Track (TRCK) 10-Q 11 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 01, 2018
Document and Entity Information:
Entity Registrant Name	TRACK GROUP, INC.
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Entity Central Index Key	1,045,942
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		11,401,650
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	2,018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash	$ 2,661,829	$ 2,027,321
Accounts receivable, net of allowance for doubtful accounts of $3,532,609 and $3,268,095, respectively	4,926,116	5,438,564
Note receivable, current portion	234,733	234,733
Prepaid expenses and other	5,143,501	854,122
Inventory, net of reserves of $26,934, respectively	269,924	261,810
Total current assets	13,236,103	8,816,550
Property and equipment, net of accumulated depreciation of $1,950,847 and $1,778,634, respectively	913,232	903,100
Monitoring equipment, net of accumulated depreciation of $5,045,835 and $4,906,925, respectively	3,149,664	3,493,012
Intangible assets, net of accumulated amortization of $10,984,263 and $9,839,032, respectively	23,902,278	24,718,655
Goodwill	8,207,990	8,226,714
Other assets	202,581	2,989,101
Total assets	49,611,848	49,147,132
Current liabilities:
Accounts payable	2,731,842	2,769,835
Accrued liabilities	9,109,373	6,650,291
Current portion of long-term debt, net of discount of $74,324 and $185,811, respectively	30,370,943	30,270,531
Total current liabilities	42,212,158	39,690,657
Long-term debt, net of current portion	3,451,588	3,480,717
Total liabilities	45,663,746	43,171,374
Stockholders' equity:
Common stock, $0.0001 par value: 30,000,000 shares authorized; 10,462,433 and 10,480,984 shares outstanding, respectively	1,046	1,048
Additional paid-in capital	301,038,832	300,717,861
Accumulated deficit	(296,846,405)	(294,067,329)
Accumulated other comprehensive loss	(245,371)	(675,822)
Total equity	3,948,102	5,975,758
Total liabilities and stockholders' equity	$ 49,611,848	$ 49,147,132

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Condensed Consolidated Balance Sheets Parenthetical
Allowance for doubtful accounts	$ 3,532,609	$ 3,268,095
Reserve for inventory	26,934	26,934
Property and equipment accumulated depreciation	1,950,847	1,778,634
Monitoring equipment accumulated amortization	5,045,835	4,906,925
Intangible assets accumulated amortization	10,984,263	9,839,032
Current debt, discount	$ 74,324	$ 185,811
Common stock - par value	$ .0001	$ 0.0001
Common stock - shares authorized	30,000,000	30,000,000
Common stock - shares outstanding	10,462,433	10,480,984

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Monitoring services	$ 7,162,205	$ 6,986,612	$ 14,513,010	$ 14,419,889
Other	153,971	233,431	293,860	471,644
Total revenue	7,316,176	7,220,043	14,806,870	14,891,533
Cost of revenues:
Monitoring, products & other related services	2,827,842	2,654,305	5,369,849	6,336,368
Depreciation & amortization	467,666	515,574	944,808	961,067
Total cost of revenues	3,295,508	3,169,879	6,314,657	7,297,435
Gross profit	4,020,668	4,050,164	8,492,213	7,594,098
Operating expenses:
General & administrative	3,495,343	2,355,156	7,153,081	5,530,210
Loss on sale of asset	0	766,031	0	766,031
Restructuring costs	0	4,070	0	570,400
Selling & marketing	518,993	624,210	928,730	1,213,978
Research & development	182,808	679,238	346,754	1,167,416
Depreciation & amortization	539,537	633,273	1,104,277	1,208,384
Total operating expenses	4,736,681	5,061,978	9,532,842	10,456,419
Loss from operations	(716,013)	(1,011,814)	(1,040,629)	(2,862,321)
Other income (expense):
Interest expense, net	(805,966)	(797,333)	(1,479,793)	(1,444,436)
Currency exchange rate gain (loss)	(221,048)	10,335	(276,120)	(106,107)
Other income, net	6,542	222,414	17,466	222,707
Total other income (expense)	(1,020,472)	(564,584)	(1,738,447)	(1,327,836)
Loss before income taxes	(1,736,485)	(1,576,398)	(2,779,076)	(4,190,157)
Income tax expense	0	9,099	0	9,099
Net loss attributable to common shareholders	(1,736,485)	(1,585,497)	(2,779,076)	(4,199,256)
Foreign currency translation adjustments	241,726	(15,615)	430,451	(509,187)
Comprehensive loss	$ (1,494,759)	$ (1,601,112)	$ (2,348,625)	$ (4,708,443)
Basic and diluted loss per common share	$ (0.17)	$ (0.15)	$ (0.27)	$ (0.41)
Weighted average common shares outstanding, basic and diluted	10,462,433	10,352,485	10,469,466	10,342,948

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (2,779,076)	$ (4,199,256)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,049,085	2,169,451
Bad debt expense	287,618	668,441
Amortization of debt discount	111,487	111,487
Stock based compensation	1,345,097	(122,678)
Loss on monitoring equipment included in cost of sales	223,114	134,787
Loss on sale of asset	0	766,031
Gain on settlement of milestone payments	0	(213,940)
Change in assets and liabilities:
Accounts receivable, net	308,839	758,184
Inventories	0	57,700
Prepaid expenses and other	(1,225,045)	(437,576)
Accounts payable	(43,724)	807,185
Accrued expenses	1,496,549	1,497,141
Net cash provided by operating activities	1,773,944	1,996,957
Cash flow from investing activities:
Purchase of property and equipment	(124,720)	(34,529)
Capitalized software	(502,851)	(1,028,368)
Purchase of monitoring equipment and parts	(494,254)	(960,425)
Proceeds from sale of assets	0	510,000
Net cash used in investing activities	(1,121,825)	(1,513,322)
Cash flow from financing activities:
Principal payments on notes payable	(36,632)	(34,779)
Net cash used in financing activities	(36,632)	(34,779)
Effect of exchange rate changes on cash	19,021	(78)
Net increase in cash	634,508	448,778
Cash, beginning of period	2,027,321	1,769,921
Cash, end of period	2,661,829	2,218,699
Cash paid for interest	22,483	10,065
Supplemental schedule of non-cash investing and financing activities:
Non-cash transfer of inventory to monitoring equipment	$ 88,242	$ 309,710

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2018
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

Principles of Consolidation

Principles of Consolidation	6 Months Ended
	Mar. 31, 2018
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.

Recent Accounting Standards

Recent Accounting Standards	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Recently Issued Accounting Standards	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB Recently adopted accounting standards In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330) - Simplifying the Measurement of Inventory ASU 2015-11 Recently issued accounting standards In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230) In February 2016, FASB issued ASU No. 2016-02, “ Leases (Topic 841) In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers” “Revenue Recognition (Topic 605) ASU 2014-09

Impairment of Long-lived Assets

Impairment of Long-lived Assets	6 Months Ended
	Mar. 31, 2018
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

Business Combinations

Business Combinations	6 Months Ended
	Mar. 31, 2018
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 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 Income (Loss)	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Accumulated Other Comprehensive Income (Loss)	Comprehensive income (loss) includes net income (loss) as currently reported under GAAP and other comprehensive income (loss). Other comprehensive income (loss) considers the effects of additional economic events, such as foreign currency translation adjustments, that are not required to be recorded in determining net income (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, 2018.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Net Income (Loss) Per Common Share	Basic net income (loss) per common share (“ Basic EPS Diluted net income (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, 2018 and 2017, there were 573,800 and 434,419 outstanding common share equivalents, respectively, that were not included in the computation of Diluted EPS for the three and six months ended March 31, 2018 and 2017, respectively, as their effect would be anti-dilutive. The common stock equivalents outstanding as of March 31, 2018 and 2017 consisted of the following: March 31, March 31, 2018 2017 Exercisable common stock options and warrants 573,800 434,419 Total common stock equivalents 573,800 434,419

Prepaid Expenses and Other

Prepaid Expenses and Other	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Prepaid Expenses and Other	The carrying amounts reported in the balance sheets for prepaid expense and other current assets approximate their fair market value based on the short-term maturity of these instruments. As of March 31, 2018, and September 30, 2017, the outstanding balance of prepaid and other expense was $5,143,501 and $854,122, respectively. The $5,143,501 as of March 31, 2018 is comprised largely of performance bond deposits, tax deposits, vendor deposits and other prepaid supplier expense. The increase in prepaid and other expense at March 31, 2018 was primarily due to a cash collateralized performance bond for an international customer of $2,944,631, which is scheduled to be repaid in the third fiscal quarter and was re-classified as a short-term asset in the three-month period ended December 31, 2017, as well as increases in a new performance bond, prepaid taxes, vendor deposits and insurance.

Inventory

Inventory	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Inventory	Inventory is valued at the lower of the cost or net realizable value. 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, 2018 and September 30, 2017, respectively, inventory consisted of the following: March 31, September 30, 2018 2017 Finished goods inventory $ 296,858 $ 288,744 Reserve for damaged or obsolete inventory (26,934 ) (26,934 ) Total inventory, net of reserves $ 269,924 $ 261,810

Property and Equipment

Property and Equipment	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Property and Equipment	The following table summarizes property and equipment at March 31, 2018 and September 30, 2017, respectively: March 31, 2018 September 30, 2017 Equipment, software and tooling $ 1,054,252 $ 1,028,081 Automobiles 40,182 52,230 Leasehold improvements 1,460,796 1,307,802 Furniture and fixtures 308,849 293,621 Total property and equipment before accumulated depreciation 2,864,079 2,681,734 Accumulated depreciation (1,950,847 ) (1,778,634 ) Property and equipment, net of accumulated depreciation $ 913,232 $ 903,100 Property and equipment depreciation expense for the three months ended March 31, 2018 and 2017 was $87,466 and $127,298, respectively. Property and equipment depreciation expense for the six months ended March 31, 2018 and 2017 was $201,883 and $177,588, respectively.

Monitoring Equipment

Monitoring Equipment	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Monitoring Equipment	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. Monitoring equipment as of March 31, 2018 and September 30, 2017 was as follows: March 31, 2018 September 30, 2017 Monitoring equipment $ 8,195,502 $ 8,399,937 Less: accumulated depreciation (5,045,838 ) (4,906,925 ) Monitoring equipment, net of accumulated depreciation $ 3,149,664 $ 3,493,012 Depreciation of monitoring equipment for the three months ended March 31, 2018 and 2017 was $343,494 and $403,074, respectively. Depreciation of monitoring equipment for the six months ended March 31, 2018 and 2017 was $696,521 and $736,067, respectively. Depreciation expense for monitoring devices is recognized in cost of revenue. During the three months ended March 31, 2018 and March 31, 2017, the Company recorded charges of $127,297 and $60,000 respectively, for devices that were lost, stolen, damaged or otherwise impaired. During the six months ended March 31, 2018 and March 31, 2017, the Company recorded charges of $223,114 and $134,787 respectively, for devices that were lost, stolen, damaged or otherwise impaired. Lost, stolen and damaged items are included in Monitoring, products & other related services in the Condensed Consolidated Statement of Operations. As part of a loss on sale of assets, the Company disposed of $771,568 of monitoring equipment and $361,463 of related accumulated depreciation in the three and six month periods ended March 31, 2017.

Intangible Assets

Intangible Assets	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Intangible Assets	The following table summarizes intangible assets at March 31, 2018 and September 30, 2017, respectively: March 31, 2018 September 30, 2017 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Developed technology 11,444,880 11,116,738 Customer relationships 1,860,000 1,860,000 Trade name 332,895 332,183 Website 78,201 78,201 Total intangible assets 34,886,541 34,557,687 Accumulated amortization (10,984,263 ) (9,839,032 ) Intangible assets, net $ 23,902,278 $ 24,718,655 The intangible assets summarized above were purchased or developed on various dates from January 2010 through March 2018. The assets have useful lives ranging from three to twenty years. Amortization expense for the three months ended March 31, 2018 and 2017 was $576,244 and $618,475, respectively. Amortization expense for the six months ended March 31, 2018 and 2017 was $1,150,682 and $1,255,796, respectively.

Goodwill

Goodwill	6 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The following table summarizes the activity of goodwill at March 31, 2018 and September 30, 2017, respectively: March 31, September 30, 2018 2017 Balance - beginning of period $ 8,226,714 $ 7,955,876 Effect of foreign currency translation on goodwill (18,724 ) 270,838 Balance - end of period $ 8,207,990 $ 8,226,714 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 was recognized through March 31, 2018.

Other Assets

Other Assets	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Other Assets	As of March 31, 2018 and September 30, 2017, the outstanding balance of other assets was $202,581 and $2,989,101, respectively. A cash collateralized performance bond for an international customer, which is expected to be repaid in the third fiscal quarter was re-classified as a current asset in the three-month period ended December 31, 2017, and thus was classified as such for the period ended March 31, 2018.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Accrued Liabilities	Accrued liabilities consisted of the following as of March 31, 2018 and September 30, 2017: March 31, 2018 September 30, 2017 Accrued payroll, taxes and employee benefits $ 1,948,281 $ 943,066 Deferred revenue 241,458 43,333 Accrued taxes - foreign and domestic 245,003 529,926 Accrued settlement costs - 200,000 Accrued board of directors fees 439,722 125,000 Accrued other expense 217,417 142,390 Accrued legal costs 30,000 116,824 Accrued cellular costs 24,000 81,100 Accrued costs of revenue 278,770 141,884 Accrued bond guarantee 196,494 23,548 Accrued interest 5,488,228 4,303,220 Total accrued liabilities $ 9,109,373 $ 6,650,291

Debt Obligations

Debt Obligations	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Debt Obligations	On September 25, 2015, the Company entered into a loan agreement (the “ Sapinda Loan Agreement Sapinda Maturity Date On March 13, 2017 (the “ Execution Date Sapinda Loan Agreement. Amendment Number One extends the maturity date of all loans made pursuant to the Sapinda Loan Agreement to September 30, 2020. In addition, Amendment Number One eliminates the requirement that the Company pay Sapinda the 3% interest, and forgives the 3% interest due to Sapinda for all undrawn funds under the Sapinda Loan Agreement through the Execution Date. Further, Amendment Number One provides that all failure to fund penalties (“ Lender Penalties Sapinda Loan Agreement through the Execution Date are forgiven. Per Amendment Number One, Lender Penalties shall begin to accrue again provided Sapinda has not funded the amount of $1.5 million on or before March 31, 2017. In breach of Amendment Number One, Sapinda failed to fund the $1.5 million by March 31, 2017. The Company formally notified Sapinda of the breach by letter dated April 4, 2017. The Company is again accruing Lender Penalties, amounting to $365,000 at March 31, 2018, under Section 6.3 of the Sapinda Loan Agreement, as amended. On October 9, 2017, the Company entered into a Debt Exchange Agreement with Conrent regarding total debt and unpaid interest of approximately $34.7 million as of October 31, 2017 (the “ Debt Debt Exchange Facility Agreement Noteholders On February 26, 2018, the Company proposed that the maturity date of the Facility Agreement be extended from July 31, 2018 to April 1, 2019. On April 26, 2018, the Noteholders approved the extension of the Facility Agreement from July 31, 2018 to April 1, 2019, subject to the satisfaction of certain conditions, which are currently under discussion by the Company and Conrent. Debt obligations as of March 31, 2018 and September 30, 2017, respectively, are comprised of the following: March 31, 2018 September 30, 2017 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, 2018, the remaining debt discount was $74,324. We did not pay interest on this loan during the six months ended March 31, 2018. $ 30,325,676 $ 30,214,189 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. 86,432 123,393 Capital lease with effective interest rate of 12%. Lease matures August 15, 2019. 10,779 14,022 Total debt obligations 33,822,531 33,751,248 Less current portion (30,370,943 ) (30,270,531 ) Long-term debt, net of current portion $ 3,451,588 $ 3,480,717 The following table summarizes our future maturities of debt obligations, net of the amortization of debt discounts as of March 31, 2018: Twelve-month period ended Total March 31, 2019 $ 30,445,267 March 31, 2020 41,132 March 31, 2021 3,410,456 Thereafter - Debt discount (74,324 ) Total $ 33,822,531

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Related-Party Transactions	Related-Party Loan Agreement On September 25, 2015, the Company entered into the Sapinda 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 Sapinda Loan Agreement, available funds may be drawn down at the Company’s request at any time prior to the maturity date of September 30, 2017 (the “ Maturity Date On March 13, 2017, the Company and Sapinda entered into Amendment Number One to the Sapinda Loan Agreement. Amendment Number One extends the maturity date of all loans made pursuant to the Sapinda Loan Agreement to September 30, 2020. In addition, Amendment Number One eliminates the requirement that the Company pay Sapinda the 3% interest, and forgives the 3% interest due to Sapinda for all undrawn funds under the Sapinda Loan Agreement through the Execution Date. Further, Amendment Number One provides that all Lender Penalties accrued under the Sapinda Loan Agreement through the Execution Date are forgiven. Per Amendment Number One, Lender Penalties shall begin to accrue again provided Sapinda has not funded the amount of $1.5 million on or before March 31, 2017. In breach of Amendment Number One, Sapinda failed to fund the $1.5 million by March 31, 2017. The Company formally notified Sapinda of the breach by letter dated April 4, 2017. The Company is again accruing Lender Penalties, amounting to $365,000 at , 2018, under Section 6.3 of the Sapinda Loan Agreement, as amended, and the Company intends to offset Lender Penalties against future payments due. Further advances under the Sapinda Loan Agreement are not currently expected to be forthcoming, and therefore no assurances can be given that the Company will obtain additional funds to which it is entitled under the Sapinda Loan Agreement, or that the penalties accruing will ever be paid. Additional Related-Party Transactions and Summary of All Related-Party Obligations Mar. 31, 2018 Sept. 30, 2017 Related party loan with an interest rate of 8% per annum for borrowed funds. Principal and interest due September 30, 2020. $ 3,399,644 $ 3,399,644 Total related-party debt obligations $ 3,399,644 $ 3,399,644 Each of the foregoing related-party transactions was reviewed and approved by disinterested and independent members of the Company’s Board of Directors. As of December 27, 2017 Sapinda was no longer a related party, as 4,871,745 or 46.5% of the Company’s common shares owned by Sapinda were delivered to an unrelated entity.

Preferred and Common Stock

Preferred and Common Stock	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Preferred 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, 2018, no shares of common stock were issued to Board of Director members for their services earned in the first two quarters of 2018. The Company has deferred the issuance of shares of common stock and warrants since the fourth quarter of 2017, and $439,722 for unpaid Board of Director fees has been accrued at March 31, 2018. See Note 22. 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 Certificate 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, 2018, there were no shares of preferred stock outstanding. In November 2017, the Board of Directors approved the grant of 241,935 shares of common stock valued at $300,000, as compensation for services rendered to the Company, which have not yet been issued. In addition, the Company issued 30,797 warrants to a member of the Company’s Board of Directors in exchange for 18,551 shares of common stock the director previously received for services provided during the period of October 2016 to June 2017, which shares were thereby cancelled in the six-month period ended March 31, 2018. See Note 22. In January 2018, the Board of Directors approved the grant of 450,000 shares of common stock valued at $472,500, as compensation for services to the Company, of which 150,000 are vested, but have not yet been issued. Also, in February 2018 and March 2018, respectively, 12,500 and 30,000 shares of stock vested from compensation for services, which have not been issued. See Note 22.

Stock Options and Warrants

Stock Options and Warrants	6 Months Ended
	Mar. 31, 2018
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 As of March 31, 2018, 27,218 shares of common stock were available for future grants under the 2012 Plan. All Options and Warrants On November 30, 2017, the Board of Directors unanimously approved the adjustment of the exercise price of 605,678 unexercised warrants, with original exercise prices ranging from $1.81 to $19.46, issued under the 2012 Plan to $1.24, resulting in incremental stock-based compensation of $149,088, which was expensed in the six-month period ending March 31, 2018. On January 26, 2017, the Board of Directors unanimously approved the adjustment of the exercise price of 65,617 unexercised warrants, with original exercise prices ranging from $1.43 to $7.20, issued under the 2012 Plan to $1.15 and held by a member of the Company’s Board of Directors whose unexercised warrants were not repriced along with those that were adjusted on November 30, 2017, resulting in incremental stock-based compensation of $12,530, which was expensed in the three-month period ending March 31, 2018. 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, 2018 and 2017, the Company granted 30,797 and 125,073 options and warrants to purchase shares of common stock under the 2012 Plan. The warrants for Board members vest immediately and expire five years from grant date and warrants or options issued to employees vest annually over either a two to three-year period and expire five years after the final vesting date of the grant. The Company recorded expense of $195,760 and $139,092 for the six months ended March 31, 2018 and 2017, respectively, related to the issuance and vesting of outstanding stock options and warrants. The option and warrant grants for three months ended March 31, 2018 were valued using the Black-Scholes model with the following weighted-average assumptions: Six Months Ended March 31 2018 2017 Expected stock price volatility 102 % 119 % Risk-free interest rate 2.09 % 0.60 % Expected life of options/warrants 5 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 (warrant) activity for the six months ended March 31, 2018 is presented below: Shares Under Option (Warrant) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2017 600,842 $ 8.51 4.90 years $ - Granted 30,797 $ 4.87 Expired/Cancelled (1,172 ) $ (19.29 ) Exercised - $ - Outstanding as of March 31, 2018 630,467 $ 1.78 4.38 years $ - Exercisable as of March 31, 2018 573,800 $ 1.84 4.43 years $ - The intrinsic value of options and warrants outstanding and exercisable is based on the Company’s share price of $1.02 at March 31, 2018.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2018
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, 2018 and 2017, the Company incurred a net loss for income tax purposes of $2,779,076 and $4,199,256, 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. In computing income tax, we recognize an income tax provision in tax jurisdictions in which we have pre-tax income for the period and are expecting to generate pre-tax book income during the fiscal year.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2018
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). Inversiones Tecnologicas SpA v. Track Group Chile SpA. Pablo Gonzalez-Cruz, et al. v. Track Group-Puerto Rico, et al.

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Subsequent Events	Issuance of Shares Extension of Facility Agreement Maturity See Note 16 In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and noted that, other than as disclosed above, no additional subsequent events have occurred that are reasonably likely to impact the financial statements.

Principles of Consolidation (Po

Principles of Consolidation (Policies)	6 Months Ended
	Mar. 31, 2018
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 .

Recent Accounting Standards (Po

Recent Accounting Standards (Policies)	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Recent Accounting Standards	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“ FASB Recently adopted accounting standards In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330) - Simplifying the Measurement of Inventory ASU 2015-11 Recently issued accounting standards In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230) In February 2016, FASB issued ASU No. 2016-02, “ Leases (Topic 841) In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers” “Revenue Recognition (Topic 605) ASU 2014-09

Net Income (Loss) Per Common 30

Net Income (Loss) Per Common Share (Tables)	6 Months Ended
	Mar. 31, 2018
Net Loss Per Common Share Tables
Schedule of common stock equivalents outstanding	March 31, March 31, 2018 2017 Exercisable common stock options and warrants 573,800 434,419 Total common stock equivalents 573,800 434,419

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Mar. 31, 2018
Inventory Tables
Schedule of Inventory, Current	March 31, September 30, 2018 2017 Finished goods inventory $ 296,858 $ 288,744 Reserve for damaged or obsolete inventory (26,934 ) (26,934 ) Total inventory, net of reserves $ 269,924 $ 261,810

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Schedule of Property and Equipment	March 31, 2018 September 30, 2017 Equipment, software and tooling $ 1,054,252 $ 1,028,081 Automobiles 40,182 52,230 Leasehold improvements 1,460,796 1,307,802 Furniture and fixtures 308,849 293,621 Total property and equipment before accumulated depreciation 2,864,079 2,681,734 Accumulated depreciation (1,950,847 ) (1,778,634 ) Property and equipment, net of accumulated depreciation $ 913,232 $ 903,100

Monitoring Equipment (Tables)

Monitoring Equipment (Tables)	6 Months Ended
	Mar. 31, 2018
Monitoring Equipment Tables
Schedule Of Monitoring Property And Equipment	March 31, 2018 September 30, 2017 Monitoring equipment $ 8,195,502 $ 8,399,937 Less: accumulated depreciation (5,045,838 ) (4,906,925 ) Monitoring equipment, net of accumulated depreciation $ 3,149,664 $ 3,493,012

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2018
Intangible Assets Tables
Schedule of Intangible Assets	March 31, 2018 September 30, 2017 Other intangible assets: Patent & royalty agreements 21,170,565 21,170,565 Developed technology 11,444,880 11,116,738 Customer relationships 1,860,000 1,860,000 Trade name 332,895 332,183 Website 78,201 78,201 Total intangible assets 34,886,541 34,557,687 Accumulated amortization (10,984,263 ) (9,839,032 ) Intangible assets, net $ 23,902,278 $ 24,718,655

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	March 31, September 30, 2018 2017 Balance - beginning of period $ 8,226,714 $ 7,955,876 Effect of foreign currency translation on goodwill (18,724 ) 270,838 Balance - end of period $ 8,207,990 $ 8,226,714

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Mar. 31, 2018
Accrued Expenses Tables
Schedule Of Accrued Liabilities	March 31, 2018 September 30, 2017 Accrued payroll, taxes and employee benefits $ 1,948,281 $ 943,066 Deferred revenue 241,458 43,333 Accrued taxes - foreign and domestic 245,003 529,926 Accrued settlement costs - 200,000 Accrued board of directors fees 439,722 125,000 Accrued other expense 217,417 142,390 Accrued legal costs 30,000 116,824 Accrued cellular costs 24,000 81,100 Accrued costs of revenue 278,770 141,884 Accrued bond guarantee 196,494 23,548 Accrued interest 5,488,228 4,303,220 Total accrued liabilities $ 9,109,373 $ 6,650,291

Debt Obligations (Tables)

Debt Obligations (Tables)	6 Months Ended
	Mar. 31, 2018
Debt Obligations Tables
Schedule of Debt	March 31, 2018 September 30, 2017 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, 2018, the remaining debt discount was $74,324. We did not pay interest on this loan during the six months ended March 31, 2018. $ 30,325,676 $ 30,214,189 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. 86,432 123,393 Capital lease with effective interest rate of 12%. Lease matures August 15, 2019. 10,779 14,022 Total debt obligations 33,822,531 33,751,248 Less current portion (30,370,943 ) (30,270,531 ) Long-term debt, net of current portion $ 3,451,588 $ 3,480,717
Schedule of Maturities of Long-term Debt	Twelve-month period ended Total March 31, 2019 $ 30,445,267 March 31, 2020 41,132 March 31, 2021 3,410,456 Thereafter - Debt discount (74,324 ) Total $ 33,822,531

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	6 Months Ended
	Mar. 31, 2018
Related-party Transactions Tables
Stock payable - related party	Mar. 31, 2018 Sept. 30, 2017 Related party loan with an interest rate of 8% per annum for borrowed funds. Principal and interest due September 30, 2020. $ 3,399,644 $ 3,399,644 Total related-party debt obligations $ 3,399,644 $ 3,399,644

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	6 Months Ended
	Mar. 31, 2018
Stock Options And Warrants Tables
Schedule of Valuation Assumptions	Six Months Ended March 31 2018 2017 Expected stock price volatility 102 % 119 % Risk-free interest rate 2.09 % 0.60 % Expected life of options/warrants 5 Years 2 Years
Schedule of Stock Option activity	Shares Under Option (Warrant) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of September 30, 2017 600,842 $ 8.51 4.90 years $ - Granted 30,797 $ 4.87 Expired/Cancelled (1,172 ) $ (19.29 ) Exercised - $ - Outstanding as of March 31, 2018 630,467 $ 1.78 4.38 years $ - Exercisable as of March 31, 2018 573,800 $ 1.84 4.43 years $ -

Net Income (Loss) Per Common 40

Net Income (Loss) Per Common Share (Details) - shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock equivalents excluded from computation of Diluted EPS	573,800	434,419
Options and Warrants [Member[
Stock equivalents excluded from computation of Diluted EPS	573,800	434,419

Net Income (Loss) Per Common 41

Net Income (Loss) Per Common Share (Details Narrative) - shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Loss Per Common Share Details Narrative
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	573,800	434,419

Prepaid Expenses and Other (Det

Prepaid Expenses and Other (Details Narrative) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Prepaid And Other Expenses Details Narrative
Prepaid expenses and other	$ 5,143,501	$ 854,122

Inventory (Details)

Inventory (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Inventory Details
Finished goods inventory	$ 296,858	$ 288,744
Reserve for damaged or obsolete inventory	(26,934)	(26,934)
Total inventory, net of reserves	$ 269,924	$ 261,810

Property And Equipment (Details

Property And Equipment (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Property And Equipment Details
Equipment, software and tooling	$ 1,054,252	$ 1,028,081
Automobiles	40,182	52,230
Leasehold Improvements	1,460,796	1,307,802
Furniture And Fixtures	308,849	293,621
Total property and equipment before accumulated depreciation	2,864,079	2,681,734
Accumulated Depreciation	(1,950,847)	(1,778,634)
Property and equipment, net of accumulated depreciation	$ 913,232	$ 903,100

Property And Equipment (Detai45

Property And Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Property And Equipment Details
Depreciation	$ 87,466	$ 127,298	$ 201,883	$ 177,588

Monitoring Equipment (Details)

Monitoring Equipment (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Monitoring Equipment Details
Monitoring equipment	$ 8,195,502	$ 8,399,937
Less: accumulated amortization	(5,045,835)	(4,906,925)
Monitoring equipment, net of accumulated amortization	$ 3,149,664	$ 3,493,012

Monitoring Equipment (Details N

Monitoring Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Depreciation Expense	$ 343,494	$ 403,074	$ 696,521	$ 736,067
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, 2018	Sep. 30, 2017
Intangible assets:
Intangible assets	$ 34,886,541	$ 34,557,687
Accumulated amortization	(10,984,263)	(9,839,032)
Intangible assets, net of accumulated amortization	23,902,278	24,718,655
Patent & Royalty agreements [Member]
Intangible assets:
Intangible assets	21,170,565	21,170,565
Technology [Member]
Intangible assets:
Intangible assets	11,444,880	11,116,738
Customer Relationships [Member]
Intangible assets:
Intangible assets	1,860,000	1,860,000
Trade Name [Member]
Intangible assets:
Intangible assets	332,895	332,183
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, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Amortization of Intangible Assets	$ 576,244	$ 618,475	$ 1,150,682	$ 1,255,796
Minimum [Member]
Intangible assets, useful life			3 years
Maximum [Member]
Intangible assets, useful life			20 years

Goodwill (Details)

Goodwill (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Balance - beginning of year	$ 8,226,714	$ 7,955,876
Effect of foreign currency translation adjustment on goodwill	(18,724)	270,838
Ending balance	$ 8,207,990	$ 8,226,714

Other Assets (Details Narrative

Other Assets (Details Narrative) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Other Assets Details Narrative
Other assets	$ 202,581	$ 2,989,101

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Accrued Expenses Details
Accrued payroll, taxes and employee benefits	$ 1,948,281	$ 943,066
Deferred revenue	241,458	43,333
Accrued taxes - foreign and domestic	245,003	529,926
Accrued settlement costs	0	200,000
Accrued board of directors fees	439,722	125,000
Accrued other expenses	217,417	142,390
Accrued legal costs	30,000	116,824
Accrued cellular costs	24,000	81,100
Accrued costs of revenue	278,770	141,884
Accrued bond guarantee	196,494	23,548
Accrued interest	5,488,228	4,303,220
Total accrued expenses	$ 9,109,373	$ 6,650,291

Debt Obligations (Details)

Debt Obligations (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Total debt obligations	$ 33,822,531	$ 33,751,248
Less current portion	(30,370,943)	(30,270,531)
Long-term debt, net of current portion	3,451,588	3,480,717
Debt Obligation 1
Total debt obligations	30,325,676	30,214,189
Debt Obligation 2
Total debt obligations	3,399,644	3,399,644
Debt Obligation 3
Total debt obligations	86,432	123,393
Debt Obligation 4
Total debt obligations	$ 10,779	$ 14,022

Debt Obligations (Details 1)

Debt Obligations (Details 1)	Mar. 31, 2018USD ($)
Debt Obligations Details 1
2,018	$ 30,445,267
2,019	41,132
2,020	3,410,456
2,021	0
Thereafter	0
Debt discount	(74,324)
Long-term Debt and Capital Lease Obligations, Total	$ 33,822,531

Debt Obligations (Details Narra

Debt Obligations (Details Narrative)	Mar. 31, 2018USD ($)
Debt Obligations Details 1
Undrawn line of credit balance	$ 1,600,356

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Related-party debt obligations	$ 33,822,531	$ 33,751,248
Related party debt
Related-party debt obligations	$ 3,399,644	$ 3,399,644

Preferred And Common Stock (Det

Preferred And Common Stock (Details Narrative) - $ / shares	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Preferred And Common Stock Details Narrative
Common stock - par value	$ .0001	$ 0.0001
Common stock - shares authorized	30,000,000	30,000,000
Common stock - shares issued	0
Preferred stock, par value	$ .0001	$ 0.0001
Preferred stock, authorized	20,000,000	20,000,000
Preferred stock outstanding	0	0

Stock Options and Warrants (Det

Stock Options and Warrants (Details)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock Options And Warrants Details
Expected stock price volatility	102.00%	119.00%
Risk free interest rate	2.09%	0.60%
Expected life of options/warrants	5 years	2 years

Stock Options and Warrants (D59

Stock Options and Warrants (Details 1)	6 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Stock Options And Warrants Details 1
Shares Under Option/ Warrant outstanding, Beginning Balance | shares	600,842
Shares Under Option/ Warrant Granted | shares	30,797
Shares Under Option/ Warrant Expired / Cancelled | shares	(1,172)
Shares Under Option/ Warrant Exercised | shares	0
Shares Under Option/ Warrant Outstanding, Ending Balance | shares	630,467
Shares Under Option/ Warrant Exercisable | shares	573,800
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares	$ 8.51
Weighted Average Exercise Price Granted | $ / shares	4.87
Weighted Average Exercise Price Expired / Cancelled | $ / shares	(19.29)
Weighted Average Exercise Price Exercised | $ / shares	.00
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares	1.78
Weighted Average Exercise Price Exercisable | $ / shares	$ 1.84
Weighted Average Remaining Contractual Life Outstanding	4 years 4 months 17 days
Weighted Average Remaining Contractual Life Exercisable	4 years 5 months 5 days
Aggregate Intrinsic Value Outstanding, end | $	$ 0
Aggregate Intrinsic Value Exercisable | $	$ 0

Stock Options and Warrants (D60

Stock Options and Warrants (Details Narrative) - shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock Options And Warrants Details Narrative
Shares authorized for issuance under 2012 Plan	713,262
Shares available for grant	27,218
Shares Under Option/ Warrant Granted	30,797
Warrant term	5 years	2 years