Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | SONIC FOUNDRY INC | |
Entity Central Index Key | 0001029744 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 7,922,044 | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,442 | $ 4,295 |
Accounts receivable, net of allowances of $159 & $135 | 5,438 | 6,532 |
Inventories | 544 | 558 |
Investment in sales-type lease, current | 147 | 163 |
Capitalized commissions, current | 354 | 464 |
Prepaid expenses and other current assets | 1,111 | 972 |
Total current assets | 14,036 | 12,984 |
Property and equipment: | ||
Leasehold improvements | 1,122 | 1,121 |
Computer equipment | 6,644 | 5,610 |
Furniture and fixtures | 1,326 | 1,233 |
Total property and equipment | 9,092 | 7,964 |
Less accumulated depreciation and amortization | 7,056 | 6,396 |
Property and equipment, net | 2,036 | 1,568 |
Other assets: | ||
Investment in sales-type lease, long-term | 13 | 134 |
Capitalized commissions, long-term | 89 | 106 |
Right-of-use assets under operating leases | 2,335 | |
Other long-term assets | 413 | 388 |
Total assets | 18,922 | 15,180 |
Current liabilities: | ||
Accounts payable | 1,544 | 843 |
Accrued liabilities | 1,122 | 2,216 |
Unearned revenue | 9,558 | 9,610 |
Current portion of finance lease obligations | 137 | 194 |
Current portion of operating lease obligations | 1,364 | |
Current portion of notes payable and warrant debt, net of discounts | 1,255 | 968 |
Total current liabilities | 14,980 | 13,831 |
Long-term portion of unearned revenue | 1,760 | 1,842 |
Long-term portion of finance lease obligations | 110 | 179 |
Long-term portion of operating lease obligations | 989 | |
Long-term portion of notes payable and warrant debt, net of discounts | 2,485 | 5,429 |
Derivative liability, at fair value | 125 | 9 |
Other liabilities | 141 | 143 |
Total liabilities | 20,590 | 21,433 |
Commitments and contingencies | ||
Stockholders’ deficit: | ||
Preferred stock | 0 | 0 |
Common stock, $.01 par value, authorized 10,000,000 shares; 7,934,760 and 6,749,359 shares issued, respectively and 7,922,044 and 6,736,643 shares outstanding, respectively | 79 | 67 |
Additional paid-in capital | 208,914 | 203,735 |
Accumulated deficit | (209,958) | (209,340) |
Accumulated other comprehensive loss | (534) | (546) |
Treasury stock, at cost, 12,716 shares | (169) | (169) |
Total stockholders’ deficit | (1,668) | (6,253) |
Total liabilities and stockholders’ deficit | 18,922 | 15,180 |
9% Preferred Stock, Series A, Voting, Cumulative, Convertible | ||
Stockholders’ deficit: | ||
Preferred stock | 0 | 0 |
5% Preferred Stock, Series B, Voting, Cumulative, Convertible | ||
Stockholders’ deficit: | ||
Preferred stock | $ 0 | $ 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Revenues | $ 7,917 | $ 10,068 | $ 24,599 | $ 25,567 |
Cost of revenue: | ||||
Cost of revenues | 2,170 | 2,681 | 6,754 | 6,527 |
Gross margin | 5,747 | 7,387 | 17,845 | 19,040 |
Operating expenses: | ||||
Selling and marketing | 2,980 | 3,785 | 9,433 | 11,564 |
General and administrative | 1,030 | 1,609 | 3,647 | 4,492 |
Product development | 1,511 | 1,849 | 4,600 | 5,617 |
Total operating expenses | 5,521 | 7,243 | 17,680 | 21,673 |
Income (loss) from operations | 226 | 144 | 165 | (2,633) |
Non-operating expenses: | ||||
Interest expense, net | (140) | (276) | (621) | (657) |
Other expense, net | (106) | (63) | (150) | (66) |
Total non-operating expenses | (246) | (339) | (771) | (723) |
Income (loss) before income taxes | (20) | (195) | (606) | (3,356) |
Income tax benefit (expense) | 127 | 36 | (12) | (77) |
Net income (loss) | 107 | (159) | (618) | (3,433) |
Preferred Stock Dividends and Other Adjustments | 0 | (24) | (122) | |
Net loss attributable to common stockholders | $ 107 | $ (183) | $ (618) | $ (3,555) |
Income (loss) per common share | ||||
Loss per common share - basic (in usd per share) | $ 0.01 | $ (0.03) | $ (0.09) | $ (0.64) |
Loss per common share – diluted (in usd per share) | $ 0.01 | $ (0.03) | $ (0.09) | $ (0.64) |
Weighted average common shares | ||||
– basic (in shares) | 7,399,545 | 6,122,098 | 6,972,924 | 5,528,999 |
– diluted (in shares) | 7,830,293 | 6,122,098 | 6,972,924 | 5,528,999 |
Product and other | ||||
Revenue: | ||||
Revenues | $ 2,744 | $ 4,221 | $ 7,612 | $ 7,768 |
Cost of revenue: | ||||
Cost of revenues | 1,199 | 1,558 | 3,188 | 2,854 |
Services | ||||
Revenue: | ||||
Revenues | 5,173 | 5,847 | 16,987 | 17,799 |
Cost of revenue: | ||||
Cost of revenues | $ 971 | $ 1,123 | $ 3,566 | $ 3,673 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Accounts receivable, allowances | $ 159 | $ 135 |
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 |
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 | |
Common stock, shares outstanding (in shares) | 6,736,643 | |
Treasury stock, shares (in shares) | 12,716 | 12,716 |
9% Preferred Stock, Series A, Voting, Cumulative, Convertible | ||
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 | 0 |
5% Preferred Stock, Series B, Voting, Cumulative, Convertible | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock liquidation preference, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, dividend rate (usd per share) | 5.00% | 5.00% |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 107 | $ (159) | $ (618) | $ (3,433) |
Foreign currency translation adjustment | 15 | 89 | 12 | 134 |
Comprehensive income (loss) | $ 122 | $ (70) | $ (606) | $ (3,299) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Preferred stock | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Receivable for common stock issued | Treasury stock | Total |
Beginning balance at Sep. 30, 2018 | $ 1,651 | $ 51 | $ 200,130 | $ (207,419) | $ (676) | $ (26) | $ (169) | $ (6,458) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 203 | 203 | |||||||
Issuance of common stock and warrants (shares) | 10 | ||||||||
Issuance of common stock and warrants | 1,100 | 1,110 | |||||||
Conversion of preferred stock | (1,773) | $ 6 | 1,767 | 0 | |||||
Warrants issued in connection with subordinated notes payable | 674 | 674 | |||||||
Preferred stock dividends | 122 | (122) | 0 | ||||||
Foreign currency translation adjustment | $ 134 | 134 | 134 | ||||||
Net income (loss) | (3,433) | (3,433) | (3,433) | ||||||
Ending balance at Jun. 30, 2019 | 0 | 67 | 203,752 | (209,161) | (542) | (26) | (169) | (6,079) | |
Beginning balance at Mar. 31, 2019 | 1,187 | $ 53 | 201,490 | (209,002) | (631) | (26) | (169) | (7,098) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | (17) | (17) | |||||||
Issuance of common stock and warrants (shares) | 10 | ||||||||
Issuance of common stock and warrants | 1,096 | 1,106 | |||||||
Conversion of preferred stock | (1,210) | $ 4 | 1,206 | 0 | |||||
Preferred stock dividends | 23 | (23) | 0 | ||||||
Foreign currency translation adjustment | 89 | 89 | 89 | ||||||
Net income (loss) | (159) | (159) | (159) | ||||||
Ending balance at Jun. 30, 2019 | 0 | 67 | 203,752 | (209,161) | (542) | (26) | (169) | (6,079) | |
Beginning balance at Sep. 30, 2019 | (6,253) | 0 | 67 | 203,735 | (209,340) | (546) | 0 | (169) | (6,253) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 104 | 104 | |||||||
Issuance of common stock and warrants | 1 | 81 | 82 | ||||||
Conversion of related-party debt to common stock | 5,005 | ||||||||
Foreign currency translation adjustment | 12 | 12 | 12 | ||||||
Net income (loss) | (618) | (618) | (618) | ||||||
Ending balance at Jun. 30, 2020 | (1,668) | 0 | 79 | 208,914 | (209,958) | (534) | 0 | (169) | (6,673) |
Beginning balance at Mar. 31, 2020 | 0 | 68 | 203,884 | (210,065) | (549) | 0 | (169) | (6,831) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock compensation | 18 | 18 | |||||||
Issuance of common stock and warrants | 0 | 18 | 18 | ||||||
Conversion of related-party debt to common stock | 5,005 | ||||||||
Foreign currency translation adjustment | 15 | 15 | 15 | ||||||
Net income (loss) | 107 | 107 | 107 | ||||||
Ending balance at Jun. 30, 2020 | $ (1,668) | $ 0 | $ 79 | $ 208,914 | $ (209,958) | $ (534) | $ 0 | $ (169) | $ (6,673) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net loss | $ (618) | $ (3,433) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Amortization of other intangibles | 204 | 170 |
Depreciation and amortization of property and equipment | 644 | 748 |
Loss on sale of fixed assets | 0 | 8 |
Provision for doubtful accounts - including financing receivables | 31 | 31 |
Provision for inventory reserve | 90 | 0 |
Loss on conversion of related party debt to equity | 26 | 0 |
Stock-based compensation expense related to stock options and warrants | 104 | 203 |
Stock issued for board of director fees | 61 | 246 |
Deferred loan interest to related party | 322 | 0 |
Remeasurement loss (gain) on derivative liability | 116 | (12) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,077 | 660 |
Financing receivables | 0 | 87 |
Inventories | (76) | 75 |
Investment in sales-type lease | 136 | 0 |
Capitalized commissions | 127 | 138 |
Prepaid expenses and other current assets | (128) | 280 |
Right-of-use assets under operating leases | 208 | 0 |
Operating lease obligations | (234) | 0 |
Other long-term assets | 24 | 0 |
Accounts payable and accrued liabilities | (749) | (294) |
Other long-term liabilities | (2) | (46) |
Unearned revenue | (153) | (1,339) |
Net cash provided by (used in) operating activities | 1,162 | (2,478) |
Investing activities | ||
Purchases of property and equipment | (683) | (373) |
Net cash used in investing activities | (683) | (373) |
Financing activities | ||
Proceeds from notes payable | 2,778 | 5,500 |
Proceeds from lines of credit | 0 | 9,199 |
Payments on notes payable | (984) | (583) |
Payments on lines of credit | 0 | (9,636) |
Payment of debt issuance costs | 0 | (110) |
Proceeds from issuance of preferred stock and common stock | 2 | 864 |
Proceeds from exercise of common stock options | 18 | 0 |
Payments on finance lease obligations | (162) | (193) |
Net cash provided by (used in) financing activities | 1,652 | 5,041 |
Changes in cash and cash equivalents due to changes in foreign currency | 16 | 8 |
Net increase (decrease) in cash and cash equivalents | 2,147 | 2,198 |
Cash and cash equivalents at beginning of year | 4,295 | 1,189 |
Cash and cash equivalents at end of period | 6,442 | 3,387 |
Supplemental cash flow information: | ||
Interest paid | 114 | 425 |
Income taxes paid, foreign | 141 | 237 |
Non-cash financing and investing activities: | ||
Property and equipment financed by finance lease or accounts payable | 478 | 45 |
Debt discount and warrant | 0 | 679 |
Preferred stock dividends paid in additional shares | 0 | 122 |
Conversion of preferred shares to common shares | 0 | 1,772 |
Conversion of related party debt to common shares | $ 5,005 | $ 0 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Financial Statements The accompanying condensed consolidated financial statements are unaudited and have been prepared on a basis substantially consistent with the Company's audited financial statements as of and for the year ended September 30, 2019 included in the Company's Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. Operating results for the nine month period ended June 30, 2020 are not necessarily indicative of the results that might be expected for the year ending September 30, 2020 . 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. Amounts receivable of $526 thousand at September 30, 2019 primarily represents sales of perpetual software licenses to a single international distributor on invoices outstanding for product delivered from March 2016 through June 2017. 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 receivables 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 September 30, 2019 . During the period ended March 31, 2020 it was determined that the financing receivable would not be collected. Therefore, both the financing receivable of $526 thousand and the corresponding reserve of $526 thousand were written off. 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 consists of the following (in thousands) as of June 30, 2020 : Investment in sales-type lease, gross: 2021 $ 148 2022 13 Gross investment in sales-type lease 161 Less: Unearned income (1 ) Total investment in sales-type lease $ 160 Current portion of total investment in sales-type lease $ 147 Long-term portion of total investment in sales-type lease 13 $ 160 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. An obsolescence reserve has been established to account for slow moving inventory. Inventory consists of the following (in thousands): June 30, September 30, 2019 Raw materials and supplies $ 235 $ 163 Finished goods 399 395 Less: Obsolescence reserve (90 ) — $ 544 $ 558 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 June 30, 2020 and September 30, 2019, the Company has recorded a liability of $131 thousand and $129 thousand , respectively, for retirement obligations associated with returning the MSKK leased property to the respective lessors upon the termination of the lease arrangement. Asset retirement obligations are included in other-long term liabilities on the condensed consolidated balance sheets. 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 Recurring Basis The fair value of the bifurcated conversion feature represented by the warrant derivative liability associated with the PFG debt is measured at fair value on a recurring basis based on a Black Scholes option pricing model with assumptions for stock price, exercise price, volatility, expected term, risk free interest rate and dividend yield similar to those described for share-based compensation which were generally observable (Level 2). Financial liabilities measured at fair value on a recurring basis are summarized below (in thousands): June 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Derivative liability $ — $ 125 $ — $ 125 September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value Derivative liability $ — $ 9 $ — $ 9 The gain or loss related to the fair value remeasurement on the derivative liability is included in the other (expense) line on the condensed consolidated statements of operations. Financial Liabilities Measured at Fair Value on a Nonrecurring Basis The initial fair values of PFG debt and warrant debt (see Note 4) were based on the present value of expected future cash flows and assumptions about current interest rates and the creditworthiness of the Company (Level 3). The Mr. Mark Burish ("Mr. Burish") warrant was measured at fair value using a Black Scholes model and the remaining fair value was allocated to the related Mr. Burish note purchase agreement (see Note 4) which management believes materially approximates the fair value based on calculating the present value of expected future cash flows (Level 3). The non-recurring fair value measurements were performed as of the date of issuance of the note purchase agreement and warrant. The discount is being amortized over the life of the related debt. Financial Instruments Not Measured at Fair Value The Company's other financial instruments consist primarily of cash and cash equivalents, accounts receivable, investment in sales-type lease, financing receivables, accounts payable and debt instruments and capital lease obligations. The book values of cash and cash equivalents, accounts receivable, investment in sales-type lease, and accounts payable are considered to be representative of their respective fair values due their short term nature. The carrying value of debt including the current portion, approximates fair market value as the variable and fixed rate approximates the current market rate of interest available to the Company. Legal Contingencies When legal proceedings are brought or claims are made against the Company and the outcome is uncertain, we are required to determine whether it is probable that an asset has been impaired or a liability has been incurred. If such impairment or liability is probable and the amount of loss can be reasonably estimated, the loss must be charged to earnings. No legal contingencies were recorded or were required to be disclosed for the three or nine months ended June 30, 2020 or 2019 . 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. The fair value of each option grant is estimated using the assumptions in the following table: Nine Months Ended 2020 2019 Expected life 4.5 - 4.7 years 4.3 - 4.4 years Risk-free interest rate 0.25% - 1.63% 2.14% - 2.93% Expected volatility 72.40% - 82.10% 60.19% - 67.69% Expected forfeiture rate 14.33% - 15.38% 13.51% - 14.76% Expected exercise factor 1.2 1.2 Expected dividend yield 0% 0% A summary of option activity at June 30, 2020 and changes during the nine months then ended is presented below: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Period in Years Outstanding at October 1, 2019 1,654,429 $ 5.62 4.9 Granted 190,750 1.29 9.4 Exercised (21,000 ) 0.88 8.4 Forfeited (61,283 ) 3.98 4.5 Outstanding at June 30, 2020 1,762,896 5.26 4.6 Exercisable at June 30, 2020 1,400,497 6.27 3.7 A summary of the status of the Company’s non-vested options and changes during the nine month period ended June 30, 2020 is presented below: Non-vested Options Options Weighted-Average Grant Date Fair Value Non-vested at October 1, 2019 357,114 $ 0.77 Granted 190,750 0.56 Vested (159,464 ) 0.95 Forfeited (26,001 ) 0.54 Non-vested at June 30, 2020 362,399 $ 0.60 The weighted average grant date fair value of options granted during the nine months ended June 30, 2020 was $0.56 . As of June 30, 2020 , there was $124 thousand of total unrecognized compensation cost related to non-vested stock-based compensation, with total forfeiture adjusted unrecognized compensation cost of $92 thousand . The cost is expected to be recognized over a weighted-average remaining life of 1.9 years. Stock-based compensation recorded in the three and nine months ended June 30, 2020 was $18 thousand and $104 thousand . Stock-based compensation recorded in the three and nine months ended June 30, 2019 was $(17) thousand and $203 thousand . There was $18 thousand and $19 thousand in cash received from exercises under all stock option plans and warrants during the three and nine months ended June 30, 2020 and zero during the same periods in 2019 . There were no tax benefits realized for tax deductions from option exercises in either of the three and nine month periods ended June 30, 2020 or 2019 . The Company currently expects to satisfy share-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. A total of 9,440 shares are available to be issued under the plan, which is net of 13,567 shares issued on July 13, 2020. The Company recorded stock compensation expense under this plan of less than $1 thousand and $2 thousand for each of the three and nine month periods ended June 30, 2020 and 2019 . Preferred Stock and Dividends 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 common share. 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. The following table sets forth the computation of basic and diluted weighted average shares used in the earnings per share calculations: Three Months Ended Nine Months Ended June 30, 2020 2019 2020 2019 Denominator for basic net income (loss) per share - weighted average common shares 7,399,545 6,122,098 6,972,924 5,528,999 Effect of dilutive options (treasury method) 430,748 — — — Denominator for diluted net income (loss) per share - adjusted weighted average common shares 7,830,293 6,122,098 6,972,924 5,528,999 Options, warrants and convertible shares outstanding during each period, but not included in the computation of diluted net loss per share because they are antidilutive 1,630,706 2,055,415 2,061,454 2,428,675 Liquidity At June 30, 2020 , approximately $2.4 million of cash and cash equivalents was held by the Company's foreign subsidiaries. The Company believes its cash position plus available resources is adequate to accomplish its business plan through at least the next twelve months. We will likely evaluate lease opportunities to finance equipment purchases in the future and support working capital needs. We may also seek additional equity financing but there are no assurances that these will be on terms acceptable to the Company. Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", ("ASU 2019-12"). The amendments in this ASU affect entities within the scope of Topic 740. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for public entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. An entity that elects early adoption much adopt all the amendments in the same period. 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 Leases (ASC Topic 842, Leases ("ASC 842")) In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", ("ASU 2016-02") as well as several other related updates which were codified as ASC 842. On October 1, 2019, we adopted this update using the modified retrospective method through a cumulative-effect adjustment. The reported results for the three and nine months ended June 30, 2020 reflect the application of Topic 842, while the comparative information has not been restated and continues to be reported under the related lease accounting standards in effect for those periods. The adoption of this update represents a change in accounting principle and resulted in the recognition of right-of-use assets and lease liabilities of $2.5 million on October 1, 2019. We elected the package of practical expedients, which permits us to leverage our prior conclusions about lease identification, lease classification and initial direct costs incurred. We also elected the practical expedient to combine lease and non-lease components when determining the value of right-of-use assets and lease liabilities. The primary effect of adopting this update relates to the recognition of our operating leases on our condensed consolidated balance sheets and providing additional disclosures about our leasing activities. Leases previously designated as capital leases are now identified as finance leases and continue to be reported on the condensed consolidated balance sheets. Leases previously identified as sales-type leases, where the Company is a lessor, continue to be reported on the condensed consolidated balance sheets. Refer to Note 3 - Commitments for additional disclosures related to our leasing activities. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the three and nine months ended June 30, 2020 , the Company incurred fees of $112 thousand and $372 thousand to a law firm, a partner of which is a director and stockholder of the Company. The Company incurred similar fees of $105 thousand and $236 thousand during the three and nine months ended June 30, 2019 . The Company had accrued liabilities for unbilled services of $0 thousand and $30 thousand at June 30, 2020 and September 30, 2019 , respectively, to the same law firm. On May 13, 2020, the Company entered into a debt conversion agreement with Mr. Burish to convert all outstanding debt owed to Mr. Burish into common stock at a conversion price of $5.00 per share. The total debt amount, including accrued interest and fees, of $5.6 million was converted into 1,114,723 shares of common stock. The transaction was recommended by the Company's Special Committee of Independent and Disinterested Directors and unanimously approved by all disinterested directors of the Company. Silverwood Partners, the Special Committee's financial advisor, issued a fairness opinion in connection with the transaction. 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. |
Commitments
Commitments | 9 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Inventory Purchase Commitments The Company enters into unconditional purchase commitments on a regular basis for the supply of Mediasite product. At June 30, 2020 , the Company has an obligation to purchase $1.1 million of Mediasite product, which is not recorded on the Company’s condensed consolidated balance sheet. Leases The Company has operating leases for corporate office space with various expiration dates. Our leases have remaining lease terms of up to three years, some of which include escalation clauses, renewal options for up to twelve years or termination options within one year. We determine if an arrangement is a lease upon contract inception. The Company has both operating and finance leases. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments according to the arrangement. A contract contains a lease if the contract conveys the right to control the use of the identified property, plant or equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an an operating or finance lease where the Company is a lessee, or as an operating, sales-type or direct financing lease where the Company is a lessor, based on their terms. Lease right-of-use assets and lease liabilities are recognized as of the commencement date based on the present value of the lease payments over the lease term. The lease right-of use asset is reduced for tenant incentives and includes any initial direct costs incurred. We use the implicit rate when it is readily determinable. Otherwise, the present value of future minimum lease payments is determined using the Company's incremental borrowing rate. The incremental borrowing rate is based on the interest rate of the Company's most recent borrowing. The lease term we use for the valuation of our right-of-use assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense is recognized on a straight-line basis over the expected lease term for operating leases. Amortization expense of the right-of-use asset for finance leases is recognized on a straight-line basis over the lease term and interest expense for finance leases is recognized based on the incremental interest rate. Right-of-use assets and lease liabilities are recognized for our leases. Right-of-use assets under finance leases are included in property and equipment on the condensed consolidated balance sheets. We have operating lease arrangements with lease and non-lease components. The non-lease components in our arrangements are not significant when compared to the lease components. For all operating leases, we account for the lease and non-lease components as a single component. As of June 30, 2020 , future maturities of operating and finance lease liabilities for the fiscal years ended September 30 are as follows (in thousands): Operating Leases Finance Leases 2020 (remaining) $ 345 $ 44 2021 1,515 128 2022 456 79 2023 96 8 2024 102 5 Thereafter 101 — Total 2,615 264 Less: imputed interest (262 ) (18 ) Total $ 2,353 $ 246 Effect of Adopting ASC 842 Opening Balance Sheet Adjustment on October 1, 2019 As a result of applying the modified retrospective method to adopt ASC 842, the following amounts on our condensed consolidated balance sheet were adjusted as of October 1, 2019 to reflect the cumulative effect adjustment to the opening balance sheet (in thousands): As reported ASC 842 adoption Adjusted September 30, 2019 adjustments October 1, 2019 Right-of-use assets under operating leases — 2,533 2,533 Total assets $ 15,180 $ 2,533 $ 17,713 Current portion of operating lease obligations $ — $ 1,314 $ 1,314 Accrued liabilities 2,216 (44 ) 2,172 Total current liabilities 13,831 1,270 15,101 Long-term portion of operating lease obligations — 1,263 1,263 Total liabilities $ 21,433 $ 2,533 $ 23,966 Supplemental information related to leases is as follows (in thousands, except lease term and discount rate): Nine Months Ended June 30, 2020 Operating lease costs $ 990 Variable operating lease costs 22 Total operating lease cost $ 1,012 Finance lease cost: Amortization of right-of-use assets $ 147 Interest on lease liabilities 17 Total finance lease cost $ 164 Variable lease costs include operating costs for U.S. office lease based on square footage and Consumer Price Index ("CPI") rent escalation and related VAT for office lease in the Netherlands. Supplemental cash flow information related to operating and finance leases were as follows (in thousands): Nine Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 1,016 Operating cash outflows for finance leases 17 Financing cash outflows for finance leases 161 Other information related to leases was as follows: June 30, 2020 Weighted average remaining lease term (in years) Operating leases 2.4 Finance leases 2.2 Weighted average discount rate Operating leases 9.54 % Finance leases 7.22 % |
Credit Arrangements
Credit Arrangements | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | Credit Arrangements 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 without penalty as of May 14, 2019. 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 June 30, 2020 , and September 30, 2019 , the estimated fair value of the derivative liability associated with the warrants issued in connection with the 2018 Loan and Security Agreement, was $125 thousand and $9 thousand , respectively. Included in other expense, the remeasurement loss on the derivative liability during the three and nine months ended June 30, 2020 was $52 thousand and $116 thousand , respectively, compared to remeasurement gains of $5 thousand and $12 thousand during the three and nine months ended June 30, 2019 . 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 $2.3 million and $156 thousand , respectively. The warrant debt of $156 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 the three and nine months ended June 30, 2020 , the Company recorded accretion of discount expense associated with the warrants issued with the PFG V loan of $6 thousand and $17 thousand compared to $5 thousand and $14 thousand in the same periods last year. In addition, $14 thousand and $42 thousand amortization of the debt discount was recorded in the current three month and six month period compared to $14 thousand and $40 thousand in the prior year. At June 30, 2020 , the carrying value of the PFG V Debt and the Warrant Debt (inclusive of its conversion feature) were $917 thousand and $166 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 the three and nine months ended June 30, 2020 , the Company recorded interest expense of $13 thousand and $38 thousand , associated with recognition of the back-end fee compared to $13 thousand and $38 thousand during the three and nine months ended June 30, 2019 . The non-cash effective interest expense is calculated on the net balance of the PFG V Debt, debt discount, back-end fee and related loan origination fees, on a monthly basis. During the three and nine months ended June 30, 2020 , non-cash interest expense of $7 thousand related to the effective interest rate on the PFG V loan was recorded in both periods. 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 June 30, 2020 , the Company was in compliance with all covenants per 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 existing terms of the PFG loan in terms of amortization, interest rate, payment schedule and maturity date are unchanged. At June 30, 2020 , a gross balance of $917 thousand 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, 2019 , a gross balance of $1.7 million was outstanding with PFG V. Initial Notes of the February 28, 2019 Note Purchase Agreement On January 4, 2019, Sonic Foundry, Inc. and 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. 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 provided for subordinated secured promissory notes (the "Subordinated Promissory Notes") in an aggregate original principal amount of up to $5,000,000 . Mr. Burish acquired 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 accrued 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, was set to mature on February 28, 2024 (the "Maturity Date"). Principal installments of $100,000 were to begin monthly on August 31, 2020, and continue through the Maturity Date. The Note Purchase Agreement dated February 28, 2019 was subordinated to the existing PFG loan. At each anniversary of the Closing, an administration fee ("anniversary fee") equal to 0.5% of the purchase price less principal payments made was due and payable to Mr. Burish. During the three and nine months ended June 30, 2020 , the Company recorded an accrued anniversary fee associated with the Subordinated Promissory Notes of $3 thousand and $16 thousand . There was no accrued anniversary fee for the prior periods. The anniversary fee on the Subordinated Promissory Notes was due on February 28, 2020 ("first year anniversary fee") and was deferred. On March 24, 2020, the Company entered into a First Amendment to Note Modification Agreement ("First Amendment") to formalize the deferment of the first year anniversary fee. The deferred first year anniversary fee was added to the principal amount due on the Subordinated Notes. 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 was treated together as a debt discount on the Subordinated Notes Payable and has been accreted to interest expense under the effective interest rate method over the five -year term of the Subordinated Notes Payable. During the three and nine months ended June 30, 2020 , the Company recorded accretion of discount expense associated with the Subordinated Promissory Notes of $33 thousand and $67 thousand compared to the three and six months ended June 30, 2019 of $13 thousand and $13 thousand . The non-cash effective interest expense was calculated on the net balance of the Subordinated Promissory Notes, Warrant, and related loan origination fees, on a monthly basis. During the three and nine months ended June 30, 2020 , $13 thousand and $2 thousand of non-cash interest benefit related to the effective interest rate on the Subordinated Promissory Notes was recorded. May 13, 2020 Debt Conversion Agreement On May 13, 2020, the Company entered into a debt conversion agreement with Mr. Burish to convert all outstanding debt owed to Mr. Burish into common stock at a conversion price of $5.00 per share. The net carrying value of $5.0 million, including principal and accrued interest of $5.6 million less debt discount and loan origination fees of $596 thousand, was converted into 1,114,723 shares of common stock. This resulted in a net loss of $26 thousand. 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. Paycheck Protection Program (PPP) Loan Dated April 20, 2020 Following the approval of the Board of Directors, the Company and First Business Bank entered into a $2.3 million Promissory Note (the "Promissory Note") under the Paycheck Protection Program (PPP) contained within the new Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP loan has a term of two years for those companies receiving loan proceeds prior to June 5, 2020, is unsecured, and is guaranteed by the U.S. Small Business Administration ("SBA"). The loan carries a fixed interest rate of 1% per annum. Under the terms of the CARES Act, the Company will be eligible for and intends to apply for forgiveness of all loan proceeds used for payroll costs, rent, utilities, and other qualifying expenses during the eight-week or twenty-four week period ("covered period") following receipt of the loan, provided the Company maintains its employment and compensation within certain parameters during such period, and provided further that not more than 40% of the amount forgiven can be attributable to non-payroll costs. The Company must apply for forgiveness within 10 months from the end of the covered period.. First Business Bank will then have 60 days to review the application and submit it to the SBA and the SBA will have 90 days from receipt of the application to review and render a decision back to the lender. If the borrower does not apply for loan forgiveness within the 10 month time frame, or if the SBA determines that the loan is not eligible for forgiveness (in whole or in part), the PPP loan is no longer deferred and the borrower must begin paying principal and interest. If this occurs, the lender must notify the borrower of the amount and the date the first payment is due. The SBA is scheduled to begin accepting applications for forgiveness from lenders on August 10, 2020 when the development of its new software-as-a-service platform goes live, however, the Company's lender is currently waiting for completion of their own platform before accepting any applications. As of June 30, 2020 the full amount of the loan has been included in long-term notes payable and interest of $5 thousand has been accrued on the full amount of the loan. Other Indebtedness On January 30, 2020, Mediasite K.K. entered into a Term Loan ("Term Loan") with Sumitomo Mitsui Banking Corporation for $460 thousand in cash. The Term loan accrues interest at an annual rate of 1.475% . Beginning in January 2020, principal is due in 12 equal monthly installments, plus accrued interest, continuing through December 30, 2020, when the principal balance will be paid in full. At June 30, 2020 , $232 thousand was outstanding on the term loan with Mitsui Sumitomo Bank. The term loan accrues interest at an annual rate of approximately one-and-one-half percent ( 1.475% ). At June 30, 2020 and September 30, 2019 , no balance was outstanding on the line of credit with Mitsui Sumitomo Bank. The credit facility is related to Mediasite K.K., and accrues interest at an annual rate of approximately one-and-one half percent ( 1.575% ). |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 June 30, 2020 or September 30, 2019 , and has not recognized any interest or penalties in the Condensed Consolidated Statements of Operations for either of the three or nine months ended June 30, 2020 or 2019 . The Company’s tax rate differs from the expected tax rate each reporting period as a result of permanent differences, the valuation allowance, and international tax items. |
Revenue
Revenue | 9 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenues The following tables summarize revenues from contracts with customers for the three and nine months ended June 30, 2020 and 2019 , respectively, (in thousands) by subsidiary, which includes the parent (SOFO), our Netherlands location (SFI) and our Japanese location (MSKK) : Three months ended June 30, 2020 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 1,635 $ 272 $ 111 $ (310 ) $ 1,708 Software 707 105 330 (122 ) 1,020 Shipping 13 3 — — 16 Product and other total 2,355 380 441 (432 ) 2,744 Support 1,865 146 458 (128 ) 2,341 Hosting 1,358 145 202 — 1,705 Events 702 23 168 — 893 Installs & training 217 17 — — 234 Services total 4,142 331 828 (128 ) 5,173 Total revenue $ 6,497 $ 711 $ 1,269 $ (560 ) $ 7,917 Nine months ended June 30, 2020 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 4,244 $ 491 $ 308 $ (507 ) $ 4,536 Software 2,304 358 561 (356 ) 2,867 Shipping 203 6 — — 209 Product and other total 6,751 855 869 (863 ) 7,612 Support 5,762 437 1,695 (488 ) 7,406 Hosting 3,496 425 899 — 4,820 Events 2,725 97 1,495 — 4,317 Installs & training 425 19 — — 444 Services total 12,408 978 4,089 (488 ) 16,987 Total revenue $ 19,159 $ 1,833 $ 4,958 $ (1,351 ) $ 24,599 Three months ended June 30, 2019 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 2,761 $ 388 $ 76 $ (268 ) $ 2,957 Software 1,027 128 79 (78 ) 1,156 Shipping 105 3 — — 108 Product and other total 3,893 519 155 (346 ) 4,221 Support 1,965 176 451 (245 ) 2,347 Hosting 1,066 123 388 — 1,577 Events 1,079 64 648 — 1,791 Installs & training 132 — — — 132 Services total 4,242 363 1,487 (245 ) 5,847 Total revenue $ 8,135 $ 882 $ 1,642 $ (591 ) $ 10,068 Nine Months Ended June 30, 2019 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 4,359 $ 562 $ 461 $ (568 ) $ 4,814 Software 2,287 367 397 (354 ) 2,697 Shipping 253 4 — — 257 Product and other total 6,899 933 858 (922 ) 7,768 Support 5,913 510 1,673 (717 ) 7,379 Hosting 3,182 387 1,254 — 4,823 Events 3,160 140 2,042 — 5,342 Installs & training 240 15 — — 255 Services total 12,495 1,052 4,969 (717 ) 17,799 Total revenue $ 19,394 $ 1,985 $ 5,827 $ (1,639 ) $ 25,567 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 June 30, 2020 . As of June 30, 2020 , the aggregate amount of the transaction price that is allocated to our future performance obligations was approximately $4.4 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 three and nine months ended June 30, 2020 , revenues recognized related to the amount included in the unearned revenues balance at the beginning of the period was $2.2 million and $8.9 million compared to $2.6 million and $9.5 million recognized during the three and nine months ended June 30, 2019 . 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 three and nine months ended June 30, 2020 , amortization expense related to the amount included in the capitalized commissions at the beginning of the period was $114 thousand and $444 thousand compared to $134 thousand and $530 thousand recognized during the three and nine months ended June 30, 2019 . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 11, 2020, COVID-19 was declared a pandemic by the World Health Organization. The disruption caused by the outbreak is uncertain and continues to evolve rapidly, however, it may result in material adverse impact on the Company's financial position, operations and cash flows. While we are unable to accurately predict the full impact that COVID-19 will have due to numerous uncertainties, including the duration, severity and impact of the pandemic and containment measures, our compliance with these measures has impacted our day-to-day operations and could disrupt our business and operations, as well as those of our key business partners, vendors and other counterparties for an indefinite period of time. On August 5, 2020 the Company announced that its Board of Directors had unanimously chosen Joe Mozden, Hr. as the new Chief Executive Officer effective September 14, 2020. He will succeed Michael Norregaard who took the post in May 2019. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Lessee, Leases [Policy Text Block] | 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. |
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. |
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. |
Fair Value of Financial Instruments | 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 Recurring Basis The fair value of the bifurcated conversion feature represented by the warrant derivative liability associated with the PFG debt is measured at fair value on a recurring basis based on a Black Scholes option pricing model with assumptions for stock price, exercise price, volatility, expected term, risk free interest rate and dividend yield similar to those described for share-based compensation which were generally observable (Level 2). Financial Instruments Not Measured at Fair Value The Company's other financial instruments consist primarily of cash and cash equivalents, accounts receivable, investment in sales-type lease, financing receivables, accounts payable and debt instruments and capital lease obligations. The book values of cash and cash equivalents, accounts receivable, investment in sales-type lease, and accounts payable are considered to be representative of their respective fair values due their short term nature. The carrying value of debt including the current portion, approximates fair market value as the variable and fixed rate approximates the current market rate of interest available to the Company. |
Legal Contingencies | Legal Contingencies When legal proceedings are brought or claims are made against the Company and the outcome is uncertain, we are required to determine whether it is probable that an asset has been impaired or a liability has been incurred. If such impairment or liability is probable and the amount of loss can be reasonably estimated, the loss must be charged to earnings. |
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. |
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 December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", ("ASU 2019-12"). The amendments in this ASU affect entities within the scope of Topic 740. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for public entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. An entity that elects early adoption much adopt all the amendments in the same period. 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 Leases (ASC Topic 842, Leases ("ASC 842")) In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", ("ASU 2016-02") as well as several other related updates which were codified as ASC 842. On October 1, 2019, we adopted this update using the modified retrospective method through a cumulative-effect adjustment. The reported results for the three and nine months ended June 30, 2020 reflect the application of Topic 842, while the comparative information has not been restated and continues to be reported under the related lease accounting standards in effect for those periods. The adoption of this update represents a change in accounting principle and resulted in the recognition of right-of-use assets and lease liabilities of $2.5 million on October 1, 2019. We elected the package of practical expedients, which permits us to leverage our prior conclusions about lease identification, lease classification and initial direct costs incurred. We also elected the practical expedient to combine lease and non-lease components when determining the value of right-of-use assets and lease liabilities. The primary effect of adopting this update relates to the recognition of our operating leases on our condensed consolidated balance sheets and providing additional disclosures about our leasing activities. Leases previously designated as capital leases are now identified as finance leases and continue to be reported on the condensed consolidated balance sheets. Leases previously identified as sales-type leases, where the Company is a lessor, continue to be reported on the condensed consolidated balance sheets. Refer to Note 3 - Commitments for additional disclosures related to our leasing activities. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Financing Receivables | Investment in sales-type leases consists of the following (in thousands) as of June 30, 2020 : Investment in sales-type lease, gross: 2021 $ 148 2022 13 Gross investment in sales-type lease 161 Less: Unearned income (1 ) Total investment in sales-type lease $ 160 Current portion of total investment in sales-type lease $ 147 Long-term portion of total investment in sales-type lease 13 $ 160 |
Inventory | Inventory consists of the following (in thousands): June 30, September 30, 2019 Raw materials and supplies $ 235 $ 163 Finished goods 399 395 Less: Obsolescence reserve (90 ) — $ 544 $ 558 |
Fair Value, Liabilities Measured on Recurring Basis | Financial liabilities measured at fair value on a recurring basis are summarized below (in thousands): June 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Derivative liability $ — $ 125 $ — $ 125 September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value Derivative liability $ — $ 9 $ — $ 9 |
Fair Value Assumptions for Stock Options Granted | The fair value of each option grant is estimated using the assumptions in the following table: Nine Months Ended 2020 2019 Expected life 4.5 - 4.7 years 4.3 - 4.4 years Risk-free interest rate 0.25% - 1.63% 2.14% - 2.93% Expected volatility 72.40% - 82.10% 60.19% - 67.69% Expected forfeiture rate 14.33% - 15.38% 13.51% - 14.76% Expected exercise factor 1.2 1.2 Expected dividend yield 0% 0% |
Summary of Option Activity | A summary of option activity at June 30, 2020 and changes during the nine months then ended is presented below: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Period in Years Outstanding at October 1, 2019 1,654,429 $ 5.62 4.9 Granted 190,750 1.29 9.4 Exercised (21,000 ) 0.88 8.4 Forfeited (61,283 ) 3.98 4.5 Outstanding at June 30, 2020 1,762,896 5.26 4.6 Exercisable at June 30, 2020 1,400,497 6.27 3.7 |
Summary of Status of Company's Non-vested Shares | A summary of the status of the Company’s non-vested options and changes during the nine month period ended June 30, 2020 is presented below: Non-vested Options Options Weighted-Average Grant Date Fair Value Non-vested at October 1, 2019 357,114 $ 0.77 Granted 190,750 0.56 Vested (159,464 ) 0.95 Forfeited (26,001 ) 0.54 Non-vested at June 30, 2020 362,399 $ 0.60 |
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: Three Months Ended Nine Months Ended June 30, 2020 2019 2020 2019 Denominator for basic net income (loss) per share - weighted average common shares 7,399,545 6,122,098 6,972,924 5,528,999 Effect of dilutive options (treasury method) 430,748 — — — Denominator for diluted net income (loss) per share - adjusted weighted average common shares 7,830,293 6,122,098 6,972,924 5,528,999 Options, warrants and convertible shares outstanding during each period, but not included in the computation of diluted net loss per share because they are antidilutive 1,630,706 2,055,415 2,061,454 2,428,675 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturities of Operating Lease Liabilities | As of June 30, 2020 , future maturities of operating and finance lease liabilities for the fiscal years ended September 30 are as follows (in thousands): Operating Leases Finance Leases 2020 (remaining) $ 345 $ 44 2021 1,515 128 2022 456 79 2023 96 8 2024 102 5 Thereafter 101 — Total 2,615 264 Less: imputed interest (262 ) (18 ) Total $ 2,353 $ 246 |
Maturities of Finance Lease Liabilities | As of June 30, 2020 , future maturities of operating and finance lease liabilities for the fiscal years ended September 30 are as follows (in thousands): Operating Leases Finance Leases 2020 (remaining) $ 345 $ 44 2021 1,515 128 2022 456 79 2023 96 8 2024 102 5 Thereafter 101 — Total 2,615 264 Less: imputed interest (262 ) (18 ) Total $ 2,353 $ 246 |
Effect of Adoption ASC 842 | As a result of applying the modified retrospective method to adopt ASC 842, the following amounts on our condensed consolidated balance sheet were adjusted as of October 1, 2019 to reflect the cumulative effect adjustment to the opening balance sheet (in thousands): As reported ASC 842 adoption Adjusted September 30, 2019 adjustments October 1, 2019 Right-of-use assets under operating leases — 2,533 2,533 Total assets $ 15,180 $ 2,533 $ 17,713 Current portion of operating lease obligations $ — $ 1,314 $ 1,314 Accrued liabilities 2,216 (44 ) 2,172 Total current liabilities 13,831 1,270 15,101 Long-term portion of operating lease obligations — 1,263 1,263 Total liabilities $ 21,433 $ 2,533 $ 23,966 |
Supplemental Information Related To Leases | Supplemental information related to leases is as follows (in thousands, except lease term and discount rate): Nine Months Ended June 30, 2020 Operating lease costs $ 990 Variable operating lease costs 22 Total operating lease cost $ 1,012 Finance lease cost: Amortization of right-of-use assets $ 147 Interest on lease liabilities 17 Total finance lease cost $ 164 Variable lease costs include operating costs for U.S. office lease based on square footage and Consumer Price Index ("CPI") rent escalation and related VAT for office lease in the Netherlands. Supplemental cash flow information related to operating and finance leases were as follows (in thousands): Nine Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 1,016 Operating cash outflows for finance leases 17 Financing cash outflows for finance leases 161 Other information related to leases was as follows: June 30, 2020 Weighted average remaining lease term (in years) Operating leases 2.4 Finance leases 2.2 Weighted average discount rate Operating leases 9.54 % Finance leases 7.22 % |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenues from contracts with customers for the three and nine months ended June 30, 2020 and 2019 , respectively, (in thousands) by subsidiary, which includes the parent (SOFO), our Netherlands location (SFI) and our Japanese location (MSKK) : Three months ended June 30, 2020 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 1,635 $ 272 $ 111 $ (310 ) $ 1,708 Software 707 105 330 (122 ) 1,020 Shipping 13 3 — — 16 Product and other total 2,355 380 441 (432 ) 2,744 Support 1,865 146 458 (128 ) 2,341 Hosting 1,358 145 202 — 1,705 Events 702 23 168 — 893 Installs & training 217 17 — — 234 Services total 4,142 331 828 (128 ) 5,173 Total revenue $ 6,497 $ 711 $ 1,269 $ (560 ) $ 7,917 Nine months ended June 30, 2020 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 4,244 $ 491 $ 308 $ (507 ) $ 4,536 Software 2,304 358 561 (356 ) 2,867 Shipping 203 6 — — 209 Product and other total 6,751 855 869 (863 ) 7,612 Support 5,762 437 1,695 (488 ) 7,406 Hosting 3,496 425 899 — 4,820 Events 2,725 97 1,495 — 4,317 Installs & training 425 19 — — 444 Services total 12,408 978 4,089 (488 ) 16,987 Total revenue $ 19,159 $ 1,833 $ 4,958 $ (1,351 ) $ 24,599 Three months ended June 30, 2019 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 2,761 $ 388 $ 76 $ (268 ) $ 2,957 Software 1,027 128 79 (78 ) 1,156 Shipping 105 3 — — 108 Product and other total 3,893 519 155 (346 ) 4,221 Support 1,965 176 451 (245 ) 2,347 Hosting 1,066 123 388 — 1,577 Events 1,079 64 648 — 1,791 Installs & training 132 — — — 132 Services total 4,242 363 1,487 (245 ) 5,847 Total revenue $ 8,135 $ 882 $ 1,642 $ (591 ) $ 10,068 Nine Months Ended June 30, 2019 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 4,359 $ 562 $ 461 $ (568 ) $ 4,814 Software 2,287 367 397 (354 ) 2,697 Shipping 253 4 — — 257 Product and other total 6,899 933 858 (922 ) 7,768 Support 5,913 510 1,673 (717 ) 7,379 Hosting 3,182 387 1,254 — 4,823 Events 3,160 140 2,042 — 5,342 Installs & training 240 15 — — 255 Services total 12,495 1,052 4,969 (717 ) 17,799 Total revenue $ 19,394 $ 1,985 $ 5,827 $ (1,639 ) $ 25,567 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Financing Receivables and Investment in Sales-Type Lease (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross investment in sales-type lease | $ 526 | |
Financing receivable (write-off of financing receivable) | 526 | |
Allowance (write-off of allowance) on financing receivables | $ 526 | |
2021 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross investment in sales-type lease | $ 148 | |
Financing receivable (write-off of financing receivable) | 148 | |
2022 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross investment in sales-type lease | 13 | |
Financing receivable (write-off of financing receivable) | 13 | |
Gross investment in sales-type lease | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross investment in sales-type lease | 161 | |
Less: Unearned income | (1) | |
Total investment in sales-type lease | 160 | |
Current portion of total investment in sales-type lease | 147 | |
Long-term portion of total investment in sales-type lease | 13 | |
Financing receivable (write-off of financing receivable) | 161 | |
Restatement Adjustment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross investment in sales-type lease | (526) | |
Financing receivable (write-off of financing receivable) | (526) | |
Allowance (write-off of allowance) on financing receivables | $ (526) |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 235 | $ 163 |
Finished goods | 399 | 395 |
Less: Obsolescence reserve | (90) | 0 |
Inventory, Net | $ 544 | $ 558 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jul. 13, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | $ 6,442,000 | $ 6,442,000 | $ 4,295,000 | ||||
Asset retirement obligation | 131,000 | $ 131,000 | $ 129,000 | ||||
Weighted average grant date fair value of options granted (in usd per share) | $ 0.56 | ||||||
Unrecognized non vested stock based compensation | 124,000 | $ 124,000 | |||||
Estimated forfeitures for unrecognized non vested stock based compensation | 92,000 | $ 92,000 | |||||
Expected weighted average life of forfeited cost | 1 year 10 months 24 days | ||||||
Stock-based compensation | $ 104,000 | $ 203,000 | |||||
Proceeds from exercise of common stock | 18,000 | 0 | |||||
Tax benefits realized for tax deductions from option exercises | 0 | $ 0 | 0 | 0 | |||
Stock-based compensation | 1,000 | 1,000 | 1,000 | ||||
Employee Stock Option | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Stock-based compensation | 18,000 | (17,000) | 104,000 | 203,000 | |||
Proceeds from exercise of common stock | $ 18,000 | 0 | $ 19,000 | 0 | |||
Maximum | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Investment in sales-type lease, term | 5 years | 5 years | |||||
Minimum | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Investment in sales-type lease, term | 3 years | 3 years | |||||
Foreign | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | $ 2,400,000 | $ 2,400,000 | |||||
Employee Stock Purchase Plan | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Stock-based compensation | $ 1,000 | $ 2,000 | $ 1,000 | $ 2,000 | |||
Expected shares issued (in shares) | 200,000 | 200,000 | |||||
Shares available to issue (in shares) | 9,440 | 9,440 | |||||
Subsequent Event | Employee Stock Purchase Plan | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Shares available to issue (in shares) | 13,567 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Summary of Financial Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 125 | $ 9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 125 | $ 9 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Fair Value Assumptions for Stock Options Granted (Detail) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate, minimum | 0.25% | 2.14% |
Risk free interest rate, maximum | 1.63% | 2.93% |
Expected volatility, minimum | 72.40% | 60.19% |
Expected volatility, maximum | 82.10% | 67.69% |
Expected forfeiture rate, minimum | 14.33% | 13.51% |
Expected forfeiture rate, maximum | 15.38% | 14.76% |
Expected exercise factor (usd per share) | 1.2 | 1.2 |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 4 years 6 months | 4 years 3 months 15 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 4 years 8 months 13 days | 4 years 4 months 15 days |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies - Summary of Option Activity (Detail) - $ / shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, Outstanding Beginning Balance (in shares) | 1,654,429 | |
Options, Granted (in shares) | 190,750 | |
Options, Exercised (in shares) | (21,000) | |
Options, Forfeited (in shares) | (61,283) | |
Options, Outstanding Ending Balance (in shares) | 1,762,896 | 1,654,429 |
Options, Exercisable Ending Balance (in shares) | 1,400,497 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Exercise Price, Outstanding Beginning Balance (in usd per share) | $ 5.62 | |
Weighted Average Exercise Price, Granted (in usd per share) | 1.29 | |
Weighted Average Exercise Price, Exercised (in usd per share) | 0.88 | |
Weighted Average Exercise Price, Forfeited (in usd per share) | 3.98 | |
Weighted Average Exercise Price, Outstanding Ending Balance (in usd per share) | 5.26 | $ 5.62 |
Weighted Average Exercise Price, Exercisable Ending Balance | $ 6.27 | |
Weighted Average Remaining Contractual Period in Years, Outstanding Ending Balance | 4 years 7 months 24 days | 4 years 10 months 24 days |
Weighted Average Remaining Contractual Period in Years, Granted | 9 years 4 months 24 days | |
Weighted Average Remaining Contractual Period in Years, Exercised | 8 years 4 months 24 days | |
Weighted Average Remaining Contractual Period in Years, Forfeited | 4 years 5 months 24 days | |
Weighted Average Remaining Contractual Period in Years, Exercisable Ending Balance | 3 years 8 months 24 days |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies - Summary of Status of Company's Non-Vested Shares (Detail) | 9 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options, Outstanding Beginning Balance (in shares) | 1,654,429 |
Shares, Granted (in shares) | 190,750 |
Options, Forfeited (in shares) | (61,283) |
Options, Outstanding Ending Balance (in shares) | 1,762,896 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value, Granted (in usd per share) | $ / shares | $ 0.56 |
Non-Vested Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options, Outstanding Beginning Balance (in shares) | 357,114 |
Shares, Granted (in shares) | 190,750 |
Shares, Vested (in shares) | (159,464) |
Options, Forfeited (in shares) | (26,001) |
Options, Outstanding Ending Balance (in shares) | 362,399 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value, Non-vested Beginning Balance (in usd per share) | $ / shares | $ 0.77 |
Weighted-Average Grant Date Fair Value, Granted (in usd per share) | $ / shares | 0.56 |
Weighted-Average Grant Date Fair Value, Vested (in usd per share) | $ / shares | 0.95 |
Weighted-Average Grant Date Fair Value, Forfeited (in usd per share) | $ / shares | 0.54 |
Weighted-Average Grant Date Fair Value, Non-vested Ending Balance (in usd per share) | $ / shares | $ 0.60 |
Basis of Presentation and Si_11
Basis of Presentation and Significant Accounting Policies - Computation of Basic and Diluted Weighted Average Shares Used in Earnings per Share Calculations (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Denominator for basic earnings per share - weighted average common shares (in shares) | 7,399,545 | 6,122,098 | 6,972,924 | 5,528,999 |
Effect of dilutive options (treasury method) (in shares) | 430,748 | 0 | 0 | 0 |
Denominator for diluted earnings per share - adjusted weighted average common shares (in shares) | 7,830,293 | 6,122,098 | 6,972,924 | 5,528,999 |
Options and warrants outstanding during each period, but not included in the computation of diluted earnings per share because they are antidilutive (in shares) | 1,630,706 | 2,055,415 | 2,061,454 | 2,428,675 |
Basis of Presentation and Si_12
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Oct. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets under operating leases | $ 2,335 | $ 2,533 |
Operating lease liabilities | $ 2,353 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets under operating leases | 2,533 | |
Operating lease liabilities | $ 2,500 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May 13, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 |
Related Party Transaction [Line Items] | ||||||
Fees incurred to law firm | $ 112 | $ 105 | $ 372 | $ 236 | ||
Accrued liabilities for unbilled services | $ 0 | $ 0 | $ 30 | |||
Director | ||||||
Related Party Transaction [Line Items] | ||||||
Conversion price (usd per share) | $ 5 | |||||
Debt instrument, convertible, amount | $ 5,600 | |||||
Shares issued upon conversion (in shares) | 1,114,723 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) $ in Millions | Jun. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase which is not recorded on Company's Balance Sheet | $ 1.1 |
Operating lease term | 3 years |
Commitments - Schedule of Lease
Commitments - Schedule of Lease Payments Under Topic 842 (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
2020 (remaining) | $ 345 |
2021 | 1,515 |
2022 | 456 |
2023 | 96 |
2024 | 101 |
2025 | 102 |
Total | 2,615 |
Less: imputed interest | (262) |
Total | 2,353 |
Finance Leases | |
2020 (remaining) | 44 |
2021 | 128 |
2022 | 79 |
2023 | 8 |
2024 | 5 |
Thereafter | 0 |
Total | 264 |
Less: imputed interest | (18) |
Total | $ 246 |
Commitments - Effect of Adoptio
Commitments - Effect of Adoption ASC 842 (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets under operating leases | $ 2,335 | $ 2,533 | |
Total assets | 18,922 | 17,713 | $ 15,180 |
Current portion of operating lease obligations | 1,314 | ||
Accrued liabilities | 1,122 | 2,172 | 2,216 |
Total current liabilities | 14,980 | 15,101 | 13,831 |
Long-term portion of operating lease obligations | 1,263 | ||
Total liabilities | $ 20,590 | 23,966 | $ 21,433 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets under operating leases | 2,533 | ||
Total assets | 2,533 | ||
Current portion of operating lease obligations | 1,314 | ||
Accrued liabilities | (44) | ||
Total current liabilities | 1,270 | ||
Long-term portion of operating lease obligations | 1,263 | ||
Total liabilities | $ 2,533 |
Commitments Commitments - Suppl
Commitments Commitments - Supplemental Information Related to Leases (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Operating Leases | |
Operating lease costs | $ 990 |
Variable operating lease costs | 22 |
Total operating lease cost | 1,012 |
Finance Leases | |
Amortization of right-of-use assets | 147 |
Interest on lease liabilities | 17 |
Total finance lease cost | 164 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflows for operating leases | 1,016 |
Operating cash outflows for finance leases | 17 |
Financing cash outflows for finance leases | $ 161 |
Commitments - Weighted Average
Commitments - Weighted Average Assumptions Used (Details) | Jun. 30, 2020 |
Operating Leases | |
Weighted average remaining lease term (in years) | 2 years 4 months 24 days |
Weighted average discount rate | 9.54% |
Finance Leases | |
Weighted average remaining lease term (in years) | 2 years 2 months 12 days |
Weighted average discount rate | 7.22% |
Credit Arrangements - Narrative
Credit Arrangements - Narrative (Detail) | May 13, 2020USD ($)$ / sharesshares | Apr. 20, 2020USD ($) | Mar. 11, 2019USD ($) | Feb. 28, 2019USD ($) | May 11, 2018USD ($)$ / sharesshares | Dec. 14, 2015USD ($) | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jan. 30, 2020USD ($) | Sep. 30, 2019USD ($)$ / shares | Apr. 25, 2019$ / sharesshares | Feb. 14, 2019USD ($)$ / shares | Jan. 31, 2019USD ($)$ / shares | Jan. 04, 2019USD ($) | Nov. 08, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||||||||||||||||
Derivative liability, at fair value | $ 125,000 | $ 125,000 | $ 9,000 | |||||||||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||
Number of securities called by warrants or rights (in shares) | shares | 728,155 | |||||||||||||||||
Exercise price of warrant (in usd per share) | $ / shares | $ 1.18 | |||||||||||||||||
Interest expense, net | $ (140,000) | $ (276,000) | $ (621,000) | $ (657,000) | ||||||||||||||
Administration fee, percent | 0.50% | |||||||||||||||||
Accretion expense | 33,000 | 13,000 | $ 67,000 | 13,000 | ||||||||||||||
Accrued anniversary fee | 3,000 | 16,000 | ||||||||||||||||
Partners For Growth V, L.P. | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Long-term debt | $ 2,500,000 | |||||||||||||||||
Debt instrument fee | $ 150,000 | 150,000 | 150,000 | |||||||||||||||
Number of securities called by warrants or rights (in shares) | shares | 66,000 | |||||||||||||||||
Exercise price of warrant (in usd per share) | $ / shares | $ 2.57 | |||||||||||||||||
Gain on derivative | 5,000 | |||||||||||||||||
Loss on derivative | 52,000 | 116,000 | 12,000 | |||||||||||||||
Interest expense, net | (13,000) | (13,000) | (38,000) | (38,000) | ||||||||||||||
Non-cash interest expense | 7,000 | 7,000 | ||||||||||||||||
Tranche One | Partners For Growth V, L.P. | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Long-term debt | $ 2,000,000 | |||||||||||||||||
Debt instrument, interest rate, percentage | 10.75% | 16.60% | ||||||||||||||||
Tranche Two | Partners For Growth V, L.P. | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Long-term debt | $ 500,000 | |||||||||||||||||
Warrant | Partners For Growth V, L.P. | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Derivative liability, at fair value | 125,000 | $ 125,000 | $ 9,000 | |||||||||||||||
Debt Instrument, Redemption, Period One | Partners For Growth V, L.P. | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Exchange price of warrants (in usd per share) | $ 250,000 | |||||||||||||||||
Subordinated Promissory Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt term | 5 years | |||||||||||||||||
PFG Debt | Partners For Growth V, L.P. | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt interest expense term | 3 years | |||||||||||||||||
Amortization of debt discount (premium) | 14,000 | 14,000 | $ 42,000 | 40,000 | ||||||||||||||
PFG V Debt, Net of Discount | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Liability | 917,000 | 917,000 | ||||||||||||||||
PFG V Debt, Net of Discount | Level 3 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Disbursement of Tranche 2, net of discount | $ 2,300,000 | $ 156,000 | ||||||||||||||||
Liability | 917,000 | 917,000 | 1,700,000 | |||||||||||||||
Promissory Note | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Long-term debt | $ 2,300,000 | |||||||||||||||||
Debt instrument, interest rate, percentage | 1.00% | |||||||||||||||||
Debt term | 2 years | |||||||||||||||||
Accrued interest liability | (5,000) | $ (5,000) | ||||||||||||||||
Warrant Debt | Partners For Growth V, L.P. | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt interest expense term | 5 years | |||||||||||||||||
Warrant Debt | Level 3 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Liability | 166,000 | $ 166,000 | ||||||||||||||||
Warrant Debt, PFG V | Level 3 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Amortization and accretion expense | 6,000 | $ 5,000 | 17,000 | $ 14,000 | ||||||||||||||
Warrant | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Long-term debt | 674,000 | 674,000 | ||||||||||||||||
Term Loan | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt instrument, interest rate, percentage | 1.475% | |||||||||||||||||
Face amount of debt | 232,000 | 232,000 | $ 460,000 | |||||||||||||||
Subordinated note payable | Senior Secured Promissory Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum subsidiary indebtedness | $ 1,000,000 | |||||||||||||||||
Minimum qualifying revenue | 13,000,000 | |||||||||||||||||
Face amount of debt | $ 5,000,000 | |||||||||||||||||
Monthly installment amount | 100,000 | |||||||||||||||||
Interest expense, debt | 13,000 | 2,000 | ||||||||||||||||
Subordinated note payable | Senior Secured Promissory Notes | Consent, Waiver, & Modification To Loan And Security Agreement, Tranche Four | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum subsidiary indebtedness | 1,000,000 | |||||||||||||||||
Subordinated note payable | Senior Secured Promissory Notes | Consent, Waiver, & Modification To Loan And Security Agreement, Tranche Five | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum subsidiary indebtedness | $ 1,000,000 | |||||||||||||||||
Subordinated note payable | Senior Secured Promissory Notes | December through May | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Minimum coverage ratio | 0.7 | |||||||||||||||||
Subordinated note payable | Senior Secured Promissory Notes | June through November | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Minimum coverage ratio | 0.9 | |||||||||||||||||
Subordinated note payable | Initial Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount of debt | 3,000,000 | |||||||||||||||||
Subordinated note payable | Additional Notes, Tranche One | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount of debt | $ 1,000,000 | |||||||||||||||||
Secured Debt | Promissory Note | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt instrument, interest rate, percentage | 9.25% | 9.25% | 9.25% | |||||||||||||||
Face amount of debt | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||||||||||
Common stock, par value (usd per share) | $ / shares | $ 1.30 | $ 1.30 | ||||||||||||||||
Prime Rate | Subordinated note payable | Senior Secured Promissory Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Basis spread on variable rate | 4.00% | |||||||||||||||||
ASC 606 Adoption Adjustments | Noncurrent Liabilities | Subordinated note payable | Senior Secured Promissory Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Accrued interest liability | $ (25,000) | $ (25,000) | ||||||||||||||||
Mitsui Sumitomo Bank | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Annual interest rate | 1.575% | 1.575% | ||||||||||||||||
Mitsui Sumitomo Bank | Line of Credit | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Notes payable outstanding | $ 0 | $ 0 | $ 0 | |||||||||||||||
Japan | Subordinated note payable | Senior Secured Promissory Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum subsidiary indebtedness | $ 1,000,000 | |||||||||||||||||
Director | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Conversion price (usd per share) | $ / shares | $ 5 | |||||||||||||||||
Debt instrument, convertible, amount | $ 5,600,000 | |||||||||||||||||
Shares issued upon conversion (in shares) | shares | 1,114,723 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Accruals of interest and penalties | $ 0 | $ 0 | |
Recognized interest or penalties | $ 0 | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 7,917 | $ 10,068 | $ 24,599 | $ 25,567 |
Product and other total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,744 | 4,221 | 7,612 | 7,768 |
Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,708 | 2,957 | 4,536 | 4,814 |
Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,020 | 1,156 | 2,867 | 2,697 |
Shipping | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16 | 108 | 209 | 257 |
Services total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,173 | 5,847 | 16,987 | 17,799 |
Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,341 | 2,347 | 7,406 | 7,379 |
Hosting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,705 | 1,577 | 4,820 | 4,823 |
Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 893 | 1,791 | 4,317 | 5,342 |
Installs & training | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 234 | 132 | 444 | 255 |
Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (560) | (591) | (1,351) | (1,639) |
Intersegment Eliminations | Product and other total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (432) | (346) | (863) | (922) |
Intersegment Eliminations | Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (310) | (268) | (507) | (568) |
Intersegment Eliminations | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (122) | (78) | (356) | (354) |
Intersegment Eliminations | Shipping | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Services total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (128) | (245) | (488) | (717) |
Intersegment Eliminations | Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (128) | (245) | (488) | (717) |
Intersegment Eliminations | Hosting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Installs & training | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
SOFO | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,497 | 8,135 | 19,159 | 19,394 |
SOFO | Operating Segments | Product and other total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,355 | 3,893 | 6,751 | 6,899 |
SOFO | Operating Segments | Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,635 | 2,761 | 4,244 | 4,359 |
SOFO | Operating Segments | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 707 | 1,027 | 2,304 | 2,287 |
SOFO | Operating Segments | Shipping | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13 | 105 | 203 | 253 |
SOFO | Operating Segments | Services total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,142 | 4,242 | 12,408 | 12,495 |
SOFO | Operating Segments | Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,865 | 1,965 | 5,762 | 5,913 |
SOFO | Operating Segments | Hosting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,358 | 1,066 | 3,496 | 3,182 |
SOFO | Operating Segments | Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 702 | 1,079 | 2,725 | 3,160 |
SOFO | Operating Segments | Installs & training | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 217 | 132 | 425 | 240 |
SFI | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 711 | 882 | 1,833 | 1,985 |
SFI | Operating Segments | Product and other total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 380 | 519 | 855 | 933 |
SFI | Operating Segments | Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 272 | 388 | 491 | 562 |
SFI | Operating Segments | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 105 | 128 | 358 | 367 |
SFI | Operating Segments | Shipping | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3 | 3 | 6 | 4 |
SFI | Operating Segments | Services total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 331 | 363 | 978 | 1,052 |
SFI | Operating Segments | Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 146 | 176 | 437 | 510 |
SFI | Operating Segments | Hosting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 145 | 123 | 425 | 387 |
SFI | Operating Segments | Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23 | 64 | 97 | 140 |
SFI | Operating Segments | Installs & training | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17 | 0 | 19 | 15 |
MSKK | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,269 | 1,642 | 4,958 | 5,827 |
MSKK | Operating Segments | Product and other total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 441 | 155 | 869 | 858 |
MSKK | Operating Segments | Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 111 | 76 | 308 | 461 |
MSKK | Operating Segments | Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 330 | 79 | 561 | 397 |
MSKK | Operating Segments | Shipping | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
MSKK | Operating Segments | Services total | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 828 | 1,487 | 4,089 | 4,969 |
MSKK | Operating Segments | Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 458 | 451 | 1,695 | 1,673 |
MSKK | Operating Segments | Hosting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 202 | 388 | 899 | 1,254 |
MSKK | Operating Segments | Events | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 168 | 648 | 1,495 | 2,042 |
MSKK | Operating Segments | Installs & training | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unearned revenue | $ 9,558 | $ 9,610 |
Long-term portion of unearned revenue | $ 1,760 | $ 1,842 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | |
Remaining performance obligation | $ 4,400 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months | |
Remaining performance obligation | $ 9,600 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | ||
Remaining performance obligation | $ 1,800 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized | $ 2,200 | $ 2,600 | $ 8,900 | $ 9,500 |
Capitalized commissions | $ 114 | $ 134 | $ 444 | $ 530 |
Uncategorized Items - sofo-2020
Label | Element | Value |
Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 1,651,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 200,130,000 |
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 |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (205,728,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,691,000 |
Treasury Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (169,000) |
Receivable For Common Stock Issued [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (26,000) |
Total [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (4,767,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,691,000 |