Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 06, 2021 | Mar. 31, 2021 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001029744 | ||
Entity Registrant Name | SONIC FOUNDRY INC | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-30407 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 39-1783372 | ||
Entity Address, Address Line One | 222 W. Washington Ave | ||
Entity Address, City or Town | Madison | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53703 | ||
City Area Code | 608 | ||
Local Phone Number | 443-1600 | ||
Title of 12(g) Security | Common stock par value $0.01 per share | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12,023,119 | ||
Entity Common Stock, Shares Outstanding | 9,095,355 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 9,989 | $ 7,619 |
Accounts receivable, net of allowances of $261 and $236 | 5,167 | 6,250 |
Inventories, net | 442 | 1,167 |
Investment in sales-type lease, current | 294 | 275 |
Capitalized commissions, current | 360 | 440 |
Prepaid expenses and other current assets | 1,153 | 1,065 |
Total current assets | 17,405 | 16,816 |
Property and equipment: | ||
Leasehold improvements | 1,111 | 1,128 |
Computer equipment | 8,527 | 7,960 |
Furniture and fixtures | 1,528 | 1,366 |
Total property and equipment | 11,166 | 10,454 |
Less accumulated depreciation and amortization | 8,368 | 7,295 |
Property and equipment, net | 2,798 | 3,159 |
Other assets: | ||
Investment in sales-type lease, long-term | 490 | 76 |
Capitalized commissions, long-term | 76 | 100 |
Right-of-use assets under operating leases | 2,441 | 2,081 |
Other long-term assets | 805 | 397 |
Total assets | 24,015 | 22,629 |
Current liabilities: | ||
Accounts payable | 1,072 | 2,689 |
Accrued liabilities | 2,522 | 2,565 |
Current portion of unearned revenue | 9,413 | 10,678 |
Current portion of finance lease obligations | 79 | 119 |
Current portion of operating lease obligations | 930 | 1,425 |
Current portion of notes payable and warrant debt, net of discounts | 0 | 1,104 |
Total current liabilities | 14,016 | 18,580 |
Long-term portion of unearned revenue | 1,614 | 1,460 |
Long-term portion of finance lease obligations | 26 | 89 |
Long-term portion of operating lease obligations | 1,583 | 665 |
Long-term portion of notes payable and warrant debt, net of discounts | 556 | 2,673 |
Derivative liability, at fair value | 53 | 66 |
Other liabilities | 27 | 144 |
Total liabilities | 17,875 | 23,677 |
Commitments and contingencies | ||
Stockholders’ equity (deficit): | ||
Preferred stock | 0 | 0 |
Common stock, $.01 par value, authorized 15,000,000 shares; 9,064,821 and 7,965,325 shares issued and 9,052,105 and 7,952,609 shares outstanding | 91 | 80 |
Additional paid-in capital | 213,278 | 209,022 |
Accumulated deficit | (206,442) | (209,519) |
Accumulated other comprehensive loss | (618) | (462) |
Treasury stock, at cost, 12,716 shares | (169) | (169) |
Total stockholders’ equity (deficit) | 6,140 | (1,048) |
Total liabilities and stockholders’ equity (deficit) | 24,015 | 22,629 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity (deficit): | ||
Preferred stock | 0 | 0 |
Series B Preferred Stock [Member] | ||
Stockholders’ equity (deficit): | ||
Preferred stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Accounts receivable, allowances | $ 261 | $ 236 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 9,064,821 | 7,965,325 |
Common stock, shares outstanding (in shares) | 9,052,105 | 7,952,609 |
Treasury stock, shares (in shares) | 12,716 | 12,716 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 4,500 | 4,500 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, dividend rate | 9.00% | 9.00% |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, liquidation preference (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, dividend rate | 5.00% | 5.00% |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||
Revenue | $ 35,167 | $ 34,753 |
Cost of revenue: | ||
Cost of revenue | 10,294 | 9,634 |
Gross margin | 24,873 | 25,119 |
Operating expenses: | ||
Selling and marketing | 11,970 | 13,025 |
General and administrative | 4,870 | 5,055 |
Product development | 7,226 | 6,303 |
Total operating expenses | 24,066 | 24,383 |
Income from operations | 807 | 736 |
Non-operating income (expenses): | ||
Interest expense, net | (44) | (658) |
Gain on debt forgiveness | 2,325 | 0 |
Other income (expense), net | 4 | (109) |
Total non-operating income (expense) | 2,285 | (767) |
Income (loss) before income taxes | 3,092 | (31) |
Income tax benefit (expense) | (15) | (148) |
Net income (loss) | 3,077 | (179) |
Dividends on preferred stock | 0 | 0 |
Net income (loss) attributable to common stockholders | $ 3,077 | $ (179) |
Income (Loss) per common share: | ||
Basic net income (loss) per common share (in dollars per share) | $ 0.37 | $ (0.02) |
Diluted net income (loss) per common share (in dollars per share) | $ 0.36 | $ (0.02) |
Weighted average common shares – Basic (in shares) | 8,230,100 | 7,216,135 |
– Diluted (in shares) | 8,650,384 | 7,216,135 |
Product and Other [Member] | ||
Revenue: | ||
Revenue | $ 10,473 | $ 10,339 |
Cost of revenue: | ||
Cost of revenue | 4,042 | 4,430 |
Service [Member] | ||
Revenue: | ||
Revenue | 24,694 | 24,414 |
Cost of revenue: | ||
Cost of revenue | $ 6,252 | $ 5,204 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Net income (loss) | $ 3,077 | $ (179) |
Other comprehensive loss | ||
Foreign currency translation adjustment | (156) | 84 |
Comprehensive income (loss) | $ 2,921 | $ (95) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance at Sep. 30, 2019 | $ 0 | $ 67 | $ 203,735 | $ (209,340) | $ (546) | $ (169) | $ (6,253) |
Stock compensation | 0 | 0 | 158 | 0 | 0 | 0 | 158 |
Issuance of common stock and warrants | 0 | 2 | 135 | 0 | 0 | 0 | 137 |
Common stock issued for extinguishment of related-party debt | 0 | 11 | 4,994 | 0 | 0 | 0 | 5,005 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 84 | 0 | 84 |
Net Income (loss) | 0 | 0 | 0 | (179) | 0 | 0 | (179) |
Balance at Sep. 30, 2020 | 0 | 80 | 209,022 | (209,519) | (462) | (169) | (1,048) |
Stock compensation | 0 | 0 | 487 | 0 | 0 | 0 | 487 |
Issuance of common stock and warrants | 0 | 11 | 3,769 | 0 | 0 | 0 | 3,780 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (156) | 0 | (156) |
Net Income (loss) | 0 | 0 | 0 | 3,077 | 0 | 0 | 3,077 |
Balance at Sep. 30, 2021 | $ 0 | $ 91 | $ 213,278 | $ (206,442) | $ (618) | $ (169) | $ 6,140 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Operating activities | |||
Net income (loss) | $ 3,077 | $ (179) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Amortization of other intangibles | 49 | 231 | |
Depreciation and amortization of property and equipment | 1,263 | 889 | |
Loss on sale of fixed assets | 37 | 0 | |
Provision for doubtful accounts | 25 | 111 | |
(Recovery of ) Provision for inventory reserve | (16) | 122 | |
Loss on extinguishment of related party debt for equity | 0 | 26 | |
Stock-based compensation expense related to stock options | 487 | 158 | |
Stock issued for board of director's fees | 70 | 63 | |
Deferred loan interest to related party | 0 | 317 | |
Remeasurement (gain) loss on derivative liability | (13) | 57 | |
Gain on debt forgiveness | (2,325) | 0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 821 | 268 | |
Inventories | 734 | (729) | |
Investment in sales-type lease | (452) | (48) | |
Capitalized commissions | 104 | 30 | |
Prepaid expenses and other current assets | (121) | (57) | |
Right-of-use assets under operating leases | (387) | 492 | |
Operating lease obligations | 445 | (528) | |
Other long-term assets | (438) | 0 | |
Accounts payable and accrued liabilities | (989) | 1,503 | |
Other long-term liabilities | (110) | (2) | |
Unearned revenue | (1,015) | 617 | |
Net cash provided by (used in) operating activities | 1,246 | 3,341 | |
Investing activities | |||
Purchases of property and equipment | (1,482) | (1,736) | |
Net cash used in investing activities | (1,482) | (1,736) | |
Financing activities | |||
Proceeds from notes payable | 0 | 3,157 | |
Payments on notes payable | (935) | (1,358) | |
Proceeds from issuance of common stock | 3,710 | 73 | |
Payments on capital lease and financing arrangements | (120) | (202) | |
Net cash provided by financing activities | 2,655 | 1,670 | |
Changes in cash and cash equivalents due to changes in foreign currency | (49) | 49 | |
Net increase in cash and cash equivalents | 2,370 | 3,324 | |
Cash and cash equivalents at beginning of year | 7,619 | 4,295 | $ 4,295 |
Cash and cash equivalents at end of year | 9,989 | 7,619 | $ 9,989 |
Supplemental cash flow information: | |||
Interest paid | 32 | 148 | |
Income taxes paid, foreign | 97 | 154 | |
Non-cash financing and investing activities: | |||
Property and equipment financed by finance lease or accounts payable | 152 | 724 | |
Common stock issued for extinguishment of related party debt | $ 0 | $ 5,005 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Business Sonic Foundry, Inc. (the Company) is in the business of providing video enterprise solutions and services for the digital-first, distance learning and corporate communications market. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Sonic Foundry Media Systems, Inc., Sonic Foundry International B.V. (formerly Media Mission B.V.) and Mediasite K.K. All significant intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform with current year presentation. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the period. Actual results could differ from those estimates. Assets Recognized from the Costs to Obtain a Contract with a Customer Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which we have determined to be the contract period, typically around 12 Revenue Recognition We generate revenues in the form of hardware sales of our Mediasite recorder and Mediasite related products, such as our server software and other software licenses and related customer support and services fees, including hosting, installations and training, and events services. Software license revenues include fees from sales of perpetual and term licenses. Maintenance and services revenues primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available), hosting, installation, training and other professional services. Invoices are billed when a customer contract, purchase order or signed quote is obtained from the customer. No not Products Products are considered delivered, and revenue is recognized, when title and risk of loss have been transferred to the customer or upon customer acceptance if non-delivered products or services are essential to the functionality of delivered products. Under the terms and conditions of the sale, this occurs at the time of shipment to the customer. Product revenue currently represents sales of our Mediasite recorder and Mediasite related products such as our server software and other software licenses. Services The Company sells support and content hosting contracts to our customers, typically one one one Revenue Recognition In accordance with ASC Topic 606, 606" five 1. Identify the contract with a customer. 1 2 3 4 5 2. Identify the performance obligations in the contract. may may one not 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. not 5. Recognize revenues when or as the company satisfies a performance obligation. Our contract payment terms are typically net 30 may not may not Our revenues are recorded based on the transaction price excluding amounts collected on behalf of third Nature of Products and Services Certain software licenses are sold either on-premise or through term-based hosting agreements. These hosting arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. We deliver our software licenses electronically. Electronic delivery occurs when we provide the customer with access to the software and license key via a secure portal. Revenue from on-premise software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Revenue from term-based hosted licenses are recognized ratably over the term of the agreement. Our contracts with customers for on-premise and hosted software licenses include maintenance services and may In the case of the Company’s hardware products with embedded software, the Company has determined that the hardware and software components function together to deliver the product’s essential functionality, and therefore, are considered to be one The Company also offers hosting services bundled with events services. The Company recognizes events revenue when the event takes place and recognizes the hosting revenue over the term of the hosting agreement. Judgments and Estimates Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately from one Judgment is required to determine standalone selling prices (“SSP”) for each distinct performance obligation. We typically have more than one Concentration of Credit Risk and Other Risks and Uncertainties At September 30, 2021 one not not not The Company’s wholly-owned subsidiaries operate in Japan and the Netherlands, and utilize the Japanese Yen and Euro, respectively, as their functional currency. Assets and liabilities of the Company’s foreign operations are translated into US dollars at period end exchange rates while revenues and expenses are translated using average rates for the period. Gains and losses from the translation are deferred and included in accumulated other comprehensive loss on the consolidated statements of comprehensive gain (loss). During fiscal 2021 gain of $16 2020 We assess the realization of our receivables by performing ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may may not not September 30, 2021 September 30, 2020 Currently the majority of our product inventory purchases are from one third September 30, 2021 September 30, 2020. third third Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three Trade Accounts Receivable The majority of the Company’s accounts receivable are due from entities in, or distributors or value-added resellers to, the education, corporate and government sectors. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not 30 not Investment in Sales-Type Lease The Company has entered into sales-type lease arrangements with certain customers, consisting of recorders leased with terms ranging from 3-5 years. Investment in sales-type leases consisted of the following (in thousands) as of September 30, 2021 Investment in sales-type lease, gross: 2022 $ 294 2023 203 2024 203 2025 83 Gross investment in sales-type lease 783 Less: Unearned income — Total investment in sales-type lease $ 783 Current portion of total investment in sales-type lease $ 294 Long-term portion of total investment in sales-type lease 490 $ 784 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 first Inventory consists of the following (in thousands): September 30, 2021 2020 Raw materials and supplies $ 301 $ 267 Finished goods 247 1,022 Less: Obsolescence reserve (106 ) (122 ) Inventories $ 442 $ 1,167 Software Development Costs Software development costs incurred in conjunction with product development are charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the net realizable value of the related product. Typically, the period between achieving technological feasibility of the Company’s products and the general availability of the products has been short. Consequently, software development costs qualifying for capitalization are typically immaterial and are generally expensed to research and development costs. Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method for financial reporting purposes. The estimated useful lives used to calculate depreciation are as follows: Years (In Years) Leasehold improvements 5 to 15 Computer equipment 1.5 to 5 Furniture and fixtures 3 to 15 Depreciation expense is not Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not 1 2 Asset Retirement Obligation An asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset is recognized as a liability in the period in which it is incurred or becomes determinable, with an associated increase in the carrying amount of the related long-term asset. The cost of the tangible asset, including the initially recognized asset retirement cost, is depreciated over the useful life of the asset. As of September 30, 2021 , the Company has recorded a liability of $ 129 thousand for retirement obligations associated with returning the MSKK leased property to the respective lessors upon the termination of the lease arrangement. A summary of the changes in the ARO is included in the table below (amounts in thousands): Asset retirement obligation at September 30, 2019 $ 129 Accretion expense 2 Foreign currency changes 3 Asset retirement obligation at September 30, 2020 134 Accretion expense 2 Foreign currency changes (7 ) Asset retirement obligation at September 30, 2021 $ 129 Comprehensive Income (Loss) Comprehensive income (loss) includes disclosure of financial information that historically has not not Advertising Expense Advertising costs included in selling and marketing, are expensed when the advertising first September 30, 2021 2020 Research and Development Costs Research and development costs represent product development and are expensed in the period incurred, unless they meet the criteria for capitalized software development costs. Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. We do not We make judgments regarding the realizability of our deferred tax assets. The balance sheet carrying value of our net deferred tax assets is based on whether we believe that it is more likely than not may not As of September 30, 2021 2020 not not” The Company also accounts for the uncertainty in income taxes related to the recognition and measurement of a tax position and measurement of a tax position taken or expected to be taken in an income tax return. The Company follows the applicable accounting guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure related to the uncertainty in income tax positions. Fair Value of Financial Instruments 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 Level 1 Level 2 1 Level 3 not The hierarchy gives the highest priority to Level 1, 3. Financial Liabilities Measured at Fair Value on a 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): September 30, 2021 Level 1 Level 2 Level 3 Fair Value Derivative liability $ — $ 53 $ — $ 53 Total September 30, 2020 Level 1 Level 2 Level 3 Fair Value Derivative liability $ — $ 66 $ — $ 66 The gain or loss related to the fair value remeasurement on the derivative liability is included in the other income (expense) line on the 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 3 3 The Burish warrant was measured at fair value using a Black Scholes model and the remaining fair value was allocated to the related Burish note purchase agreement (see Note 3 3 May 2020 Financial Instruments Not The Company's other financial instruments consist primarily of cash and cash equivalents, accounts receivable, investment in sales-type lease, accounts payable and debt instruments and 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 lease obligations and 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 for either of the years ended September 30, 2021 2020 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 three The fair value of each option grant is estimated using the assumptions in the following table: Years Ending September 30, 2021 2020 Expected life (years) 4.3-5.3 years 4.5 - 4.8 Risk-free interest rate 0.33% - 0.59% 0.24% - 1.63% Expected volatility 65.00% - 83.29% 72.40% - 82.38% Expected forfeiture rate 14.18%-16.41% 12.76% - 15.38% Expected exercise factor 1.2 - 1.87 1.2 Expected dividend yield —% —% Preferred Stock and Dividends The Company considered relevant guidance when accounting for the issuance of preferred stock, and determined that the preferred shares met 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. See Note 5 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 Years Ending September 30, 2021 2020 Denominator for basic earnings (loss) per share -weighted average common shares 8,230,100 7,216,135 Effect of dilutive options and warrants (treasury method) 420,284 — Denominator for diluted earnings (loss) per share -adjusted weighted average common shares 8,650,384 7,216,135 Options and warrants outstanding during each year, but not included in the computation of diluted earnings (loss) per share because they are antidilutive 1,333,174 2,006,073 Liquidity At September 30, 2021 The Company believes its cash position plus available resources is adequate to accomplish its business plan through at least the next twelve may no Restructuring and exit activities The determination of when the Company accrues for involuntary termination benefits under restructuring plans depends on whether the termination benefits are provided under an on-going benefit arrangement or under a one 712 712" Nonretirement Postemployment Benefits. 712, one 420 Exit or Disposal Cost Obligations. During the year ended September 30, 2021, 712, During the year ended September 30, 2021, 420, Recent Accounting Pronouncements In December 2019, 2019 12, 740 2019 12" 740. December 15, 2020, December 15, 2020. not no In June 2016, 2016 13, 326 2016 13" not not December 15, 2022, not Accounting standards that have been issued but are not not not not |
Note 2 - Commitments
Note 2 - Commitments | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 2. Leases The Company has operating leases for corporate office space with various expiration dates. Our leases have remaining lease terms of up to three twelve one 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 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 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 consolidated balance sheets and have a net carrying value of $90 at September 30, 2021 September 30, 2020. We have operating lease arrangements with lease and non-lease components. The non-lease components in our arrangements are not As of September 30, 2021, September 30 Operating Leases Finance Leases 2022 $ 1,008 $ 83 2023 862 11 2024 697 9 2025 33 4 2026 8 3 Thereafter 57 — Total 2,665 110 Less: imputed interest (152 ) (5 ) Total $ 2,513 $ 105 Supplemental information related to leases is as follows (in thousands, except lease term and discount rate): Fiscal Year Ended September 30, 2021 September 30, 2020 Operating lease costs $ 1,493 $ 1,383 Variable operating lease costs (254 ) 37 Total operating lease cost $ 1,239 $ 1,420 Finance lease cost: Amortization of right-of-use assets $ 121 $ 186 Interest on lease liabilities 10 21 Total finance lease cost $ 131 $ 207 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. The negative amount for variable operating lease costs is due to the COVID- 19 Supplemental cash flow information related to operating and finance leases were as follows (in thousands): Fiscal Year Ended September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 1,163 $ 1,387 Operating cash outflows for finance leases 10 21 Financing cash outflows for finance leases 120 202 Other information related to leases was as follows: September 30, 2021 September 30, 2020 Weighted average remaining lease term (in years) Operating leases 2.9 2.3 Finance leases 1.9 1.9 Weighted average discount rate Operating leases 4.05 % 9.11 % Finance leases 6.41 % 8.65 % Other Commitments The Company enters into unconditional purchase commitments on a regular basis for the supply of Mediasite product for hardware inventory, as well as services to support our hosting environment, which are not September 30, 2021 2022, 2023. Effective January 1, 2022, December 31, 2023. not |
Note 3 - Credit Arrangements
Note 3 - Credit Arrangements | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 3. Partners for Growth V, L.P. On May 11, 2018, “2018 2018 two 2 1 May 14, 2018 $2,000,000; 2 November 8, 2018. 1 November 30, 2018. 30 December 1, 2018 May 1, 2021, 2 1. may May 14, 2019. 2018 May 11, 2023. September 30, 2021, September 30, 2020, 2018 2021 2020. 2018 three five 2021, 2020. September 30, 2021, May 11, 2021, September 30, 2021, September 30, 2020, February 28, 2019 Note Purchase Agreement On January 4, 2019, January 4, 2020. February 28, 2019, On January 31, 2019, "January 31, 2019 January 31, 2019 January 31, 2020. January 31, 2019 January 31, 2019 February 28, 2019, On February 14, 2019, "February 14, 2019 February 14, 2019 February 14, 2020. February 14, 2019 February 14, 2019 February 28, 2019, Mr. Burish beneficially owns more than 5% February 28, 2019 On February 28, 2019, 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 first January February 2019, January 31st, 2019 February 14, 2019 fourth March 13, 2019 fifth April 4, 2019. The Subordinated Promissory Notes accrued interest at the variable per annum rate equal to the Prime Rate (as defined) plus four February 28, 2024 ( August 31, 2020 February 28, 2019 At each anniversary of the Closing, an administration fee was payable to Mr. Burish equal to 0.5% of the purchase price less principal payments made. 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 was treated together as a debt discount on the Subordinated Notes Payable and was accreted to interest expense under the effective interest rate method over the five 2021 2020. May 13, 2020 On May 13, 2020, February 28, 2019 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, 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 had a term of two June 5, 2020, 1% March 2, 2021. June 14, 2021 When PPP Loan was received, US GAAP guidance for debt (ASC 470 September 30, 2021. Line of Credit dated July 28, 2021 The Company entered into a Revolving Credit Agreement (the “Credit Agreement”) with U.S. Bank National Association (the “Bank”) on July 28, 2021. may 1 2 3 The Credit Agreement matures on July 28, 2022, one 1 1.20:1 2 no 3.00:1 In connection with the Credit Agreement, the Company entered into the Stock Pledge Agreement with the Bank, as a condition of the Credit Loan. Upon default, the Bank shall have the right to transfer and claim the securities of the subsidiaries, Sonic Foundry International B.V. in Netherland and Mediasite K.K. in Japan. Other Indebtedness On January 30, 2020, January 2020, December 30, 2020. At September 30, 2021 September 30, 2020, one one September 30, 2021 February 28,2022. On August 20, 2020, 19." 19, three three September 30, 2023. September 30, 2021 In the years ended September 30, 2021 and 2020 , respectively, no foreign currency gain or loss was realized related to re-measurement of the subordinated notes payable related to the Company’s foreign subsidiaries. The annual principal payments on the outstanding notes payable and warrant debt are as follows: Fiscal Year (in thousands) 2022 $ — 2023 556 Total principal payments 556 Total notes payable, net of discount $ 556 |
Note 4 - Balance Sheet
Note 4 - Balance Sheet | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 4. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consists of the following (in thousands): September 30, 2021 2020 Prepaid expenses $ 1,097 $ 873 Prepaid insurance 11 157 Other current assets 45 35 Total $ 1,153 $ 1,065 Prepaid expenses are amounts paid for services covering periods of performance beyond the balance sheet date such as tradeshow fees and service agreements. Prepaid insurance represents fees paid for insurance covering periods beyond the balance sheet date. Accrued Liabilities Accrued liabilities consists of the following (in thousands): September 30, 2021 2020 Accrued compensation $ 1,530 $ 1,939 Accrued expenses 590 289 Accrued interest & taxes 241 316 Other accrued liabilities 161 21 Total $ 2,522 $ 2,565 The Company accrues expenses as they are incurred. Accrued compensation includes wages, vacation, commissions, bonuses, and severance. Accrued expenses is mainly related to professional fees and amounts owed to suppliers. Other accrued liabilities includes employee-related expenses. |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Deficit) | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 5. Stock Options and Employee Stock Purchase Plan On January 28, 2021, 2020 “2020 2009 "2009 2009 2020 may See Note 9 Each option entitles the holder to purchase one share of common stock at the specified option price. The exercise price of each option granted under the plans was set at the fair market value of the Company’s common stock at the respective grant date. Options vest at various intervals and expire at the earlier of termination of employment, discontinuance of service on the board of directors, ten The Company has applied a graded (tranche-by-tranche) attribution method and expenses share-based compensation on an accelerated basis over the vesting period of the share award, net of estimated forfeitures. The number of shares available for grant under these stockholder approved plans at September 30, Qualified Employee Director Stock Option Stock Option Plans Plan Shares available for grant at September 30, 2019 1,013,201 45,000 Options granted (228,750 ) — Options forfeited 127,166 10,500 Shares available for grant at September 30, 2020 911,617 55,500 Shareholder approval of 2020 Equity Incentive Stock Option Plan 1,000,000 — Options granted (550,467 ) (28,000 ) Options forfeited 258,448 46,500 Shares available for grant at September 30, 2021 1,619,598 74,000 The following table summarizes information with respect to outstanding stock options under all plans: Years Ended September 30, 2021 2020 Weighted Weighted Average Average Exercise Exercise Options Price Options Price Outstanding at beginning of year 1,707,515 $ 5.09 1,654,429 $ 5.62 Granted 578,467 3.42 228,750 1.86 Exercised (127,555 ) 2.14 (37,998 ) 1.53 Forfeited (304,948 ) 6.89 (137,666 ) 6.82 Outstanding at end of year 1,853,479 $ 4.44 1,707,515 $ 5.09 Exercisable at end of year 1,269,854 1,367,618 Weighted average fair value of options granted during the year $ 1.57 $ 0.84 The weighted-average remaining contractual life of exercisable shares is 5.0 years. The options outstanding at September 30, 2021 three Options Outstanding Options Exercisable Options Weighted Outstanding Average Weighted Options Weighted at Remaining Average Exercisable at Average September 30, Contractual Exercise September 30, Exercise Exercise Prices 2021 Life Price 2021 Price $0.66 to $4.81 1,334,544 7.72 $ 2.92 751,419 $ 2.86 $5.08 to $8.92 332,408 2.46 7.48 331,908 7.48 $9.08 to $10.92 186,527 2.19 9.95 186,527 9.95 1,853,479 1,269,854 As of September 30, 2021 September 30, 2020 A summary of the status of the Company’s non-vested shares under all plans at September 30, 2021 Weighted Average Grant Date Options Fair Value Non-vested options at October 1, 2019 357,114 $ 0.77 Granted 228,750 0.84 Vested (219,966 ) 1.12 Forfeited (26,001 ) 0.54 Non-vested options at September 30, 2020 339,897 0.60 Granted 578,467 1.57 Vested (283,741 ) 0.98 Forfeited (51,165 ) 1.09 Non-vested options at September 30, 2021 583,458 $ 1.43 Stock-based compensation recorded in the year ended September 30, 2021 was $487 thousand. Stock-based compensation recorded in the year ended September 30, 2020 was $158 thousand. Cash received from exercises under all stock option plans and warrants for the years ended September 30, 2021 and 2020 September 30, 2021 and 2020 . The Company currently expects to satisfy stock-based awards with registered shares available to be issued. The Company also has an Employee Stock Purchase Plan (Purchase Plan) under which an aggregate of 300,000 common shares may first twenty not may No first January July. first September 30, 2021 . There were 9,773 and 16,227 shares purchased by employees during fiscal 2021 and 2020 , respectively. The Company recorded stock compensation expense under this plan of $9 thousand and $2 thousand during fiscal 2021 and 2020 , respectively. Cash received from issuance of stock under this plan was $31 thousand and $17 thousand during fiscal 2021 and 2020 , respectively. Common Stock Warrants On April 16, 2018, April 13, 2018. April 16, 2025. On April 25, 2019, 3 February 28, 2019 On July 27, 2021, July 20, 2026. 9 Preferred stock and dividends In May 2017, "9% September 30, 2021 and 2020 , an aggregate total of 4,500 shares were authorized, respectively. Holders of the Preferred Stock, Series A will receive monthly dividends at an annual rate of 9% 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 have been shown as a reduction to net income (or an increase in net loss) for purposes of calculating earnings per share A total of zero September 30, 2021 and 2020 , respectively. Capital raise On July 20, 2021, four July 27, 2021. July 20, 2026 six The investors above included Mr. Mark Burish, the Company’s chairman and largest shareholder who purchased $1,250,000 of common stock for a total of 337,838 shares and 50,676 warrants. The Company’s special committee of disinterested directors met several times to discuss and negotiate the terms of the above transactions, including the participation of Mr. Burish. The special committee unanimously approved such terms. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. Provision for income taxes consists of the following (in thousands): Years Ended September 30, 2021 2020 Current income tax expense U.S. $ — $ — Current income tax expense foreign 20 97 Deferred income tax expense (benefit) (5 ) 51 Provision for income taxes $ 15 $ 148 Sonic Foundry, Inc. Annual Report on Form 10 For the Year Ended September 30, 2021 U.S. and foreign components of income (loss) before income taxes were as follows (in thousands): Years Ended September 30, 2021 2020 U.S. $ 2,702 $ (184 ) Foreign 390 153 Income (Loss) before income taxes $ 3,092 $ (31 ) The reconciliation of income tax expense (benefit) computed at the appropriate country specific rate to income tax benefit is as follows (in thousands): Years Ended September 30, 2021 2020 Income tax expense (benefit) at statutory rate $ 649 $ (39 ) State income tax expense 9 148 Foreign rate differential (31 ) — Foreign tax activity — 97 PPP loan forgiveness (488 ) — Permanent differences, net 67 538 Expiration of net operating losses 3,945 3,666 Change in valuation allowance (4,255 ) (4,298 ) Return to provision true-up 166 — Other (47 ) 36 Income tax expense $ 15 $ 148 The significant components of the deferred tax accounts recognized for financial reporting purposes are as follows (in thousands): September 30, 2021 2020 Deferred tax assets: Net operating loss and other carryforwards $ 16,893 $ 20,069 Common stock options 1,003 958 Unearned revenue 343 446 Interest expense limitation 10 457 Other 335 433 Total deferred tax assets 18,584 22,363 Deferred tax liabilities: Other (321 ) (339 ) Total deferred tax liabilities (321 ) (339 ) Net deferred tax asset 18,263 22,024 Valuation allowance (18,215 ) (21,981 ) Net deferred tax asset $ 48 $ 43 The Company has a $48 thousand and $43 thousand deferred tax asset at September 30, 2021 2020 At September 30, 2021 20 2021. 2021 2041. may September 30, 2021. Sonic Foundry, Inc. Annual Report on Form 10 For the Year Ended September 30, 2021 The Company maintains an additional paid-in-capital (APIC) pool which represents the excess tax benefits related to share-based compensation that are available to absorb future tax deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, the Company records the excess as income tax expense in its consolidated statements of income. For fiscal 2021 2020 not September 30, 2021 Earnings of the Company’s foreign subsidiaries are generally subject to U.S. taxation upon repatriation to the U.S. and the Company’s tax provision reflects the related incremental U.S. tax except for certain foreign subsidiaries whose unremitted earnings are considered to be indefinitely reinvested. No deferred tax liability has been recognized with regard to the remittance of such earnings after MSKK and Sonic Foundry International BV acquisitions were completed. At September 30, 2021 In accordance with accounting guidance for uncertainty in income taxes, the Company has concluded that a reserve for income tax contingencies is not no September 30, 2021 September 30, 2020 not September 30, 2021 2020 The Company is subject to taxation in the U.S., Netherlands, Japan and various state jurisdictions. All of the Company’s tax years are subject to examination by the U.S., Dutch, Japanese and state tax authorities due to the carryforward of unutilized net operating losses. |
Note 7 - Savings Plan
Note 7 - Savings Plan | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 7. The Company’s defined contribution 401 may September 30, 2021 2020 2021 2020 |
Note 8 - Revenue
Note 8 - Revenue | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 8. Disaggregation of Revenues The following table summarizes revenues from contracts with customers for the twelve September 30, 2021 2020, Fiscal Year Ended September 30, 2021 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 5,760 $ 607 $ 1,423 $ (984 ) $ 6,806 Software 2,663 458 863 (396 ) 3,588 Shipping 74 5 - - 79 Product and other total 8,497 1,070 2,286 (1,380 ) 10,473 Support 6,587 631 924 (844 ) 7,298 Hosting 5,786 1,014 1,954 (458 ) 8,296 Events 3,982 99 2,310 - 6,391 Installs and training 809 268 1,632 - 2,709 Services total 17,164 2,012 6,820 (1,302 ) 24,694 Total revenue $ 25,661 $ 3,082 $ 9,106 $ (2,682 ) $ 35,167 Fiscal Year Ended September 30, 2020 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 5,452 $ 718 $ 759 $ (612 ) $ 6,317 Software 3,201 456 704 (566 ) 3,795 Shipping 218 9 - - 227 Product and other total 8,871 1,183 1,463 (1,178 ) 10,339 Support 7,638 603 1,965 (694 ) 9,512 Hosting 4,934 623 1,375 - 6,932 Events 3,533 121 2,250 - 5,904 Installs and training 1,655 21 390 - 2,066 Services total 17,760 1,368 5,980 (694 ) 24,414 Total revenue $ 26,631 $ 2,551 $ 7,443 $ (1,872 ) $ 34,753 Transaction price allocated to future performance obligations As of September 30, 2021 three twelve Disclosures related to our contracts with customers Timing may not Unearned revenues Unearned revenues represent our obligation to transfer products or services to our client for which we have received consideration, or an amount of consideration is due, from the client. During the twelve September 30, 2021 September 30, 2020. Assets recognized from the costs to obtain our contracts with customers We recognize an asset for the incremental costs of obtaining a contract with a customer. We amortize these deferred costs proportionate with related revenues over the period of the contract. During the twelve September 30, 2021 September 30, 2020. |
Note 9 - Related-party Transact
Note 9 - Related-party Transactions | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 9. The Company incurred fees of $121 thousand and $424 thousand during the years ended September 30, 2021 2020 September 30, 2021 2020 On May 13, 2020, January 28, 2021. On July 20, 2021, four July 27, 2021. July 20, 2026 six 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. |
Note 10 - Segment Information
Note 10 - Segment Information | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. We have determined that in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280 10, Segment Reporting September 30, 2021 2020 The following summarizes revenue and long-lived assets by geographic region (in thousands): Revenues Years Ended Long-Lived Assets September 30, September 30, 2021 2020 2021 2020 United States $ 18,114 $ 18,714 $ 3,555 $ 3,412 Europe and Middle East 6,732 7,245 1,234 1,447 Asia 9,291 7,714 796 1,449 Other 1,030 1,080 — — Total $ 35,167 $ 34,753 $ 5,585 $ 6,308 |
Note 11 - Legal Proceedings
Note 11 - Legal Proceedings | 12 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 11. From time to time, the Company is subject to legal proceedings or claims arising from its normal course of operations. The Company accrues for costs related to loss contingencies when such costs are probable and reasonably estimable. As of September 30, 2021 not |
Note 12 - Impacts of COVID-19
Note 12 - Impacts of COVID-19 | 12 Months Ended |
Sep. 30, 2021 | |
COVID 19 [Member] | |
Notes to Financial Statements | |
Unusual or Infrequent Items, or Both, Disclosure [Text Block] | 12. 19 On March 11, 2020, 19 19 March 2020 August 2, 2021, The Company implemented a newly developed hybrid module to allow 60% in office and 40% work from home. COVID- 19 March 2020 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Sonic Foundry Media Systems, Inc., Sonic Foundry International B.V. (formerly Media Mission B.V.) and Mediasite K.K. All significant intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform with current year presentation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the period. Actual results could differ from those estimates. |
Revenue [Policy Text Block] | Assets Recognized from the Costs to Obtain a Contract with a Customer Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which we have determined to be the contract period, typically around 12 Revenue Recognition We generate revenues in the form of hardware sales of our Mediasite recorder and Mediasite related products, such as our server software and other software licenses and related customer support and services fees, including hosting, installations and training, and events services. Software license revenues include fees from sales of perpetual and term licenses. Maintenance and services revenues primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available), hosting, installation, training and other professional services. Invoices are billed when a customer contract, purchase order or signed quote is obtained from the customer. No not Products Products are considered delivered, and revenue is recognized, when title and risk of loss have been transferred to the customer or upon customer acceptance if non-delivered products or services are essential to the functionality of delivered products. Under the terms and conditions of the sale, this occurs at the time of shipment to the customer. Product revenue currently represents sales of our Mediasite recorder and Mediasite related products such as our server software and other software licenses. Services The Company sells support and content hosting contracts to our customers, typically one one one Revenue Recognition In accordance with ASC Topic 606, 606" five 1. Identify the contract with a customer. 1 2 3 4 5 2. Identify the performance obligations in the contract. may may one not 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. not 5. Recognize revenues when or as the company satisfies a performance obligation. Our contract payment terms are typically net 30 may not may not Our revenues are recorded based on the transaction price excluding amounts collected on behalf of third Nature of Products and Services Certain software licenses are sold either on-premise or through term-based hosting agreements. These hosting arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. We deliver our software licenses electronically. Electronic delivery occurs when we provide the customer with access to the software and license key via a secure portal. Revenue from on-premise software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Revenue from term-based hosted licenses are recognized ratably over the term of the agreement. Our contracts with customers for on-premise and hosted software licenses include maintenance services and may In the case of the Company’s hardware products with embedded software, the Company has determined that the hardware and software components function together to deliver the product’s essential functionality, and therefore, are considered to be one The Company also offers hosting services bundled with events services. The Company recognizes events revenue when the event takes place and recognizes the hosting revenue over the term of the hosting agreement. Judgments and Estimates Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately from one Judgment is required to determine standalone selling prices (“SSP”) for each distinct performance obligation. We typically have more than one |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk and Other Risks and Uncertainties At September 30, 2021 one not not not The Company’s wholly-owned subsidiaries operate in Japan and the Netherlands, and utilize the Japanese Yen and Euro, respectively, as their functional currency. Assets and liabilities of the Company’s foreign operations are translated into US dollars at period end exchange rates while revenues and expenses are translated using average rates for the period. Gains and losses from the translation are deferred and included in accumulated other comprehensive loss on the consolidated statements of comprehensive gain (loss). During fiscal 2021 gain of $16 2020 We assess the realization of our receivables by performing ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may may not not September 30, 2021 September 30, 2020 Currently the majority of our product inventory purchases are from one third September 30, 2021 September 30, 2020. third third |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three |
Accounts Receivable [Policy Text Block] | Trade Accounts Receivable The majority of the Company’s accounts receivable are due from entities in, or distributors or value-added resellers to, the education, corporate and government sectors. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not 30 not |
Lessor, 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. Investment in sales-type leases consisted of the following (in thousands) as of September 30, 2021 Investment in sales-type lease, gross: 2022 $ 294 2023 203 2024 203 2025 83 Gross investment in sales-type lease 783 Less: Unearned income — Total investment in sales-type lease $ 783 Current portion of total investment in sales-type lease $ 294 Long-term portion of total investment in sales-type lease 490 $ 784 |
Inventory, Policy [Policy Text Block] | 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 first Inventory consists of the following (in thousands): September 30, 2021 2020 Raw materials and supplies $ 301 $ 267 Finished goods 247 1,022 Less: Obsolescence reserve (106 ) (122 ) Inventories $ 442 $ 1,167 |
Research, Development, and Computer Software, Policy [Policy Text Block] | Software Development Costs Software development costs incurred in conjunction with product development are charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the net realizable value of the related product. Typically, the period between achieving technological feasibility of the Company’s products and the general availability of the products has been short. Consequently, software development costs qualifying for capitalization are typically immaterial and are generally expensed to research and development costs. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method for financial reporting purposes. The estimated useful lives used to calculate depreciation are as follows: Years (In Years) Leasehold improvements 5 to 15 Computer equipment 1.5 to 5 Furniture and fixtures 3 to 15 Depreciation expense is not |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not 1 2 |
Asset Retirement Obligation [Policy Text Block] | Asset Retirement Obligation An asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset is recognized as a liability in the period in which it is incurred or becomes determinable, with an associated increase in the carrying amount of the related long-term asset. The cost of the tangible asset, including the initially recognized asset retirement cost, is depreciated over the useful life of the asset. As of September 30, 2021 , the Company has recorded a liability of $ 129 thousand for retirement obligations associated with returning the MSKK leased property to the respective lessors upon the termination of the lease arrangement. A summary of the changes in the ARO is included in the table below (amounts in thousands): Asset retirement obligation at September 30, 2019 $ 129 Accretion expense 2 Foreign currency changes 3 Asset retirement obligation at September 30, 2020 134 Accretion expense 2 Foreign currency changes (7 ) Asset retirement obligation at September 30, 2021 $ 129 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) Comprehensive income (loss) includes disclosure of financial information that historically has not not |
Advertising Cost [Policy Text Block] | Advertising Expense Advertising costs included in selling and marketing, are expensed when the advertising first September 30, 2021 2020 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs represent product development and are expensed in the period incurred, unless they meet the criteria for capitalized software development costs. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. We do not We make judgments regarding the realizability of our deferred tax assets. The balance sheet carrying value of our net deferred tax assets is based on whether we believe that it is more likely than not may not As of September 30, 2021 2020 not not” The Company also accounts for the uncertainty in income taxes related to the recognition and measurement of a tax position and measurement of a tax position taken or expected to be taken in an income tax return. The Company follows the applicable accounting guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure related to the uncertainty in income tax positions. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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 Level 1 Level 2 1 Level 3 not The hierarchy gives the highest priority to Level 1, 3. Financial Liabilities Measured at Fair Value on a 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): September 30, 2021 Level 1 Level 2 Level 3 Fair Value Derivative liability $ — $ 53 $ — $ 53 Total September 30, 2020 Level 1 Level 2 Level 3 Fair Value Derivative liability $ — $ 66 $ — $ 66 The gain or loss related to the fair value remeasurement on the derivative liability is included in the other income (expense) line on the 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 3 3 The Burish warrant was measured at fair value using a Black Scholes model and the remaining fair value was allocated to the related Burish note purchase agreement (see Note 3 3 May 2020 Financial Instruments Not The Company's other financial instruments consist primarily of cash and cash equivalents, accounts receivable, investment in sales-type lease, accounts payable and debt instruments and 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 lease obligations and 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 Costs, Policy [Policy Text Block] | 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 for either of the years ended September 30, 2021 2020 |
Share-based Payment Arrangement [Policy Text Block] | 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 three The fair value of each option grant is estimated using the assumptions in the following table: Years Ending September 30, 2021 2020 Expected life (years) 4.3-5.3 years 4.5 - 4.8 Risk-free interest rate 0.33% - 0.59% 0.24% - 1.63% Expected volatility 65.00% - 83.29% 72.40% - 82.38% Expected forfeiture rate 14.18%-16.41% 12.76% - 15.38% Expected exercise factor 1.2 - 1.87 1.2 Expected dividend yield —% —% |
Preferred Stock and Dividends [Policy Text Block] | Preferred Stock and Dividends The Company considered relevant guidance when accounting for the issuance of preferred stock, and determined that the preferred shares met 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. See Note 5 |
Earnings Per Share, Policy [Policy Text Block] | 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 Years Ending September 30, 2021 2020 Denominator for basic earnings (loss) per share -weighted average common shares 8,230,100 7,216,135 Effect of dilutive options and warrants (treasury method) 420,284 — Denominator for diluted earnings (loss) per share -adjusted weighted average common shares 8,650,384 7,216,135 Options and warrants outstanding during each year, but not included in the computation of diluted earnings (loss) per share because they are antidilutive 1,333,174 2,006,073 |
Liquidity [Policy Text Block] | Liquidity At September 30, 2021 The Company believes its cash position plus available resources is adequate to accomplish its business plan through at least the next twelve may no |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring and exit activities The determination of when the Company accrues for involuntary termination benefits under restructuring plans depends on whether the termination benefits are provided under an on-going benefit arrangement or under a one 712 712" Nonretirement Postemployment Benefits. 712, one 420 Exit or Disposal Cost Obligations. During the year ended September 30, 2021, 712, During the year ended September 30, 2021, 420, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In December 2019, 2019 12, 740 2019 12" 740. December 15, 2020, December 15, 2020. not no In June 2016, 2016 13, 326 2016 13" not not December 15, 2022, not Accounting standards that have been issued but are not not not not |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Investment in Sales-type Leases [Table Text Block] | Investment in sales-type lease, gross: 2022 $ 294 2023 203 2024 203 2025 83 Gross investment in sales-type lease 783 Less: Unearned income — Total investment in sales-type lease $ 783 Current portion of total investment in sales-type lease $ 294 Long-term portion of total investment in sales-type lease 490 $ 784 |
Schedule of Inventory, Current [Table Text Block] | September 30, 2021 2020 Raw materials and supplies $ 301 $ 267 Finished goods 247 1,022 Less: Obsolescence reserve (106 ) (122 ) Inventories $ 442 $ 1,167 |
Property, Plant and Equipment [Table Text Block] | Years (In Years) Leasehold improvements 5 to 15 Computer equipment 1.5 to 5 Furniture and fixtures 3 to 15 |
Schedule of Asset Retirement Obligations [Table Text Block] | Asset retirement obligation at September 30, 2019 $ 129 Accretion expense 2 Foreign currency changes 3 Asset retirement obligation at September 30, 2020 134 Accretion expense 2 Foreign currency changes (7 ) Asset retirement obligation at September 30, 2021 $ 129 |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | September 30, 2021 Level 1 Level 2 Level 3 Fair Value Derivative liability $ — $ 53 $ — $ 53 Total September 30, 2020 Level 1 Level 2 Level 3 Fair Value Derivative liability $ — $ 66 $ — $ 66 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Years Ending September 30, 2021 2020 Expected life (years) 4.3-5.3 years 4.5 - 4.8 Risk-free interest rate 0.33% - 0.59% 0.24% - 1.63% Expected volatility 65.00% - 83.29% 72.40% - 82.38% Expected forfeiture rate 14.18%-16.41% 12.76% - 15.38% Expected exercise factor 1.2 - 1.87 1.2 Expected dividend yield —% —% |
Schedule of Weighted Average Number of Shares [Table Text Block] | Years Ending September 30, 2021 2020 Denominator for basic earnings (loss) per share -weighted average common shares 8,230,100 7,216,135 Effect of dilutive options and warrants (treasury method) 420,284 — Denominator for diluted earnings (loss) per share -adjusted weighted average common shares 8,650,384 7,216,135 Options and warrants outstanding during each year, but not included in the computation of diluted earnings (loss) per share because they are antidilutive 1,333,174 2,006,073 |
Note 2 - Commitments (Tables)
Note 2 - Commitments (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Lessee, Lease Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2022 $ 1,008 $ 83 2023 862 11 2024 697 9 2025 33 4 2026 8 3 Thereafter 57 — Total 2,665 110 Less: imputed interest (152 ) (5 ) Total $ 2,513 $ 105 |
Lease, Cost [Table Text Block] | Fiscal Year Ended September 30, 2021 September 30, 2020 Operating lease costs $ 1,493 $ 1,383 Variable operating lease costs (254 ) 37 Total operating lease cost $ 1,239 $ 1,420 Finance lease cost: Amortization of right-of-use assets $ 121 $ 186 Interest on lease liabilities 10 21 Total finance lease cost $ 131 $ 207 |
Supplement Cash Flow Information [Table Text Block] | Fiscal Year Ended September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 1,163 $ 1,387 Operating cash outflows for finance leases 10 21 Financing cash outflows for finance leases 120 202 September 30, 2021 September 30, 2020 Weighted average remaining lease term (in years) Operating leases 2.9 2.3 Finance leases 1.9 1.9 Weighted average discount rate Operating leases 4.05 % 9.11 % Finance leases 6.41 % 8.65 % |
Note 3 - Credit Arrangements (T
Note 3 - Credit Arrangements (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal Year (in thousands) 2022 $ — 2023 556 Total principal payments 556 Total notes payable, net of discount $ 556 |
Note 4 - Balance Sheet (Tables)
Note 4 - Balance Sheet (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | September 30, 2021 2020 Prepaid expenses $ 1,097 $ 873 Prepaid insurance 11 157 Other current assets 45 35 Total $ 1,153 $ 1,065 |
Schedule of Accrued Liabilities [Table Text Block] | September 30, 2021 2020 Accrued compensation $ 1,530 $ 1,939 Accrued expenses 590 289 Accrued interest & taxes 241 316 Other accrued liabilities 161 21 Total $ 2,522 $ 2,565 |
Note 5 - Stockholders' Equity_2
Note 5 - Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Stock Options Roll Forward [Table Text Block] | Qualified Employee Director Stock Option Stock Option Plans Plan Shares available for grant at September 30, 2019 1,013,201 45,000 Options granted (228,750 ) — Options forfeited 127,166 10,500 Shares available for grant at September 30, 2020 911,617 55,500 Shareholder approval of 2020 Equity Incentive Stock Option Plan 1,000,000 — Options granted (550,467 ) (28,000 ) Options forfeited 258,448 46,500 Shares available for grant at September 30, 2021 1,619,598 74,000 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Years Ended September 30, 2021 2020 Weighted Weighted Average Average Exercise Exercise Options Price Options Price Outstanding at beginning of year 1,707,515 $ 5.09 1,654,429 $ 5.62 Granted 578,467 3.42 228,750 1.86 Exercised (127,555 ) 2.14 (37,998 ) 1.53 Forfeited (304,948 ) 6.89 (137,666 ) 6.82 Outstanding at end of year 1,853,479 $ 4.44 1,707,515 $ 5.09 Exercisable at end of year 1,269,854 1,367,618 Weighted average fair value of options granted during the year $ 1.57 $ 0.84 |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Options Weighted Outstanding Average Weighted Options Weighted at Remaining Average Exercisable at Average September 30, Contractual Exercise September 30, Exercise Exercise Prices 2021 Life Price 2021 Price $0.66 to $4.81 1,334,544 7.72 $ 2.92 751,419 $ 2.86 $5.08 to $8.92 332,408 2.46 7.48 331,908 7.48 $9.08 to $10.92 186,527 2.19 9.95 186,527 9.95 1,853,479 1,269,854 |
Schedule of Nonvested Share Activity [Table Text Block] | Weighted Average Grant Date Options Fair Value Non-vested options at October 1, 2019 357,114 $ 0.77 Granted 228,750 0.84 Vested (219,966 ) 1.12 Forfeited (26,001 ) 0.54 Non-vested options at September 30, 2020 339,897 0.60 Granted 578,467 1.57 Vested (283,741 ) 0.98 Forfeited (51,165 ) 1.09 Non-vested options at September 30, 2021 583,458 $ 1.43 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years Ended September 30, 2021 2020 Current income tax expense U.S. $ — $ — Current income tax expense foreign 20 97 Deferred income tax expense (benefit) (5 ) 51 Provision for income taxes $ 15 $ 148 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Years Ended September 30, 2021 2020 U.S. $ 2,702 $ (184 ) Foreign 390 153 Income (Loss) before income taxes $ 3,092 $ (31 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years Ended September 30, 2021 2020 Income tax expense (benefit) at statutory rate $ 649 $ (39 ) State income tax expense 9 148 Foreign rate differential (31 ) — Foreign tax activity — 97 PPP loan forgiveness (488 ) — Permanent differences, net 67 538 Expiration of net operating losses 3,945 3,666 Change in valuation allowance (4,255 ) (4,298 ) Return to provision true-up 166 — Other (47 ) 36 Income tax expense $ 15 $ 148 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | September 30, 2021 2020 Deferred tax assets: Net operating loss and other carryforwards $ 16,893 $ 20,069 Common stock options 1,003 958 Unearned revenue 343 446 Interest expense limitation 10 457 Other 335 433 Total deferred tax assets 18,584 22,363 Deferred tax liabilities: Other (321 ) (339 ) Total deferred tax liabilities (321 ) (339 ) Net deferred tax asset 18,263 22,024 Valuation allowance (18,215 ) (21,981 ) Net deferred tax asset $ 48 $ 43 |
Note 8 - Revenue (Tables)
Note 8 - Revenue (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Fiscal Year Ended September 30, 2021 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 5,760 $ 607 $ 1,423 $ (984 ) $ 6,806 Software 2,663 458 863 (396 ) 3,588 Shipping 74 5 - - 79 Product and other total 8,497 1,070 2,286 (1,380 ) 10,473 Support 6,587 631 924 (844 ) 7,298 Hosting 5,786 1,014 1,954 (458 ) 8,296 Events 3,982 99 2,310 - 6,391 Installs and training 809 268 1,632 - 2,709 Services total 17,164 2,012 6,820 (1,302 ) 24,694 Total revenue $ 25,661 $ 3,082 $ 9,106 $ (2,682 ) $ 35,167 Fiscal Year Ended September 30, 2020 SOFO SFI MSKK Eliminations Total Revenue: Hardware $ 5,452 $ 718 $ 759 $ (612 ) $ 6,317 Software 3,201 456 704 (566 ) 3,795 Shipping 218 9 - - 227 Product and other total 8,871 1,183 1,463 (1,178 ) 10,339 Support 7,638 603 1,965 (694 ) 9,512 Hosting 4,934 623 1,375 - 6,932 Events 3,533 121 2,250 - 5,904 Installs and training 1,655 21 390 - 2,066 Services total 17,760 1,368 5,980 (694 ) 24,414 Total revenue $ 26,631 $ 2,551 $ 7,443 $ (1,872 ) $ 34,753 |
Note 10 - Segment Information (
Note 10 - Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Revenues Years Ended Long-Lived Assets September 30, September 30, 2021 2020 2021 2020 United States $ 18,114 $ 18,714 $ 3,555 $ 3,412 Europe and Middle East 6,732 7,245 1,234 1,447 Asia 9,291 7,714 796 1,449 Other 1,030 1,080 — — Total $ 35,167 $ 34,753 $ 5,585 $ 6,308 |
Note 1 - Basis of Presentatio_3
Note 1 - Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Support and Content Hosting Contract, Term (Year) | 1 year | ||
Standard Product Warranty Term, Minimum (Day) | 90 days | ||
Standard Product Warranty Term, Maximum (Year) | 1 year | ||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 9,989 | $ 7,619 | |
Foreign Currency Transaction Gain (Loss), Realized | 16 | (36) | |
Accounts and Financing Receivables, Allowances | 261 | 236 | |
Asset Retirement Obligation, Ending Balance | 129 | 134 | $ 129 |
Advertising Expense | 439 | 395 | |
Litigation Settlement, Amount Awarded to Other Party | 0 | 0 | |
Employee Severance [Member] | |||
Restructuring Charges, Total | 0 | 705 | |
One-time Termination Benefits [Member] | |||
Restructuring Charges, Total | $ 157 | $ 0 | |
Minimum [Member] | |||
Lessor, Sales-type Lease, Term of Contract (Year) | 3 years | ||
Maximum [Member] | |||
Lessor, Sales-type Lease, Term of Contract (Year) | 5 years | ||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Third-Party Contract Manufacturer [Member] | |||
Concentration Risk, Percentage | 1.00% | 33.00% | |
UNITED STATES | |||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 6,200 | ||
Japan and the Netherlands [Member] | |||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 3,800 |
Note 1 - Basis of Presentatio_4
Note 1 - Basis of Presentation and Significant Accounting Policies - Investment in Sales-type Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
2022 | $ 294 | |
2023 | 203 | |
2024 | 203 | |
2025 | 83 | |
Gross investment in sales-type lease | 783 | |
Less: Unearned income | 0 | |
Total investment in sales-type lease | 783 | |
Current portion of total investment in sales-type lease | 294 | $ 275 |
Long-term portion of total investment in sales-type lease | 490 | $ 76 |
Net Investment in Lease, before Allowance for Credit Loss, Total | $ 784 |
Note 1 - Basis of Presentatio_5
Note 1 - Basis of Presentation and Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Raw materials and supplies | $ 301 | $ 267 |
Finished goods | 247 | 1,022 |
Less: Obsolescence reserve | (106) | (122) |
Inventories | $ 442 | $ 1,167 |
Note 1 - Basis of Presentatio_6
Note 1 - Basis of Presentation and Significant Accounting Policies - Property and Equipment Useful Lives (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives (Year) | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives (Year) | 15 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives (Year) | 1 year 6 months |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives (Year) | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives (Year) | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives (Year) | 15 years |
Note 1 - Basis of Presentatio_7
Note 1 - Basis of Presentation and Significant Accounting Policies - Summary of Changes in the Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Asset retirement obligation | $ 134 | $ 129 |
Accretion expense | 2 | 2 |
Foreign currency changes | (7) | 3 |
Asset retirement obligation | $ 129 | $ 134 |
Note 1 - Basis of Presentatio_8
Note 1 - Basis of Presentation and Significant Accounting Policies - Financial Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Derivative liability | $ 53 | $ 66 |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative liability | 53 | 66 |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative liability | $ 0 | $ 0 |
Note 1 - Basis of Presentatio_9
Note 1 - Basis of Presentation and Significant Accounting Policies - Fair Value Assumptions for Stock Options Granted (Details) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Expected exercise factor | 1.20% | |
Expected dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Expected life (years) (Year) | 4 years 6 months | |
Risk-free interest rate | 0.33% | 0.24% |
Expected volatility | 65.00% | 72.40% |
Expected forfeiture rate | 14.18% | 12.76% |
Expected exercise factor | 1.20% | |
Maximum [Member] | ||
Expected life (years) (Year) | 4 years 9 months 18 days | |
Risk-free interest rate | 0.59% | 1.63% |
Expected volatility | 83.29% | 82.38% |
Expected forfeiture rate | 16.41% | 15.38% |
Expected exercise factor | 1.87% |
Note 1 - Basis of Presentati_10
Note 1 - Basis of Presentation and Significant Accounting Policies - Computation of Basic and Diluted Weighted Average Shares Used in Earnings Per Share Calculations (Details) - shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Denominator for basic earnings (loss) per share - weighted average common shares (in shares) | 8,230,100 | 7,216,135 |
Effect of dilutive options and warrants (treasury method) (in shares) | 420,284 | 0 |
Denominator for diluted earnings (loss) per share - adjusted weighted average common shares (in shares) | 8,650,384 | 7,216,135 |
Options and warrants outstanding during each year, but not included in the computation of diluted earnings (loss) per share because they are antidilutive (in shares) | 1,333,174 | 2,006,073 |
Note 2 - Commitments (Details T
Note 2 - Commitments (Details Textual) $ in Thousands | Jan. 01, 2022USD ($)a | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Recorded Unconditional Purchase Obligation, Total | $ 3,155 | ||
Recorded Unconditional Purchase Obligation, to be Paid, Year One | 245 | ||
Recorded Unconditional Purchase Obligation, to be Paid, Year Two | 168 | ||
Forecast [Member] | Facility in Japan [Member] | |||
Area of Real Estate Property (Acre) | a | 7,870 | ||
Lessee, Operating Lease, Monthly Rent Expense | $ 33 | ||
Property and Equipment [Member] | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | $ 90 | $ 191 | |
Maximum [Member] | |||
Lessee, Operating Lease, Remaining Lease Term (Year) | 3 years | ||
Lessee, Operating Lease, Renewal Term (Year) | 12 years | ||
Lessee, Operating Lease, Termination Term (Year) | 1 year |
Note 2 - Commitments - Maturiti
Note 2 - Commitments - Maturities of Operating and Finance Lease (Details) $ in Thousands | Sep. 30, 2021USD ($) |
2022, operating lease | $ 1,008 |
2022, finance lease | 83 |
2023, operating lease | 862 |
2023, finance lease | 11 |
2024, operating lease | 697 |
2024, finance lease | 9 |
2025, operating lease | 33 |
2025, finance lease | 4 |
2026, operating lease | 8 |
2026, finance lease | 3 |
Thereafter, operating lease | 57 |
Thereafter, finance lease | 0 |
Total, operating lease | 2,665 |
Total, finance lease | 110 |
Less: imputed interest, operating lease | (152) |
Less: imputed interest, finance lease | (5) |
Total, operating lease | 2,513 |
Total, finance lease | $ 105 |
Note 2 - Commitments - Suppleme
Note 2 - Commitments - Supplement Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating lease costs | $ 1,493 | $ 1,383 |
Variable operating lease costs | (254) | 37 |
Total operating lease cost | 1,239 | 1,420 |
Amortization of right-of-use assets | 121 | 186 |
Interest on lease liabilities | 10 | 21 |
Total finance lease cost | $ 131 | $ 207 |
Note 2 - Commitments - Supple_2
Note 2 - Commitments - Supplement Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating cash outflows for operating leases | $ 1,163 | $ 1,387 |
Operating cash outflows for finance leases | 10 | 21 |
Financing cash outflows for finance leases | $ 120 | $ 202 |
Operating leases (Year) | 2 years 10 months 24 days | 2 years 3 months 18 days |
Finance leases (Year) | 1 year 10 months 24 days | 1 year 10 months 24 days |
Operating leases | 4.05% | 9.11% |
Finance leases | 6.41% | 8.65% |
Note 3 - Credit Arrangements (D
Note 3 - Credit Arrangements (Details Textual) | Jul. 28, 2021USD ($) | Jun. 14, 2021USD ($) | Aug. 20, 2020USD ($) | May 13, 2020USD ($)$ / sharesshares | Feb. 28, 2019USD ($) | Aug. 31, 2020USD ($) | Dec. 31, 2020 | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2021USD ($)$ / shares | Apr. 20, 2020USD ($) | Jan. 30, 2020USD ($) | Sep. 30, 2019$ / sharesshares | Apr. 25, 2019$ / sharesshares | Feb. 14, 2019USD ($)$ / shares | Jan. 31, 2019USD ($)$ / shares | Jan. 04, 2019USD ($) | May 14, 2018USD ($) | May 11, 2018USD ($)$ / sharesshares |
Long-term Debt, Total | $ 556,000 | $ 556,000 | |||||||||||||||||
Derivative Liability, Noncurrent | 53,000 | $ 66,000 | 53,000 | ||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net, Total | 13,000 | $ (57,000) | |||||||||||||||||
Long-term Debt, Gross | $ 556,000 | $ 556,000 | |||||||||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 2,325,000 | $ 0 | |||||||||||||||||
Foreign Currency Transaction Gain (Loss), Realized | 16,000 | (36,000) | |||||||||||||||||
Subsidiaries [Member] | |||||||||||||||||||
Foreign Currency Transaction Gain (Loss), Realized | 0 | 0 | |||||||||||||||||
Director [Member] | |||||||||||||||||||
Administration Fee Payable, Percentage of Purchase Price Less Principal Payments | 0.50% | ||||||||||||||||||
Board of Directors Chairman [Member] | Conversion of Debt to Common Stock [Member] | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 5 | ||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | shares | 1,114,723 | ||||||||||||||||||
Warrant to Purchase Common Stock [Member] | Director [Member] | |||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 728,155 | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 1.18 | ||||||||||||||||||
February 28, 2019 Warrant [Member] | Director [Member] | |||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 728,155 | 728,155 | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 1.18 | $ 1.18 | |||||||||||||||||
Partners For Growth VL.P. [Member] | Warrant to Purchase Common Stock [Member] | |||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 66,000 | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 2.57 | ||||||||||||||||||
Exchange Price of Warrant | $ 250,000 | ||||||||||||||||||
PFG V Debt [Member] | |||||||||||||||||||
Long-term Debt, Gross | 2,300,000 | $ 2,300,000 | |||||||||||||||||
Warrant Debt [Member] | |||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 156,000 | ||||||||||||||||||
Burish Notes, Net of Discount [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | 667,000 | ||||||||||||||||||
Subordinated Promissory Notes [Member] | |||||||||||||||||||
Debt Instrument, Term (Year) | 5 years | ||||||||||||||||||
Amortization of Debt Discount (Premium) | 0 | 87,000 | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||||||||||||||||||
Debt Instrument, Periodic Payment, Principal | $ 100,000 | ||||||||||||||||||
May 13, 2020 Debt Conversion Agreement [Member] | Board of Directors Chairman [Member] | |||||||||||||||||||
Long-term Debt, Gross | $ 5,600,000 | ||||||||||||||||||
Debt Instrument, Face Amount | 5,000,000 | ||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net, Total | 596,000 | ||||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (26,000) | ||||||||||||||||||
Paycheck Protection Program CARES Act [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 2,300,000 | ||||||||||||||||||
Debt Instrument, Decrease, Forgiveness | $ 2,314,815 | ||||||||||||||||||
Debt Instrument, Interest Forgiven | $ 26,382 | ||||||||||||||||||
Term Loan [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.475% | ||||||||||||||||||
Debt Instrument, Face Amount | $ 460,000 | ||||||||||||||||||
Debt Instrument, Number of Equal Monthly Installment | 12 | ||||||||||||||||||
Promissory Note [Member] | Mediasite K.K. and Mitsui Sumitomo Bank [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.46% | ||||||||||||||||||
Debt Instrument, Term (Year) | 3 years | ||||||||||||||||||
Debt Instrument, Face Amount | $ 379,000 | ||||||||||||||||||
Debt Instrument, Grace Period (Year) | 3 years | ||||||||||||||||||
Partners For Growth VL.P. [Member] | |||||||||||||||||||
Derivative Liability, Noncurrent | 53,000 | 66,000 | 53,000 | ||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net, Total | 12,000 | 57,000 | |||||||||||||||||
Partners For Growth VL.P. [Member] | PFG V Debt [Member] | |||||||||||||||||||
Debt Instrument, Fee Amount | $ 150,000 | 150,000 | |||||||||||||||||
Debt Instrument, Term (Year) | 3 years | ||||||||||||||||||
Accretion Expense | $ 27,000 | 23,000 | |||||||||||||||||
Amortization of Debt Discount (Premium) | 34,000 | 56,000 | |||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | $ 0 | 0 | |||||||||||||||||
Partners For Growth VL.P. [Member] | Warrant Debt [Member] | |||||||||||||||||||
Debt Instrument, Term (Year) | 5 years | ||||||||||||||||||
Partners For Growth VL.P. [Member] | Warrant Debt, PFG V [Member] | |||||||||||||||||||
Long-term Debt, Total | $ 198,000 | 198,000 | |||||||||||||||||
US Bank [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | ||||||||||||||||||
Line of Credit Facility, Percent of Qualified Accounts Receivable Included in Borrowing Base | 80.00% | ||||||||||||||||||
Line of Credit Facility, Percent of Qualified Inventory Included in Borrowing Base | 50.00% | ||||||||||||||||||
Line of Credit Facility, Available Over-advance Included in Borrowing Base | $ 500,000 | ||||||||||||||||||
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 1.20 | ||||||||||||||||||
Debt Instrument, Covenant, Senior Cash Flow Coverage Ratio | 3 | ||||||||||||||||||
US Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.35% | ||||||||||||||||||
Mitsui Sumitomo Bank [Member] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 448,000 | $ 448,000 | |||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 1.575% | 1.575% | |||||||||||||||||
Term Loan [Member] | Partners For Growth VL.P. [Member] | Loan and Security Agreement 2018 [Member] | |||||||||||||||||||
Long-term Debt, Total | $ 2,500,000 | ||||||||||||||||||
Debt Instrument, Fee Amount | $ 150,000 | ||||||||||||||||||
Term Loan Tranche 1 [Member] | Partners For Growth VL.P. [Member] | Loan and Security Agreement 2018 [Member] | |||||||||||||||||||
Long-term Debt, Total | $ 2,000,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.75% | ||||||||||||||||||
Term Loan Tranche 2 [Member] | Partners For Growth VL.P. [Member] | Loan and Security Agreement 2018 [Member] | |||||||||||||||||||
Long-term Debt, Total | $ 500,000 | ||||||||||||||||||
Senior Notes [Member] | Subordinated Promissory Notes [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.25% | 9.25% | 9.25% | ||||||||||||||||
Debt Instrument, Face Amount | $ 5,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 1.30 | $ 1.30 | |||||||||||||||||
Senior Notes [Member] | Initial Notes [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | 3,000,000 | ||||||||||||||||||
Senior Notes [Member] | Additional Notes [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||||||||||||||||
Line of Credit [Member] | Mitsui Sumitomo Bank [Member] | |||||||||||||||||||
Long-term Line of Credit, Total | $ 0 | $ 0 | $ 0 |
Note 3 - Credit Arrangements -
Note 3 - Credit Arrangements - Annual Principal Payments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
2022 | $ 0 |
2023 | 556 |
Total principal payments | 556 |
Total notes payable, net of discount | $ 556 |
Note 4 - Balance Sheet - Prepai
Note 4 - Balance Sheet - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Prepaid expenses | $ 1,097 | $ 873 |
Prepaid insurance | 11 | 157 |
Other current assets | 45 | 35 |
Total | $ 1,153 | $ 1,065 |
Note 4 - Balance Sheet - Accrue
Note 4 - Balance Sheet - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Accrued compensation | $ 1,530 | $ 1,939 |
Accrued expenses | 590 | 289 |
Accrued interest & taxes | 241 | 316 |
Other accrued liabilities | 161 | 21 |
Total | $ 2,522 | $ 2,565 |
Note 5 - Stockholders' Equity_3
Note 5 - Stockholders' Equity (Deficit) (Details Textual) - USD ($) | Jul. 27, 2021 | Apr. 16, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Apr. 25, 2019 | Apr. 13, 2018 |
Number of Shares Entitled Against Option (in shares) | 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term (Year) | 5 years | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 551,000 | $ 154,000 | ||||
Expected Forfeitures For Employee Service Share Based Compensation Nonvested Awards Compensation Cost Not Yet Recognized | $ 409,000 | 122,000 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 2 months 12 days | |||||
Share-based Payment Arrangement, Expense | $ 487,000 | 158,000 | ||||
Proceeds from Stock Options Exercised | 273,000 | 58,000 | ||||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 0 | $ 0 | ||||
Number of Complete Employment Period On First Day of Each Offering Period (Day) | 90 days | |||||
Employee Not Eligible To Participate | 5.00% | |||||
Eligible Employees Contribution To Purchase Shares | 10.00% | |||||
Share Based Compensation Arrangement By Share Based Payment Award, Maximum Fair Market Value of Shares To Be Purchased by Employee | $ 25,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee (in shares) | 1,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Offering Period (Month) | 6 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP, Total (in shares) | 99,673 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 9,773 | 16,227 | ||||
Proceeds from Issuance of Common Stock | $ 3,710,000 | $ 73,000 | ||||
Stock Issued During Period, Shares, New Issues (in shares) | 945,946 | |||||
Shares Issued, Price Per Share (in dollars per share) | $ 3.70 | |||||
Preferred Stock, Shares Authorized (in shares) | 500,000 | 500,000 | ||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | ||||
Stock Issued During Period, Value, New Issues | $ 3,500,000 | |||||
Conversion of Series A Preferred Stock to Common Stock [Member] | ||||||
Convertible Preferred Stock, Conversion Price (in dollars per share) | $ 4.23 | $ 4.23 | ||||
Series A Preferred Stock [Member] | ||||||
Preferred Stock, Shares Authorized (in shares) | 4,500 | 4,500 | ||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | ||||
Preferred Stock [Member] | Series A Preferred Stock [Member] | ||||||
Preferred Stock, Shares Authorized (in shares) | 4,500 | 4,500 | ||||
Preferred Stock, Dividend Rate, Percentage | 9.00% | 9.00% | ||||
Board of Directors Chairman [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | 337,838 | |||||
Stock Issued During Period, Value, New Issues | $ 1,250,000 | |||||
Warrant to Purchase Common Stock [Member] | Director [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 728,155 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.18 | |||||
Warrant Agreements Associated with July 2021 Stock Issuance [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 141,892 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 5.50 | |||||
Warrant Agreements Associated with July 2021 Stock Issuance [Member] | Board of Directors Chairman [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 50,676 | |||||
Affiliated Entity [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | 232,558 | |||||
Shares Issued, Price Per Share (in dollars per share) | $ 2.15 | |||||
Affiliated Entity [Member] | Warrant to Purchase Common Stock [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 232,558 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 2.50 | |||||
Director Stock Option Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 150,000 | |||||
Number Of Shares To Be Granted On Each Meeting Under Directors Plan (in shares) | 2,000 | |||||
Employee Stock Purchase Plan [Member] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 300,000 | |||||
Employee Stock Purchased Plan [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 9,000 | $ 2,000 | ||||
Proceeds from Issuance of Common Stock | $ 31,000 | $ 17,000 |
Note 5 - Stockholders' Equity_4
Note 5 - Stockholders' Equity (Deficit) - Number of Shares Available for Grant (Details) - shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Options granted (in shares) | (578,467) | (228,750) |
Options forfeited (in shares) | 304,948 | 137,666 |
Qualified Employee Stock Option Plans [Member] | ||
Shares available for grant (in shares) | 911,617 | 1,013,201 |
Options granted (in shares) | (550,467) | (228,750) |
Options forfeited (in shares) | 258,448 | 127,166 |
Shareholder approval of 2020 Equity Incentive Stock Option Plan (in shares) | 1,000,000 | |
Shares available for grant (in shares) | 1,619,598 | 911,617 |
Director Stock Option Plans [Member] | ||
Shares available for grant (in shares) | 55,500 | 45,000 |
Options granted (in shares) | (28,000) | 0 |
Options forfeited (in shares) | 46,500 | 10,500 |
Shareholder approval of 2020 Equity Incentive Stock Option Plan (in shares) | 0 | |
Shares available for grant (in shares) | 74,000 | 55,500 |
Note 5 - Stockholders' Equity_5
Note 5 - Stockholders' Equity (Deficit) - Outstanding Stock Option (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Options, Outstanding at beginning of year (in shares) | 1,707,515 | 1,654,429 |
Weighted Average Exercise Price, Outstanding Balance (in dollars per share) | $ 5.09 | $ 5.62 |
Non-vested options, granted (in shares) | 578,467 | 228,750 |
Weighted Average Exercise Price, Granted (in dollars per share) | $ 3.42 | $ 1.86 |
Options, Exercised (in shares) | (127,555) | (37,998) |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ 2.14 | $ 1.53 |
Options, Forfeited (in shares) | (304,948) | (137,666) |
Weighted Average Exercise Price, Forfeited (in dollars per share) | $ 6.89 | $ 6.82 |
Options, Outstanding at end of year (in shares) | 1,853,479 | 1,707,515 |
Weighted Average Exercise Price, Outstanding Balance (in dollars per share) | $ 4.44 | $ 5.09 |
Options, Exercisable at end of year (in shares) | 1,269,854 | 1,367,618 |
Weighted-Average Grant Date Fair Value, Non-vested granted (in dollars per share) | $ 1.57 | $ 0.84 |
Note 5 - Stockholders' Equity_6
Note 5 - Stockholders' Equity (Deficit) - Summary of Options Outstanding Segregated By Range (Details) | 12 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Option Outstanding (in shares) | shares | 1,853,479 |
Options Exercisable (in shares) | shares | 1,269,854 |
Range One [Member] | |
Exercise Price, Lower range (in dollars per share) | $ 0.66 |
Exercise Price, Upper range (in dollars per share) | $ 4.81 |
Option Outstanding (in shares) | shares | 1,334,544 |
Option Outstanding, Weighted Average Remaining Contractual Life (Year) | 7 years 8 months 19 days |
Outstanding Options, Weighted Average Exercise Price (in dollars per share) | $ 2.92 |
Options Exercisable (in shares) | shares | 751,419 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 2.86 |
Range Two [Member] | |
Exercise Price, Lower range (in dollars per share) | 5.08 |
Exercise Price, Upper range (in dollars per share) | $ 8.92 |
Option Outstanding (in shares) | shares | 332,408 |
Option Outstanding, Weighted Average Remaining Contractual Life (Year) | 2 years 5 months 15 days |
Outstanding Options, Weighted Average Exercise Price (in dollars per share) | $ 7.48 |
Options Exercisable (in shares) | shares | 331,908 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 7.48 |
Range Three [Member] | |
Exercise Price, Lower range (in dollars per share) | 9.08 |
Exercise Price, Upper range (in dollars per share) | $ 10.92 |
Option Outstanding (in shares) | shares | 186,527 |
Option Outstanding, Weighted Average Remaining Contractual Life (Year) | 2 years 2 months 8 days |
Outstanding Options, Weighted Average Exercise Price (in dollars per share) | $ 9.95 |
Options Exercisable (in shares) | shares | 186,527 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.95 |
Note 5 - Stockholders' Equity_7
Note 5 - Stockholders' Equity (Deficit) - Summary of Status of Company's Non-vested Shares (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Non-vested options (in shares) | 339,897 | 357,114 |
Weighted-Average Grant Date Fair Value, Non-vested Balance (in dollars per share) | $ 0.60 | $ 0.77 |
Non-vested options, granted (in shares) | 578,467 | 228,750 |
Weighted-Average Grant Date Fair Value, Non-vested granted (in dollars per share) | $ 1.57 | $ 0.84 |
Non-vested options, vested (in shares) | (283,741) | (219,966) |
Weighted-Average Grant Date Fair Value, vested (in dollars per share) | $ 0.98 | $ 1.12 |
Non-vested options, forfeited (in shares) | (51,165) | (26,001) |
Weighted-Average Grant Date Fair Value, forfeited (in dollars per share) | $ 1.09 | $ 0.54 |
Non-vested options (in shares) | 583,458 | 339,897 |
Weighted-Average Grant Date Fair Value, Non-vested Balance (in dollars per share) | $ 1.43 | $ 0.60 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Deferred Tax Assets, Gross, Total | $ 18,584 | $ 22,363 |
Operating Loss Carryforwards, Expired | 18,800 | |
Operating Loss Carryforwards, Recorded in APIC | 1,100 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 0 | |
Undistributed Earnings of Foreign Subsidiaries | 1,600 | |
Income Tax Examination, Penalties and Interest Accrued, Total | 0 | |
Income Tax Examination, Penalties and Interest Expense, Total | 0 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards, Total | 61,000 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards, Total | 64,000 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Deferred Tax Assets, Gross, Total | $ 48 | $ 43 |
Note 6 - Income Taxes - (Benefi
Note 6 - Income Taxes - (Benefit) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Current income tax expense U.S. | $ 0 | $ 0 |
Current income tax expense foreign | 20 | 97 |
Deferred income tax expense (benefit) | (5) | 51 |
Provision for income taxes | $ 15 | $ 148 |
Note 6 - Income Taxes - U.S. an
Note 6 - Income Taxes - U.S. and Foreign Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
U.S. | $ 2,702 | $ (184) |
Foreign | 390 | 153 |
Income (Loss) before income taxes | $ 3,092 | $ (31) |
Note 6 - Income Taxes - Reconci
Note 6 - Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income tax expense (benefit) at statutory rate | $ 649 | $ (39) |
State income tax expense | 9 | 148 |
Foreign rate differential | (31) | 0 |
Foreign tax activity | 0 | 97 |
PPP loan forgiveness | (488) | 0 |
Permanent differences, net | 67 | 538 |
Expiration of net operating losses | 3,945 | 3,666 |
Change in valuation allowance | (4,255) | (4,298) |
Return to provision true-up | 166 | 0 |
Other | (47) | 36 |
Provision for income taxes | $ 15 | $ 148 |
Note 6 - Income Taxes - Compone
Note 6 - Income Taxes - Components of Deferred Tax Accounts Recognized for Financial Purposes (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Net operating loss and other carryforwards | $ 16,893 | $ 20,069 |
Common stock options | 1,003 | 958 |
Unearned revenue | 343 | 446 |
Interest expense limitation | 10 | 457 |
Other | 335 | 433 |
Total deferred tax assets | 18,584 | 22,363 |
Deferred tax liabilities: | ||
Other | (321) | (339) |
Total deferred tax liabilities | (321) | (339) |
Net deferred tax asset | 18,263 | 22,024 |
Valuation allowance | (18,215) | (21,981) |
Other Noncurrent Assets [Member] | ||
Deferred tax liabilities: | ||
Net deferred tax asset | $ 48 | $ 43 |
Note 7 - Savings Plan (Details
Note 7 - Savings Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 400 | $ 428 |
Additional Discretionary Contributions. | $ 0 | $ 0 |
Note 8 - Revenue 1 (Details Tex
Note 8 - Revenue 1 (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue, Remaining Performance Obligation, Amount | $ 1,600 | $ 1,700 |
Contract with Customer, Liability, Revenue Recognized | 10,500 | 9,900 |
Capitalized Contract Cost, Amortization | $ 462 | $ 491 |
Note 8 - Revenue 2 (Details Tex
Note 8 - Revenue 2 (Details Textual) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Amount | $ 1.6 | $ 1.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 4.1 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month) | 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 10.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month) | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 3.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month) | 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 9.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month) | 12 months |
Note 8 - Revenue - Disaggregati
Note 8 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | $ 35,167 | $ 34,753 |
Hardware [Member] | ||
Revenues | 6,806 | 6,317 |
Software [Member] | ||
Revenues | 3,588 | 3,795 |
Shipping [Member] | ||
Revenues | 79 | 227 |
Product and Other [Member] | ||
Revenues | 10,473 | 10,339 |
Service Support [Member] | ||
Revenues | 7,298 | 9,512 |
Service Hosting [Member] | ||
Revenues | 8,296 | 6,932 |
Service Events [Member] | ||
Revenues | 6,391 | 5,904 |
Service Installs and Training [Member] | ||
Revenues | 2,709 | 2,066 |
Service [Member] | ||
Revenues | 24,694 | 24,414 |
Intersegment Eliminations [Member] | ||
Revenues | (2,682) | (1,872) |
Intersegment Eliminations [Member] | Hardware [Member] | ||
Revenues | (984) | (612) |
Intersegment Eliminations [Member] | Software [Member] | ||
Revenues | (396) | (566) |
Intersegment Eliminations [Member] | Shipping [Member] | ||
Revenues | 0 | 0 |
Intersegment Eliminations [Member] | Product and Other [Member] | ||
Revenues | (1,380) | (1,178) |
Intersegment Eliminations [Member] | Service Support [Member] | ||
Revenues | (844) | (694) |
Intersegment Eliminations [Member] | Service Hosting [Member] | ||
Revenues | (458) | 0 |
Intersegment Eliminations [Member] | Service Events [Member] | ||
Revenues | 0 | 0 |
Intersegment Eliminations [Member] | Service Installs and Training [Member] | ||
Revenues | 0 | 0 |
Intersegment Eliminations [Member] | Service [Member] | ||
Revenues | (1,302) | (694) |
SOFO [Member] | Operating Segments [Member] | ||
Revenues | 25,661 | 26,631 |
SOFO [Member] | Operating Segments [Member] | Hardware [Member] | ||
Revenues | 5,760 | 5,452 |
SOFO [Member] | Operating Segments [Member] | Software [Member] | ||
Revenues | 2,663 | 3,201 |
SOFO [Member] | Operating Segments [Member] | Shipping [Member] | ||
Revenues | 74 | 218 |
SOFO [Member] | Operating Segments [Member] | Product and Other [Member] | ||
Revenues | 8,497 | 8,871 |
SOFO [Member] | Operating Segments [Member] | Service Support [Member] | ||
Revenues | 6,587 | 7,638 |
SOFO [Member] | Operating Segments [Member] | Service Hosting [Member] | ||
Revenues | 5,786 | 4,934 |
SOFO [Member] | Operating Segments [Member] | Service Events [Member] | ||
Revenues | 3,982 | 3,533 |
SOFO [Member] | Operating Segments [Member] | Service Installs and Training [Member] | ||
Revenues | 809 | 1,655 |
SOFO [Member] | Operating Segments [Member] | Service [Member] | ||
Revenues | 17,164 | 17,760 |
SFI [Member] | Operating Segments [Member] | ||
Revenues | 3,082 | 2,551 |
SFI [Member] | Operating Segments [Member] | Hardware [Member] | ||
Revenues | 607 | 718 |
SFI [Member] | Operating Segments [Member] | Software [Member] | ||
Revenues | 458 | 456 |
SFI [Member] | Operating Segments [Member] | Shipping [Member] | ||
Revenues | 5 | 9 |
SFI [Member] | Operating Segments [Member] | Product and Other [Member] | ||
Revenues | 1,070 | 1,183 |
SFI [Member] | Operating Segments [Member] | Service Support [Member] | ||
Revenues | 631 | 603 |
SFI [Member] | Operating Segments [Member] | Service Hosting [Member] | ||
Revenues | 1,014 | 623 |
SFI [Member] | Operating Segments [Member] | Service Events [Member] | ||
Revenues | 99 | 121 |
SFI [Member] | Operating Segments [Member] | Service Installs and Training [Member] | ||
Revenues | 268 | 21 |
SFI [Member] | Operating Segments [Member] | Service [Member] | ||
Revenues | 2,012 | 1,368 |
MSKK [Member] | Operating Segments [Member] | ||
Revenues | 9,106 | 7,443 |
MSKK [Member] | Operating Segments [Member] | Hardware [Member] | ||
Revenues | 1,423 | 759 |
MSKK [Member] | Operating Segments [Member] | Software [Member] | ||
Revenues | 863 | 704 |
MSKK [Member] | Operating Segments [Member] | Shipping [Member] | ||
Revenues | 0 | 0 |
MSKK [Member] | Operating Segments [Member] | Product and Other [Member] | ||
Revenues | 2,286 | 1,463 |
MSKK [Member] | Operating Segments [Member] | Service Support [Member] | ||
Revenues | 924 | 1,965 |
MSKK [Member] | Operating Segments [Member] | Service Hosting [Member] | ||
Revenues | 1,954 | 1,375 |
MSKK [Member] | Operating Segments [Member] | Service Events [Member] | ||
Revenues | 2,310 | 2,250 |
MSKK [Member] | Operating Segments [Member] | Service Installs and Training [Member] | ||
Revenues | 1,632 | 390 |
MSKK [Member] | Operating Segments [Member] | Service [Member] | ||
Revenues | $ 6,820 | $ 5,980 |
Note 9 - Related-party Transa_2
Note 9 - Related-party Transactions (Details Textual) - USD ($) | Jul. 27, 2021 | May 13, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Stock Issued During Period, Shares, New Issues (in shares) | 945,946 | |||
Shares Issued, Price Per Share (in dollars per share) | $ 3.70 | |||
Stock Issued During Period, Value, New Issues | $ 3,500,000 | |||
Warrant Agreements Associated with July 2021 Stock Issuance [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 141,892 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 5.50 | |||
Board of Directors Chairman [Member] | ||||
Stock Issued During Period, Shares, New Issues (in shares) | 337,838 | |||
Stock Issued During Period, Value, New Issues | $ 1,250,000 | |||
Board of Directors Chairman [Member] | Minimum [Member] | ||||
Percentage of Common Stock | 5.00% | |||
Board of Directors Chairman [Member] | Warrant Agreements Associated with July 2021 Stock Issuance [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 50,676 | |||
Board of Directors Chairman [Member] | Conversion of Debt to Common Stock [Member] | ||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 5 | |||
Debt Conversion, Original Debt, Amount | $ 5,600,000 | |||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 1,114,723 | |||
Affiliated Entity [Member] | Minimum [Member] | ||||
Percentage of Common Stock | 5.00% | |||
Incurred Fees [Member] | Law Firm Whose Partner is a Director and Stockholder [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 121,000 | $ 424,000 | ||
Accrued Liability for Unbilled Services [Member] | Law Firm Whose Partner is a Director and Stockholder [Member] | ||||
Due to Related Parties, Current, Total | $ 16,000 | $ 36,000 |
Note 10 - Segment Information_2
Note 10 - Segment Information (Details Textual) | 12 Months Ended |
Sep. 30, 2021 | |
Number of Operating Segments | 3 |
Number of Reportable Segments | 1 |
Note 10 - Segment Information -
Note 10 - Segment Information - Summarizes Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | $ 35,167 | $ 34,753 |
Long-Lived Assets | 5,585 | 6,308 |
UNITED STATES | ||
Revenue | 18,114 | 18,714 |
Long-Lived Assets | 3,555 | 3,412 |
Europe and Middle East [Member] | ||
Revenue | 6,732 | 7,245 |
Long-Lived Assets | 1,234 | 1,447 |
Asia [Member] | ||
Revenue | 9,291 | 7,714 |
Long-Lived Assets | 796 | 1,449 |
Other [Member] | ||
Revenue | 1,030 | 1,080 |
Long-Lived Assets | $ 0 | $ 0 |
Note 12 - Impacts of COVID-19 (
Note 12 - Impacts of COVID-19 (Details Textual) - COVID 19 [Member] | Sep. 30, 2021 |
Percentage of Employees Working in Office | 60.00% |
Percentage of Employees Working from Home | 40.00% |