundry is required to pay PFG V a cash fee of $150,000 . The principal of the Term Loan may be prepaid at any time, provided that Sonic Foundry pays to PFG V a prepayment fee equal to 1% of the principal amount prepaid, if the prepayment occurs in the first year from disbursement of Tranche 1. The Term Loan is collateralized by substantially all the Company’s assets, including intellectual property. Coincident with execution of the 2018 Loan and Security Agreement, the Company entered into a Warrant Agreement (“Warrant”) with PFG V. Pursuant to the terms of the Warrant, the Company issued to PFG V a warrant to purchase up to 66,000 shares of common stock of the Company at an exercise price of $2.57 per share, subject to certain adjustments. Pursuant to the Warrant, PFG V is also entitled, under certain conditions, to require the Company to exchange the Warrant for the sum of $250,000 . All warrants issued in connection with PFG V expire on May 11, 2023. At September 30, 2019 and 2018 , the estimated fair value of the derivative liability associated with the warrants issued in connection with the 2018 Loan and Security Agreement, was $9 thousand and $14 thousand , respectively. The remeasurement gain on the derivative liability during fiscal 2019 was $8 thousand , included in the other income (expense), and there was $3 thousand added to fair value related to Tranche 2 of the PFG V Debt, compared to a change in fair value of $14 thousand in fiscal 2018 . The proceeds from the 2018 Loan and Security Agreement were allocated between the PFG V Debt and the Warrant Debt (inclusive of its conversion feature) based on their relative fair value on the date of issuance which resulted in carrying values of $1.9 million and $127 thousand , respectively. The warrant debt of $127 thousand is treated together as a debt discount on the PFG V Debt and will be accreted to interest expense under the effective interest method over the three -year term of the PFG V Debt and the five -year term of the Warrant Debt. During fiscal 2019 , the Company recorded accretion of discount expense associated with the warrants issued with the PFG V loan of $20 thousand compared to $6 thousand in fiscal 2018 , as well as $54 thousand related to amortization of the debt discount in fiscal 2019 compared to $17 thousand in fiscal 2018 . At September 30, 2019 , the carrying values of the PFG V Debt and the Warrant Debt (inclusive of its conversion feature) were $1.7 million and $149 thousand , respectively. At September 30, 2018 , the carrying values of the PFG V Debt and the Warrant Debt (inclusive of its conversion feature) were $1.9 million and $117 thousand , respectively. In addition, the Company agreed to pay PFG V a cash fee of up to $150,000 payable upon maturity (the “back-end fee”), which will be earned ratably over the three year term of the PFG V loan. During fiscal 2019 , the Company recorded interest expense of $50 thousand associated with recognition of the back-end fee compared to $19 thousand in fiscal 2018 . The non-cash effective interest expense is calculated on the net balance of the PFG V Debt, Warrant Debt, and related loan origination fees, on a monthly basis. During fiscal 2019 , we recorded $77 thousand of non-cash interest expense related to the effective interest rate on the PFG V loan. On March 11, 2019, Sonic Foundry, Inc. entered into a Consent, Waiver & Modification to the 2018 Loan and Security Agreement dated May 11, 2018 (the "Modification") with Partners for Growth V, L.P. ("PFG"). Under the Modification: PFG waived the Company's default on the Minimum EBITDA financial covenant for the quarterly reporting period ending December 31, 2018; modified the existing financial covenants to be as follows: (i) Minimum Coverage Ratio (as defined), which requires, as of the last day of each month on or after the closing date, to be equal to or greater than (x) 0.7 : 1.00 for the December through May calendar months, and (y) 0.9 :1.00 for the June through November calendar months; (ii) Minimum Qualifying Revenue (as defined), which requires, as of the last day of each calendar month, on or after December 1, 2018, on a trailing twelve-month basis, to be no less than $13,000,000 ; and modified the negative covenants to be as follows: the Company (x) shall not cause or permit (a) Japanese subsidiary indebtedness under its revolving line of credit facility to exceed at any time $1,000,000 outstanding, or (b) aggregate subsidiary indebtedness to exceed $1,200,000 at any time. At September 30, 2019 , the Company was in compliance with all covenants per in the 2018 Loan and Security Agreement, as modified. Under the Modification, the Company was required to draw the next tranche of $1,000,000 in proceeds on the Note Purchase Agreement (detailed below) on or before March 31, 2019 as well as the final tranche of $1,000,000 in proceeds on or before April 30, 2019. The Company met this requirement as all tranches were fully drawn prior to April 30, 2019 The Modification acknowledged that Silicon Valley Bank, the named "Senior Lender" in the May 11, 2018 Loan Agreement has been repaid and the related senior loan documents terminated. The existing terms of the PFG loan in terms of amortization, interest rate, payment schedule and maturity date are unchanged. At September 30, 2019 , a gross balance of $1.7 million was outstanding on the term debt with PFG V, with an effective interest rate of sixteen-and-six-tenths percent ( 16.60% ). At September 30, 2018 , a gross balance of $1.9 million was outstanding on the term debt with PFG V. Initial Notes of the February 28, 2019 Note Purchase Agreement On January 4, 2019, Sonic Foundry, Inc. and Mr. Mark Burish ("Mr. Burish") entered into a Promissory Note (the "Promissory Note") pursuant to which Mr. Burish purchased a 9.25% Unsecured Promissory Note for $1,000,000 in cash. Interest accrued and outstanding principal on the Promissory Note was due and payable on January 4, 2020. The Promissory Note may be prepaid at any time without penalty. The Promissory Note was later included in the Note Purchase Agreement, dated February 28, 2019, as detailed below. On January 31, 2019, Sonic Foundry, Inc. and Mr. Burish entered into a Promissory Note (the "January 31, 2019 Promissory Note") pursuant to which Mr. Burish purchased a 9.25% Unsecured Promissory Note for $1,000,000 in cash. Interest accrued and outstanding principal on the January 31, 2019 Promissory Note was due and payable on January 31, 2020. The January 31, 2019 Promissory Note may be prepaid any time without penalty. The note may be paid by the Company by issuing common stock to Mr. Burish, with each share valued at $1.30 per share. The January 31, 2019 Promissory Note was later included in the Note Purchase Agreement, dated February 28, 2019, as detailed below. On February 14, 2019, Sonic Foundry, Inc. and Mr. Burish entered into a Promissory Note (the "February 14, 2019 Promissory Note") pursuant to which Mr. Burish purchased a 9.25% Unsecured Promissory Note for $1,000,000 in cash. Interest accrued and outstanding principal on the February 14, 2019 Promissory Note was due and payable on February 14, 2020. The February 14, 2019 Promissory Note may be prepaid any time without penalty. The note may be paid by the Company by issuing common stock to Mr. Burish with each share valued at $1.30 per share. The February 14, 2019 Promissory Note was later included in the Note Purchase Agreement, dated February 28, 2019, as detailed below. Mr. Burish beneficially owns more than 5% of the Company's common stock and also serves as the Chairman of the Board of Directors. February 28, 2019 Note Purchase Agreement On February 28, 2019, Sonic Foundry, Inc. entered into a Note Purchase Agreement (the "Note Purchase Agreement") with Mr. Burish. The Note Purchase Agreement provides for subordinated secured promissory notes (the "Subordinated Promissory Notes") in an aggregate original principal amount of up to $5,000,000 . Mr. Burish will acquire from the Company (a) on the initial closing date, the notes in an aggregate principal amount of $3,000,000 (the "Initial Notes") and (b) two additional tranches, each in the amount of $1,000,000 and payable at any time prior to the first anniversary of the Agreement (the "Additional Notes" and together with the Initial Notes, collectively, the "Purchase Price"). The Initial Notes were previously disbursed in January and February of 2019, as detailed above (the Promissory Note, the January 31st, 2019 Promissory Note, and the February 14, 2019 Promissory Note, collectively referred to as the "Initial Notes"). The fourth tranche was disbursed on March 13, 2019 and the fifth and final tranche was disbursed on April 4, 2019. The Subordinated Promissory Notes accrue interest at the variable per annum rate equal to the Prime Rate (as defined) plus four percent ( 4.00% ). The outstanding principal balance of the Subordinated Promissory Notes, plus all unpaid accrued interest, plus all outstanding and unpaid obligations, shall be due and payable on February 28, 2024 (the "Maturity Date"). Principal installments of $100,000 are payable on the last day of each month end beginning with the month ending August 31, 2020, and continuing through the Maturity Date. The principal of the Subordinated Promissory Notes may be prepaid at any time in whole or in part, by payment of an amount equal to the unpaid principal balance to be pre-paid, plus all unpaid interest accrued thereon through the prepayment date, plus all outstanding and unpaid fees and expenses payable through the prepayment date. At each anniversary of the Closing, an administration fee will be payable to Mr. Burish equal to 0.5% of the purchase price less principal payments made. The Subordinated Promissory Notes are collateralized by substantially all the Company's assets, including intellectual property, subject to the rights of Partners for Growth V, L.P., which shall be senior to the Subordinated Promissory Notes. The Note Purchase Agreement requires compliance with the following financial covenants: (i) Minimum Coverage Ratio, which requires, as of the last day of each month on or after the closing date, the Minimum Coverage Ratio (as defined) to be equal to or greater than (x) 0.7 :1.00 for the December through May calendar months, (y) 0.9 :1.00 for the June through November calendar months; (ii) Minimum Qualifying Revenue (as defined), as of the last day of any calendar month, on or after December 1, 2018, on a trailing twelve-month basis, to be no less than $13,000,000 . At September 30, 2019 , the Company was in compliance with all covenants per in the Note Purchase Agreement. The Note Purchase Agreement dated February 28, 2019 is subordinated to the existing PFG loan. The Company used the proceeds from the notes issued under the Note Purchase Agreement to replace the revolving line of credit with Silicon Valley Bank, which matured on January 31, 2019 . The proceeds from the Note Purchase Agreement were allocated between the Subordinated Promissory Notes and the Warrant debt based on their relative fair value on the date of issuance. The warrant debt of $674 thousand is treated together as a debt discount on the Subordinated Notes Payable and will be accreted to interest expense under the effective interest rate method over the five -year term of the Subordinated Notes Payable. During fiscal 2019 , the Company recorded accretion of discount expense associated with the Subordinated Promissory Notes of $79 thousand . The non-cash effective interest expense is calculated on the net balance of the Subordinated Promissory Notes, Warrant, and related loan origination fees, on a monthly basis. During fiscal 2019 , we recorded $11 thousand of non-cash interest benefit related to the effective interest rate on the Subordinated Promissory Notes. At September 30, 2019 , a gross principal balance of $5.0 million was outstanding on the Subordinated Promissory Notes, with an effective interest rate of fifteen-and-nine-hundredths percent ( 15.09% ). Accrued interest on the Subordinated Promissory Notes was paid through March 31, 2019, but has been deferred since that date. In April 2019 it was informally agreed between the Company and Mr. Burish that the interest would be deferred. On November 22, 2019, the Company entered into a Note Modification Agreement to formalize the deferment of the accrued interest. The Note Modification Agreement modifies the terms of the Subordinated Promissory Notes by deferring all interest payments due at the end of each calendar month beginning April 30, 2019 and continuing through and including July 31, 2020, in an amount which will be determined based on the variable interest rate on the Subordinated Promissory Notes. The deferred interest amount shall be added to the principal amount due on the Subordinated Notes and shall be paid on the maturity date. As a result of the Note Modification Agreement, $259 thousand of accrued interest related to the Subordinated Notes Payable has been re-classed from current to long-term on the Company consolidated balance sheet as of September 30, 2019 . February 28, 2019 Warrant Coincident with execution of the Note Purchase Agreement, the Company entered into a Warrant Agreement ("Warrant") with Mr. Burish. Pursuant to the terms of the Warrant, the Company issued to Mr. Burish a warrant to purchase up to 728,155 shares of common stock of the Company at an exercise price of $1.18 per share, subject to certain adjustments. On April 25, 2019, Mr. Burish exercised his warrant to purchase 728,155 shares of common stock of the Company at an exercise price of $1.18 per share. A special committee of disinterested and independent directors approved the issuance of the Subordinated Promissory Notes and the Warrant. Other Indebtedness At September 30, 2019 , no balance was outstanding on the line of credit with Mitsui Sumitomo Bank. At September 30, 2018 , a balance of $264 thousand was outstanding on the line of credit. The credit facility is related to Mediasite K.K., and accrues an annual interest rate of approximately one-and-one half percent ( 1.575% ). On January 19, 2018, the Company and Mr. Burish entered into a Subscription Agreement (the “Subscription Agreement”)’ Pursuant to the Subscription Agreement, (i) on January 19, 2018, Mr. Burish purchased a 10.75% Convertible Secured Subordinated Promissory Note for $500,000 in cash; and (ii) on February 15, 2018, Mr. Burish purchased an additional 10.75% Convertible Secured Subordinated Promissory Note for $500,000 in cash (each, a “Note”, and collectively, the “Notes”). On May 17, 2018, following approval by the stockholders of the Company of the conversion of the Notes sufficient to comply with rules and regulations of NASDAQ and the Securities and Exchange Commission, the Notes were automatically converted into 1,902 shares of Series A Preferred stock. The number of shares was determined by dividing the total principal and accrued interest due on each Note by $542.13 (the “Conversion Rate”). In the years ended September 30, 2019 and 2018 , respectively, no foreign currency gain or loss was realized related to re-measurement of the subordinated notes payable related to the Company’s foreign subsidiaries. Included below is a summary of the changes in the outstanding notes payable (in thousands): PFG V Debt, Net Warrant Burish Notes, Net of Discount Balance as of September 30, 2018 $ 1,905 $ 103 $ — Activity during the period: Disbursement of Tranche 2, net of discount 471 26 — Disbursement of Tranches 1-5 — — 5,000 Fair value of warrants issued — — (674 ) Payments (833 ) — — Deferred accrued interest — — 259 Amortization and accretion expense 180 20 66 Balance as of September 30, 2019 $ 1,723 $ 149 $ 4,651 Loan origination fees (35 ) — (91 ) Total notes payable and warrant debt, net of discounts $ 1,688 $ 149 $ 4,560 The annual principal payments on the outstanding notes payable are as follows: Fiscal Year (in thousands) 2020 $ 1,200 2021 1,867 2022 1,200 2023 1,200 2024 1,459 Thereafter — Total principal payments 6,926 Less: Discount on notes payable and debt issuance costs (529 ) Total notes payable, net of discount $ 6,397 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consists of the following (in thousands): September 30, 2019 2018 Prepaid expenses $ 855 $ 699 Prepaid insurance 89 84 Other current assets 28 158 Total $ 972 $ 941 Prepaid expenses are amounts paid for services covering periods of performance beyond the balance sheet date such as tradeshow fees and service agreements. Prepaid insurance represents fees paid for insurance covering periods beyond the balance sheet date. Other current assets mainly relates to consumption taxes paid by Mediasite K.K. that were refunded in fiscal 2019 and did not recur at the current balance sheet date. Accrued Liabilities Accrued liabilities consists of the following (in thousands): September 30, 2019 2018 Accrued compensation $ 1,419 $ 972 Accrued expenses 480 359 Accrued interest & taxes 269 223 Other accrued liabilities 48 55 Total $ 2,216 $ 1,609 The Company accrues expenses as they are incurred. Accrued compensation includes wages, vacation, commissions, bonuses, and severance. Accrued expenses is mainly related to stock compensation, professional fees and amounts owed to suppliers. Other accrued liabilities is made up of employee-related expenses. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stock Options and Employee Stock Purchase Plan On March 5, 2009, Stockholders approved adoption of the 2009 Stock Incentive Plan (the “2009 Plan”). The 2009 Plan, beginning October 1, 2009, replaced two former employee stock option plans that terminated coincident with the effectiveness of the 2009 Plan. The Company maintains a directors’ stock option plan under which options may be issued to purchase up to an aggregate of 150,000 shares of common stock. Each non-employee director, who is re-elected or who continues as a member of the board of directors on each annual meeting date and on each subsequent meeting of Stockholders, will be granted options to purchase 2,000 shares of common stock under the directors’ plan, or at other times or amounts at the discretion of the Board of Directors. Each option entitles the holder to purchase one share of common stock at the specified option price. The exercise price of each option granted under the plans was set at the fair market value of the Company’s common stock at the respective grant date. Options vest at various intervals and expire at the earlier of termination of employment, discontinuance of service on the board of directors, ten years from the grant date or at such times as are set by the Company at the date of grant. The Company has applied a graded (tranche-by-tranche) attribution method and expenses share-based compensation on an accelerated basis over the vesting period of the share award, net of estimated forfeitures. The number of shares available for grant under these stockholder approved plans at September 30, is as follows: Qualified Employee Stock Option Plans Director Stock Option Plans Shares available for grant at September 30, 2017 1,008,390 48,000 Options granted (398,749 ) (14,500 ) Options forfeited 86,118 10,000 Shares available for grant at September 30, 2018 695,759 43,500 Options granted (218,850 ) (10,500 ) Options forfeited 536,292 12,000 Shares available for grant at September 30, 2019 1,013,201 45,000 There are additional non-shareholder approved plans with no shares available for grant at September 30, 2019 . The following table summarizes information with respect to outstanding stock options under all plans: Years Ended September 30, 2019 2018 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 2,029,741 $ 7.04 1,805,443 $ 8.33 Granted 229,350 0.73 413,249 2.49 Exercised — — (14,332 ) 4.75 Forfeited (604,662 ) 8.53 (174,619 ) 9.82 Outstanding at end of year 1,654,429 $ 5.62 2,029,741 $ 7.04 Exercisable at end of year 1,297,315 1,349,021 Weighted average fair value of options granted during the year $ 0.28 $ 0.95 The weighted-average remaining contractual life of exercisable shares is 3.8 years . The options outstanding at September 30, 2019 have been segregated into three ranges for additional disclosure as follows: Options Outstanding Options Exercisable Exercise Prices Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Options Weighted Average Exercise Price $0.66 to $4.88 848,136 5.60 $ 2.71 493,189 $ 3.37 5.00 to 9.81 614,533 4.23 7.80 612,866 7.80 $10.00 to $15.00 191,760 3.60 11.46 191,260 11.46 1,654,429 1,297,315 As of September 30, 2019 , there was $131 thousand of total unrecognized compensation cost related to non-vested stock-based compensation, with total forfeiture adjusted unrecognized compensation costs of $97 thousand . The cost is expected to be recognized over a weighted-average life of 0.9 years. As of September 30, 2018 , there was $475 thousand of total unrecognized compensation cost related to non-vested stock-based compensation, with total forfeiture adjusted unrecognized compensation costs of $359 thousand . A summary of the status of the Company’s non-vested shares under all plans at September 30, 2019 and for the year then ended is presented below: Options Weighted Average Grant Date Fair Value Non-vested options at October 1, 2017 544,834 $ 2.42 Granted 413,249 0.95 Vested (258,938 ) 2.47 Forfeited (18,425 ) 1.73 Non-vested options at September 30, 2018 680,720 1.46 Granted 229,350 0.28 Vested (508,998 ) 1.46 Forfeited (43,958 ) 1.06 Non-vested options at September 30, 2019 357,114 $ 0.77 Stock-based compensation recorded in the year ended September 30, 2019 was $177 thousand . Stock-based compensation recorded in the year ended September 30, 2018 was $476 thousand . Stock-based compensation was reduced in fiscal 2019 compared to the prior year due to modification of terms related to non-vested shares as a result of retirement agreements with two former executives and separation agreements with two senior managers. Cash received from exercises under all stock option plans and warrants for the year ended September 30, 2019 was $859 thousand . There was no cash received from exercises under all stock options plans and warrants for the year ended September 30, 2018 . There were no tax benefits realized for tax deductions from option exercises for the years ended September 30, 2019 and 2018 . The Company currently expects to satisfy stock-based awards with registered shares available to be issued. The Company also has an Employee Stock Purchase Plan (Purchase Plan) under which an aggregate of 200,000 common shares may be issued. All employees who have completed 90 days of employment with the Company on the first day of each offering period and customarily work twenty hours per week or more are eligible to participate in the Purchase Plan. An employee who, after the grant of an option to purchase, would hold common stock and/or hold outstanding options to purchase stock possessing 5% or more of the total combined voting power or value of the Company will not be eligible to participate. Eligible employees may make contributions through payroll deductions of up to 10% of their compensation. No participant in the Purchase Plan is permitted to purchase common stock under the Purchase Plan if such option would permit his or her rights to purchase stock under the Purchase Plan to accrue at a rate that exceeds $25,000 of the fair market value of such shares, or that exceeds 1,000 shares, for each calendar year. The Company makes a bi-annual offering to eligible employees of options to purchase shares of common stock under the Purchase Plan on the first trading day of January and July. Each offering period is for a period of 6 months from the date of the offering, and each eligible employee as of the date of offering is entitled to purchase shares of common stock at a purchase price equal to the lower of 85% of the fair market value of common stock on the first or last trading day of the offering period. A total of 25,667 shares are available to be issued under the plan at September 30, 2019 . There were 22,200 and 12,794 shares purchased by employees during fiscal 2019 and 2018 , respectively. The Company recorded stock compensation expense under this plan of $1 thousand and $8 thousand during fiscal 2019 and 2018 , respectively. Cash received from issuance of stock under this plan was $12 thousand and $27 thousand during fiscal 2019 and 2018 , respectively. Common Stock Warrants On April 16, 2018, the Company issued 232,558 shares of common stock to an affiliated party. The shares were issued at a price of $2.15 per share, representing the closing price on April 13, 2018. The affiliated party also received warrants to purchase 232,558 shares of common stock at an exercise price of $2.50 per share, respectively, which expire on April 16, 2025. On April 25, 2019, Mr. Burish exercised his warrant, described in Note 3 (February 28, 2019 Warrant) to purchase 728,155 shares of common stock of the Company at an exercise price of $1.18 per share. See Note 10 - Related Party Transactions for more details on the affiliated party. Preferred stock and dividends In May 2017, the Company created a new series of preferred stock entitled " 9% Cumulative Voting Convertible Preferred Stock, Series A" (the "Preferred Stock, Series A"). As of September 30, 2019 and 2018 , an aggregate total of 4,500 shares were authorized, respectively. Holders of the Preferred Stock, Series A will receive monthly dividends at an annual rate of 9% , payable in additional shares of Preferred Stock, Series A. Dividends declared on the preferred stock are earned monthly as additional shares and accounted for as a reduction to paid-in capital since the Company is currently in an accumulated deficit position. Each share of Preferred Stock, Series A is convertible into that number of shares of common stock determined by dividing $4.23 into the liquidation amount. A total of zero and 2,678 shares of Preferred Stock, Series A issued and outstanding as of September 30, 2019 and 2018 , respectively. On November 9, 2017, the Company sold to Mr. Burish $500 thousand of shares of Preferred Stock, Series A, at $762.85 per share. Mr. Burish is a director of the Company and beneficially owns more than 5% of the Company’s common stock. On November 17, 2017, the Company entered into an Agreement in which Mr. Burish's right to convert shares of Preferred Stock, Series A, into common stock was waived until shareholder approval to approve the issuance of Preferred Stock, Series A had been obtained. The right to vote said shares of Preferred Stock, Series A was also waived pending shareholder approval of the issuance. Shareholder approval was obtained on May 17, 2018. All the above transactions were approved by a special committee of disinterested and independent directors. The Company considered relevant guidance when accounting for the issuance of preferred stock, and determined that the preferred shares meet the criteria for equity classification. Dividends accrued on preferred shares will be shown as a reduction to net income (or an increase in net loss) for purposes of calculating earnings per share. On May 17, 2018, $1.0 million of subordinated convertible debt was fully converted into 1,902 shares of Preferred Stock, Series A, following approval by the stockholders of the Company of the issuance of the Preferred Stock, Series A sufficient to comply with rules and regulations of NASDAQ. On June 8, 2018, 905 shares of Preferred Stock, Series A were automatically converted by the Company into 213,437 shares of common stock. The amount of shares converted represents all preferred shares issued on May 30, 2017 and June 8, 2017, including related dividends. On August 23, 2018, 717 shares of Preferred Stock, Series A were automatically converted by the Company into 169,485 shares of common stock. The amount of shares converted represents all preferred shares issued on August 23, 2017. On November 15, 2018, 718 shares of Preferred Stock, Series A were automatically converted by the Company into 169,741 shares of common stock. The amount of shares converted represents all preferred shares issued on November 9, 2017. On May 17, 2019, 2,080 shares of Preferred Stock Series A were automatically converted by the Company into 491,753 shares of common stock. The amount of shares converted represents all preferred shares issued on May 17, 2018, including related dividends. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (Benefit) provision for income taxes consists of the following (in thousands): Years Ended September 30, 2019 2018 Current income tax expense U.S. $ — $ — Current income tax expense foreign 67 101 Deferred income tax (benefit) provision 23 (4,433 ) (Benefit) provision for income taxes $ 90 $ (4,332 ) U.S. and foreign components of loss before income taxes were as follows (in thousands): Years Ended September 30, 2019 2018 U.S. $ (3,576 ) $ (16,934 ) Foreign 54 436 Loss before income taxes $ (3,522 ) $ (16,498 ) The reconciliation of income tax expense (benefit) computed at the appropriate country specific rate to income tax benefit is as follows (in thousands): Years Ended September 30, 2019 2018 Income tax benefit at statutory rate $ (751 ) $ (4,111 ) State income tax benefit (198 ) (823 ) Foreign tax activity 67 101 Permanent differences, net 44 771 Change in valuation allowance 1,569 1,285 Tax rate change — (1,545 ) Return to provision true-up (1,053 ) — Other 412 (10 ) Income tax expense (benefit) $ 90 $ (4,332 ) The significant components of the deferred tax accounts recognized for financial reporting purposes are as follows (in thousands): September 30, 2019 2018 Deferred tax assets: Net operating loss and other carryforwards $ 25,347 $ 24,262 Common stock options 946 919 Unearned revenue 477 510 Interest expense limitation 262 — Other 544 369 Total deferred tax assets 27,576 26,060 Deferred tax liabilities: Other (97 ) (103 ) Total deferred tax liabilities (97 ) (103 ) Net deferred tax asset 27,479 25,957 Valuation allowance (27,443 ) (25,881 ) Net deferred tax asset $ 36 $ 76 The Company has a $36 thousand and $76 thousand deferred tax asset at September 30, 2019 and 2018 , respectively, recorded within the prepaid expenses and other current assets and other long-term assets lines on the consolidated balance sheet and is primarily related to net operating losses of MSKK. At September 30, 2019 , the Company had net operating loss carryforwards of approximately $103 million for U.S. Federal and $60 million for state tax purposes. For Federal tax purposes, the carryforwards expire in varying amounts through 2038 . For state tax purposes, the carryforwards expire in varying amounts between 2019 and 2034 . Utilization of the Company’s net operating loss may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. In addition, the Company has research and development tax credit carryforwards of approximately $165 thousand , which expires in 2020 . The Company maintains an additional paid-in-capital (APIC) pool which represents the excess tax benefits related to share-based compensation that are available to absorb future tax deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, the Company records the excess as income tax expense in its consolidated statements of income. For fiscal 2019 and fiscal 2018 , the Company had a sufficient APIC pool to cover any tax deficiencies recorded and as a result, these deficiencies did not affect its results of operations. At September 30, 2019 , the Company has $1.1 million of net operating loss carry forwards for which a benefit would be recorded in APIC when realized. Earnings of the Company’s foreign subsidiaries are generally subject to U.S. taxation upon repatriation to the U.S. and the Company’s tax provision reflects the related incremental U.S. tax except for certain foreign subsidiaries whose unremitted earnings are considered to be indefinitely reinvested. No deferred tax liability has been recognized with regard to the remittance of such earnings after MSKK and Sonic Foundry International BV acquisitions were completed. At September 30, 2019 , unremitted earnings of $1.2 million for foreign subsidiaries were deemed to be indefinitely reinvested. Beginning with an acquisition in fiscal year 2002, the Company has amortized Goodwill for tax purposes over a 15 year life. Tax amortization is not applicable to the goodwill from the foreign acquisitions that took place during fiscal 2014 since the foreign goodwill is non-deductible for US federal tax purposes. The difference between the book and tax balance of certain of the company’s goodwill creates a deferred tax liability and an annual tax expense. Because of the long term nature of the goodwill timing difference, tax planning strategies cannot be utilized with respect to the deferred tax liability. The Company’s tax rate differs from the expected tax rate each reporting period as a result of the aforementioned items. The balance of the deferred tax liability related to goodwill was fully written off as of September 30, 2018 as a result of the impairment. The Company recorded a deferred tax liability related to the Customer Relationship intangibles value acquired as part of the purchase of Sonic Foundry International BV and Mediasite KK. In accordance with accounting guidance for uncertainty in income taxes, the Company has concluded that a reserve for income tax contingencies is not necessary. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accruals for interest and penalties on the Company’s Condensed Consolidated Balance Sheets at September 30, 2019 or September 30, 2018 and has not recognized any interest or penalties in the Condensed Consolidated Statements of Operations for either of the years ended September 30, 2019 or 2018 . The Company is subject to taxation in the U.S., Netherlands, Japan and various state jurisdictions. All of the Company’s tax years are subject to examination by the U.S., Dutch, Japanese and state tax authorities due to the carryforward of unutilized net operating losses. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act, which is generally effective for tax years beginning on January 1, 2018, makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) eliminating the corporate alternative minimum tax (AMT); (3) bonus depreciation that will allow for full expensing of qualified property; (4) creating a new limitation on deductible interest expense; (5) the repeal of the domestic production activity deduction; (6) the creation of the base erosion anti-abuse tax (BEAT), a new minimum tax; (7) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Transition Tax); (8) a new provision designed to tax global intangible low-taxed income (GILTI), which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); and (9) changing rules related to uses and limitation of net operating loss carryforwards created in tax years beginning after December 31, 2017. Shortly after enactment, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 ("SAB 118") which provided US GAAP guidance on the accounting for the Act's impact at December 31, 2017. A reporting entity may recognize provisional amounts, where the necessary information is not available, prepared or analyzed (including computations) in reasonable detail or where additional guidance is needed from the taxing authority to determine the appropriate application of the Act. A reporting entity's provisional impact analysis may be adjusted within the 12-month measurement period provided for under SAB 118. The reduction in the corporate tax rate to 21 percent due to the Tax Act is effective January 1, 2018. Consequently, the Company has recorded a decrease related to the net deferred tax assets of approximately $1.5 million with a corresponding net adjustment to the valuation allowance of approximately $1.5 million for the year ended September 30, 2018. |
Savings Plan
Savings Plan | 12 Months Ended |
Sep. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Savings Plan | Savings Plan The Company’s defined contribution 401(k) savings plan covers substantially all employees meeting certain minimum eligibility requirements. Participating employees can elect to defer a portion of their compensation and contribute it to the plan on a pretax basis. The Company may also match certain amounts and/or provide additional discretionary contributions, as defined. The Company made matching contributions of $444 thousand and $365 thousand during the years ended September 30, 2019 and 2018 , respectively. The Company made no additional discretionary contributions during 2019 or 2018 . |
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 | Goodwill and Other Intangible Assets Goodwill and intangible assets that had indefinite useful lives are recorded at cost and are not amortized but, instead, tested at least annually for impairment. The Company assessed the impairment of goodwill on an annual basis or whenever events or changes in circumstances indicated that the fair value of these assets is less than the carrying value. The Company performed an annual goodwill impairment test as of July 1, and tested goodwill recognized in connection with the acquisitions of Mediasite, Sonic Foundry International and Mediasite KK. For purposes of the test, goodwill on the Company’s books was evaluated within three separate reporting units. The fair values of the reporting units were initially measured as of July 1, 2018, in accordance with annual testing procedures. Goodwill related to all three reporting units, Sonic Foundry (Mediasite), Sonic Foundry International and Mediasite KK, was found to be impaired and the Company recognized an impairment loss of $10.4 million , or the remaining balance of goodwill, during the year ended September 30, 2018 . This non-cash loss was primarily due to the fall in the Company's stock price and the decrease of the Company's market capitalization as well as past operating performance, which was deemed to have negatively impacted all three of the Company's reporting units. As a consequence, management forecasts were revised and additional risk factors were applied. The fair value of the three reporting units was estimated using a combination of market comparables (level 1 inputs) and expected present value of future cash flows (level 3 inputs). See Note 1 for further details on fair value measurements. No impairment test was performed in fiscal 2019 as goodwill was fully impaired as of September 30, 2018 . The changes in the carrying amount of goodwill for the year ended September 30, 2018 are as follows: Balance as of October 1, 2017 $ 10,455 Impairment losses (10,423 ) Foreign currency translation adjustment (32 ) Balance as of September 30, 2018 $ — Long-lived assets and intangible assets other than goodwill are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable based on expected undiscounted cash flows attributable to that asset. For the year ended September 30, 2018, it was determined that changes in circumstances were present, primarily the decline in the Company's market capitalization during the fiscal year and past performance. For the year ended September 30, 2018, the Company determined that intangible assets, consisting of customer relationships and product rights, were impaired and recognized an impairment charge of $1.4 million . For the year ended September 30, 2019 , no events or changes in circumstances occurred that required this analysis. The net book value of intangible assets is zero at September 30, 2019 due to the full impairment of intangible assets recorded as of September 30, 2018 . The following tables present details of the Company’s total intangible assets that were being amortized at September 30, 2018 : (in thousands) Life (years) Gross Accumulated Balance at Amortizable: Customer relationships 10 $ 1,256 $ 1,256 $ — Software development costs 3 533 533 — Product rights 6 534 534 — Total $ 2,323 $ 2,323 $ — Amortization expense related to intangibles was $337 thousand in fiscal 2018 . |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We adopted the new revenue recognition accounting standard ASC 606 October 1, 2018 on a modified retrospective basis and applied the new standard only to contracts that were not completed prior to October 1, 2018. See Note 1 for a description of our ASC 606 revenue recognition accounting policy. Financial results for reporting periods during fiscal 2019 are presented in compliance with the new revenue recognition standard. Historical financial results for reporting periods prior to fiscal 2019 have not been retroactively restated and are presented in conformity with amounts previously disclosed under ASC 985-605 and 605. This note includes additional information regarding the impacts from the adoption of the new revenue recognition standard on our financial results for the twelve months ended September 30, 2019 . This includes the presentation of financial results during fiscal 2019 under ASC 605 for comparison to the prior year. Our revenue recognition accounting policy for ASC 985-605 and 605 is also included in Note 1. Disaggregation of Revenues The following table summarizes revenues from contracts with customers for the twelve months ended September 30, 2019 , respectively, (in thousands): Fiscal Year Ended September 30, 2019 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 6,710 $ 598 $ 950 $ (808 ) $ 7,450 Software 3,316 417 542 (430 ) 3,845 Shipping 840 5 — (509 ) 336 Product and other total 10,866 1,020 1,492 (1,747 ) 11,631 Support 7,717 672 2,137 (803 ) 9,723 Hosting 4,258 544 1,649 — 6,451 Events 3,785 167 2,741 — 6,693 Installs & training 258 25 — — 283 Services total 16,018 1,408 6,527 (803 ) 23,150 Total revenue $ 26,884 $ 2,428 $ 8,019 $ (2,550 ) $ 34,781 Effect of adopting ASC 606 Opening Balance Sheet Adjustment on October 1, 2018 As a result of applying the modified retrospective method to adopt ASC 606, the following amounts on our Consolidated Balance Sheet were adjusted as of October 1, 2018 to reflect the cumulative effect adjustment to the opening balance of accumulated deficit (in thousands): As reported ASC 606 adoption Adjusted September 30, 2018 adjustments October 1, 2018 Capitalized commissions, current $ — $ 580 $ 580 Total current assets 10,825 580 11,405 Capitalized commissions, long-term — 112 112 Total assets $ 13,583 $ 692 $ 14,275 Accrued liabilities $ 1,609 $ 2 $ 1,611 Unearned revenue 11,645 (924 ) 10,721 Total current liabilities 16,590 (922 ) 15,668 Other long-term liabilities 202 (2 ) 200 Long-term portion of unearned revenue 1,691 (75 ) 1,616 Total liabilities 20,041 (999 ) 19,042 Accumulated deficit (207,419 ) 1,691 (205,728 ) Total stockholders' equity (deficit) (6,458 ) 1,691 (4,767 ) Total liabilities and stockholders' equity (deficit) $ 13,583 $ 692 $ 14,275 Effect of ASC 606 as of September 30, 2019 and for the Twelve Months Ended September 30, 2019 The following table summarizes the effect of adopting ASC 606 on our Consolidated Balance Sheet as of September 30, 2019 (in thousands): Amounts without As reported ASC 606 adoption ASC 606 impact September 30, 2019 impact September 30, 2019 Capitalized commissions, current $ 464 $ (464 ) $ — Total current assets 12,984 (464 ) 12,520 Capitalized commissions, long-term 106 (106 ) — Total assets $ 15,180 $ (570 ) $ 14,610 Accrued liabilities $ 2,216 $ (2 ) $ 2,214 Unearned revenue 9,610 785 10,395 Total current liabilities 13,831 783 14,614 Other long-term liabilities 143 2 145 Long-term portion of unearned revenue 1,842 68 1,910 Total liabilities 21,433 853 22,286 Accumulated deficit (209,340 ) (1,423 ) (210,763 ) Total stockholders' equity (deficit) (6,253 ) (1,423 ) (7,676 ) Total liabilities and stockholders' equity (deficit) $ 15,180 $ (570 ) $ 14,610 The following tables summarize the effects of adopting ASC 606 on our Consolidated Statement of Operations for the fiscal year ended September 30, 2019 , respectively (in thousands): As reported Amounts without Year Ended ASC 606 adoption ASC 606 impact September 30, 2019 impact September 30, 2019 Product and other revenue $ 11,631 $ 145 $ 11,776 Total revenue 34,781 145 34,926 Product and other cost of revenue 4,387 — 4,387 Total cost of revenue 9,280 — 9,280 Gross margin 25,501 145 25,646 Selling and marketing (operating expenses) 14,727 (123 ) 14,604 Loss from operations (2,508 ) 268 (2,240 ) Loss before income taxes (3,522 ) 268 (3,254 ) Net loss $ (3,612 ) $ 268 $ (3,344 ) Net loss attributable to common stockholders $ (3,734 ) $ 268 $ (3,466 ) Loss per common share -basic $ (0.64 ) $ 0.05 $ (0.59 ) -diluted $ (0.64 ) $ 0.05 $ (0.59 ) The following table summarizes the effect of adopting ASC 606 on our Consolidated Statement of Cash Flow for the twelve months ended September 30, 2019 (in thousands): Amounts without As reported ASC 606 adoption ASC 606 impact September 30, 2019 impact September 30, 2019 Cash flows from operating activities: Net loss $ (3,612 ) $ 268 $ (3,344 ) Changes in operating assets and liabilities: Capitalized commissions 123 (123 ) — Unearned revenue (900 ) (145 ) (1,045 ) Net cash used in operating activities $ (736 ) $ — $ (736 ) Transaction price allocated to future performance obligations ASC 606 allows for the use of certain practical expedients, which we have elected and applied to measure our future performance obligations as of September 30, 2019 . As of September 30, 2019 , the aggregate amount of the transaction price that is allocated to our future performance obligations was approximately $4.0 million in the next three months, $9.6 million in the next twelve months, and the remaining $1.8 million thereafter. Disclosures related to our contracts with customers Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current unearned revenue. Unearned revenues Unearned revenues represent our obligation to transfer products or services to our client for which we have received consideration, or an amount of consideration is due, from the client. During the twelve months ended September 30, 2019 , revenues recognized related to the amount included in the unearned revenues balance at the beginning of the period was $10.3 million . Assets recognized from the costs to obtain our contracts with customers We recognize an asset for the incremental costs of obtaining a contract with a customer. We amortize these deferred costs proportionate with related revenues over the period of the contract. During the twelve months ended September 30, 2019 , amortization expense recognized related to the amount included in the capitalized commissions at the beginning of the period was $593 thousand . |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions The Company incurred fees of $316 thousand and $212 thousand during the years ended September 30, 2019 and 2018 , respectively, to a law firm whose partner is a director and stockholder of the Company. The Company had accrued liabilities for unbilled services to the same law firm of $30 thousand and $60 thousand at September 30, 2019 and 2018 , respectively. Coincident with a retirement and transition agreement, the Company agreed to cancel a loan outstanding with an executive and the remaining balance was fully written off as of September 30, 2019 . At September 30, 2018 , the balance of the loan outstanding totaled $26 thousand . The loan was collateralized by Company stock. On November 9, 2017, the Company sold to Mr. Burish $500 thousand of shares of Preferred Stock, Series A, at $762.85 per share. Mr. Burish is a director of the Company and beneficially owns more than 5% of the Company’s common stock. On November 17, 2017, the Company entered into an Agreement in which Mr. Burish's right to convert shares of Preferred Stock, Series A, into common stock was waived until shareholder approval to approve the issuances of Preferred Stock, Series A had been obtained. The right to vote said shares of Preferred Stock, Series A was also waived pending shareholder approval of the issuance. Shareholder approval was obtained on May 17, 2018. On January 19, 2018, the Company and Mr. Burish entered into a Subscription Agreement (the “Subscription Agreement”). Pursuant to the Subscription Agreement, (i) on January 19, 2018, the director purchased a 10.75% Convertible Secured Subordinated Promissory Note for $500,000 in cash; and (ii) on February 15, 2018, the director purchased an additional 10.75% Convertible Secured Promissory Note for $500,000 in cash (each, a “Note”, and collectively, the “Notes”). On May 17, 2018, following approval by the stockholders of the Company of the conversion of the Notes sufficient to comply with rules and regulations of NASDAQ, the Notes were automatically converted into 1,902 shares of Series A Preferred stock. The number of shares was determined by dividing the total principal and accrued interest due on each Note by $542.13 (the “Conversion Rate”). On April 16, 2018, the Company issued 232,558 shares of common stock to an affiliated party. The shares were issued at a price of $2.15 per share, representing the closing price on April 13, 2018. On April 16, 2018, the closing price of the Company’s common stock was $2.18 per share. The affiliated party also received warrants to purchase 232,558 shares of common stock at an exercise price of $2.50 per share, respectively, which expire on April 16, 2025. On June 8, 2018, 905 shares of Preferred Stock, Series A were automatically converted by the Company into 213,437 shares of common stock. The amount of shares converted represents all preferred shares issued on May 30, 2017 and June 8, 2017, including related dividends. On August 23, 2018, 717 shares of Preferred Stock, Series A were automatically converted by the Company into 169,485 shares of common stock. The amount of shares converted represents all preferred shares issued on August 23, 2017. On November 15, 2018, 718 shares of Preferred Stock, Series A were automatically converted by the Company into 169,741 shares of common stock. The amount of shares converted represents all preferred shares issued on November 9, 2017, including related dividends. On April 25, 2019, Mr. Burish exercised his warrant to purchase 728,155 shares of common stock of the Company at an exercise price of $1.18 per share, which was entered into coincident with the execution of the Note Purchase Agreement on February 28, 2019. On May 17, 2019, 2,080 shares of Preferred Stock Series A were automatically converted by the Company into 491,753 shares on common stock. The amount of shares converted represents all preferred shares issued on May 17, 2018, including related dividends. The Company has also been provided with debt financing from Mr. Burish. See Note 3 - Credit Arrangements for additional information on the Warrant issued to, and Note Purchase Agreements, with Mr. Burish as well as accrued interest on the Notes. Mr. Burish beneficially owns more than 5% of the Company’s common stock. Mr. Burish also serves as the Chairman of the Board of Directors. An affiliated party beneficially owns more than 5% of the Company's common stock. All transactions with Mr. Burish and with the affiliated party were approved by a special committee of disinterested and independent directors. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have determined that in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280-10, Segment Reporting , we operate in three operating segments, however these segments meet the criteria for aggregation for reporting purposes as one reporting segment as of September 30, 2019 and 2018 . The following summarizes revenue by geographic region (in thousands): Years Ended September 30, 2019 2018 United States $ 19,680 $ 21,152 Europe and Middle East 5,718 4,482 Asia 7,822 7,418 Other 1,561 1,492 Total $ 34,781 $ 34,544 |
Customer Concentration
Customer Concentration | 12 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | Customer Concentration In the fiscal year ended September 30, 2018 , sales to two distributors represented 17% of total revenue. At September 30, 2018 , these two distributors represented 28% of total accounts receivable. These two distributors did not represent a significant portion of revenue in the fiscal year ended September 30, 2019 or accounts receivable at September 30, 2019 as a result of the elimination of inventory sold through distributors. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings From time to time, the Company is subject to legal proceedings or claims arising from its normal course of operations. The Company accrues for costs related to loss contingencies when such costs are probable and reasonably estimable. As of September 30, 2019 , the Company is not aware of any material pending legal proceedings or threatened litigation that would have a material adverse effect on the Company’s financial condition or results of operations. |
Quarterly Statement of Stockhol
Quarterly Statement of Stockholders' Equity (Deficit) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Statement of Stockholders' Equity (Deficit) | Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, September 30, 2018 $ 1,651 $ 51 $ 200,130 $ (207,419 ) $ (676 ) $ (26 ) $ (169 ) $ (6,458 ) Cumulative effect of ASC 606 adoption Note 9 — — — 1,691 — — — 1,691 Adjusted balance, October 1, 2018 1,651 51 200,130 (205,728 ) (676 ) (26 ) (169 ) (4,767 ) Stock compensation — — 164 — — — — 164 Conversion of preferred stock (563 ) 2 561 — — — — — Preferred stock dividends 53 — (53 ) — — — — — Foreign currency translation adjustment — — — — 62 — — 62 Net loss — — — (1,788 ) — — — (1,788 ) Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Stock compensation — — 56 — — — — 56 Issuance of common stock and warrants — — 4 — — — — 4 Warrants issued in connection with subordinated notes payable — — 674 — — — — 674 Preferred stock dividends 46 — (46 ) — — — — — Foreign currency translation adjustment — — — — (17 ) — — (17 ) Net loss — — — (1,486 ) — — — (1,486 ) Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Stock compensation — — (17 ) — — — — (17 ) Conversion of preferred stock (1,210 ) 4 1,206 — — — — — Issuance of common stock and warrants — 10 1,096 — — — — 1,106 Preferred stock dividends 23 — (23 ) — — — — — Foreign currency translation adjustment — — — — 89 — — 89 Net loss — — — (159 ) — — — (159 ) Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Stock compensation — — (25 ) — — — — (25 ) Issuance of common stock and warrants — — 8 — — — — 8 Cancellation of receivable for common stock issued — — — — — 26 — 26 Foreign currency translation adjustment — — — — (4 ) — — (4 ) Net loss — — — (179 ) — — — (179 ) Balance, September 30, 2019 $ — $ 67 $ 203,735 $ (209,340 ) $ (546 ) $ — $ (169 ) $ (6,253 ) Quarterly Financial Data (unaudited) The following table sets forth selected quarterly financial information for the years ended September 30, 2019 and 2018 . The operating results are not necessarily indicative of results for any future period. Quarterly Financial Data (in thousands except per share data) Q4-’19 Q3-’19 Q2-’19 Q1-’19 Q4-’18 Q3-’18 Q2-’18 Q1-’18 Revenue $ 9,212 $ 10,068 $ 7,997 $ 7,502 $ 8,490 $ 8,699 $ 8,460 $ 8,895 Gross margin 6,461 7,387 5,993 5,660 6,094 6,395 5,929 6,470 Income (loss) from operations 125 144 (1,123 ) (1,654 ) (12,900 ) (914 ) (1,259 ) (966 ) Net income (loss) (179 ) (159 ) (1,486 ) (1,788 ) (10,017 ) (1,020 ) (1,449 ) 320 Basic and diluted net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.29 ) $ (0.36 ) $ (2.16 ) $ (0.23 ) $ (0.34 ) $ 0.06 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, September 30, 2018 $ 1,651 $ 51 $ 200,130 $ (207,419 ) $ (676 ) $ (26 ) $ (169 ) $ (6,458 ) Cumulative effect of ASC 606 adoption Note 9 — — — 1,691 — — — 1,691 Adjusted balance, October 1, 2018 1,651 51 200,130 (205,728 ) (676 ) (26 ) (169 ) (4,767 ) Stock compensation — — 164 — — — — 164 Conversion of preferred stock (563 ) 2 561 — — — — — Preferred stock dividends 53 — (53 ) — — — — — Foreign currency translation adjustment — — — — 62 — — 62 Net loss — — — (1,788 ) — — — (1,788 ) Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Stock compensation — — 56 — — — — 56 Issuance of common stock and warrants — — 4 — — — — 4 Warrants issued in connection with subordinated notes payable — — 674 — — — — 674 Preferred stock dividends 46 — (46 ) — — — — — Foreign currency translation adjustment — — — — (17 ) — — (17 ) Net loss — — — (1,486 ) — — — (1,486 ) Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Stock compensation — — (17 ) — — — — (17 ) Conversion of preferred stock (1,210 ) 4 1,206 — — — — — Issuance of common stock and warrants — 10 1,096 — — — — 1,106 Preferred stock dividends 23 — (23 ) — — — — — Foreign currency translation adjustment — — — — 89 — — 89 Net loss — — — (159 ) — — — (159 ) Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Stock compensation — — (25 ) — — — — (25 ) Issuance of common stock and warrants — — 8 — — — — 8 Cancellation of receivable for common stock issued — — — — — 26 — 26 Foreign currency translation adjustment — — — — (4 ) — — (4 ) Net loss — — — (179 ) — — — (179 ) Balance, September 30, 2019 $ — $ 67 $ 203,735 $ (209,340 ) $ (546 ) $ — $ (169 ) $ (6,253 ) Quarterly Financial Data (unaudited) The following table sets forth selected quarterly financial information for the years ended September 30, 2019 and 2018 . The operating results are not necessarily indicative of results for any future period. Quarterly Financial Data (in thousands except per share data) Q4-’19 Q3-’19 Q2-’19 Q1-’19 Q4-’18 Q3-’18 Q2-’18 Q1-’18 Revenue $ 9,212 $ 10,068 $ 7,997 $ 7,502 $ 8,490 $ 8,699 $ 8,460 $ 8,895 Gross margin 6,461 7,387 5,993 5,660 6,094 6,395 5,929 6,470 Income (loss) from operations 125 144 (1,123 ) (1,654 ) (12,900 ) (914 ) (1,259 ) (966 ) Net income (loss) (179 ) (159 ) (1,486 ) (1,788 ) (10,017 ) (1,020 ) (1,449 ) 320 Basic and diluted net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.29 ) $ (0.36 ) $ (2.16 ) $ (0.23 ) $ (0.34 ) $ 0.06 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Sonic Foundry Media Systems, Inc., Sonic Foundry International B.V. (formerly Media Mission B.V.) and Mediasite K.K. All significant intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the period. Actual results could differ from those estimates. |
Revenue Recognition | Assets Recognized From the Costs to Obtain a Contract With a Customer Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. Effective October 1, 2018, these costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which we have determined to be the contract period, typically around 12 months. Assets recorded are included in current assets and other long-term assets. Amortization expense is recorded in sales and marketing expense within our 2019 consolidated statement of operations. We calculate a quarterly average percentage based on actual commissions incurred on billings during the same period and apply that percentage to the respective periods’ unearned revenues to determine the capitalized commission amount. Revenue Recognition We generate revenues in the form of hardware sales of our Mediasite recorder and Mediasite related products, such as our server software and other software licenses and related customer support and services fees, including hosting, installations and training. Software license revenues include fees from sales of perpetual and term licenses. Maintenance and services revenues primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available), hosting, installation, training and other professional services. Invoices are billed when a customer contract, purchase order or signed quote is obtained from the customer. No revenue is recognized prior to such a customer authorization. In some renewal circumstances, we continue to provide services, typically customer support, during the period when our sales team is working to obtain a customer authorization to avoid customer attrition. Typically, we would bill for this period such that the customer support contract does not lapse. Consistent with historical company practices, we would recognize revenue for the periods where services have already been rendered once customer authorization has occurred. Products Products are considered delivered, and revenue is recognized, when title and risk of loss have been transferred to the customer or upon customer acceptance if non-delivered products or services are essential to the functionality of delivered products. Under the terms and conditions of the sale, this occurs at the time of shipment to the customer. Product revenue currently represents sales of our Mediasite recorder and Mediasite related products such as our server software and other software licenses. Services The Company sells support and content hosting contracts to our customers, typically one year in length, and records the related revenue ratably over the contractual period. Our support contracts cover phone and electronic technical support availability over and above the level provided by our distributors, software upgrades on a when and if available basis, advance hardware replacement and an extension of the standard hardware warranty from 90 days to one year. The manufacturers the Company contracts with to build the units provide a limited one-year warranty on the hardware. The Company also sells installation, training, event webcasting, and customer content hosting services. Revenue for those services is recognized when performed in the case of installation, training and event webcasting services. Occasionally, the Company will sell customization services to enhance the server software. Revenue from those services is recognized when performed, if perfunctory, or under contract accounting. Service amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue until the revenue recognition criteria are met. Revenue Recognition - ASC 606 Adopted Effective October 1, 2018 In accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this core principle, we apply the following five steps: 1. Identify the contract with a customer. A contract with a customer exists when: (1) we and the customer have approved the contract and both parties are committed to perform their respective obligations; (2) we can identify each party’s rights regarding the products or services to be transferred; (3) we can identify the payment terms for the products or services to be transferred; (4) the contract has commercial substance as our future cash flows are expected to change; and (5) it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the products or services. Any subsequent contract modifications are analyzed to determine the treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. 2. Identify the performance obligations in the contract. Performance obligations are promises to transfer a good or service to the customer. Performance obligations may be each individual promise in a contract, or may be groups of promises within a contract that significantly affect one another. To the extent a contract includes multiple promises, we must apply judgment to determine whether promises are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promises are accounted for as a combined performance obligation. 3. Determine the transaction price. The transaction price is the total amount of consideration to which we expect to be entitled in exchange for transferring promised products and services to a customer. 4. Allocate the transaction price to performance obligations in the contract. The allocation of the transaction price to performance obligations is generally done in proportion to their standalone selling prices (“SSP”). SSP is the price that we would sell a distinct product or service separately to a customer and is determined at contract inception. If SSP is not available through the analysis of observable inputs, this step is subject to significant judgment and additional analysis so that we can establish an estimated SSP. The estimated SSP considers historical information, including demand, trends and information about the customer or class of customers. 5. Recognize revenues when or as the company satisfies a performance obligation. We recognize revenues when, or as, distinct performance obligations are satisfied by transferring control of the product or service to the customer. A performance obligation is considered transferred when the customer obtains control of the product or service. Transfer of control is typically evaluated from the customer's perspective. At contract inception, we determine whether we satisfy the performance obligation over time or at a point in time. Revenue is recognized when performance obligations are satisfied. Our contract payment terms are typically net 30 days. We assess collectability based on a number of factors including collection history and creditworthiness of the customer, and we may mitigate exposures to credit risk by requiring payments in advance. If we determine that collectability related to a contract is not probable, we may not record revenue until collectability becomes probable at a later date. Our revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales taxes, which are collected on behalf of and remitted to governmental authorities. Nature of Products and Services Certain software licenses are sold either on-premise or through term-based hosting agreements. These hosting arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. We deliver our software licenses electronically. Electronic delivery occurs when we provide the customer with access to the software and license key via a secure portal. Revenue from on-premise software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Revenue from term-based hosted licenses are recognized ratably over the term of the agreement. Our contracts with customers for on-premise and hosted software licenses include maintenance services and may also include training and/or professional services. Maintenance services agreements consist of fees for providing software updates on an if and when available basis and for providing technical support for software products for a specified term. We believe that our software updates and technical support each have the same pattern of transfer to the customer and are substantially the same. Therefore, we consider these updates and technical support to be a single distinct performance obligation. Revenues allocated to maintenance services are recognized ratably over the term of the agreement. Revenues related to training services are billed on a fixed fee basis and are recognized as the services are delivered. Payments received in advance of services performed are deferred and recognized when the related services are performed. Revenues related to professional services are recognized as the services are performed. In the case of the Company’s hardware products with embedded software, the Company has determined that the hardware and software components function together to deliver the product’s essential functionality, and therefore, are considered to be one performance obligation. The revenue from the sale of these products along with other products and services we provide requires an allocation of transaction price based on the stand-alone selling price of each component. The Company also offers hosting services bundled with events services. The Company recognizes events revenue when the event takes place and recognizes the hosting revenue over the term of the hosting agreement. Judgments and Estimates Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately from one another sometimes requires judgment. Judgment is required to determine standalone selling prices (“SSP”) for each distinct performance obligation. We typically have more than one SSP for each of our products and services based on customer stratification, which is based on the size of the customer, their geographic region and market segment. We use a cost plus margin approach to determine SSPs for hardware. We use historical sales data to determine SSPs for perpetual software licenses. For both on-premise and term-hosted agreements, events services, training and professional services, SSPs are generally observable using internally developed pricing calculators and/or price sheets. For maintenance services, SSPs are generally observable using historical renewal data. Our revenue recognition accounting policy for ASC 605 is included below. Information presented for 2018 and prior years is in accordance with ASC 605 revenue recognition policies. Revenue Recognition - ASC 985-605 and 605 General Revenue is recognized when persuasive evidence of an arrangement exists, delivery occurs or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. Revenue is deferred when undelivered products or services are essential to the functionality of delivered products, customer acceptance is uncertain, significant obligations remain, or the fair value of undelivered elements is unknown. Typically, the Company does not offer customers the right to return product, other than for exchange or repair pursuant to a warranty or stock rotation. The Company’s policy is to reduce revenue if it incurs an obligation for price rebates or other such programs during the period the obligation is reasonably estimated to occur. The following policies apply to the Company’s major categories of revenue transactions. Revenue Arrangements that Include Multiple Elements Sales of software, with or without installation, training, and post customer support fall within the scope of the software revenue recognition rules. Under the software revenue recognition rules, the fee from a multiple-deliverable arrangement is allocated to each of the undelivered elements based upon vendor-specific objective evidence (VSOE), which is limited to the price charged when the same deliverable is sold separately, with the residual value from the arrangement allocated to the delivered element. The portion of the fee that is allocated to each deliverable is then recognized as revenue when the criteria for revenue recognition are met with respect to that deliverable. If VSOE does not exist for all of the undelivered elements, then all revenue from the arrangement is typically deferred until all elements have been delivered to the customer. In the case of the Company’s hardware products with embedded software, the Company has determined that the hardware and software components function together to deliver the product’s essential functionality, and therefore, the revenue from the sale of these products is accounted for under the revenue recognition rules for tangible products whereby the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon VSOE if available, from third-party evidence (TPE) if VSOE is not available, and best estimate of selling price (ESP) if neither VSOE nor TPE are available. TPE is the price of the Company’s or any competitor’s largely interchangeable products or services in stand-alone sales to similarly situated customers. ESP is the price at which the Company would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. All revenue arrangements, excluding the sale of all software-only products and associated services, have been accounted for under this guidance. The selling prices used in the relative selling price allocation method are as follows: (1)the Company’s products and services are based upon VSOE and (2) hardware products with embedded software, for which VSOE does not exist, are based upon ESP. The Company does not believe TPE exists for any of these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. Management establishes ESP for hardware products with embedded software using a cost plus margin approach with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product and the Company’s profit objectives. Management believes that ESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. When a sales transaction includes deliverables that are divided between Accounting Standards Codification (ASC) Topic 605 and ASC Subtopic 985-605, the Company allocates the selling price using the relative selling price method whereas value is allocated using an ESP for software developed using a percent of list price approach. The other deliverables are valued using ESP or VSOE as previously discussed. While the pricing model captures all critical variables, unforeseen changes due to external market forces may result in a revision of the inputs. These modifications may result in the consideration allocation differing from the one presently in use. Absent a significant change in the pricing inputs or the way in which the industry structures its transactions, future changes in the pricing model are not expected to materially affect our allocation of arrangement consideration. Management has established VSOE for hosting services. Billings for hosting are spread ratably over the term of the hosting agreement, with the typical hosting agreement having a term of 1 year , with renewal on an annual basis. The Company sells most hosting contracts without the inclusion of products. When the hosting arrangement is sold in conjunction with product, the product revenue is recognized immediately while the remaining hosting revenue is spread ratably over the term of the hosting agreement. The selling price is allocated between these elements using the relative selling price method. The Company uses ESP for development of the selling price for hardware products with embedded software. The Company also offers hosting services bundled with events services. The Company uses VSOE to establish relative selling prices for its events services. The Company recognizes events revenue when the event takes place and recognizes the hosting revenue over the term of the hosting agreement. The total amount of the arrangement is allocated to each element based on the relative selling price method. Reserves The Company reserves for stock rotations, price adjustments, rebates, and sales incentives to reduce revenue and accounts receivable for these and other credits granted to customers. Such reserves are recorded at the time of sale and are calculated based on historical information (such as rates of product stock rotations) and the specific terms of sales programs, taking into account any other known information about likely customer behavior. If actual customer behavior differs from our expectations, it may compromise our ability to recognize revenue to these distributors at the time of shipment. Also, if the Company determines that it can no longer accurately estimate amounts for stock rotations and sales incentives, the Company would not be able to recognize revenue until resellers sell the inventory to the final end user. Shipping and Handling The Company’s shipping and handling costs billed to customers are included in other revenue. Costs related to shipping and handling are included in cost of revenue and are recorded at the time of shipment to the customer. As a result of the adoption of ASC 606, shipping and handling revenue is included in the relative selling price allocation method effective October 1, 2018. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties As of September 30, 2019 , of the $4.3 million in cash and cash equivalents, $3.0 million is deposited with 2 major U.S. financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on such amounts and believes that it is not exposed to any significant credit risk on these balances. The remaining $1.3 million of cash and cash equivalents is held by our foreign subsidiaries in financial institutions in Japan and the Netherlands and held in their local currency. The cash held in foreign financial institutions is not guaranteed. If the funds held by our foreign subsidiaries were needed for our operations in the United States, the repatriation of some of these funds to the United States could require payment of additional U.S. taxes. The Company’s wholly-owned subsidiaries operate in Japan and the Netherlands, and utilize the Japanese Yen and Euro, respectively, as their functional currency. Assets and liabilities of the Company’s foreign operations are translated into US dollars at period end exchange rates whiles revenues and expenses are translated using average rates for the period. Gains and losses from the translation are deferred and included in accumulated other comprehensive loss on the consolidated statements of operations. During fiscal 2019 , the Company recorded an aggregate transaction loss of $157 thousand compared to an aggregate gain of $6 thousand during fiscal 2018 . The aggregate transaction gain or loss is included in the other expense line of the consolidated statements of operations. We assess the realization of our receivables by performing ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit ratings or bankruptcy. Our reserve requirements are based on the best facts available to us and are reevaluated and adjusted as additional information is received. Our reserves are also based on amounts determined by using percentages applied to certain aged receivable categories. These percentages are determined by a variety of factors including, but not limited to, current economic trends, historical payment and bad debt write-off experience. Allowance for doubtful accounts for accounts receivable and financing receivables was $661 thousand at September 30, 2019 and $1.0 million at September 30, 2018 . We had billings for Mediasite product and support services as a percentage of total billings to one distributor of less than 1% in 2019 and approximately 6% in 2018 and to a second distributor of less than 1% in 2019 and approximately 11% in 2018 . At September 30, 2019 and 2018 , these two distributors represented 0% and 28% of total accounts receivable, respectively. The reduction in both billings and accounts receivable concentration is a result of the planned reduction in inventory sold through distribution. Currently all of our product inventory purchases are from one third-party contract manufacturer. Although we believe there are multiple sources of supply from other contract manufacturers as well as multiple suppliers of component parts required by the contract manufacturers, a disruption of supply of component parts or completed products, even if short term, would have a material negative impact on our revenues. At September 30, 2019 and 2018 , this supplier represented 31% and 29% , respectively, of total accounts payable. We also license technology from third parties that is embedded in our software. We believe there are alternative sources of similar licensed technology from other third parties that we could also embed in our software, although it could create potential programming related issues that might require engineering resources. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Trade Accounts Receivable | Trade Accounts Receivable The majority of the Company’s accounts receivable are due from entities in, or distributors or value-added resellers to, the education, corporate and government sectors. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are typically due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered to be past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Interest is not accrued on past due receivables. |
Financing Receivables | Financing Receivables Financing receivables consist of customer receivables resulting from the sale of the Company's products and services, primarily software and long-term customer support contracts, and are presented net of allowance for losses. The Company has a single portfolio consisting of fixed-term receivables, which is further segregated into two classes based on type of product and lease. The Company generally determines its allowance for losses on financing receivables at the customer class level by considering a number of factors, including the length of time financing receivable are past due, historical and anticipated experience, the customer’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company writes-off financing receivables when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for financing receivable losses. |
Investment in Sales-Type Lease | Investment in Sales-Type Lease The Company has entered into sales-type lease arrangements with certain customers, consisting of recorders leased with terms ranging from 3 - 5 years. |
Inventory Valuation | Inventory Inventory consists of raw materials and supplies used in the assembly of Mediasite recorders and finished units. Inventory of completed units and spare parts are carried at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. |
Capitalized Software Development Costs | Software Development Costs Software development costs incurred in conjunction with product development are charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the net realizable value of the related product. Typically, the period between achieving technological feasibility of the Company’s products and the general availability of the products has been short. Consequently, software development costs qualifying for capitalization are typically immaterial and are generally expensed to research and development costs. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method for financial reporting purposes. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Goodwill had an indefinite useful life and was recorded at cost and not amortized but, instead, tested at least annually for impairment. We assessed the impairment of goodwill on an annual basis or whenever events or changes in circumstances indicated that the fair value of these assets was less than the carrying value. If a qualitative assessment was used and the Company determined that the fair value of goodwill was more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test would be performed. If goodwill was quantitatively assessed for impairment, the Company compared the estimated fair value of the reporting unit to which goodwill was allocated to its carrying value. The amount of impairment, if any, is equal to the amount by which the carrying value of the reporting unit exceeds its fair value. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes disclosure of financial information that historically has not been recognized in the calculation of net income. Our comprehensive loss encompasses net loss and foreign currency translation adjustments. Assets and liabilities of international operations that have a functional currency that is not in U.S. dollars are translated into U.S. dollars at year-end exchange rates, and revenue and expense items are translated using weighted average exchange rates. Any adjustments arising on translation are included in stockholders’ equity (deficit) as an element of accumulated other comprehensive loss. |
Advertising Expense | Advertising Expense Advertising costs included in selling and marketing, are expensed when the advertising first takes place. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed in the period incurred, unless they meet the criteria for capitalized software development costs. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. We do not provide for U.S. income taxes on the undistributed earnings of our foreign subsidiaries, which we consider to be permanently invested outside of the U.S. We make judgments regarding the realizability of our deferred tax assets. The balance sheet carrying value of our net deferred tax assets is based on whether we believe that it is more likely than not that we will generate sufficient future taxable income to realize these deferred tax assets after consideration of all available evidence. We regularly review our deferred tax assets for recoverability considering historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. As such, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. Generally, cumulative losses in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed. As of September 30, 2019 and 2018 , valuation allowances have been established for all U.S. and for certain foreign deferred tax assets which we believe do not meet the “more likely than not” criteria for recognition. The Company also accounts for the uncertainty in income taxes related to the recognition and measurement of a tax position and measurement of a tax position taken or expected to be taken in an income tax return. The Company follows the applicable accounting guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure related to the uncertainty in income tax positions. |
Fair Value of Financial Instruments | Financial Instruments Not Measured at Fair Value Fair Value of Financial Instruments In determining the fair value of financial assets and liabilities, the Company currently utilizes market data or other assumptions that it believes market participants would use in pricing the asset or liability in the principal or most advantageous market, and adjusts for non-performance and/or other risk associated with the Company as well as counterparties, as appropriate. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 Inputs: Unadjusted quoted prices which are available in active markets for identical assets or liabilities accessible to the Company at the measurement date. Level 2 Inputs: Inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The hierarchy gives the highest priority to Level 1, as this level provides the most reliable measure of fair value, while giving the lowest priority to Level 3. Financial Liabilities Measured at Fair Value on a Recurring Basis |
Legal Contingencies | Legal Contingencies |
Stock-Based Compensation | Stock-Based Compensation The Company uses a lattice valuation model to account for all employee stock options granted. The lattice valuation model is a more flexible analysis to value options because of its ability to incorporate inputs that change over time, such as actual exercise behavior of option holders. The Company uses historical data to estimate the option exercise and employee departure behavior in the lattice valuation model. Expected volatility is based on historical volatility of the Company’s stock. The Company considers all employees to have similar exercise behavior and therefore has not identified separate homogeneous groups for valuation. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods the options are expected to be outstanding is based on the U.S. Treasury yields in effect at the time of grant. Forfeitures are based on actual behavior patterns. The expected exercise factor and forfeiture rates are calculated using historical exercise and forfeiture activity for the previous three years. |
Per Share Computation | Per Share Computation Basic earnings (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period, less shares that may be repurchased, and excludes any dilutive effects of options and warrants. In periods where the Company reports net income, diluted net income per share is computed using common equivalent shares related to outstanding options and warrants to purchase common stock. The numerator for the calculation of basic and diluted earnings per share is net income (loss) attributable to common stockholders. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", ("ASU 2016-02"). ASU 2016-02 aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for public entities. Early application of the amendment is permitted. The Company is currently reviewing this guidance and its impact to the financial statements. In July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815)", ("ASU 2017-11"). This update was issued to address complexities in accounting for certain equity-linked financial instruments containing down round features. The amendment changes the classification analysis of these financial instruments (or embedded features) so that equity classification is no longer precluded. The amendments in ASU 2017-11 are effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging Topic 815): Targeted Improvements to Accounting for Hedging Activities", ("ASU 2017-12"). This update was issued to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments in ASU 2017-12 are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is in the process of assessing the impact, if any, of this ASU on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", ("ASU 2018-07"). The standard addresses aspects of the accounting for nonemployee share-based payment transactions. The amendments in ASU 2018-07 are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently reviewing this guidance and its impact to the financial statements. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases", ("ASU 2018-10"). The standard clarifies certain topics related to previously issued Topic 842. The amendments in ASU 2018-10 are not yet effective, but early adopton is permitted. For entities that have not yet adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. The Company is currently evaluating this guidance and its impact to the financial statements. In August 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements", ("ASU 2018-11"). The ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. For entities that have not adopted Topic 842 before the issuance of this ASU, the effective date and transition requirements for the amendments in this update related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. The Company is currently evaluating this guidance and its impact to the financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements", ("ASU 2018-13"). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not believe the ASU will have a significant impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", ("ASU 2018-15"). ASU 2018-15 align the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in ASU 2018-15 are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the guidance and its impact to the financial statements. In November 2018, the FASB issued ASU 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606", ("ASU 2018-18"). ASU 2018-18 provides guidance on whether certain transactions between collaborative arrangement participants should be accounted for with revenue under Topic 606. The amendments in ASU 2018-18 are effective for all public entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is in the process of assessing the impact, if any, of this ASU on its consolidated financial statements. In December 2018, the FASB issued ASU 2018-20, "Leases (Topic 842): Narrow - Scope Improvements for Lessors", ("ASU 2018-20"). ASU 2018-20 provides amendments related to sales taxes and other similar taxes collected from lessees, lessor costs for lessor entities that have lease contracts that either require lessees to pay lessor costs directly to a third party or require lessees to reimburse lessors for costs paid by lessors directly to third parties and finally, the recognition of variable payments for contracts with lease and nonlease components. The amendments in ASU 2018-20 are effective for entities that have not adopted Topic 842 before the issuance of this Update are the same as the effective date and transition requirements in Update 2016-02. The Company does not believe the ASU will have a significant impact on its consolidated financial statements. In March 2019, the FASB issued ASU 2019-01, "Leases (Topic 842): Codification Improvements", ("ASU 2019-01"). ASU 2019-01 aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing essential information about leasing transactions. The amendments in ASU 2019-01 amend Topic 842 and the effective date of those amendments is for fiscal years beginning December 15, 2019, and interim periods within those fiscal years for public business entities. The Company does not believe the ASU will have a significant impact on its consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments", ("ASU 2019-04"). ASU 2019-04 identifies certain areas that need clarification and correction in each of these Topics. The amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within fiscal those fiscal years. The Company is currently evaluating the guidance and its impact to the financial statements. In November 2019, the FASB issued ASU 2019-08, "Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606)", ("ASU 2019-08"). This ASU requires that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. For entities that have not yet adopted the amendments in ASU 2018-07, the amendments in this Update are effective for public business entities in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the guidance and its impact to the financial statements. Accounting standards that have been issued but are not yet effective by the FASB or other standards-setting bodies that do not require adoption until a future date, which are not discussed above, are not expected to have a material impact on the Company’s financial statements upon adoption. Recently Adopted Accounting Pronouncements Revenue Recognition (ASC Topic 606, Revenue from Contracts with Customers ("ASC 606")) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 related to revenue recognition and later issued additional ASUs including ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20 and ASU 2017-14, all of which clarified certain aspects of ASU 2014-09, and together with ASU 2014-09, which we refer to collectively as the "new revenue recognition standard". On October 1, 2018, we adopted the new revenue recognition standard using the modified retrospective method. Under this method, we recognized the cumulative effect of applying the new revenue recognition standard to existing revenue contracts that were active as of the adoption date as an adjustment to the opening balance of accumulated deficit. Upon adoption, we recorded an adjustment of $1.7 million to our accumulated deficit. See Note 9 for additional detail. The new revenue recognition standard materially impacts the timing of revenue recognition related to our on-premises term license agreements. Prior to adoption of the new revenue recognition standard, we recognized revenue related to on-premises term license agreements ratably over the term of the licensing agreement. Under the new revenue recognition standard, revenue allocable to the license portion of the arrangement is recognized upon delivery of the license. Maintenance revenues related to on-premises term license agreements continue to be recognized ratably over the term of the licensing agreement. Under the new revenue recognition standard, we allocate total transaction price to performance obligations based on estimated standalone selling prices, which impacts the timing of revenue recognition depending on when each performance obligation is performed. These impacts to the timing of revenue recognition also affect our deferred revenue balances. The new revenue recognition standard requires the capitalization of certain incremental costs of obtaining a contract, which impacts the period in which we record our sales commissions expense. Prior to our adoption of the new revenue recognition standard, we recognized sales commissions expense as incurred. Under the new revenue recognition standard, we are required to recognize these expenses over the period of benefit associated with these costs. This results in a deferral of sales commissions expense each period. Upon adoption, we reduced our accumulated deficit by $692 thousand and recognized an offsetting asset for deferred sales commissions related to contracts that were not completed contracts prior to October 1, 2018. This amount is included in the $1.7 million adjustment to our accumulated deficit as a result of ASC 606 adoption. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10)", ("ASU 2016-01"). ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and was adopted by the Company as of October 1, 2018. The implementation of this standard did not result in a material impact to its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", ("ASU 2016-13"). ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and was adopted by the Company as of October 1, 2018. The implementation of this standard did not result in a material impact to its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230)", ("ASU 2016-15"). ASU 2016-15 addresses classification of certain cash receipts and cash payments within the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods with those fiscal years, and was adopted by the Company as of October 1, 2018. The implementation of this standard did not result in a material impact to its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718)", ("ASU 2017-09"). The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in ASU 2017-09 are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and was adopted by the Company as of October 1, 2018. The implementation of this standard did not result in a material impact to its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief", ("ASU 2019-05"). This ASU allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” The amendments in ASU 2019-05 are effective on the same dates as ASU 2016-13, and was adopted by the Company as of October 1, 2018. The implementation of this standard did not result in a material impact to its consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Financing Receivables | vestment in sales-type leases consisted of the following (in thousands) as of September 30, 2019 : Investment in sales-type lease, gross: 2020 $ 167 2021 134 Gross investment in sales-type lease 301 Less: Unearned income (4 ) Total investment in sales-type lease $ 297 Current portion of total investment in sales-type lease $ 163 Long-term portion of total investment in sales-type lease 134 $ 297 |
Inventory | Inventory consists of the following (in thousands): September 30, 2019 2018 Raw materials and supplies $ 163 $ 358 Finished goods 395 669 $ 558 $ 1,027 |
Estimated Useful Lives of Property and Equipment | The estimated useful lives used to calculate depreciation are as follows: Years Leasehold improvements 5 to 15 years Computer equipment 1.5 to 5 years Furniture and fixtures 3 to 15 years |
Summary of Financial Liabilities Measured at Fair Value on Recurring Basis | Financial liabilities measured at fair value on a recurring basis are summarized below (in thousands): September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value Derivative liability $ — $ 9 $ — $ 9 September 30, 2018 Level 1 Level 2 Level 3 Total Fair Value Derivative liability $ — $ 14 $ — $ 14 |
Summary of Changes in Level 3 Fair Value Measurements | Included below is a summary of the changes in the outstanding notes payable (in thousands): PFG V Debt, Net Warrant Burish Notes, Net of Discount Balance as of September 30, 2018 $ 1,905 $ 103 $ — Activity during the period: Disbursement of Tranche 2, net of discount 471 26 — Disbursement of Tranches 1-5 — — 5,000 Fair value of warrants issued — — (674 ) Payments (833 ) — — Deferred accrued interest — — 259 Amortization and accretion expense 180 20 66 Balance as of September 30, 2019 $ 1,723 $ 149 $ 4,651 Loan origination fees (35 ) — (91 ) Total notes payable and warrant debt, net of discounts $ 1,688 $ 149 $ 4,560 |
Fair Value Assumptions for Stock Options Granted | The fair value of each option grant is estimated using the assumptions in the following table: Years Ending September 30, 2019 2018 Expected life 4.3 - 4.5 years 4.3 - 4.4 years Risk-free interest rate 1.43%-2.93% 1.79%-2.75% Expected volatility 60.19%-70.63% 60.62%-63.49% Expected forfeiture rate 13.51%-14.79% 12.53%-14.58% Expected exercise factor 1.2 1.00-1.17 Expected dividend yield —% —% |
Computation of Basic and Diluted Weighted Average Shares Used in Earnings Per Share Calculations | The following table sets forth the computation of basic and diluted weighted average shares used in the earnings per share calculations: Years Ending 2019 2018 Denominator for basic earnings (loss) per share -weighted average common shares 5,833,301 4,655,520 Effect of dilutive options and warrants (treasury method) — — Denominator for diluted earnings (loss) per share -adjusted weighted average common shares 5,833,301 4,655,520 Options and warrants outstanding during each year, but not included in the computation of diluted earnings (loss) per share because they are antidilutive 2,024,589 2,399,901 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Lease Payments Under Capital Lease, Including Principal and Interest | Minimum lease payments, including principal and interest, are summarized in the table below. Depreciation expense for assets under capital lease and financing agreements was $252 thousand for fiscal 2019 and $283 thousand for fiscal 2018 which is reflected in the depreciation and amortization of property and equipment. Fiscal Year (in thousands) Capital 2020 $ 210 2021 116 2022 63 2023 7 2024 5 Total payments 401 Less interest (28 ) Total $ 373 |
Minimum Lease Payments Under Operating Leases | The following is a schedule by year of future minimum lease payments under operating leases: Fiscal Year (in thousands) Operating 2020 $ 1,289 2021 939 2022 209 Total $ 2,437 |
Credit Arrangements (Tables)
Credit Arrangements (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Changes in Level 3 Fair Value Measurements | Included below is a summary of the changes in the outstanding notes payable (in thousands): PFG V Debt, Net Warrant Burish Notes, Net of Discount Balance as of September 30, 2018 $ 1,905 $ 103 $ — Activity during the period: Disbursement of Tranche 2, net of discount 471 26 — Disbursement of Tranches 1-5 — — 5,000 Fair value of warrants issued — — (674 ) Payments (833 ) — — Deferred accrued interest — — 259 Amortization and accretion expense 180 20 66 Balance as of September 30, 2019 $ 1,723 $ 149 $ 4,651 Loan origination fees (35 ) — (91 ) Total notes payable and warrant debt, net of discounts $ 1,688 $ 149 $ 4,560 |
Schedule of Maturities of Long-term Debt | principal payments on the outstanding notes payable are as follows: Fiscal Year (in thousands) 2020 $ 1,200 2021 1,867 2022 1,200 2023 1,200 2024 1,459 Thereafter — Total principal payments 6,926 Less: Discount on notes payable and debt issuance costs (529 ) Total notes payable, net of discount $ 6,397 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consists of the following (in thousands): September 30, 2019 2018 Accrued compensation $ 1,419 $ 972 Accrued expenses 480 359 Accrued interest & taxes 269 223 Other accrued liabilities 48 55 Total $ 2,216 $ 1,609 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Number of Shares Available for Grant | The number of shares available for grant under these stockholder approved plans at September 30, is as follows: Qualified Employee Stock Option Plans Director Stock Option Plans Shares available for grant at September 30, 2017 1,008,390 48,000 Options granted (398,749 ) (14,500 ) Options forfeited 86,118 10,000 Shares available for grant at September 30, 2018 695,759 43,500 Options granted (218,850 ) (10,500 ) Options forfeited 536,292 12,000 Shares available for grant at September 30, 2019 1,013,201 45,000 |
Summary of Options Activity | The following table summarizes information with respect to outstanding stock options under all plans: Years Ended September 30, 2019 2018 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 2,029,741 $ 7.04 1,805,443 $ 8.33 Granted 229,350 0.73 413,249 2.49 Exercised — — (14,332 ) 4.75 Forfeited (604,662 ) 8.53 (174,619 ) 9.82 Outstanding at end of year 1,654,429 $ 5.62 2,029,741 $ 7.04 Exercisable at end of year 1,297,315 1,349,021 Weighted average fair value of options granted during the year $ 0.28 $ 0.95 |
Summary of Options Outstanding Segregated By Range | The options outstanding at September 30, 2019 have been segregated into three ranges for additional disclosure as follows: Options Outstanding Options Exercisable Exercise Prices Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Options Weighted Average Exercise Price $0.66 to $4.88 848,136 5.60 $ 2.71 493,189 $ 3.37 5.00 to 9.81 614,533 4.23 7.80 612,866 7.80 $10.00 to $15.00 191,760 3.60 11.46 191,260 11.46 1,654,429 1,297,315 |
Summary of Status of Company's Non-Vested Shares | A summary of the status of the Company’s non-vested shares under all plans at September 30, 2019 and for the year then ended is presented below: Options Weighted Average Grant Date Fair Value Non-vested options at October 1, 2017 544,834 $ 2.42 Granted 413,249 0.95 Vested (258,938 ) 2.47 Forfeited (18,425 ) 1.73 Non-vested options at September 30, 2018 680,720 1.46 Granted 229,350 0.28 Vested (508,998 ) 1.46 Forfeited (43,958 ) 1.06 Non-vested options at September 30, 2019 357,114 $ 0.77 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Benefit) provision for income taxes consists of the following (in thousands): Years Ended September 30, 2019 2018 Current income tax expense U.S. $ — $ — Current income tax expense foreign 67 101 Deferred income tax (benefit) provision 23 (4,433 ) (Benefit) provision for income taxes $ 90 $ (4,332 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | U.S. and foreign components of loss before income taxes were as follows (in thousands): Years Ended September 30, 2019 2018 U.S. $ (3,576 ) $ (16,934 ) Foreign 54 436 Loss before income taxes $ (3,522 ) $ (16,498 ) |
Reconciliation of Income Tax Expense (Benefit) Computed at Country Specific Rate | The reconciliation of income tax expense (benefit) computed at the appropriate country specific rate to income tax benefit is as follows (in thousands): Years Ended September 30, 2019 2018 Income tax benefit at statutory rate $ (751 ) $ (4,111 ) State income tax benefit (198 ) (823 ) Foreign tax activity 67 101 Permanent differences, net 44 771 Change in valuation allowance 1,569 1,285 Tax rate change — (1,545 ) Return to provision true-up (1,053 ) — Other 412 (10 ) Income tax expense (benefit) $ 90 $ (4,332 ) |
Components of Deferred Tax Accounts Recognized for Financial Purposes | The significant components of the deferred tax accounts recognized for financial reporting purposes are as follows (in thousands): September 30, 2019 2018 Deferred tax assets: Net operating loss and other carryforwards $ 25,347 $ 24,262 Common stock options 946 919 Unearned revenue 477 510 Interest expense limitation 262 — Other 544 369 Total deferred tax assets 27,576 26,060 Deferred tax liabilities: Other (97 ) (103 ) Total deferred tax liabilities (97 ) (103 ) Net deferred tax asset 27,479 25,957 Valuation allowance (27,443 ) (25,881 ) Net deferred tax asset $ 36 $ 76 |
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 Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the year ended September 30, 2018 are as follows: Balance as of October 1, 2017 $ 10,455 Impairment losses (10,423 ) Foreign currency translation adjustment (32 ) Balance as of September 30, 2018 $ — |
Summary of Company's Total Intangible Assets | The following tables present details of the Company’s total intangible assets that were being amortized at September 30, 2018 : (in thousands) Life (years) Gross Accumulated Balance at Amortizable: Customer relationships 10 $ 1,256 $ 1,256 $ — Software development costs 3 533 533 — Product rights 6 534 534 — Total $ 2,323 $ 2,323 $ — |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenues from contracts with customers for the twelve months ended September 30, 2019 , respectively, (in thousands): Fiscal Year Ended September 30, 2019 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 6,710 $ 598 $ 950 $ (808 ) $ 7,450 Software 3,316 417 542 (430 ) 3,845 Shipping 840 5 — (509 ) 336 Product and other total 10,866 1,020 1,492 (1,747 ) 11,631 Support 7,717 672 2,137 (803 ) 9,723 Hosting 4,258 544 1,649 — 6,451 Events 3,785 167 2,741 — 6,693 Installs & training 258 25 — — 283 Services total 16,018 1,408 6,527 (803 ) 23,150 Total revenue $ 26,884 $ 2,428 $ 8,019 $ (2,550 ) $ 34,781 |
Impact of Adoption | As a result of applying the modified retrospective method to adopt ASC 606, the following amounts on our Consolidated Balance Sheet were adjusted as of October 1, 2018 to reflect the cumulative effect adjustment to the opening balance of accumulated deficit (in thousands): As reported ASC 606 adoption Adjusted September 30, 2018 adjustments October 1, 2018 Capitalized commissions, current $ — $ 580 $ 580 Total current assets 10,825 580 11,405 Capitalized commissions, long-term — 112 112 Total assets $ 13,583 $ 692 $ 14,275 Accrued liabilities $ 1,609 $ 2 $ 1,611 Unearned revenue 11,645 (924 ) 10,721 Total current liabilities 16,590 (922 ) 15,668 Other long-term liabilities 202 (2 ) 200 Long-term portion of unearned revenue 1,691 (75 ) 1,616 Total liabilities 20,041 (999 ) 19,042 Accumulated deficit (207,419 ) 1,691 (205,728 ) Total stockholders' equity (deficit) (6,458 ) 1,691 (4,767 ) Total liabilities and stockholders' equity (deficit) $ 13,583 $ 692 $ 14,275 Effect of ASC 606 as of September 30, 2019 and for the Twelve Months Ended September 30, 2019 The following table summarizes the effect of adopting ASC 606 on our Consolidated Balance Sheet as of September 30, 2019 (in thousands): Amounts without As reported ASC 606 adoption ASC 606 impact September 30, 2019 impact September 30, 2019 Capitalized commissions, current $ 464 $ (464 ) $ — Total current assets 12,984 (464 ) 12,520 Capitalized commissions, long-term 106 (106 ) — Total assets $ 15,180 $ (570 ) $ 14,610 Accrued liabilities $ 2,216 $ (2 ) $ 2,214 Unearned revenue 9,610 785 10,395 Total current liabilities 13,831 783 14,614 Other long-term liabilities 143 2 145 Long-term portion of unearned revenue 1,842 68 1,910 Total liabilities 21,433 853 22,286 Accumulated deficit (209,340 ) (1,423 ) (210,763 ) Total stockholders' equity (deficit) (6,253 ) (1,423 ) (7,676 ) Total liabilities and stockholders' equity (deficit) $ 15,180 $ (570 ) $ 14,610 The following tables summarize the effects of adopting ASC 606 on our Consolidated Statement of Operations for the fiscal year ended September 30, 2019 , respectively (in thousands): As reported Amounts without Year Ended ASC 606 adoption ASC 606 impact September 30, 2019 impact September 30, 2019 Product and other revenue $ 11,631 $ 145 $ 11,776 Total revenue 34,781 145 34,926 Product and other cost of revenue 4,387 — 4,387 Total cost of revenue 9,280 — 9,280 Gross margin 25,501 145 25,646 Selling and marketing (operating expenses) 14,727 (123 ) 14,604 Loss from operations (2,508 ) 268 (2,240 ) Loss before income taxes (3,522 ) 268 (3,254 ) Net loss $ (3,612 ) $ 268 $ (3,344 ) Net loss attributable to common stockholders $ (3,734 ) $ 268 $ (3,466 ) Loss per common share -basic $ (0.64 ) $ 0.05 $ (0.59 ) -diluted $ (0.64 ) $ 0.05 $ (0.59 ) The following table summarizes the effect of adopting ASC 606 on our Consolidated Statement of Cash Flow for the twelve months ended September 30, 2019 (in thousands): Amounts without As reported ASC 606 adoption ASC 606 impact September 30, 2019 impact September 30, 2019 Cash flows from operating activities: Net loss $ (3,612 ) $ 268 $ (3,344 ) Changes in operating assets and liabilities: Capitalized commissions 123 (123 ) — Unearned revenue (900 ) (145 ) (1,045 ) Net cash used in operating activities $ (736 ) $ — $ (736 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | The following summarizes revenue by geographic region (in thousands): Years Ended September 30, 2019 2018 United States $ 19,680 $ 21,152 Europe and Middle East 5,718 4,482 Asia 7,822 7,418 Other 1,561 1,492 Total $ 34,781 $ 34,544 |
Quarterly Statement of Stockh_2
Quarterly Statement of Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Statement of Stockholders' Equity (Deficit) | Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, September 30, 2018 $ 1,651 $ 51 $ 200,130 $ (207,419 ) $ (676 ) $ (26 ) $ (169 ) $ (6,458 ) Cumulative effect of ASC 606 adoption Note 9 — — — 1,691 — — — 1,691 Adjusted balance, October 1, 2018 1,651 51 200,130 (205,728 ) (676 ) (26 ) (169 ) (4,767 ) Stock compensation — — 164 — — — — 164 Conversion of preferred stock (563 ) 2 561 — — — — — Preferred stock dividends 53 — (53 ) — — — — — Foreign currency translation adjustment — — — — 62 — — 62 Net loss — — — (1,788 ) — — — (1,788 ) Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Stock compensation — — 56 — — — — 56 Issuance of common stock and warrants — — 4 — — — — 4 Warrants issued in connection with subordinated notes payable — — 674 — — — — 674 Preferred stock dividends 46 — (46 ) — — — — — Foreign currency translation adjustment — — — — (17 ) — — (17 ) Net loss — — — (1,486 ) — — — (1,486 ) Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Stock compensation — — (17 ) — — — — (17 ) Conversion of preferred stock (1,210 ) 4 1,206 — — — — — Issuance of common stock and warrants — 10 1,096 — — — — 1,106 Preferred stock dividends 23 — (23 ) — — — — — Foreign currency translation adjustment — — — — 89 — — 89 Net loss — — — (159 ) — — — (159 ) Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Stock compensation — — (25 ) — — — — (25 ) Issuance of common stock and warrants — — 8 — — — — 8 Cancellation of receivable for common stock issued — — — — — 26 — 26 Foreign currency translation adjustment — — — — (4 ) — — (4 ) Net loss — — — (179 ) — — — (179 ) Balance, September 30, 2019 $ — $ 67 $ 203,735 $ (209,340 ) $ (546 ) $ — $ (169 ) $ (6,253 ) The following table sets forth selected quarterly financial information for the years ended September 30, 2019 and 2018 . The operating results are not necessarily indicative of results for any future period. Quarterly Financial Data (in thousands except per share data) Q4-’19 Q3-’19 Q2-’19 Q1-’19 Q4-’18 Q3-’18 Q2-’18 Q1-’18 Revenue $ 9,212 $ 10,068 $ 7,997 $ 7,502 $ 8,490 $ 8,699 $ 8,460 $ 8,895 Gross margin 6,461 7,387 5,993 5,660 6,094 6,395 5,929 6,470 Income (loss) from operations 125 144 (1,123 ) (1,654 ) (12,900 ) (914 ) (1,259 ) (966 ) Net income (loss) (179 ) (159 ) (1,486 ) (1,788 ) (10,017 ) (1,020 ) (1,449 ) 320 Basic and diluted net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.29 ) $ (0.36 ) $ (2.16 ) $ (0.23 ) $ (0.34 ) $ 0.06 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data Information | Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, September 30, 2018 $ 1,651 $ 51 $ 200,130 $ (207,419 ) $ (676 ) $ (26 ) $ (169 ) $ (6,458 ) Cumulative effect of ASC 606 adoption Note 9 — — — 1,691 — — — 1,691 Adjusted balance, October 1, 2018 1,651 51 200,130 (205,728 ) (676 ) (26 ) (169 ) (4,767 ) Stock compensation — — 164 — — — — 164 Conversion of preferred stock (563 ) 2 561 — — — — — Preferred stock dividends 53 — (53 ) — — — — — Foreign currency translation adjustment — — — — 62 — — 62 Net loss — — — (1,788 ) — — — (1,788 ) Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, December 31, 2018 $ 1,141 $ 53 $ 200,802 $ (207,516 ) $ (614 ) $ (26 ) $ (169 ) $ (6,329 ) Stock compensation — — 56 — — — — 56 Issuance of common stock and warrants — — 4 — — — — 4 Warrants issued in connection with subordinated notes payable — — 674 — — — — 674 Preferred stock dividends 46 — (46 ) — — — — — Foreign currency translation adjustment — — — — (17 ) — — (17 ) Net loss — — — (1,486 ) — — — (1,486 ) Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, March 31, 2019 $ 1,187 $ 53 $ 201,490 $ (209,002 ) $ (631 ) $ (26 ) $ (169 ) $ (7,098 ) Stock compensation — — (17 ) — — — — (17 ) Conversion of preferred stock (1,210 ) 4 1,206 — — — — — Issuance of common stock and warrants — 10 1,096 — — — — 1,106 Preferred stock dividends 23 — (23 ) — — — — — Foreign currency translation adjustment — — — — 89 — — 89 Net loss — — — (159 ) — — — (159 ) Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Preferred stock Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Receivable for common stock issued Treasury stock Total Balance, June 30, 2019 $ — $ 67 $ 203,752 $ (209,161 ) $ (542 ) $ (26 ) $ (169 ) $ (6,079 ) Stock compensation — — (25 ) — — — — (25 ) Issuance of common stock and warrants — — 8 — — — — 8 Cancellation of receivable for common stock issued — — — — — 26 — 26 Foreign currency translation adjustment — — — — (4 ) — — (4 ) Net loss — — — (179 ) — — — (179 ) Balance, September 30, 2019 $ — $ 67 $ 203,735 $ (209,340 ) $ (546 ) $ — $ (169 ) $ (6,253 ) The following table sets forth selected quarterly financial information for the years ended September 30, 2019 and 2018 . The operating results are not necessarily indicative of results for any future period. Quarterly Financial Data (in thousands except per share data) Q4-’19 Q3-’19 Q2-’19 Q1-’19 Q4-’18 Q3-’18 Q2-’18 Q1-’18 Revenue $ 9,212 $ 10,068 $ 7,997 $ 7,502 $ 8,490 $ 8,699 $ 8,460 $ 8,895 Gross margin 6,461 7,387 5,993 5,660 6,094 6,395 5,929 6,470 Income (loss) from operations 125 144 (1,123 ) (1,654 ) (12,900 ) (914 ) (1,259 ) (966 ) Net income (loss) (179 ) (159 ) (1,486 ) (1,788 ) (10,017 ) (1,020 ) (1,449 ) 320 Basic and diluted net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.29 ) $ (0.36 ) $ (2.16 ) $ (0.23 ) $ (0.34 ) $ 0.06 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | May 17, 2019shares | Nov. 15, 2018shares | Aug. 23, 2018shares | Jun. 08, 2018shares | May 17, 2018USD ($)shares | May 31, 2017 | Sep. 30, 2019USD ($)Financial_Institution$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | Apr. 25, 2019$ / sharesshares | Feb. 28, 2019USD ($) | Feb. 14, 2019USD ($)$ / shares | Jan. 31, 2019USD ($)$ / shares | Jan. 04, 2019USD ($) | Oct. 01, 2018USD ($) | Apr. 16, 2018$ / sharesshares |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Standard product warranty term minimum | 90 days | ||||||||||||||
Standard product warranty term maximum | 1 year | ||||||||||||||
Hosting agreement term | 1 year | ||||||||||||||
Cash and cash equivalents | $ 4,295,000 | $ 1,189,000 | |||||||||||||
Number of major financial institutions with which cash and cash equivalents are deposited | Financial_Institution | 2 | ||||||||||||||
Accounts and financing receivables, allowances | $ 661,000 | $ 1,000,000 | |||||||||||||
Percentage of product and service of aggregate billing to one distributor | 1.00% | 6.00% | |||||||||||||
Percentage of product and service of aggregate billing to second distributor | 1.00% | 11.00% | |||||||||||||
Percentage of accounts receivable represented by two distributors | 0.00% | 28.00% | |||||||||||||
Percentage of accounts payable represented by two suppliers | 31.00% | 29.00% | |||||||||||||
Original maturity of cash and cash equivalents | 3 months | ||||||||||||||
Credit period of accounts receivable | 30 days | ||||||||||||||
Allowance for losses on financing receivables | $ 526,000 | $ 526,000 | |||||||||||||
Impairment of goodwill | 10,423,000 | ||||||||||||||
Impairment of intangible assets | 1,400,000 | ||||||||||||||
Advertising expense | 444,000 | 451,000 | |||||||||||||
Legal contingencies amount | $ 0 | $ 0 | |||||||||||||
Common stock, shares issued (in shares) | shares | 6,749,359 | 5,113,400 | 232,558 | ||||||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 2.15 | ||||||||||||
Warrant issued to purchase shares of common stock | shares | 728,155 | 232,558 | |||||||||||||
Share price (usd per share) | $ / shares | $ 2.18 | ||||||||||||||
Exercise price of warrant (usd per share) | $ / shares | $ 1.18 | $ 2.50 | |||||||||||||
Preferred stock, shares authorized (in shares) | shares | 500,000 | 500,000 | |||||||||||||
Preferred stock, issued (in shares) | shares | 0 | 0 | |||||||||||||
Subordinated note payable converted to preferred stock | $ 1,000,000 | $ 0 | $ 1,000,000 | ||||||||||||
Increase in assets | 15,180,000 | 13,583,000 | $ 14,275,000 | ||||||||||||
Net offset to accumulated deficit | 209,340,000 | $ 207,419,000 | $ 205,728,000 | ||||||||||||
UNITED STATES | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Cash and cash equivalents | 3,000,000 | ||||||||||||||
Japan and Netherlands | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Cash and cash equivalents | $ 1,300,000 | ||||||||||||||
Minimum | Customer support contracts, gross: | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Financing receivables term | 3 years | ||||||||||||||
Maximum | Customer support contracts, gross: | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Financing receivables term | 5 years | ||||||||||||||
Series A Preferred Stock | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Dividend rate | 9.00% | 9.00% | |||||||||||||
Preferred stock, shares authorized (in shares) | shares | 4,500 | 4,500 | |||||||||||||
Preferred stock, issued (in shares) | shares | 0 | 2,678 | |||||||||||||
Preferred stock, outstanding (in shares) | shares | 0 | 2,678 | |||||||||||||
Conversion price (usd per share) | $ / shares | $ 4.23 | ||||||||||||||
Shares issued upon conversion (in shares) | shares | 1,902 | ||||||||||||||
Shares converted (in shares) | shares | 2,080 | 718 | 717 | 905 | |||||||||||
Common stock | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Shares issued upon conversion (in shares) | shares | 491,753 | 169,741 | 169,485 | 213,437 | |||||||||||
ASC 606 adoption adjustments | Accounting Standards Update 2014-09 | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Increase in assets | $ (570,000) | ||||||||||||||
Net offset to accumulated deficit | $ 1,423,000 | ||||||||||||||
Senior Notes | Senior Secured Promissory Notes | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Face amount of debt | $ 5,000,000 | ||||||||||||||
Secured Debt | Promissory Note | |||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||||||
Common stock, par value (usd per share) | $ / shares | $ 1.30 | $ 1.30 | |||||||||||||
Face amount of debt | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Financing Receivables (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for losses on financing receivables | $ (526) | $ (526) |
Current portion | 0 | $ 100 |
Investment in sales-type lease, gross: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 301 | |
Less: Unearned income | (4) | |
Financing receivables, net | 297 | |
Current portion | 163 | |
Long-term portion | 134 | |
Investment in sales-type lease, gross, 2020 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 167 | |
Investment in sales-type lease, gross, 2021 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 134 | |
Product receivables, gross | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 281 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Investment in Sales-Type Lease (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current portion | $ 0 | $ 100 |
Investment in sales-type lease, gross: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 301 | |
Less: Unearned income | (4) | |
Financing receivables, net | 297 | |
Current portion | 163 | |
Long-term portion | 134 | |
Investment in sales-type lease, gross, 2020 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 167 | |
Investment in sales-type lease, gross, 2021 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | $ 134 | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Term of sales-type lease | 3 years | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Term of sales-type lease | 5 years |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounting Policies [Abstract] | ||
Raw materials and supplies | $ 163 | $ 358 |
Finished goods | 395 | 669 |
Inventory, Net | $ 558 | $ 1,027 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2019 | |
Leasehold Improvements [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Leasehold Improvements [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 15 years |
Computer Equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 1 year 6 months |
Computer Equipment [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Furniture and Fixtures [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Furniture and Fixtures [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 15 years |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies - Summary of Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 9 | $ 14 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 9 | 14 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 | $ 0 |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Level 3 Fair Value Measurements (Detail) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Burish Notes, Net of Discount | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of September 30, 2018 | $ 1,905 | |
Disbursement of Tranche 2, net of discount | 1,900 | $ 127 |
Payments | (833) | |
Amortization and accretion expense | 180 | |
Balance as of September 30, 2019 | 1,723 | 1,905 |
Warrant Debt, PFG V | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of September 30, 2018 | 103 | |
Payments | 0 | |
Amortization and accretion expense | 20 | 6 |
Balance as of September 30, 2019 | $ 149 | $ 103 |
Basis of Presentation and Si_11
Basis of Presentation and Significant Accounting Policies - Fair Value Assumptions for Stock Options Granted (Detail) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 4 years 3 months 25 days | 4 years 3 months 25 days |
Risk-free interest rate | 1.43% | 1.79% |
Expected volatility | 60.19% | 60.62% |
Expected forfeiture rate | 13.51% | 12.53% |
Expected exercise factor | 1.2 | 1 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 4 years 5 months 25 days | 4 years 4 months 25 days |
Risk-free interest rate | 2.93% | 2.75% |
Expected volatility | 70.63% | 63.50% |
Expected forfeiture rate | 14.79% | 14.60% |
Expected exercise factor | 1.2 | 1.17 |
Basis of Presentation and Si_12
Basis of Presentation and Significant Accounting Policies - Computation of Basic and Diluted Weighted Average Shares Used in Earnings per Share Calculations (Detail) - shares | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Denominator for basic earnings per share (in shares) - weighted average common shares | 5,833,301 | 4,655,520 |
Effect of dilutive options and warrants (treasury method) (in shares) | 0 | 0 |
Denominator for diluted earnings per share - adjusted weighted average common shares (in shares) | 5,833,301 | 4,655,520 |
Options and warrants outstanding during each year, but not included in the computation of diluted earnings (loss) per share because they are antidilutive (in shares) | 2,024,589 | 2,399,901 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Oct. 31, 2016 | Jun. 28, 2011 | |
Lessee, Lease, Description [Line Items] | ||||
Capital lease agreement expiry date | 2022-01 | |||
Portion of leases in fixed assets | $ 1,400,000 | $ 1,300,000 | ||
Portion of leases in accumulated depreciation | $ 1,100,000 | 892,000 | ||
Operating lease agreement expiry date | Mar. 31, 2022 | |||
Operating leases rent expense | $ 1,200,000 | 1,200,000 | ||
Lease term | November 2011 through December 2018 | |||
Leasehold improvement liability | $ 613,000 | |||
Unamortized balance of lease | $ 0 | 7,000 | ||
Deferred Rent Credit | $ 130,000 | |||
Purchase which is not recorded on Company's Balance Sheet | 464,000 | |||
Oct 2016 through Dec 2020 Office Space Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Unamortized balance of lease | $ 44,000 | $ 75,000 |
Commitments - Minimum Lease Pay
Commitments - Minimum Lease Payments Under Capital Lease, Including Principal and Interest (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 210 |
2021 | 116 |
2022 | 63 |
2023 | 7 |
2024 | 5 |
Total payments | 401 |
Less interest | (28) |
Total | $ 373 |
Commitments - Minimum Lease P_2
Commitments - Minimum Lease Payments Under Operating Leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 1,289 |
2021 | 939 |
2022 | 209 |
Total | $ 2,437 |
Credit Arrangements - Additiona
Credit Arrangements - Additional Information (Detail) | Mar. 11, 2019USD ($) | Feb. 28, 2019USD ($) | May 11, 2018USD ($)$ / sharesshares | Feb. 08, 2016USD ($) | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Apr. 25, 2019$ / sharesshares | Feb. 14, 2019USD ($)$ / shares | Jan. 31, 2019USD ($)$ / shares | Jan. 04, 2019USD ($) | Nov. 08, 2018USD ($) | Apr. 16, 2018$ / sharesshares | Jan. 27, 2015USD ($) |
Line of Credit Facility [Line Items] | |||||||||||||
Accounts receivable | $ 6,532,000 | $ 7,418,000 | |||||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 2.15 | ||||||||||
Warrant issued to purchase shares of common stock | shares | 728,155 | 232,558 | |||||||||||
Exercise price of warrant (usd per share) | $ / shares | $ 1.18 | $ 2.50 | |||||||||||
Fair value of the derivative liability | $ 9,000 | $ 14,000 | |||||||||||
Change in the fair value of the derivative liability, Gain recorded | 8,000 | 28,000 | |||||||||||
Interest expense, net | (897,000) | (601,000) | |||||||||||
Accretion Expense | $ 79,000 | ||||||||||||
Subordinated Promissory Notes [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Warrant [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Carrying value of debt | $ 674,000 | ||||||||||||
Silicon Valley Bank [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Foreign receivables accounts | $ 1,000,000 | ||||||||||||
Adjusted quick ratio | 1.60 | ||||||||||||
Partners For Growth V, L.P. [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Carrying value of debt | $ 2,500,000 | ||||||||||||
Warrant issued to purchase shares of common stock | shares | 66,000 | ||||||||||||
Exercise price of warrant (usd per share) | $ / shares | $ 2.57 | ||||||||||||
Change in the fair value of the derivative liability, Gain recorded | 8,000 | 14,000 | |||||||||||
Cash fee | $ 150,000 | ||||||||||||
Interest expense, net | (50,000) | (19,000) | |||||||||||
Non-Cash Interest Expense, Debt | 77,000 | ||||||||||||
Partners For Growth V, L.P. [Member] | Warrant [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Fair value of the derivative liability | $ 9,000 | 14,000 | |||||||||||
Partners For Growth V, L.P. [Member] | Warrant Debt | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt interest expense term | 5 years | ||||||||||||
Partners For Growth V, L.P. [Member] | PFG Debt | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt interest expense term | 3 years | ||||||||||||
Amortization of debt discount | $ 54,000 | 17,000 | |||||||||||
Secured Revolving Line of Credit | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Borrowing capacity under secured revolving line of credit | $ 4,000,000 | ||||||||||||
Revolving loan maturity date | Jan. 31, 2019 | ||||||||||||
Notes payable outstanding | $ 621,000 | ||||||||||||
Interest rate | 7.25% | ||||||||||||
Prior to Second Amendment | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Adjusted quick ratio as above Silicon Valley Bank's prime rate | 2.00% | ||||||||||||
Second Amended Agreement | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Percentage of advance rate on domestic receivables | 80.00% | ||||||||||||
Advance rate on foreign receivables | 75.00% | ||||||||||||
Total term loan | $ 3,000,000 | ||||||||||||
Twelfth Amendment | Period Ending June 30, 2018 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum change in deferred revenue | 1,100,000 | ||||||||||||
Twelfth Amendment | Period Ending September 30, 2018 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum change in deferred revenue | 500,000 | ||||||||||||
Twelfth Amendment | Period Ending December 31, 2018 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum change in deferred revenue | 250,000 | ||||||||||||
Twelfth Amendment | Period Ending March 31, 2019 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum change in deferred revenue | 250,000 | ||||||||||||
Twelfth Amendment, tranche one | Partners For Growth V, L.P. [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Carrying value of debt | $ 2,000,000 | ||||||||||||
Interest rate | 10.75% | ||||||||||||
Prepayment fee | 1.00% | ||||||||||||
Twelfth Amendment, tranche two | Partners for Growth | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Carrying value of debt | $ 3,000 | $ 500,000 | |||||||||||
Level 3 | Burish Notes, Net of Discount | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Interest rate | 16.60% | ||||||||||||
Disbursement | $ 1,900,000 | $ 127,000 | |||||||||||
Amortization and accretion expense | 180,000 | ||||||||||||
Outstanding balance | 1,723,000 | 1,905,000 | |||||||||||
Level 3 | Warrant Debt | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Outstanding balance | 117,000 | ||||||||||||
Level 3 | Warrant Debt, PFG V | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Amortization and accretion expense | 20,000 | 6,000 | |||||||||||
Outstanding balance | $ 149,000 | 103,000 | |||||||||||
Secured Debt | Promissory Note | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Face amount of debt | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||||||||
Interest rate | 9.25% | 9.25% | 9.25% | ||||||||||
Common stock, par value (usd per share) | $ / shares | $ 1.30 | $ 1.30 | |||||||||||
Senior Notes | Senior Secured Promissory Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Face amount of debt | $ 5,000,000 | ||||||||||||
Interest rate | 15.09% | ||||||||||||
Outstanding balance | $ 5,000,000 | ||||||||||||
Minimum qualifying revenue | $ 13,000,000 | 13,000,000 | |||||||||||
Maximum subsidiary indebtedness | $ 1,000,000 | ||||||||||||
Monthly installment amount | 100,000 | ||||||||||||
Interest Expense, Debt | $ 11,000 | ||||||||||||
Senior Notes | Initial Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Face amount of debt | 3,000,000 | ||||||||||||
Senior Notes | Additional Notes, Tranche One | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Face amount of debt | $ 1,000,000 | ||||||||||||
Senior Notes | December through May | Senior Secured Promissory Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Minimum coverage ratio | 0.7 | 0.7 | |||||||||||
Senior Notes | June through November | Senior Secured Promissory Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Minimum coverage ratio | 0.9 | 0.9 | |||||||||||
Senior Notes | Consent, Waiver, & Modification To Loan And Security Agreement, Tranche Four [Member] | Senior Secured Promissory Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum subsidiary indebtedness | $ 1,000,000 | ||||||||||||
Senior Notes | Consent, Waiver, & Modification To Loan And Security Agreement, Tranche Five [Member] | Senior Secured Promissory Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum subsidiary indebtedness | 1,000,000 | ||||||||||||
Each month-end that is not the last day of a fiscal quarter | Partners For Growth V, L.P. [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Exchange price of warrants | $ 250,000 | ||||||||||||
Each month-end that is the last day of a fiscal quarter | Silicon Valley Bank [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Adjusted quick ratio | 1.75 | ||||||||||||
Mitsui Sumitomo Bank [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Annual interest rate | 1.575% | ||||||||||||
Mitsui Sumitomo Bank [Member] | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Notes payable outstanding | $ 0 | $ 264,000 | |||||||||||
JAPAN | Senior Notes | Senior Secured Promissory Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum subsidiary indebtedness | $ 1,000,000 | ||||||||||||
Prime Rate | Senior Notes | Senior Secured Promissory Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Basis spread on variable rate | 4.00% |
Credit Arrangements - Other Ind
Credit Arrangements - Other Indebtedness (Details) - USD ($) | May 17, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Feb. 15, 2018 | Jan. 19, 2018 |
Mitsui Sumitomo Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Annual interest rate | 1.575% | ||||
Mitsui Sumitomo Bank [Member] | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Notes payable outstanding | $ 0 | $ 264,000 | |||
Director | Convertible Secured Subordinated Promissory Note | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 10.75% | ||||
Face amount of debt | $ 500,000 | ||||
Conversion price (usd per share) | $ 542.13 | ||||
Director | Additional Convertible Secured Subordinated Promissory Note | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 10.75% | ||||
Face amount of debt | $ 500,000 | ||||
Series A Preferred Stock | |||||
Line of Credit Facility [Line Items] | |||||
Shares issued upon conversion (in shares) | 1,902 | ||||
Conversion price (usd per share) | $ 4.23 | ||||
Series A Preferred Stock | Director | Convertible Secured Subordinated Promissory Note | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Shares issued upon conversion (in shares) | 1,902 | ||||
Conversion price (usd per share) | $ 542.13 |
Credit Arrangements - Summary o
Credit Arrangements - Summary of Changes in Outstanding Notes Payable (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
PFG V Debt | ||
Debt Instrument [Line Items] | ||
Balance as of September 30, 2018 | $ 1,905 | |
Disbursements | (1,900) | $ (127) |
Payments | (833) | |
Amortization and accretion expense | 180 | |
Balance as of September 30, 2019 | 1,723 | 1,905 |
Warrant Debt, PFG V | ||
Debt Instrument [Line Items] | ||
Balance as of September 30, 2018 | 103 | |
Payments | 0 | |
Amortization and accretion expense | 20 | 6 |
Balance as of September 30, 2019 | 149 | 103 |
Burish Notes | ||
Debt Instrument [Line Items] | ||
Balance as of September 30, 2018 | 0 | |
Payments | 0 | |
Amortization and accretion expense | 66 | |
Balance as of September 30, 2019 | 4,651 | $ 0 |
Warrant [Member] | PFG V Debt | ||
Debt Instrument [Line Items] | ||
Disbursements | 0 | |
Warrant [Member] | Warrant Debt, PFG V | ||
Debt Instrument [Line Items] | ||
Disbursements | 0 | |
Warrant [Member] | Burish Notes | ||
Debt Instrument [Line Items] | ||
Disbursements | (674) | |
Tranche 2 | PFG V Debt | ||
Debt Instrument [Line Items] | ||
Disbursements | (471) | |
Tranche 2 | Warrant Debt, PFG V | ||
Debt Instrument [Line Items] | ||
Disbursements | (26) | |
Tranche 2 | Burish Notes | ||
Debt Instrument [Line Items] | ||
Disbursements | 0 | |
Tranches 1-5 | PFG V Debt | ||
Debt Instrument [Line Items] | ||
Disbursements | 0 | |
Tranches 1-5 | Warrant Debt, PFG V | ||
Debt Instrument [Line Items] | ||
Disbursements | 0 | |
Tranches 1-5 | Burish Notes | ||
Debt Instrument [Line Items] | ||
Disbursements | $ (5,000) |
Credit Arrangements - Summary_2
Credit Arrangements - Summary of Annual Principal Payments (Detail) - SVB, PFG and Mitsui Sumitomo Bank [Member] $ in Thousands | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 1,200 |
2022 | 1,867 |
2023 | 1,200 |
2024 | 1,200 |
2025 | 1,459 |
Thereafter | 0 |
Total principal payments | 6,926 |
Less: Discount on notes payable | (529) |
Total notes payable, net of discount | $ 6,397 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Payables and Accruals [Abstract] | |||
Accrued compensation | $ 1,419 | $ 972 | |
Accrued expenses | 480 | 359 | |
Accrued interest & taxes | 269 | 223 | |
Other accrued liabilities | 48 | 55 | |
Total | $ 2,216 | $ 1,611 | $ 1,609 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | May 17, 2019 | Nov. 15, 2018 | Aug. 23, 2018 | Jun. 08, 2018 | May 17, 2018 | Nov. 09, 2017 | May 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 25, 2019 | Apr. 16, 2018 | Sep. 30, 2017 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 9 months | |||||||||||
Employee stock purchase plan aggregate number of shares (in shares) | 1,654,429 | 2,029,741 | 1,805,443 | |||||||||
Number of shares that holder entitles to purchase at specified option price | 1 | |||||||||||
Duration of termination for stock plan | 10 years | |||||||||||
Unrecognized non vested stock based compensation | $ 131,000 | $ 475,000 | ||||||||||
Estimated forfeitures for unrecognized non vested stock based compensation | $ 97,000 | 359,000 | ||||||||||
Expected weighted average life of forfeited cost | 11 months | |||||||||||
Share-based Compensation | $ 177,000 | 476,000 | ||||||||||
Cash received from exercises under all stock option plans | 859,000 | 0 | ||||||||||
Tax benefits realized for tax deductions from option exercises | $ 0 | $ 0 | ||||||||||
Expected shares issued | 200,000 | |||||||||||
Number of complete employment days on first day of each offering period | 90 days | |||||||||||
Employee not eligible to participate | 5.00% | |||||||||||
Eligible employees contribution to purchase price | 10.00% | |||||||||||
Restricted participant under purchase plan that exceeds rate of fair value of shares | $ 25,000 | |||||||||||
Restricted participant under purchase plan that exceeds number of shares | 1,000 | |||||||||||
Offering period | 6 months | |||||||||||
Purchase shares of common stock at a purchase price fair market | 85.00% | |||||||||||
Shares available to issue | 25,667 | |||||||||||
Shares purchased by employees | 22,200 | 12,794 | ||||||||||
Stock-based compensation | $ 1,000 | $ 8,000 | ||||||||||
Stock issued for board of director's fees | $ 246,000 | $ 0 | ||||||||||
Common stock, shares issued (in shares) | 6,749,359 | 5,113,400 | 232,558 | |||||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 2.15 | |||||||||
Share price (usd per share) | $ 2.18 | |||||||||||
Warrant issued to purchase shares of common stock | 728,155 | 232,558 | ||||||||||
Exercise price of warrant (usd per share) | $ 1.18 | $ 2.50 | ||||||||||
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 | ||||||||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||||||
Subordinated note payable converted to preferred stock | $ 1,000,000 | $ 0 | $ 1,000,000 | |||||||||
Qualified Employee Stock Option Plans | ||||||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||||||
Employee stock purchase plan aggregate number of shares (in shares) | 1,013,201 | 695,759 | 1,008,390 | |||||||||
Director Stock Option Plans | ||||||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||||||
Employee stock purchase plan aggregate number of shares (in shares) | 45,000 | 43,500 | 48,000 | |||||||||
Employee Stock Purchase Plan | ||||||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||||||
Number of additional shares issued under stockholder approval | 150,000 | |||||||||||
Number of shares to be granted on each meeting under directors plan | 2,000 | |||||||||||
Stock issued for board of director's fees | $ 12,000 | $ 27,000 | ||||||||||
9% Preferred stock, Series A, voting, cumulative, convertible, $.01 par value (liquidation preference of $1,000 per share), authorized 4,500 shares; zero and 2,678 shares issued and outstanding, respectively, at amounts paid in | ||||||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||||||
Dividend rate | 9.00% | 9.00% | ||||||||||
Preferred stock, shares authorized (in shares) | 4,500 | 4,500 | ||||||||||
Conversion price (usd per share) | $ 4.23 | |||||||||||
Preferred stock, issued (in shares) | 0 | 2,678 | ||||||||||
Shares issued upon conversion (in shares) | 1,902 | |||||||||||
Shares converted (in shares) | 2,080 | 718 | 717 | 905 | ||||||||
Common stock | ||||||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||||||
Shares issued upon conversion (in shares) | 491,753 | 169,741 | 169,485 | 213,437 | ||||||||
Director | 9% Preferred stock, Series A, voting, cumulative, convertible, $.01 par value (liquidation preference of $1,000 per share), authorized 4,500 shares; zero and 2,678 shares issued and outstanding, respectively, at amounts paid in | ||||||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||||||
Sale of Stock, Consideration Received on Transaction | $ 500,000 | |||||||||||
Sale of Stock, Price Per Share | $ 762.85 | |||||||||||
Sale of Stock, Percentage of Ownership after Transaction | 5.00% |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Number of Shares Available for Grant (Detail) - shares | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Options, Outstanding Beginning Balance (in shares) | 2,029,741 | 1,805,443 |
Options granted (in shares) | (229,350) | (413,249) |
Options forfeited (in shares) | 604,662 | 174,619 |
Options, Outstanding Ending Balance (in shares) | 1,654,429 | 2,029,741 |
Qualified Employee Stock Option Plans | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Options, Outstanding Beginning Balance (in shares) | 695,759 | 1,008,390 |
Options granted (in shares) | (218,850) | (398,749) |
Options forfeited (in shares) | 536,292 | 86,118 |
Options, Outstanding Ending Balance (in shares) | 1,013,201 | 695,759 |
Director Stock Option Plans | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Options, Outstanding Beginning Balance (in shares) | 43,500 | 48,000 |
Options granted (in shares) | (10,500) | (14,500) |
Options forfeited (in shares) | 12,000 | 10,000 |
Options, Outstanding Ending Balance (in shares) | 45,000 | 43,500 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Options Activity (Detail) - $ / shares | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options, Outstanding Beginning Balance (in shares) | 2,029,741 | 1,805,443 |
Options, Granted (in shares) | 229,350 | 413,249 |
Options, Exercised (in shares) | 0 | (14,332) |
Options, Forfeited (in shares) | (604,662) | (174,619) |
Options, Outstanding Ending Balance (in shares) | 1,654,429 | 2,029,741 |
Options, Exercisable Ending Balance (in shares) | 1,297,315 | 1,349,021 |
Weighted Average Exercise Price, Outstanding Beginning Balance (usd per share) | $ 7.04 | $ 8.33 |
Weighted Average Exercise Price, Granted (usd per share) | 0.73 | 2.49 |
Weighted Average Exercise Price, Exercised (usd per share) | 0 | 4.75 |
Weighted Average Exercise Price, Forfeited (usd per share) | 8.53 | 9.82 |
Weighted Average Exercise Price, Outstanding Ending Balance (usd per share) | 5.62 | 7.04 |
Weighted-Average Grant Date Fair Value, Granted (usd per share) | $ 0.28 | $ 0.95 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Options Outstanding Segregated By Range (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option Outstanding at September 30, 2015 (in shares) | 1,654,429 | 2,029,741 | 1,805,443 |
Outstanding Options, Weighted Average Exercise Price (usd per share) | $ 5.62 | $ 7.04 | $ 8.33 |
Options Exercisable at September 30, 2015 (in shares) | 1,297,315 | 1,349,021 | |
Range I [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option Outstanding at September 30, 2015 (in shares) | 848,136 | ||
Option Outstanding, Weighted Average Remaining Contractual Life | 5 years 7 months 5 days | ||
Outstanding Options, Weighted Average Exercise Price (usd per share) | $ 2.71 | ||
Options Exercisable at September 30, 2015 (in shares) | 493,189 | ||
Options Exercisable, Weighted Average Exercise Price | $ 3.37 | ||
Exercise Price, Lower range | 0.66 | ||
Exercise Price, Upper range | $ 4.88 | ||
Range II [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option Outstanding at September 30, 2015 (in shares) | 614,533 | ||
Option Outstanding, Weighted Average Remaining Contractual Life | 4 years 2 months 23 days | ||
Outstanding Options, Weighted Average Exercise Price (usd per share) | $ 7.80 | ||
Options Exercisable at September 30, 2015 (in shares) | 612,866 | ||
Options Exercisable, Weighted Average Exercise Price | $ 7.80 | ||
Exercise Price, Lower range | 5 | ||
Exercise Price, Upper range | $ 9.81 | ||
Range III [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option Outstanding at September 30, 2015 (in shares) | 191,760 | ||
Option Outstanding, Weighted Average Remaining Contractual Life | 3 years 7 months 6 days | ||
Outstanding Options, Weighted Average Exercise Price (usd per share) | $ 11.46 | ||
Options Exercisable at September 30, 2015 (in shares) | 191,260 | ||
Options Exercisable, Weighted Average Exercise Price | $ 11.46 | ||
Exercise Price, Lower range | 10 | ||
Exercise Price, Upper range | $ 15 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Status of Company's Non-Vested Shares (Detail) - $ / shares | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, Outstanding Beginning Balance (in shares) | 2,029,741 | 1,805,443 |
Shares, Granted (in shares) | 229,350 | 413,249 |
Options, Forfeited (in shares) | (604,662) | (174,619) |
Options, Outstanding Ending Balance (in shares) | 1,654,429 | 2,029,741 |
Weighted-Average Grant Date Fair Value, Granted (usd per share) | $ 0.28 | $ 0.95 |
Non-Vested Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, Outstanding Beginning Balance (in shares) | 680,720 | 544,834 |
Shares, Granted (in shares) | 229,350 | 413,249 |
Shares, Vested | (508,998) | (258,938) |
Options, Forfeited (in shares) | (43,958) | (18,425) |
Options, Outstanding Ending Balance (in shares) | 357,114 | 680,720 |
Weighted-Average Grant Date Fair Value, Non-vested Beginning Balance | $ 1.46 | $ 2.42 |
Weighted-Average Grant Date Fair Value, Granted (usd per share) | 0.28 | 0.95 |
Weighted-Average Grant Date Fair Value, Vested | 1.46 | 2.47 |
Weighted-Average Grant Date Fair Value, Forfeited | 1.06 | 1.73 |
Weighted-Average Grant Date Fair Value, Non-vested Ending Balance | $ 0.77 | $ 1.46 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current income tax expense U.S. | $ 0 | $ 0 |
Current income tax expense foreign | 67 | 101 |
Deferred income tax benefit | 23 | (4,433) |
Income tax expense (benefit) | $ 90 | $ (4,332) |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. | $ (3,576) | $ (16,934) |
Foreign | 54 | 436 |
Loss before income taxes | $ (3,522) | $ (16,498) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) Computed at Country Specific Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at statutory rate | $ (751) | $ (4,111) |
State income tax benefit | (198) | (823) |
Foreign tax activity | 67 | 101 |
Permanent differences, net | 44 | 771 |
Change in valuation allowance | 1,569 | 1,285 |
Tax rate change | 0 | (1,545) |
Other | 412 | (10) |
Income tax expense (benefit) | $ 90 | $ (4,332) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Accounts Recognized for Financial Purposes (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets: | ||
Net operating loss and other carryforwards | $ 25,347 | $ 24,262 |
Common stock options | 946 | 919 |
Unearned revenue | 477 | 510 |
Interest expense limitation | 262 | 0 |
Other | 544 | 369 |
Total deferred tax assets | 27,576 | 26,060 |
Deferred tax liabilities: | ||
Other | (97) | (103) |
Total deferred tax liabilities | (97) | (103) |
Net deferred tax asset | 27,479 | 25,957 |
Valuation allowance | (27,443) | (25,881) |
Customer relationships | 0 | 0 |
Net deferred tax asset for goodwill and intangible assets amortization | $ 36 | $ 76 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule Of Income Taxes [Line Items] | ||
Deferred tax asset | $ 27,576,000 | $ 26,060,000 |
Research and development tax credit carryforwards | 165,000 | |
Net operating loss and other carryforwards | 25,347,000 | 24,262,000 |
Deferred tax liability, unremitted earnings of foreign subsidiaries | 0 | |
Unremitted foreign earnings | $ 1,200,000 | |
Goodwill for tax purposes amortization period | 15 years | |
Accruals of interest and penalties | $ 0 | 0 |
Recognized interest or penalties | 0 | 0 |
Decrease in deferred tax assets related to the Tax Act | 0 | (1,545,000) |
Decrease in valuation allowance related to the Tax Act | 1,500,000 | |
Additional Paid-in Capital | ||
Schedule Of Income Taxes [Line Items] | ||
Net operating loss and other carryforwards | $ 1,100,000 | |
Maximum | Research Tax Credit Carryforward | ||
Schedule Of Income Taxes [Line Items] | ||
Research and development tax credit carryforwards expire date | 2020 | |
Federal Tax | ||
Schedule Of Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 103,000,000 | |
Federal Tax | Minimum | ||
Schedule Of Income Taxes [Line Items] | ||
Operating loss carryforwards for federal tax purposes | 2020 | |
Federal Tax | Maximum | ||
Schedule Of Income Taxes [Line Items] | ||
Operating loss carryforwards for federal tax purposes | 2038 | |
State tax | ||
Schedule Of Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 60,000,000 | |
State tax | Minimum | ||
Schedule Of Income Taxes [Line Items] | ||
Operating loss carryforwards for federal tax purposes | 2019 | |
State tax | Maximum | ||
Schedule Of Income Taxes [Line Items] | ||
Operating loss carryforwards for federal tax purposes | 2034 | |
Prepaid Expenses and Other Current Assets | ||
Schedule Of Income Taxes [Line Items] | ||
Deferred tax asset | $ 36,000 | $ 76,000 |
Savings Plan - Additional Infor
Savings Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Postemployment Benefits [Abstract] | ||
Defined savings plan contributions | $ 444,000 | $ 365,000 |
Additional discretionary contributions | $ 0 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Thousands | Jul. 01, 2015segment | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangibles | $ 337 | ||
Number of reporting units | segment | 3 | ||
Impairment of goodwill | 10,423 | ||
Impairment of intangible assets | 1,400 | ||
Goodwill | $ 0 | $ 10,455 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 10,455 |
Impairment losses | (10,423) |
Foreign currency translation adjustment | (32) |
Ending balance | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Total Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | ||
Gross, Net of Impairment | $ 2,323 | |
Accumulated Amortization | 2,323 | |
Intangible Assets, Net | 0 | |
Non-amortizable goodwill, Net | $ 0 | $ 10,455 |
Customer relationships | ||
Goodwill [Line Items] | ||
Life (years) | 10 years | |
Gross, Net of Impairment | $ 1,256 | |
Accumulated Amortization | 1,256 | |
Intangible Assets, Net | $ 0 | |
Software development costs | ||
Goodwill [Line Items] | ||
Life (years) | 3 years | |
Gross, Net of Impairment | $ 533 | |
Accumulated Amortization | 533 | |
Intangible Assets, Net | $ 0 | |
Product rights | ||
Goodwill [Line Items] | ||
Life (years) | 6 years | |
Gross, Net of Impairment | $ 534 | |
Accumulated Amortization | 534 | |
Intangible Assets, Net | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 34,781 |
Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | (2,550) |
SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 26,884 |
SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2,428 |
MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 8,019 |
Product and other total | |
Disaggregation of Revenue [Line Items] | |
Revenues | 11,631 |
Product and other total | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | (1,747) |
Product and other total | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 10,866 |
Product and other total | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,020 |
Product and other total | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,492 |
Hardware | |
Disaggregation of Revenue [Line Items] | |
Revenues | 7,450 |
Hardware | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | (808) |
Hardware | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 6,710 |
Hardware | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 598 |
Hardware | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 950 |
Software | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,845 |
Software | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | (430) |
Software | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,316 |
Software | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 417 |
Software | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 542 |
Shipping | |
Disaggregation of Revenue [Line Items] | |
Revenues | 336 |
Shipping | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | (509) |
Shipping | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 840 |
Shipping | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 5 |
Shipping | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Services total | |
Disaggregation of Revenue [Line Items] | |
Revenues | 23,150 |
Services total | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | (803) |
Services total | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 16,018 |
Services total | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,408 |
Services total | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 6,527 |
Support | |
Disaggregation of Revenue [Line Items] | |
Revenues | 9,723 |
Support | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | (803) |
Support | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 7,717 |
Support | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 672 |
Support | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2,137 |
Hosting | |
Disaggregation of Revenue [Line Items] | |
Revenues | 6,451 |
Hosting | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Hosting | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 4,258 |
Hosting | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 544 |
Hosting | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 1,649 |
Events | |
Disaggregation of Revenue [Line Items] | |
Revenues | 6,693 |
Events | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Events | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,785 |
Events | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 167 |
Events | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 2,741 |
Installs and training | |
Disaggregation of Revenue [Line Items] | |
Revenues | 283 |
Installs and training | Intersegment Eliminations | |
Disaggregation of Revenue [Line Items] | |
Revenues | 0 |
Installs and training | SOFO | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 258 |
Installs and training | SFI | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | 25 |
Installs and training | MSKK | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 0 |
Revenue - Opening Balance Sheet
Revenue - Opening Balance Sheet Adjustment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized commissions, current | $ 464 | $ 580 | $ 0 | |||||||
Prepaid expenses and other current assets | 972 | 941 | ||||||||
Total current assets | 12,984 | 11,405 | 10,825 | |||||||
Capitalized commissions, long-term | 106 | 112 | 0 | |||||||
Total assets | 15,180 | 14,275 | 13,583 | |||||||
Accrued liabilities | 2,216 | 1,611 | 1,609 | |||||||
Unearned revenue | 9,610 | 10,721 | 11,645 | |||||||
Total current liabilities | 13,831 | 15,668 | 16,590 | |||||||
Other liabilities | 143 | 200 | 202 | |||||||
Long-term portion of unearned revenue | 1,842 | 1,616 | 1,691 | |||||||
Total liabilities | 21,433 | 19,042 | 20,041 | |||||||
Accumulated deficit | (209,340) | (205,728) | (207,419) | |||||||
Total stockholders' equity (deficit) | (6,253) | $ (6,079) | $ (7,098) | $ (6,329) | (4,767) | (6,458) | $ 3,528 | $ 3,146 | $ 4,203 | $ 3,118 |
Total liabilities and stockholders' equity (deficit) | 15,180 | 14,275 | $ 13,583 | |||||||
ASC 606 adoption adjustments | Accounting Standards Update 2014-09 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized commissions, current | (464) | |||||||||
Total current assets | (464) | |||||||||
Capitalized commissions, long-term | (106) | |||||||||
Total assets | (570) | |||||||||
Accrued liabilities | (2) | |||||||||
Unearned revenue | 785 | |||||||||
Total current liabilities | 783 | |||||||||
Other liabilities | 2 | |||||||||
Long-term portion of unearned revenue | 68 | |||||||||
Total liabilities | 853 | |||||||||
Accumulated deficit | (1,423) | |||||||||
Total stockholders' equity (deficit) | (1,423) | |||||||||
Total liabilities and stockholders' equity (deficit) | $ (570) | |||||||||
ASC 606 Adoption Adjustments | ASC 606 adoption adjustments | Accounting Standards Update 2014-09 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized commissions, current | 580 | |||||||||
Total current assets | 580 | |||||||||
Capitalized commissions, long-term | 112 | |||||||||
Total assets | 692 | |||||||||
Accrued liabilities | 2 | |||||||||
Unearned revenue | (924) | |||||||||
Total current liabilities | (922) | |||||||||
Other liabilities | (2) | |||||||||
Long-term portion of unearned revenue | (75) | |||||||||
Total liabilities | (999) | |||||||||
Accumulated deficit | 1,691 | |||||||||
Total stockholders' equity (deficit) | 1,691 | |||||||||
Total liabilities and stockholders' equity (deficit) | $ 692 |
Revenue - Impact of Adoption on
Revenue - Impact of Adoption on Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized commissions, current | $ 464 | $ 580 | $ 0 | |||||||
Total current assets | 12,984 | 11,405 | 10,825 | |||||||
Capitalized commissions, long-term | 106 | 112 | 0 | |||||||
Total assets | 15,180 | 14,275 | 13,583 | |||||||
Accrued liabilities | 2,216 | 1,611 | 1,609 | |||||||
Unearned revenue | 9,610 | 10,721 | 11,645 | |||||||
Total current liabilities | 13,831 | 15,668 | 16,590 | |||||||
Other liabilities | 143 | 200 | 202 | |||||||
Long-term portion of unearned revenue | 1,842 | 1,616 | 1,691 | |||||||
Total liabilities | 21,433 | 19,042 | 20,041 | |||||||
Accumulated deficit | (209,340) | (205,728) | (207,419) | |||||||
Total stockholders' equity (deficit) | (6,253) | $ (6,079) | $ (7,098) | $ (6,329) | (4,767) | (6,458) | $ 3,528 | $ 3,146 | $ 4,203 | $ 3,118 |
Total liabilities and stockholders' equity (deficit) | 15,180 | $ 14,275 | $ 13,583 | |||||||
Amounts without ASC 606 impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized commissions, current | 0 | |||||||||
Total current assets | 12,520 | |||||||||
Capitalized commissions, long-term | 0 | |||||||||
Total assets | 14,610 | |||||||||
Accrued liabilities | 2,214 | |||||||||
Unearned revenue | 10,395 | |||||||||
Total current liabilities | 14,614 | |||||||||
Other liabilities | 145 | |||||||||
Long-term portion of unearned revenue | 1,910 | |||||||||
Total liabilities | 22,286 | |||||||||
Accumulated deficit | (210,763) | |||||||||
Total stockholders' equity (deficit) | (7,676) | |||||||||
Total liabilities and stockholders' equity (deficit) | 14,610 | |||||||||
Accounting Standards Update 2014-09 | ASC 606 adoption impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized commissions, current | (464) | |||||||||
Total current assets | (464) | |||||||||
Capitalized commissions, long-term | (106) | |||||||||
Total assets | (570) | |||||||||
Accrued liabilities | (2) | |||||||||
Unearned revenue | 785 | |||||||||
Total current liabilities | 783 | |||||||||
Other liabilities | 2 | |||||||||
Long-term portion of unearned revenue | 68 | |||||||||
Total liabilities | 853 | |||||||||
Accumulated deficit | (1,423) | |||||||||
Total stockholders' equity (deficit) | (1,423) | |||||||||
Total liabilities and stockholders' equity (deficit) | $ (570) |
Revenue - Impact of Adoption _2
Revenue - Impact of Adoption on Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Revenues | $ 9,212 | $ 10,068 | $ 7,997 | $ 7,502 | $ 8,490 | $ 8,699 | $ 8,460 | $ 8,895 | $ 34,781 | $ 34,544 |
Revenues | 34,781 | |||||||||
Cost of revenues | 9,280 | 9,656 | ||||||||
Gross margin | 6,461 | 7,387 | 5,993 | 5,660 | 6,094 | 6,395 | 5,929 | 6,470 | 25,501 | 24,888 |
Selling and marketing (operating expenses) | 14,727 | 15,622 | ||||||||
Income (loss) from operations | 125 | 144 | (1,123) | (1,654) | (12,900) | (914) | (1,259) | (966) | (2,508) | (16,039) |
Loss before income taxes | (3,522) | (16,498) | ||||||||
Net loss | $ (179) | $ (159) | $ (1,486) | $ (1,788) | $ (10,017) | $ (1,020) | $ (1,449) | $ 320 | (3,612) | (12,166) |
Net loss attributable to common stockholders | $ (3,734) | $ (12,423) | ||||||||
Loss per common share - basic (in usd per share) | $ (0.64) | $ (2.67) | ||||||||
Loss per common share – diluted (in usd per share) | $ (0.64) | $ (2.67) | ||||||||
Amounts without ASC 606 impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Revenues | $ 34,926 | |||||||||
Cost of revenues | 9,280 | |||||||||
Gross margin | 25,646 | |||||||||
Selling and marketing (operating expenses) | 14,604 | |||||||||
Income (loss) from operations | (2,240) | |||||||||
Loss before income taxes | (3,254) | |||||||||
Net loss | (3,344) | |||||||||
Net loss attributable to common stockholders | $ (3,466) | |||||||||
Loss per common share - basic (in usd per share) | $ (0.59) | |||||||||
Loss per common share – diluted (in usd per share) | $ (0.59) | |||||||||
Accounting Standards Update 2014-09 | ASC 606 adoption impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Revenues | $ 145 | |||||||||
Cost of revenues | 0 | |||||||||
Gross margin | 145 | |||||||||
Selling and marketing (operating expenses) | (123) | |||||||||
Income (loss) from operations | 268 | |||||||||
Loss before income taxes | 268 | |||||||||
Net loss | 268 | |||||||||
Net loss attributable to common stockholders | $ 268 | |||||||||
Loss per common share - basic (in usd per share) | $ 0.05 | |||||||||
Loss per common share – diluted (in usd per share) | $ 0.05 | |||||||||
Product and other | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Revenues | $ 11,631 | $ 12,311 | ||||||||
Revenues | 11,631 | |||||||||
Cost of revenues | 4,387 | $ 5,231 | ||||||||
Product and other | Amounts without ASC 606 impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Revenues | 11,776 | |||||||||
Cost of revenues | 4,387 | |||||||||
Product and other | Accounting Standards Update 2014-09 | ASC 606 adoption impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Revenues | 145 | |||||||||
Cost of revenues | $ 0 |
Revenue - Impact of Adoption _3
Revenue - Impact of Adoption on Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Net loss | $ (179) | $ (159) | $ (1,486) | $ (1,788) | $ (10,017) | $ (1,020) | $ (1,449) | $ 320 | $ (3,612) | $ (12,166) |
Capitalized commissions | 123 | |||||||||
Prepaid expenses and other current assets | 15 | 132 | ||||||||
Accounts payable and accrued liabilities | (204) | 268 | ||||||||
Other long-term liabilities | (68) | (169) | ||||||||
Unearned revenue | (900) | (920) | ||||||||
Net cash used in operating activities | (736) | $ (638) | ||||||||
Amounts without ASC 606 impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Net loss | (3,344) | |||||||||
Capitalized commissions | 0 | |||||||||
Unearned revenue | (1,045) | |||||||||
Net cash used in operating activities | (736) | |||||||||
Accounting Standards Update 2014-09 | ASC 606 adoption impact | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Net loss | 268 | |||||||||
Capitalized commissions | (123) | |||||||||
Unearned revenue | (145) | |||||||||
Net cash used in operating activities | $ 0 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Amount | $ 4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Amount | $ 1.8 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 10,300 |
Capitalized Contract Cost, Amortization | $ 593 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | May 17, 2019 | Nov. 15, 2018 | Aug. 23, 2018 | Jun. 08, 2018 | May 17, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 25, 2019 | Apr. 16, 2018 | Feb. 15, 2018 | Jan. 19, 2018 |
Related Party Transaction [Line Items] | |||||||||||
Related party transaction fees | $ 316,000 | $ 212,000 | |||||||||
Accrued liabilities for unbilled services | 30,000 | 60,000 | |||||||||
Loan outstanding | $ 0 | $ 26,000 | |||||||||
Common stock, shares issued (in shares) | 6,749,359 | 5,113,400 | 232,558 | ||||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 2.15 | ||||||||
Share price (usd per share) | $ 2.18 | ||||||||||
Warrant issued to purchase shares of common stock | 728,155 | 232,558 | |||||||||
Exercise price of warrant (usd per share) | $ 1.18 | $ 2.50 | |||||||||
Secured Debt | Convertible Secured Subordinated Promissory Note | Director | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate | 10.75% | ||||||||||
Face amount of debt | $ 500,000 | ||||||||||
Conversion price (usd per share) | $ 542.13 | ||||||||||
Secured Debt | Additional Convertible Secured Subordinated Promissory Note | Director | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate | 10.75% | ||||||||||
Face amount of debt | $ 500,000 | ||||||||||
Series A Preferred Stock | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Shares converted (in shares) | 2,080 | 718 | 717 | 905 | |||||||
Shares issued upon conversion (in shares) | 1,902 | ||||||||||
Conversion price (usd per share) | $ 4.23 | ||||||||||
Series A Preferred Stock | Secured Debt | Convertible Secured Subordinated Promissory Note | Director | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Shares issued upon conversion (in shares) | 1,902 | ||||||||||
Conversion price (usd per share) | $ 542.13 | ||||||||||
Common stock | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Shares issued upon conversion (in shares) | 491,753 | 169,741 | 169,485 | 213,437 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 1 |
Segment Information - Summarize
Segment Information - Summarizes Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 9,212 | $ 10,068 | $ 7,997 | $ 7,502 | $ 8,490 | $ 8,699 | $ 8,460 | $ 8,895 | $ 34,781 | $ 34,544 |
United States | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 19,680 | 21,152 | ||||||||
Europe and Middle East | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 5,718 | 4,482 | ||||||||
Asia | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 7,822 | 7,418 | ||||||||
Other | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 1,561 | $ 1,492 |
Customer Concentration - Additi
Customer Concentration - Additional Information (Detail) - distributor | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Total Revenue | ||
Concentration Risk [Line Items] | ||
Number of distributors | 2 | |
Percentage of account receivables represented by two distributors | 17.00% | |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Number of distributors | 2 | |
Percentage of account receivables represented by two distributors | 28.00% |
Quarterly Statement of Stockh_3
Quarterly Statement of Stockholders' Equity (Deficit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2018 | |
Beginning balance | $ (6,079) | $ (7,098) | $ (6,329) | $ (6,458) | $ 3,528 | $ 3,146 | $ 4,203 | $ 3,118 | $ (6,458) | $ 3,118 | |
Cumulative effect of ASC 606 adoption Note 9 | $ 1,691 | ||||||||||
Stock compensation | (25) | (17) | 56 | 164 | 83 | 73 | 75 | 245 | 177 | 476 | |
Conversion of preferred stock | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Preferred stock dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Foreign currency translation adjustment | (4) | 89 | (17) | 62 | (138) | (272) | 309 | 20 | 130 | (81) | |
Net loss | (179) | (159) | (1,486) | (1,788) | (10,017) | (1,020) | (1,449) | 320 | (3,612) | (12,166) | |
Issuance of stock | 500 | ||||||||||
Cancellation of receivable for common stock issued | 26 | 26 | |||||||||
Warrants issued in connection with subordinated notes payable | 674 | 674 | |||||||||
Ending balance | (6,253) | (6,079) | (7,098) | (6,329) | (6,458) | 3,528 | 3,146 | 4,203 | (6,253) | (6,458) | |
Beneficial conversion feature on convertible debt | 70 | 70 | |||||||||
Preferred stock | |||||||||||
Beginning balance | 0 | 1,187 | 1,141 | 1,651 | 2,143 | 1,874 | 1,824 | 1,280 | 1,651 | 1,280 | |
Conversion of preferred stock | (1,210) | (563) | (561) | (829) | (1,773) | (1,390) | |||||
Preferred stock dividends | 23 | 46 | 53 | 69 | 67 | 50 | 44 | 122 | 230 | ||
Issuance of stock | 1,031 | 500 | 1,531 | ||||||||
Ending balance | 0 | 0 | 1,187 | 1,141 | 1,651 | 2,143 | 1,874 | 1,824 | 0 | 1,651 | |
Common stock | |||||||||||
Beginning balance | 67 | 53 | 53 | 51 | 49 | 45 | 45 | 45 | 51 | 45 | |
Conversion of preferred stock | 4 | 2 | 2 | 2 | 6 | 4 | |||||
Issuance of stock | 10 | 2 | 10 | 2 | |||||||
Ending balance | 67 | 67 | 53 | 53 | 51 | 49 | 45 | 45 | 67 | 51 | |
Additional paid-in capital | |||||||||||
Beginning balance | 203,752 | 201,490 | 200,802 | 200,130 | 199,471 | 198,070 | 198,037 | 197,836 | 200,130 | 197,836 | |
Stock compensation | (25) | (17) | 56 | 164 | 83 | 73 | 75 | 245 | 177 | 476 | |
Conversion of preferred stock | 1,206 | 561 | 559 | 827 | 1,767 | 1,386 | |||||
Preferred stock dividends | (23) | (46) | (53) | (69) | (67) | (50) | (44) | (122) | (230) | ||
Issuance of stock | 8 | 1,096 | 4 | 86 | 498 | 8 | 1,109 | 592 | |||
Warrants issued in connection with subordinated notes payable | 674 | 674 | |||||||||
Ending balance | 203,735 | 203,752 | 201,490 | 200,802 | 200,130 | 199,471 | 198,070 | 198,037 | 203,735 | 200,130 | |
Beneficial conversion feature on convertible debt | 70 | 70 | |||||||||
Accumulated deficit | |||||||||||
Beginning balance | (209,161) | (209,002) | (207,516) | (207,419) | (197,402) | (196,382) | (194,933) | (195,253) | (207,419) | (195,253) | |
Cumulative effect of ASC 606 adoption Note 9 | $ 1,691 | ||||||||||
Net loss | (12,166) | ||||||||||
Ending balance | (209,340) | (209,161) | (209,002) | (207,516) | (207,419) | (197,402) | (196,382) | (194,933) | (209,340) | (207,419) | |
Accumulated other comprehensive loss | |||||||||||
Beginning balance | (542) | (631) | (614) | (676) | (538) | (266) | (575) | (595) | (676) | (595) | |
Foreign currency translation adjustment | (4) | 89 | (17) | 62 | (138) | (272) | 309 | 20 | 130 | (81) | |
Ending balance | (546) | (542) | (631) | (614) | (676) | (538) | (266) | (575) | (546) | (676) | |
Receivable for common stock issued | |||||||||||
Beginning balance | (26) | (26) | (26) | (26) | (26) | (26) | (26) | (26) | (26) | (26) | |
Cancellation of receivable for common stock issued | 26 | 26 | |||||||||
Ending balance | 0 | (26) | (26) | (26) | (26) | (26) | (26) | (26) | 0 | (26) | |
Treasury stock | |||||||||||
Beginning balance | (169) | (169) | (169) | (169) | (169) | (169) | (169) | (169) | (169) | (169) | |
Ending balance | (169) | (169) | (169) | $ (169) | (169) | (169) | (169) | $ (169) | (169) | (169) | |
Preferred stock | |||||||||||
Issuance of stock | 1,031 | 1,531 | |||||||||
Common stock | |||||||||||
Issuance of stock | $ 8 | $ 1,106 | $ 4 | $ 86 | $ 500 | $ 8 | $ 1,119 | $ 594 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) - Quarterly Financial Data Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||||||||
Revenue | $ 9,212 | $ 10,068 | $ 7,997 | $ 7,502 | $ 8,490 | $ 8,699 | $ 8,460 | $ 8,895 | $ 34,781 | $ 34,544 |
Gross margin | 6,461 | 7,387 | 5,993 | 5,660 | 6,094 | 6,395 | 5,929 | 6,470 | 25,501 | 24,888 |
Income (loss) from operations | 125 | 144 | (1,123) | (1,654) | (12,900) | (914) | (1,259) | (966) | (2,508) | (16,039) |
Net income (loss) | $ (179) | $ (159) | $ (1,486) | $ (1,788) | $ (10,017) | $ (1,020) | $ (1,449) | $ 320 | $ (3,612) | $ (12,166) |
Basic and diluted net income (loss) per share | $ (0.03) | $ (0.03) | $ (0.29) | $ (0.36) | $ (2.16) | $ (0.23) | $ (0.34) | $ 0.06 |
Uncategorized Items - sofo-2019
Label | Element | Value |
Treasury Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ (169,000) |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (205,728,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 200,130,000 |
Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 1,651,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (676,000) |
Common Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 51,000 |
Receivable For Common Stock Issued [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ (26,000) |