Track (TRCK) 10-Q 12 May 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2017	May 04, 2017
Document and Entity Information:
Entity Registrant Name	TRACK GROUP, INC.
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Entity Central Index Key	1,045,942
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		10,480,984
Trading Symbol	TRCK
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Current assets:
Cash	$ 2,218,699	$ 1,769,921
Accounts receivable, net of allowance for doubtful accounts of $2,929,975 and $2,335,508, respectively	5,481,495	6,894,095
Note receivable, current portion	334,733	334,733
Prepaid expenses and other	461,989	816,708
Inventory, net of reserves of $26,934 and $98,150, respectively	150,710	521,851
Total current assets	8,647,626	10,337,308
Property and equipment, net of accumulated depreciation of $1,602,824 and $1,421,389, respectively	1,008,347	1,226,461
Monitoring equipment, net of accumulated amortization of $3,853,696 and $3,438,074, respectively	3,842,859	4,358,117
Intangible assets, net of accumulated amortization of $8,800,030 and $8,233,659, respectively	24,494,973	25,540,650
Goodwill	8,044,429	7,955,876
Other assets	3,341,884	2,900,911
Total assets	49,380,118	52,319,323
Current liabilities:
Accounts payable	3,396,084	2,771,101
Accrued liabilities	4,632,549	3,976,192
Current portion of long-term debt, net of discount of $0 and $222,973, respectively	68,593	3,245,732
Total current liabilities	8,097,226	9,993,025
Stock payable - related party	3,000,000	3,289,879
Long-term debt, net of current portion and discount of $297,297 and $185,811, respectively	33,597,443	30,345,803
Total liabilities	44,694,669	43,628,707
Stockholders' equity:
Common stock, $0.0001 par value: 30,000,000 shares authorized; 10,443,784 outstanding at March 31, 2017 and 10,333,516 at September 30, 2016	1,044	1,034
Additional paid-in capital	299,579,665	298,876,399
Accumulated deficit	(293,540,759)	(289,341,503)
Accumulated other comprehensive income	(1,354,501)	(845,314)
Total equity	4,685,449	8,690,616
Total liabilities and stockholders' equity	$ 49,380,118	$ 52,319,323

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Condensed Consolidated Balance Sheets Parenthetical
Allowance for doubtful accounts	$ 2,929,975	$ 2,335,508
Reserve for inventory	26,934	98,150
Property and equipment accumulated depreciation	1,602,824	1,421,389
Monitoring equipment accumulated amortization	3,853,696	3,438,074
Intangible assets accumulated amortization	8,800,030	8,233,659
Current debt, discount	0	222,973
Long-term debt, discount	$ 297,297	$ 185,811
Common stock - par value	$ .0001	$ .0001
Common stock - shares authorized	30,000,000	30,000,000
Common stock - shares outstanding	10,443,784	10,333,516

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Monitoring services	$ 7,154,876	$ 6,392,198	$ 14,419,889	$ 12,349,624
Other	65,167	199,841	471,644	560,019
Total revenues	7,220,043	6,592,039	14,891,533	12,909,643
Cost of revenues:
Monitoring, analytics & other related services	2,594,305	2,177,287	6,201,581	4,597,755
Depreciation and amortization included in cost of revenues	515,574	580,785	961,067	1,009,752
Impairment of monitoring equipment and parts	60,000	60,000	134,787	120,000
Total cost of revenues	3,169,879	2,818,072	7,297,435	5,727,507
Gross profit	4,050,164	3,773,967	7,594,098	7,182,136
Operating expenses:
General & administrative	2,355,156	3,068,618	5,530,210	5,976,984
Loss on sale of assets	766,031	0	766,031	0
Restructuring costs	4,070	0	570,400	0
Selling & marketing	624,210	586,707	1,213,978	1,276,301
Research & development	679,238	630,281	1,167,416	1,130,887
Depreciation & amortization	633,273	734,569	1,208,384	1,434,604
Total operating expenses	5,061,978	5,020,175	10,456,419	9,818,776
Loss from operations	(1,011,814)	(1,246,208)	(2,862,321)	(2,636,640)
Other income (expense):
Interest expense, net	(797,333)	(631,409)	(1,444,436)	(1,325,917)
Currency exchange rate gain (loss)	10,335	(66,408)	(106,107)	(84,557)
Other income, net	222,414	23,336	222,707	(804)
Loss before income taxes	(1,576,398)	(1,920,689)	(4,190,157)	(4,047,918)
Income tax expense	9,099	0	9,099	0
Net loss attributable to common stockholders	(1,585,497)	(1,920,689)	(4,199,256)	(4,047,918)
Foreign currency translation adjustments	(15,615)	755,160	(509,187)	970,255
Comprehensive loss	$ (1,601,112)	$ (1,165,529)	$ (4,708,443)	$ (3,077,663)
Basic and diluted loss per common share	$ (0.15)	$ (0.19)	$ (0.41)	$ (0.39)
Weighted average common shares outstanding, basic and diluted	10,352,485	10,270,680	10,342,948	10,265,958

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (4,199,256)	$ (4,047,918)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	2,169,451	2,444,355
Impairment of monitoring equipment and parts	134,787	120,000
Bad debt expense	668,441	461,380
Amortization of debt discount	111,487	111,487
Stock based compensation	(122,678)	310,199
Vesting and re-pricing of stock options	0	318,376
Loss on sale of assets	766,031	12,279
Gain on settlement of milestone payments	(213,940)	0
Change in assets and liabilities:
Accounts receivable, net	758,184	(867,327)
Notes receivable	0	(18,494)
Inventories	57,700	(23,439)
Prepaid expenses and other	(437,576)	412,014
Accounts payable	807,185	416,624
Accrued expenses	1,497,141	1,167,541
Net cash provided by operating activities	1,996,957	817,077
Cash flow from investing activities:
Purchase of property and equipment	(34,529)	(49,182)
Capitalized software	(1,028,368)	(1,089,454)
Purchase of monitoring equipment and parts	(960,425)	(1,435,210)
Proceeds from sale of assets	510,000	0
Net cash used in investing activities	(1,513,322)	(2,573,846)
Cash flow from financing activities:
Principal payments on notes payable	(34,779)	(986,292)
Net cash used in financing activities	(34,779)	(986,292)
Effect of exchange rate changes on cash	(78)	(1,453)
Net increase (decrease) in cash	448,778	(2,744,514)
Cash, beginning of period	1,769,921	4,903,045
Cash, end of period	2,218,699	2,158,531
Supplemental schedule of non-cash investing and financing activities:
Non-cash transfer of inventory to monitoring equipment	$ 309,710	$ 0

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Basis of Presentation	The unaudited interim condensed consolidated financial information of Track Group, Inc. and subsidiaries (collectively, the “ Company Track Group SEC GAAP Reclassifications –

Principles of Consolidation

Principles of Consolidation	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Principles of Consolidation	The condensed consolidated financial statements include the accounts of Track Group and its subsidiaries. All significant inter-company transactions have been eliminated in consolidation. Certain prior year amounts on the consolidated statement of operations have been reclassified to conform to the current period presentation. These reclassifications have no impact on the previously reported results.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Recently Issued Accounting Standards	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance will be effective for annual periods or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendment should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Management is currently evaluating the impact that this amendment will have on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12. The amendments in this update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. Management is currently evaluating the impact that this amendment will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, (“ ASU 2016-10 In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This update was intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this update have the same effective date as ASC 606 as discussed above. Management is currently evaluating the impact of the pending adoption of ASU 2016-08 on the Company’s consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The amendments in this update are effective for annual periods beginning after December 31, 2016 and interim periods within those annual periods. Management is currently evaluating the impact that this amendment will have on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 841). For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Management is currently evaluating the impact that this amendment will have on its consolidated financial statements.

Immaterial Error Correction

Immaterial Error Correction	6 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Immaterial Error Correction	(4) IMMATERIAL ERROR CORRECTIONS This Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2017, includes the revision of the Company's previously filed consolidated income statements for the three months and six months ended March 31, 2016. Management concluded that the general and administrative section of the Condensed Consolidated Income Statement contained an error and that for comparative purposes in 2017 filings, these figures should be revised but that the adjustments are not material modifications. Accordingly, the Company has determined that prior financial statements should be corrected, even though such revisions are immaterial. Furthermore, the Company has determined that correcting prior year financial statements for immaterial changes would not require previously filed reports to be amended. Under general and administrative expense, we have reclassified costs related to repairs and maintenance of monitoring devices and certain other costs, including installation, communications and transportation costs that were previously recorded in general and administrative expense to cost of revenues, selling & marketing and research & development. Net loss and shareholders equity were not affected by the reclassification. The effect of these revisions on the Company's results of operations for the three and six months ended March 31, 2016 previously reported are as follows: Three months ended March 31, 2016 Previously Reported Net Change Three months ended March 31, 2016 (Revised) Cost of revenues: Monitoring, products & other related services $1,832,684 $344,603 $2,177,287 Total operating expense General and administrative expenses 3,424,342 (355,724) 3,068,618 Selling & marketing 593,272 (6,565) 586,707 Research & development 612,595 17,686 630,281 Six months ended March 31, 2016 Previously Reported Net Change Six months ended March 31, 2016 (Revised) Cost of revenues: Monitoring, products & other related services $3,772,896 $824,859 $4,597,755 Total operating expense General and administrative expenses 6,835,985 (859,001) 5,976,984 Selling & marketing 1,213,301 63,000 1,276,301 Research & development 1,159,745 (28,858) 1,130,887

Impairment of Long-lived Assets

Impairment of Long-lived Assets	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Impairment of Long-lived Assets	The Company reviews its long-lived assets for impairment when events or changes in circumstances indicate that the book value of an asset may not be recoverable and in the case of goodwill, at least annually. The Company evaluates whether events and circumstances have occurred which indicate possible impairment as of each balance sheet date. If the carrying amount of an asset exceeds its fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there is an identifiable fair value that is independent of other groups of assets. The Company recorded $60,000 and $60,000 of impairment expenses related to monitoring equipment for the three months ended March 31, 2017 and 2016, respectively. Additionally, the Company recorded $134,787 and $120,000 of impairment expenses related to monitoring equipment for the six months ended March 31, 2017 and 2016, respectively.

Business Combinations

Business Combinations	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Business Combinations	The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in ASC 805, Business Combinations, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed, and any non-controlling interest in the acquiree; and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and non-controlling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with ASC 805, the Company recognizes and measures goodwill as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired. Acquired Assets and Assumed Liabilities Pursuant to ASC No. 805-10-25, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, but during the allowed measurement period not to exceed one year from the acquisition date, the Company retrospectively adjusts the provisional amounts recognized at the acquisition date, by means of adjusting the amount recognized for goodwill. Contingent Consideration In certain acquisitions, the Company has agreed to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain future goals which may include revenue milestones, new customer accounts, and earnings targets. The Company records contingent consideration based on its estimated fair value as of the date of the acquisition. The Company evaluates and adjusts the value of contingent consideration, if necessary, at each reporting period based on the progress toward and likely achievement of certain targets on which issuance of the contingent consideration is based. Any differences between the acquisition-date fair value and the changes in fair value of the contingent consideration subsequent to the acquisition date are recognized in current period earnings until the arrangement is settled. If there is too much uncertainty surrounding the value of contingent consideration, then the Company’s policy is to wait until the end of the measurement period before making an adjustment.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Accumulated Other Comprehensive Loss	Comprehensive loss includes net loss as currently reported under U.S. GAAP and other comprehensive loss. Other comprehensive loss considers the effects of additional economic events, such as foreign currency translation adjustments, that are not required to be recorded in determining net loss, but rather are reported as a separate component of stockholders’ equity. The Chilean Peso, New Israeli Shekel and the Canadian Dollar are used as functional currencies of the following operating subsidiaries: (i) Track Group Chile SpA; (ii) Track Group International Ltd.; and (iii) Track Group Analytics Limited, respectively. The balance sheets of all subsidiaries have been converted into United States Dollars (USD) at the prevailing exchange rate at March 31, 2017.

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Net Loss Per Common Share	Basic net loss per common share (“ Basic EPS Diluted net loss per common share (“ Diluted EPS Common share equivalents consist of shares issuable upon the exercise of common stock options and warrants. As of March 31, 2017 and 2016, there were 434,419 and 436,705 outstanding common share equivalents, respectively, that were not included in the computation of Diluted EPS for the three and six months ended March 31, 2017 and 2016, respectively as their effect would be anti-dilutive. The common stock equivalents outstanding as of March 31, 2017 and 2016 consisted of the following: March 31, March 31, 2017 2016 Exercise of outstanding common stock options and warrants 434,419 436,705 Total common stock equivalents 434,419 436,705

Acquisition

Acquisition	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
ACQUISITION	On November 26, 2014, the Company entered into a Share Purchase Agreement to purchase from the shareholders of Track Group Analytics Limited, formerly G2 Research Limited (“ TGA TGA Acquisition The fair value of patents, developed technology, customer contracts/relationship, tradename and trademarks were capitalized as of the acquisition date and will be subsequently amortized using a straight-line method to depreciation and amortization expense over their estimated useful lives.

Disposition

Disposition	6 Months Ended
	Mar. 31, 2017
Disposition
Disposition	On March 8, 2017, the Company sold certain non-core assets for $510,000, net, after a payment to a third party for a royalty repurchase. The Company incurred a loss of $766,031 on the sale, which consists of a sale price of $860,000, less a third-party royalty buyout payment of $350,000, $410,105 of equipment, net of accumulated depreciation, and $865,926 of intangible assets, net of accumulated amortization.

Prepaid and Other Expenses

Prepaid and Other Expenses	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Prepaid and Other Expenses	The carrying amounts reported in the balance sheets for prepaid expenses and other current assets approximate their fair market value based on the short-term maturity of these instruments. As of March 31, 2017 and September 30, 2016, the outstanding balance of prepaid and other expenses was $461,989 and $816,708, respectively. The $461,989 as of March 31, 2017 is comprised largely of prepayments toward inventory purchases, vendor deposits and other prepaid supplier expenses.

Inventory

Inventory	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Inventory	Inventory is valued at the lower of the cost or market. Cost is determined using the first-in, first-out (“ FIFO Inventory consists of finished goods that are to be shipped to customers and parts used for minor repairs of ReliAlertTM, Shadow, and other tracking devices. Completed and shipped ReliAlertTM and other tracking devices are reflected in Monitoring Equipment. As of March 31, 2017 and September 30, 2016, respectively, inventory consisted of the following: March 31, September 30, 2017 2016 Finished goods inventory $ 177,644 $ 620,001 Reserve for damaged or obsolete inventory (26,934 ) (98,150 ) Total inventory, net of reserves $ 150,710 $ 521,851

Property and Equipment

Property and Equipment	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Property and Equipment	The following table summarizes property and equipment at March 31, 2017 and September 30, 2016, respectively: March 31, September 30, 2017 2016 Equipment, software and tooling $ 1,015,267 $ 1,028,173 Automobiles 80,266 87,313 Leasehold improvements 1,257,520 1,279,500 Furniture and fixtures 258,118 252,864 Total property and equipment before accumulated depreciation 2,611,171 2,647,850 Accumulated depreciation (1,602,824 ) (1,421,389 ) Property and equipment, net of accumulated depreciation $ 1,008,347 $ 1,226,461 Property and equipment depreciation expense for the three months ended March 31, 2017 and 2016 was $127,298 and $212,902, respectively. Depreciation expense for property and equipment for the six months ended March 31, 2017 and 2016 was $177,588 and $388,990, respectively.

Monitoring Equipment

Monitoring Equipment	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Monitoring Equipment	The following table summarizes monitoring equipment at March 31, 2017 and September 30, 2016, respectively: March 31, September 30, 2017 2016 Monitoring equipment $ 7,696,555 $ 7,796,191 Less: accumulated amortization (3,853,696 ) (3,438,074 ) Monitoring equipment, net of accumulated depreciation $ 3,842,859 $ 4,358,117 The Company leases monitoring equipment to agencies for offender tracking under contractual service agreements. The monitoring equipment is amortized using the straight-line method over an estimated useful life of one to five years. Depreciation of monitoring equipment for the three months ended March 31, 2017 and 2016 was $403,074 and $408,285, respectively. These expenses were recognized in cost of revenues. Depreciation of monitoring equipment for the six months ended March 31, 2017 and 2016 was $736,067 and $784,753, respectively. These expenses were recognized in cost of revenues. As part of the sale of assets described in Note 10, the Company disposed of $771,568 of monitoring equipment and $361,463 of related accumulated amortization in the three months ended March 31, 2017.

Intangible Assets

Intangible Assets	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Intangible Assets	The following table summarizes intangible assets at March 31, 2017 and September 30, 2016, respectively: March 31, 2017 September 30, 2016 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Technology 9,177,979 9,651,074 Customer relationships 2,542,968 2,555,086 Trade name 325,290 319,383 Website 78,201 78,201 Total intangible assets 33,295,003 33,774,309 Accumulated amortization (8,800,030 ) (8,233,659 ) Intangible assets, net of accumulated amortization $ 24,494,973 $ 25,540,650 The intangible assets summarized above were purchased or developed on various dates from January 2010 through March 2017. The assets have useful lives ranging from three to twenty years. Amortization expense for the three months ended March 31, 2017 and 2016 was $618,475 and $636,447, respectively. Amortization for the six months ended March 31, 2017 and 2016 was $1,255,796 and $1,270,611, respectively. The Company disposed of $1,600,000 of intangible assets and $734,074 of accumulated amortization related to the sale of assets during the three and six months ended March 31, 2017. See Note 10.

Goodwill

Goodwill	6 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The following table summarizes the activity of goodwill at March 31, 2017 and September 30, 2016, respectively: March 31, September 30, 2017 2016 Balance - beginning of period $ 7,955,876 $ 7,782,903 Effect of foreign currency translation on goodwill 88,553 172,973 Balance - end of period $ 8,044,429 $ 7,955,876 Goodwill is recognized in connection with acquisition transactions in accordance with ASC 805. The Company performs an impairment test for goodwill annually or more frequently if indicators of potential impairment exist. No impairment of goodwill had been recognized through March 31, 2017.

Other Assets

Other Assets	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Other Assets	As of March 31, 2017 and September 30, 2016, the outstanding balance of other assets was $3,341,884 and $2,900,911, respectively. Other assets are comprised largely of a cash collateralized performance bond for an international customer. The Company anticipates this restricted cash will be unrestricted and available to the Company upon completion of its relationship with the customer, unless mutually agreed otherwise.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Accrued Liabilities	Accrued liabilities consisted of the following as of March 31, 2017 and September 30, 2016: March 31, September 30, 2017 2016 Accrued royalties $ 6,800 $ 16,977 Accrued payroll, taxes and employee benefits 777,173 1,424,812 Accrued consulting 108,874 123,114 Accrued taxes - foreign and domestic 78,625 311,614 Accrued board of directors fees - 96,000 Accrued other expenses 105,744 143,101 Accrued cellular costs 40,000 84 Accrued outside services - 13,768 Accrued restructuring costs 268,298 - Accrued warranty and manufacturing costs 138,629 103,441 Accrued interest 3,108,406 1,743,281 Total accrued liabilities $ 4,632,549 $ 3,976,192

Restructuring

Restructuring	6 Months Ended
	Mar. 31, 2017
Restructuring
Restructuring	In the first quarter of fiscal year 2017, the Company approved a plan to restructure its business (the “ Restructuring Plan Total fiscal year 2017 restructuring charges and their utilization are summarized as follows: Employee -related Other costs Total Liability at September 30, 2016 $ - $ - $ - Accrued expenses 452,400 118,000 $ 570,400 Payments (266,104 ) (35,998 ) (302,102 ) Liability at March 31, 2017 $ 186,296 $ 82,002 $ 268,298

Debt Obligations

Debt Obligations	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Debt Obligations	On September 25, 2015, the Company entered into a Loan Agreement (the “ Loan Agreement Sapinda Maturity Date On March 13, 2017, the Company and Sapinda entered into Amendment Number One to the Loan Agreement. Amendment Number One extends the maturity date of all loans made pursuant to the Loan Agreement to September 30, 2020. In addition, Amendment Number One eliminates the requirement that the Company pay Sapinda 3% for any undrawn funds under the Loan Agreement (the " 3% Interest Execution Date Lender Penalties On May 1, 2016, the Company entered into an unsecured Loan Agreement with Conrent Invest S.A., acting with respect to its Compartment Safety III (the “ Conrent Loan Agreement” Debt obligations as of March 31, 2017 and September 30, 2016, respectively, are comprised of the following: March 31, 2017 September 30, 2016 Unsecured facility agreement with an entity whereby, as of June 30, 2015, the Company may borrow up to $30.4 million bearing interest at a rate of 8% per annum, payable in arrears semi-annually, with all principal and accrued and unpaid interest due on July 31, 2018. A $1.2 million origination fee was paid and recorded as a debt discount and will be amortized as interest expense over the term of the loan. As of March 31, 2017, the remaining debt discount was $297,297. The Company did not pay interest on this loan during the three and six months ended March 31, 2017. $ 30,102,703 $ 29,991,216 Loan Agreement whereby the Company can borrow up to $5.0 million at 8% interest per annum on borrowed funds maturing on September 30, 2020. 3,399,644 3,399,644 Non-interest bearing notes payable to a Canadian governmental agency assumed in conjunction with the G2 acquisition. 147,082 182,002 Capital lease with effective interest rate of 12%. Lease matures August 15, 2019. 16,607 18,673 Total debt obligations 33,666,036 33,591,535 Less current portion (68,593 ) (3,245,732 ) Long-term debt, net of current portion $ 33,597,443 $ 30,345,803 The following table summarizes the Company’s future maturities of debt obligations, net of the amortization of debt discounts as of March 31, 2017: Fiscal Year Total 2017 $ 68,593 2018 30,442,249 2019 42,250 2020 3,410,241 2021 & thereafter - Debt discount (297,297 ) Total $ 33,666,036

Related-party Transactions

Related-party Transactions	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Related-party Transactions	Related-Party Loan Agreement On September 25, 2015, the Company entered into the Loan Agreement with Sapinda, a related party, to provide the Company with a $5.0 million line of credit that accrues interest at a rate of 3% per annum for undrawn funds, and 8% per annum for borrowed funds. Pursuant to the terms and conditions of the Loan Agreement, available funds may be drawn down at the Company’s request at any time until the Maturity Date, when all borrowed funds, plus all accrued but unpaid interest will become due and payable. The Company, however, may elect to satisfy any outstanding obligations under the Loan Agreement prior to the Maturity Date without penalties or fees. The Company did not draw on this line of credit nor did it pay any interest during the six months ended March 31, 2017. The undrawn balance of this line of credit at March 31, 2017 was $1,600,356. On March 13, 2017, the Company and Sapinda entered into Amendment Number One to the Loan Agreement. Amendment Number One extends the maturity date of all loans made pursuant to the Loan Agreement to September 30, 2020. In addition, Amendment Number One eliminates the requirement that the Company pay Sapinda the 3% Stock Payable – Related Party Changes in the stock payable liability are shown below: March 31, September 30, 2017 2016 Beginning balance $ 3,289,879 $ 3,501,410 Payment of shares for achieving performance milestones (75,939 ) (211,531 ) Adjustment to Track Group Analytics stock payable (213,940 ) - Ending balance $ 3,000,000 $ 3,289,879 Shares of common stock valued at up to $3,000,000, in the balance shown above, could be earned by the former owner of GPS Global Tracking and Surveillance System, Ltd., now a wholly-owned subsidiary of the Company, subject to achieving certain milestones under the Share Purchase Agreement dated April 1, 2014. The measurement period of the milestones ended April 1, 2017. On March 30, 2017, the Company informed the seller that neither the Company nor the seller sold or leased the required number of GPS tracking devices, under a revenue generating contract, as defined in the Share Purchase Agreement and no contingent shares had been earned. We expect to reverse the accrual in the subsequent quarter. In connection with the acquisition of TGA (See Note 9), the Company recognized a liability for stock payable to the former owners of the entity acquired. In conjunction with the respective purchase agreements, shares of the Company’s common stock are payable based on the achievement of certain milestones on or before November 26, 2016. The final milestone payment of 10,602 shares of common stock related to the TGA acquisition was paid in the second fiscal quarter of 2017. Each of the foregoing related-party transactions was reviewed and approved by disinterested and independent members of the Company's Board of Directors.

Preferred Stock and Common Stoc

Preferred Stock and Common Stock	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Preferred Stock and Common Stock	The Company is authorized to issue up to 30,000,000 shares of common stock, $0.0001 par value per share. During the six months ended March 31, 2017, the Company issued 57,640 shares of common stock to Board of Director members for their services in fourth fiscal quarter of 2016 and the first two quarters of fiscal 2017. In addition, the Company issued 10,602 shares for achievement of certain milestones (see Note 9) and 30,323 shares to employees. The Company is authorized to issue up to 20,000,000 shares of preferred stock, $0.0001 par value per share. The Company's Board of Directors has the authority to amend the Company's Articles of Incorporation, without further shareholder approval, to designate and determine, in whole or in part, the preferences, limitations and relative rights of the preferred stock before any issuance of the preferred stock, and to create one or more series of preferred stock. As of March 31, 2017, there were no shares of preferred stock outstanding. In February 2014, the Company offered certain employees a retention plan which vested evenly over a three-year term. In February 2017, the Company made its final long-term incentive plan to certain employees of 11,703 shares of common stock and due to the decrease in the value of common stock and employees no longer with the Company, recorded a $751,045 reduction of general and administrative expenses for the three and six month period ended March 31, 2017.

Stock Options and Warrants

Stock Options and Warrants	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Stock Options and Warrants	Stock Incentive Plan At the annual meeting of shareholders on March 21, 2011, the shareholders approved the 2012 Equity Compensation Plan (the “ 2012 Plan All Options and Warrants The fair value of each stock option and warrant grant is estimated on the date of grant using the Black-Scholes option-pricing model. During the six months ended March 31, 2017 and 2016, the Company granted 125,073 and 78,076 options and warrants to purchase shares of common stock under the 2012 Plan. The warrants for Board members vest immediately and expire two years from grant date and warrants issued to employees vest annually over either a two to three year period and expire two years after the final vesting date of the grant. The Company recorded expense of $89,092 and $112,519 for the six months ended March 31, 2017 and 2016, respectively, related to the issuance and vesting of outstanding stock options and warrants. The option and warrant grants for six months ended March 31, 2017 were valued using the Black-Scholes model with the following weighted-average assumptions: Six Months Ended March 31 2017 2016 Expected stock price volatility 119 % 71 % Risk-free interest rate 0.60 % 0.86 % Expected life of options/warrants 2 years 2 years The expected life of stock options (warrants) represents the period of time that the stock options or warrants are expected to be outstanding based on the simplified method allowed under GAAP. The expected volatility is based on the historical price volatility of the Company’s common stock. The risk-free interest rate represents the U.S. Treasury bill rate for the expected life of the related stock options (warrants). The dividend yield represents the Company’s anticipated cash dividends over the expected life of the stock options (warrants). A summary of stock option activity for the six months ended March 31, 2017 is presented below: Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2016 504,991 $ 10.78 182,095 Granted 125,073 $ 3.99 Expired/Cancelled (85,645 ) $ (15.14 ) Exercised - $ - Outstanding as of March 31, 2017 544,419 $ 8.54 1.31 years $ - Exercisable as of March 31, 2017 434,419 $ 9.75 0.66 years $ - The intrinsic value of options outstanding and exercisable is based on the Company’s share price of $3.36 at March 31, 2017.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	The Company recognizes deferred income tax assets or liabilities for the expected future tax consequences of events that have been recognized in the financial statements or income tax returns. Deferred income tax assets or liabilities are determined based upon the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to apply when the differences are expected to be settled or realized. Deferred income tax assets are reviewed periodically for recoverability and valuation allowances are provided as necessary. Interest and penalties related to income tax liabilities, when incurred, are classified in interest expense and income tax provision, respectively. For the six months ended March 31, 2017 and 2016, the Company incurred a net loss for income tax purposes of $4,199,256 and $4,047,918, respectively. The amount and ultimate realization of the benefits from the net operating losses is dependent, in part, upon the tax laws in effect, the Company's future earnings, and other future events, the effects of which cannot be determined. The Company has established a valuation allowance for all deferred income tax assets not offset by deferred income tax liabilities due to the uncertainty of their realization. Accordingly, there is no benefit for income taxes in the accompanying statements of operations.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Commitments and Contingencies	Legal Matters We are, from time to time, involved in various legal proceedings incidental to the conduct of our business. Historically, the outcome of all such legal proceedings has not, in the aggregate, had a material adverse effect on our business, financial condition, results of operations or liquidity. Other than as set forth below, there are no additional pending or threatened legal proceedings at this time. Lazar Leybovich et al v. SecureAlert, Inc. Boggs et al. v. Judicial Electronic Monitoring, SecureAlert, Inc. et al. Track Group, Inc. v. I.C.S. of the Bahamas Co. Ltd. ICS Track Group Inc. v. I.C.S. of the Bahamas Co. Ltd. C&M Agreement John Merrill v. Track Group, Inc. and Guy Dubois Michael Anthony Johnson v. Community Corrections of Marion County and Track Group, Inc. pro se SecureAlert, Inc v. Federal Government of Mexico (Department of the Interior). On March 28, 2017, the Federal Administrative Tribunal rejected our claim, under the consideration that this case should be resolved by a Civil Court and not by the Federal Administrative Tribunal. For that reason, on April 25, 2017, we filed an appeal against the decision of the Federal Administrative Tribunal. We are currently waiting for the resolution to be issued. Inversiones Tecnologicas SpA v. Track Group Chile SpA

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Subsequent Events	On April 1, 2017, the measurement period to determine whether additional shares of the Company’s common stock (“ Contingent Shares Share Purchase Agreement See Note 21. On April 3, 2017, Puerto Rico filed for the equivalent of bankruptcy in U.S. Federal court. The Company has a contractual relationship with an arm of the Puerto Rico government that currently owes the Company approximately $622,672 for monitoring services at March 31, 2017, of which the Company has recorded an allowance for doubtful accounts of $176,293. In addition, subsequent to March 31, 2017, on May 5, 2017, we received payment of approximately $240,000 from Puerto Rico, which payment may be impacted by the bankruptcy proceeding. While it is too early to determine how creditors, including the Company, will be treated in the bankruptcy, we may be required to write down additional amounts due to the bankruptcy proceeding. In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and noted no additional subsequent events that are reasonably likely to impact the financial statements.

Immaterial Error Correction (Ta

Immaterial Error Correction (Tables)	6 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Error Correction	Three months ended March 31, 2016 Previously Reported Net Change Three months ended March 31, 2016 (Revised) Cost of revenues: Monitoring, products & other related services $1,832,684 $344,603 $2,177,287 Total operating expense General and administrative expenses 3,424,342 (355,724) 3,068,618 Selling & marketing 593,272 (6,565) 586,707 Research & development 612,595 17,686 630,281 Six months ended March 31, 2016 Previously Reported Net Change Six months ended March 31, 2016 (Revised) Cost of revenues: Monitoring, products & other related services $3,772,896 $824,859 $4,597,755 Total operating expense General and administrative expenses 6,835,985 (859,001) 5,976,984 Selling & marketing 1,213,301 63,000 1,276,301 Research & development 1,159,745 (28,858) 1,130,887

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	6 Months Ended
	Mar. 31, 2017
Net Loss Per Common Share Tables
Schedule of common stock equivalents outstanding	March 31, March 31, 2017 2016 Exercise of outstanding common stock options and warrants 434,419 436,705 Total common stock equivalents 434,419 436,705

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Mar. 31, 2017
Inventory Tables
Schedule of Inventory, Current	March 31, September 30, 2017 2016 Finished goods inventory $ 177,644 $ 620,001 Reserve for damaged or obsolete inventory (26,934 ) (98,150 ) Total inventory, net of reserves $ 150,710 $ 521,851

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Schedule of Property and Equipment	March 31, September 30, 2017 2016 Equipment, software and tooling $ 1,015,267 $ 1,028,173 Automobiles 80,266 87,313 Leasehold improvements 1,257,520 1,279,500 Furniture and fixtures 258,118 252,864 Total property and equipment before accumulated depreciation 2,611,171 2,647,850 Accumulated depreciation (1,602,824 ) (1,421,389 ) Property and equipment, net of accumulated depreciation $ 1,008,347 $ 1,226,461

Monitoring Equipment (Tables)

Monitoring Equipment (Tables)	6 Months Ended
	Mar. 31, 2017
Monitoring Equipment Tables
Schedule Of Monitoring Property And Equipment	March 31, September 30, 2017 2016 Monitoring equipment $ 7,696,555 $ 7,796,191 Less: accumulated amortization (3,853,696 ) (3,438,074 ) Monitoring equipment, net of accumulated depreciation $ 3,842,859 $ 4,358,117

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2017
Intangible Assets Tables
Schedule of Intangible Assets	March 31, 2017 September 30, 2016 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Technology 9,177,979 9,651,074 Customer relationships 2,542,968 2,555,086 Trade name 325,290 319,383 Website 78,201 78,201 Total intangible assets 33,295,003 33,774,309 Accumulated amortization (8,800,030 ) (8,233,659 ) Intangible assets, net of accumulated amortization $ 24,494,973 $ 25,540,650

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	March 31, September 30, 2017 2016 Balance - beginning of period $ 7,955,876 $ 7,782,903 Effect of foreign currency translation on goodwill 88,553 172,973 Balance - end of period $ 8,044,429 $ 7,955,876

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Mar. 31, 2017
Accrued Expenses Tables
Schedule Of Accrued Liabilities	March 31, September 30, 2017 2016 Accrued royalties $ 6,800 $ 16,977 Accrued payroll, taxes and employee benefits 777,173 1,424,812 Accrued consulting 108,874 123,114 Accrued taxes - foreign and domestic 78,625 311,614 Accrued board of directors fees - 96,000 Accrued other expenses 105,744 143,101 Accrued cellular costs 40,000 84 Accrued outside services - 13,768 Accrued restructuring costs 268,298 - Accrued warranty and manufacturing costs 138,629 103,441 Accrued interest 3,108,406 1,743,281 Total accrued liabilities $ 4,632,549 $ 3,976,192

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Mar. 31, 2017
Restructuring Tables
Total fiscal year 2017 restructuring charges	Employee -related Other costs Total Liability at September 30, 2016 $ - $ - $ - Accrued expenses 452,400 118,000 $ 570,400 Payments (266,104 ) (35,998 ) (302,102 ) Liability at March 31, 2017 $ 186,296 $ 82,002 $ 268,298

Debt Obligations (Tables)

Debt Obligations (Tables)	6 Months Ended
	Mar. 31, 2017
Debt Obligations Tables
Schedule of Debt	March 31, 2017 September 30, 2016 Unsecured facility agreement with an entity whereby, as of June 30, 2015, the Company may borrow up to $30.4 million bearing interest at a rate of 8% per annum, payable in arrears semi-annually, with all principal and accrued and unpaid interest due on July 31, 2018. A $1.2 million origination fee was paid and recorded as a debt discount and will be amortized as interest expense over the term of the loan. As of March 31, 2017, the remaining debt discount was $297,297. The Company did not pay interest on this loan during the three and six months ended March 31, 2017. $ 30,102,703 $ 29,991,216 Loan Agreement whereby the Company can borrow up to $5.0 million at 8% interest per annum on borrowed funds maturing on September 30, 2020. 3,399,644 3,399,644 Non-interest bearing notes payable to a Canadian governmental agency assumed in conjunction with the G2 acquisition. 147,082 182,002 Capital lease with effective interest rate of 12%. Lease matures August 15, 2019. 16,607 18,673 Total debt obligations 33,666,036 33,591,535 Less current portion (68,593 ) (3,245,732 ) Long-term debt, net of current portion $ 33,597,443 $ 30,345,803
Schedule of Maturities of Long-term Debt	Fiscal Year Total 2017 $ 68,593 2018 30,442,249 2019 42,250 2020 3,410,241 2021 & thereafter - Debt discount (297,297 ) Total $ 33,666,036

Related-party Transactions (Tab

Related-party Transactions (Tables)	6 Months Ended
	Mar. 31, 2017
Related-party Transactions Tables
Stock payable - related party	March 31, September 30, 2017 2016 Beginning balance $ 3,289,879 $ 3,501,410 Payment of shares for achieving performance milestones (75,939 ) (211,531 ) Adjustment to Track Group Analytics stock payable (213,940 ) - Ending balance $ 3,000,000 $ 3,289,879

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	6 Months Ended
	Mar. 31, 2017
Stock Options And Warrants Tables
Schedule of Valuation Assumptions	Six Months Ended March 31 2017 2016 Expected stock price volatility 119 % 71 % Risk-free interest rate 0.60 % 0.86 % Expected life of options/warrants 2 years 2 years
Schedule of Stock Option activity	Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2016 504,991 $ 10.78 182,095 Granted 125,073 $ 3.99 Expired/Cancelled (85,645 ) $ (15.14 ) Exercised - $ - Outstanding as of March 31, 2017 544,419 $ 8.54 1.31 years $ - Exercisable as of March 31, 2017 434,419 $ 9.75 0.66 years $ -

Immaterial Error Correction - E

Immaterial Error Correction - Error Correction (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Cost of revenues:
Monitoring, analytics & other related services	$ 2,594,305	$ 2,177,287	$ 6,201,581	$ 4,597,755
Operating expenses:
General & administrative	2,355,156	3,068,618	5,530,210	5,976,984
Selling & marketing	624,210	586,707	1,213,978	1,276,301
Research & development	$ 679,238	630,281	$ 1,167,416	1,130,887
Scenario, Previously Reported [Member]
Cost of revenues:
Monitoring, analytics & other related services		1,832,684		3,772,896
Operating expenses:
General & administrative		3,424,342		6,835,985
Selling & marketing		593,272		1,213,301
Research & development		612,595		1,159,745
Restatement Adjustment [Member]
Cost of revenues:
Monitoring, analytics & other related services		344,603		824,859
Operating expenses:
General & administrative		(355,724)		(859,001)
Selling & marketing		(6,565)		63,000
Research & development		$ 17,686		$ (28,858)

Impairment Of Long-Lived Asse45

Impairment Of Long-Lived Assets (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Impairment Of Long-lived Assets Details Narrative
Impairment expenses	$ 60,000	$ 60,000	$ 134,787	$ 120,000

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - shares	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock equivalents excluded from computation of Diluted EPS	434,419	436,705
Options and Warrants [Member[
Stock equivalents excluded from computation of Diluted EPS	434,419	436,705

Net Loss Per Common Share (De47

Net Loss Per Common Share (Details Narrative) - shares	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net Loss Per Common Share Details Narrative
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	434,419	436,705

Prepaid and Other Expenses (Det

Prepaid and Other Expenses (Details Narrative) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Prepaid And Other Expenses Details Narrative
Prepaid expenses and other	$ 461,989	$ 816,708

Inventory (Details)

Inventory (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Inventory Details
Finished goods inventory	$ 177,644	$ 620,001
Reserve for damaged or obsolete inventory	(26,934)	(98,150)
Total inventory, net of reserves	$ 150,710	$ 521,851

Property And Equipment (Details

Property And Equipment (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Property And Equipment Details
Equipment, software and tooling	$ 1,015,267	$ 1,028,173
Automobiles	80,266	87,313
Leasehold Improvements	1,257,520	1,279,500
Furniture And Fixtures	258,118	252,864
Total property and equipment before accumulated depreciation	2,611,171	2,647,850
Accumulated Depreciation	(1,602,824)	(1,421,389)
Property and equipment, net of accumulated depreciation	$ 1,008,347	$ 1,226,461

Property And Equipment (Detai51

Property And Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Property And Equipment Details
Depreciation	$ 127,298	$ 212,902	$ 177,588	$ 388,990

Monitoring Equipment (Details)

Monitoring Equipment (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Monitoring Equipment Details
Monitoring equipment	$ 7,696,555	$ 7,796,191
Less: accumulated amortization	(3,853,696)	(3,438,074)
Monitoring equipment, net of accumulated amortization	$ 3,842,859	$ 4,358,117

Monitoring Equipment (Details N

Monitoring Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Depreciation Expense	$ 403,074	$ 408,285	$ 736,067	$ 784,753
Minimum [Member]
Monitoring equipment useful life			1 year
Maximum [Member]
Monitoring equipment useful life			5 years

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Intangible assets:
Intangible assets	$ 33,295,003	$ 33,774,309
Accumulated amortization	(8,800,030)	(8,233,659)
Intangible assets, net of accumulated amortization	24,494,973	25,540,650
Patent & Royalty agreements [Member]
Intangible assets:
Intangible assets	21,170,565	21,170,565
Technology [Member]
Intangible assets:
Intangible assets	9,177,979	9,651,074
Customer Relationships [Member]
Intangible assets:
Intangible assets	2,542,968	2,555,086
Trade Name [Member]
Intangible assets:
Intangible assets	325,290	319,383
Website [Member]
Intangible assets:
Intangible assets	$ 78,201	$ 78,201

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Amortization of Intangible Assets	$ 618,475	$ 636,447	$ 1,255,796	$ 1,270,611
Minimum [Member]
Intangible assets, useful life				3 years
Maximum [Member]
Intangible assets, useful life				10 years

Goodwill - Goodwill (Details)

Goodwill - Goodwill (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Balance - beginning of year	$ 7,955,876	$ 7,782,903
Effect of foreign currency translation adjustment on goodwill	88,553	172,973
Ending balance	$ 8,044,429	$ 7,955,876

Other Assets (Details Narrative

Other Assets (Details Narrative) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Other Assets Details Narrative
Other assets	$ 3,341,884	$ 2,900,911

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Accrued Expenses Details
Accrued royalties	$ 6,800	$ 16,977
Accrued payroll, taxes and employee benefits	777,173	1,424,812
Accrued consulting	108,874	123,114
Accrued taxes - foreign and domestic	78,625	311,614
Accrued board of directors fees	0	96,000
Accrued other expenses	105,744	143,101
Accrued cellular costs	40,000	84
Accrued outside service	0	13,768
Accrued restructuring costs	268,298	0
Accrued warranty and manufacturing costs	138,629	103,441
Accrued interest	3,108,406	1,743,281
Total accrued expenses	$ 4,632,549	$ 3,976,192

Restructuring (Details)

Restructuring (Details)	6 Months Ended
	Mar. 31, 2017USD ($)
Liability at September 30, 2016	$ 0
Accrued expenses	570,400
Payments	(302,102)
Liability at March 31, 2017	268,298
Employee Related
Liability at September 30, 2016	0
Accrued expenses	452,400
Payments	(266,104)
Liability at March 31, 2017	186,296
Other Costs
Liability at September 30, 2016	0
Accrued expenses	118,000
Payments	(35,998)
Liability at March 31, 2017	$ 82,002

Debt Obligations (Details)

Debt Obligations (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Total debt obligations	$ 33,666,036	$ 33,591,535
Less current portion	(68,593)	(3,245,732)
Long-term debt, net of current portion	33,597,443	30,345,803
Long-term debt, discount	297,297	185,811
Debt Obligation 1
Total debt obligations	30,102,703	29,991,216
Debt Obligation 2
Total debt obligations	3,399,644	3,399,644
Debt Obligation 3
Total debt obligations	147,082	182,002
Debt Obligation 4
Total debt obligations	$ 16,607	$ 18,673

Debt Obligations (Details 1)

Debt Obligations (Details 1)	Mar. 31, 2017USD ($)
Debt Obligations Details 1
2,017	$ 68,593
2,018	30,442,249
2,019	42,250
2,020	3,410,241
2021 & thereafter	0
Debt discount	(297,297)
Long-term Debt and Capital Lease Obligations, Total	$ 33,666,036

Debt Obligations (Details Narra

Debt Obligations (Details Narrative)	Mar. 31, 2017USD ($)
Debt Obligations Details 1
Undrawn line of credit balance	$ 1,600,356

Related-party Transactions (Det

Related-party Transactions (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Related-party Transactions Details
Stock payable, beginning balance	$ 3,289,879	$ 3,501,410
Payment of shares for achieving performance milestones	(75,939)	(211,531)
Adjustment to Track Group Analytics stock payable	$ (213,940)	$ 0
Stock payable, ending balance	$ 3,000,000	$ 3,289,879

Preferred And Common Stock (Det

Preferred And Common Stock (Details Narrative) - $ / shares	6 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Preferred And Common Stock Details Narrative
Common stock - par value	$ .0001	$ .0001
Common stock - shares authorized	30,000,000	30,000,000
Common stock - shares issued	57,640
Preferred stock, par value	$ .0001	$ .0001
Preferred stock, authorized	20,000,000	20,000,000

Stock Options and Warrants (Det

Stock Options and Warrants (Details)	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock Options And Warrants Details
Expected stock price volatility	71.00%	119.00%
Risk free interest rate	0.86%	0.60%
Expected life of options/warrants	2 years	2 years

Stock Options and Warrants (D66

Stock Options and Warrants (Details 1) - USD ($)	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock Options And Warrants Details 1
Shares Under Option/ Warrant outstanding, Beginning Balance	504,991
Shares Under Option/ Warrant Granted	125,073	78,076
Shares Under Option/ Warrant Expired / Cancelled	(85,645)
Shares Under Option/ Warrant Exercised	0
Shares Under Option/ Warrant Outstanding, Ending Balance	544,419
Shares Under Option/ Warrant Exercisable	434,419
Weighted Average Exercise Price Outstanding, Beginning Balance	$ 10.78
Weighted Average Exercise Price Granted	3.99
Weighted Average Exercise Price Expired / Cancelled	(15.14)
Weighted Average Exercise Price Exercised	0
Weighted Average Exercise Price Outstanding, Ending Balance	8.54
Weighted Average Exercise Price Exercisable	$ 9.75
Weighted Average Remaining Contractual Life Outstanding	1 year 3 months 22 days
Weighted Average Remaining Contractual Life Exercisable	7 months 28 days
Aggregate Intrinsic Value Outstanding, end	$ 0
Aggregate Intrinsic Value Exercisable	$ 0

Stock Options and Warrants (D67

Stock Options and Warrants (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock Options And Warrants Details Narrative
Shares authorized for issuance under 2012 Plan	90,000
Shares available for grant	102,675
Shares Under Option/ Warrant Granted	125,073	78,076
Warrant term	2 years	2 years
Expense Related to the Issuance and Vesting of All Stock Options and Warrants	$ 89,092	$ 112,519
Share price	$ 3.36