Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 01, 2022 | Mar. 31, 2022 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001045942 | ||
Entity Registrant Name | Track Group, Inc. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-23153 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 87-0543981 | ||
Entity Address, Address Line One | 200 E. 5th Avenue Suite 100 | ||
Entity Address, City or Town | Naperville | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60563 | ||
City Area Code | 877 | ||
Local Phone Number | 260-2010 | ||
Title of 12(g) Security | Common Stock, Par Value $0.0001 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,800,000 | ||
Entity Common Stock, Shares Outstanding | 11,863,758 | ||
Auditor Firm ID | 286 | ||
Auditor Name | Eide Bailly LLP | ||
Auditor Location | Denver, Colorado |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash | $ 5,311,104 | $ 8,421,162 |
Accounts receivable, net of allowance for doubtful accounts of $102,570 and $91,262, respectively | 6,236,555 | 7,163,615 |
Prepaid expense and deposits | 769,006 | 998,589 |
Inventory, net of reserves of $0 and $0, respectively | 1,053,245 | 305,210 |
Other current assets | 284,426 | 0 |
Total current assets | 13,654,336 | 16,888,576 |
Intangible assets, net of accumulated amortization of $14,804,269 and $17,607,457, respectively | 15,661,417 | 20,434,143 |
Goodwill | 8,061,002 | 8,519,998 |
Deferred tax asset | 0 | 101,159 |
Other assets | 3,509,655 | 4,309,040 |
Total assets | 44,680,840 | 53,523,242 |
Liabilities and Stockholders’ Equity (Deficit) | ||
Common stock, $0.0001 par value: 30,000,000 shares authorized; 11,863,758 and 11,524,978 shares outstanding, respectively | 1,186 | 1,152 |
Paid in capital | 302,437,593 | 302,250,954 |
Accumulated deficit | (306,218,889) | (298,828,527) |
Accumulated other comprehensive loss | (1,274,617) | (1,054,349) |
Total equity (deficit) | (5,054,727) | 2,369,230 |
Total liabilities and stockholders’ equity (deficit) | 44,680,840 | 53,523,242 |
Current liabilities: | ||
Accounts payable | 2,858,915 | 2,821,982 |
Accrued liabilities | 3,042,443 | 4,350,030 |
Current portion of long-term debt | 456,681 | 526,134 |
Total current liabilities | 6,358,039 | 7,698,146 |
Long-term debt, net of current portion | 42,979,243 | 43,452,216 |
Long-term liabilities | 398,285 | 3,650 |
Total liabilities | 49,735,567 | 51,154,012 |
Commitments and contingencies (Note 12) | ||
Series A Convertible Preferred Stock [Member] | ||
Liabilities and Stockholders’ Equity (Deficit) | ||
Series A Convertible Preferred stock, $0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding | 0 | 0 |
Property, Plant, and Equipment, Excluding Monitoring Equipment [Member] | ||
Current assets: | ||
Property and equipment, net | 170,329 | 202,226 |
Monitoring Equipment [Member] | ||
Current assets: | ||
Property and equipment, net | $ 3,624,101 | $ 3,068,100 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Allowance for doubtful accounts, accounts receivable | $ 102,570 | $ 91,262 |
Reserve for inventory | 0 | 0 |
Intangible assets, accumulated amortization | $ 14,804,269 | $ 17,607,456 |
Common stock - par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock - shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock - shares outstanding (in shares) | 11,863,758 | 11,524,978 |
Series A Convertible Preferred Stock - par value (in dollars per share) | $ 0.0001 | |
Series A Convertible Preferred Stock - shares authorized (in shares) | 20,000,000 | |
Series A Convertible Preferred Stock [Member] | ||
Series A Convertible Preferred Stock - par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Series A Convertible Preferred Stock - shares authorized (in shares) | 1,200,000 | 1,200,000 |
Series A Convertible Preferred Stock - shares outstanding (in shares) | 0 | 0 |
Property, Plant, and Equipment, Excluding Monitoring Equipment [Member] | ||
Property and equipment, accumulated depreciation | $ 1,829,588 | $ 2,615,967 |
Monitoring Equipment [Member] | ||
Property and equipment, accumulated depreciation | $ 5,950,639 | $ 5,977,093 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income/(Loss) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||
Revenues | $ 36,968,499 | $ 39,661,325 |
Cost of revenue: | ||
Monitoring, products and other related services | 16,377,573 | 16,151,644 |
Depreciation and amortization | 3,237,970 | 2,402,367 |
Total cost of revenue | 19,615,543 | 18,554,011 |
Gross profit | 17,352,956 | 21,107,314 |
Operating expense: | ||
General & administrative | 12,462,931 | 10,232,116 |
Selling & marketing | 2,993,749 | 2,716,283 |
Research & development | 2,432,448 | 1,548,527 |
Depreciation & amortization | 1,563,729 | 1,896,481 |
Total operating expense | 19,452,857 | 16,393,407 |
Operating income (loss) | (2,099,901) | 4,713,907 |
Other income (expense): | ||
Interest income | 162,975 | 21,573 |
Interest expense | (1,991,302) | (2,192,108) |
Currency exchange rate gain (loss) | (1,619,018) | 615,361 |
Other income/(expense), net | (959,628) | 1,000,782 |
Total other income (expense) | (4,406,973) | (554,392) |
Net income (loss) before income taxes | (6,506,874) | 4,159,515 |
Income tax expense | 883,488 | 717,109 |
Net income (loss) attributable to common stockholders | (7,390,362) | 3,442,406 |
Foreign currency translation adjustments | (220,268) | (133,276) |
Comprehensive income (loss) | $ (7,610,630) | $ 3,309,130 |
Net income (loss) per share – basic | ||
Net income (loss) per common share, basic (in dollars per share) | $ (0.64) | $ 0.30 |
Weighted average common shares outstanding, basic (in shares) | 11,634,449 | 11,450,269 |
Net income (loss) per share – diluted: | ||
Net income (loss) per common share, diluted (in dollars per share) | $ (0.64) | $ 0.29 |
Weighted average common shares outstanding, diluted (in shares) | 11,634,449 | 12,036,577 |
Monitoring and Other Related Services [Member] | ||
Revenue: | ||
Revenues | $ 35,768,090 | $ 39,179,699 |
Product Sales and Other [Member] | ||
Revenue: | ||
Revenues | $ 1,200,409 | $ 481,626 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity/(Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Sep. 30, 2020 | 11,414,150 | ||||
Balance at Sep. 30, 2020 | $ 1,141 | $ 302,270,242 | $ (302,270,933) | $ (921,073) | $ (920,623) |
Foreign currency translation adjustments | $ 0 | 0 | 0 | (133,276) | (133,276) |
Issuance of Common Stock for options/warrants exercised (in shares) | 110,828 | ||||
Issuance of Common Stock for options/warrants exercised | $ 11 | (11) | 0 | 0 | 0 |
Cash received for options/warrants exercised | 0 | 10,823 | 0 | 0 | 10,823 |
Tax withheld on issuance of Common Stock for options/warrants exercised | 0 | 30,100 | 0 | 0 | 30,100 |
Net loss | 0 | 0 | 3,442,406 | 0 | 3,442,406 |
Tax withheld on issuance of Common Stock for options/warrants exercised | $ 0 | (30,100) | 0 | 0 | (30,100) |
Balance (in shares) at Sep. 30, 2021 | 11,524,978 | ||||
Balance at Sep. 30, 2021 | $ 1,152 | 302,250,954 | (298,828,527) | (1,054,349) | 2,369,230 |
Stock-based compensation | 207,547 | 207,547 | |||
Issuance of Common Stock to employees for services (in shares) | 285,000 | ||||
Issuance of Common Stock to employees for services | $ 29 | (29) | 0 | ||
Foreign currency translation adjustments | (220,268) | (220,268) | |||
Issuance of Common Stock for options/warrants exercised (in shares) | 53,780 | ||||
Issuance of Common Stock for options/warrants exercised | $ 5 | (5) | 0 | ||
Cash received for options/warrants exercised | 10,570 | 10,570 | |||
Tax withheld on issuance of Common Stock for options/warrants exercised | 31,444 | 31,444 | |||
Net loss | (7,390,362) | (7,390,362) | |||
Tax withheld on issuance of Common Stock for options/warrants exercised | (31,444) | (31,444) | |||
Balance (in shares) at Sep. 30, 2022 | 11,863,758 | ||||
Balance at Sep. 30, 2022 | $ 1,186 | $ 302,437,593 | $ (306,218,889) | $ (1,274,617) | $ (5,054,727) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (7,390,362) | $ 3,442,406 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 4,801,699 | 4,298,848 |
(Recovery of)/Bad debt expense | (16,814) | 125,309 |
Stock based compensation | 207,547 | 0 |
Loss on monitoring equipment included in cost of sales | 280,783 | 376,950 |
Amortization of debt issuance costs | 137,540 | 47,667 |
Amortization of monitoring center assets included in cost of revenue | 494,001 | 109,416 |
Impairment of intangible assets and loss from disposal of fixed assets | 1,729,658 | 0 |
Income on forgiveness of expense/debt | (633,471) | (1,000,756) |
Foreign currency exchange (gain) loss | 1,619,018 | (615,361) |
Change in assets and liabilities: | ||
Accounts receivable, net | 693,752 | (1,820,091) |
Inventories | (748,035) | 4,200 |
Prepaid expense, deposits, deferred tax assets and other assets | 284,048 | (2,432,877) |
Accounts payable and accrued expense | (656,403) | 2,286,471 |
Net cash provided by operating activities | 802,961 | 4,822,182 |
Cash flow from investing activities: | ||
Purchase of property and equipment | (117,177) | (126,720) |
Capitalized software | (865,263) | (1,349,550) |
Purchase of monitoring equipment and parts | (2,077,840) | (3,031,426) |
Net cash used in investing activities | (3,060,280) | (4,507,696) |
Cash flow from financing activities: | ||
Proceeds from long-term debt | 0 | 1,943,213 |
Payment of deferred financing fees | 0 | (271,084) |
Principal payments on long-term debt | (494,626) | (275,628) |
Employee tax withholdings related to net share settlement of equity-based awards | (31,444) | (30,100) |
Proceeds from exercise of employee stock options | 10,570 | 10,823 |
Net cash provided by (used in) financing activities | (515,500) | 1,377,224 |
Effect of exchange rate changes on cash | (337,239) | (32,647) |
Net increase (decrease) in cash | (3,110,058) | 1,659,063 |
Cash, beginning of year | 8,421,162 | 6,762,099 |
Cash, end of year | 5,311,104 | 8,421,162 |
Cash paid for interest | 1,870,204 | 696,149 |
Cash paid for taxes | 212,268 | 406,672 |
Non-cash investing and financing activities | ||
Interest previously in accrued liabilities and added to Notes Payable (See Note 7) | $ 0 | $ 12,531,556 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | ( 1 Organization and Nature of Operations General The Company’s business is based on the leasing of patented tracking and monitoring solutions to federal, state and local law enforcement agencies, both in the U.S. and abroad, for the electronic monitoring of offenders and offering unique data analytics services on a platform-as-a-service (“ PaaS 24/7/365 Business Condition. September 30, 2022 2021, September 30, 2022 2021, July 2024 six February 2, 2024 February 17, 2025 two six September 30, 2022 ( 7 2021 2022 July 1, 2024. twelve |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | ( 2 Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Track Group, Inc. and its active wholly-owned subsidiaries, Track Group Analytics Limited, Track Group Americas, Inc., Track Group International LTD., and Track Group - Chile SpA. All significant inter-company transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the period presented. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not Business Combinations Business combinations are accounted for under the provisions of ASC 805 10, Business Combinations 805 10 805 10 Goodwill represents costs in excess of purchase price over the fair value of the assets of businesses acquired, including other identifiable intangible assets. Foreign Currency Translation The Chilean Peso, New Israeli Shekel and the Canadian Dollar are used as functional currencies of the 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 September 30, 2022. Other Intangible Assets Other intangible assets principally consist of patents, royalty purchase agreements, developed technology acquired, customer relationships, trade name, capitalized software development costs, and capitalized website development costs. The Company accounts for other intangible assets in accordance with generally accepted accounting principles and does not three twenty 13. Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for accounts receivable, accounts payable, accrued liabilities and debt obligations approximate fair values because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value as the interest rates approximate market interest rates. Concentration of Revenue & Credit Risk In the normal course of business, the Company provides credit terms to its customers and requires no The Company had sales to entities, two 10% September 30, 2022 2021. 2022 % 2021 % Customer A $ 6,095,403 16 % $ 6,155,718 16 % Customer B 4,871,073 13 % 6,119,965 15 % No 10% September 30, 2022 2021. Concentration of credit risk associated with the Company’s total and outstanding accounts receivable as of September 30, 2022 2021, 2022 % 2021 % Customer A 1,346,854 22 % 1,150,046 16 % Customer B 714,399 11 % 1,052,538 15 % Customer C 675,725 11 % 753,618 11 % Cash Equivalents Cash equivalents consist of investments with original maturities to the Company of three may not September 30, 2022 2021, Accounts Receivable Accounts receivable, which is made up of trade receivables for monitoring and other related services, are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. The allowance is estimated by management based on certain assumptions and variables, including the customer’s financial condition, age of the customer’s receivables and changes in payment histories. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when cash is received. A trade receivable is considered to be past due if any portion of the receivable balance has not not September 30, 2022 September 30 2021, Prepaid Expense and Other Prepaid assets and other is comprised largely of performance bond deposits, tax deposits, vendor deposits and other prepaid supplier expenses. We generally expect deposits to be returned to the Company as cash within 12 Inventory Inventory is valued at the lower of the cost or net realizable value. Cost is determined using the first Inventory consists of parts used for minor repairs of ReliAlert™, and other tracking devices as well as completed circuit boards used to manufacture new devices and components used to manufacture circuit boards. Completed and shipped ReliAlert™ and other tracking devices are reflected in Monitoring Equipment. As of September 30, 2022 September 30, 2021, 2022 2021 Parts to repair devices, components and circuit board inventory $ 1,053,245 $ 305,210 Reserve for damaged or obsolete inventory - - Total inventory, net of reserves $ 1,053,245 $ 305,210 The Company uses a third not September 30, 2022 2021, Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method over the estimated useful lives of the assets, typically three seven Property and equipment consisted of the following as of September 30, 2022 2021, 2022 2021 Equipment, software and tooling $ 1,399,288 $ 1,332,379 Automobiles 4,187 5,034 Leasehold improvements 380,586 1,268,486 Furniture and fixtures 215,856 212,294 Total property and equipment before accumulated depreciation 1,999,917 2,818,193 Accumulated depreciation (1,829,588 ) (2,615,967 ) Property and equipment, net of accumulated depreciation $ 170,329 $ 202,226 Property and equipment to be disposed of is reported at the lower of the carrying amount or fair value, less the estimated costs to sell and any gains or losses are included in the results of operations. During the fiscal years ended September 30, 2022 September 30, 2021, Depreciation expense recognized for property and equipment for the fiscal years ended September 30, 2022 2021 Monitoring Equipment The Company leases monitoring equipment to agencies for offender tracking under contractual service agreements. The monitoring equipment is depreciated using the straight-line method over an estimated useful life of between one five September 30, 2022 2021 2022 2021 Monitoring equipment $ 9,574,740 $ 9,045,193 Less: accumulated depreciation (5,950,639 ) (5,977,093 ) Monitoring equipment, net of accumulated depreciation $ 3,624,101 $ 3,068,100 Depreciation expense for the fiscal years ended September 30, 2022 2021 During the fiscal years ended September 30, 2022 2021, Impairment of Long-Lived Assets and Goodwill The Company reviews long-lived assets for impairment when events or changes in circumstances indicate that the book value of an asset may not 13. Revenue Recognition Our revenue is predominantly derived from two Monitoring and Other Related Services Monitoring services include two 30 Product Sales and Other The Company sells devices and replacement parts to customers under certain contracts, as well as law enforcement software licenses and maintenance, and analytical software. Revenue transactions associated with the sale of devices and replacement parts comprise a single performance obligation. We satisfy the performance obligation when the Company has transferred control of the product to the customer and they receive substantially all of the benefits. Transfer of control passes to customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. The transaction price is determined based upon the invoiced sales price and payment terms for the transaction depends on the agreement with the customer and payment is generally required within 60 may, not Multiple Element Arrangements The majority of our revenue transactions do not may may Other Matters The Company considers an arrangement with payment terms longer than the Company’s normal terms not 30 not no Shipping and handling fees charged to customers are included as part of total revenue. The related freight costs and supplies directly associated with shipping products to customers are included as a component of cost of revenue. Research and Development Costs The Company expenses research and development costs as incurred. During the fiscal year ended September 30, 2022 September 30, 2021, Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the fiscal years ended September 30, 2022 2021 Stock-Based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The fair value of stock options is estimated using a Black-Scholes option pricing model, which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. 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. The tax effects from uncertain tax positions can be recognized in the financial statements, provided the position is more likely than not not not 50 The Company's policy is to recognize interest and penalties related to income tax issues as components of other noninterest expense. As of September 30, 2022 September 30, 2021, not Net Income (Loss) Per Common Share Basic net income (loss) per common share (“ Basic EPS Diluted net income (loss) per common share (“ Diluted EPS not Common share equivalents consist of shares issuable upon the exercise of options and warrants to purchase shares of the Company’s Common Stock, par value $0.0001 per share (“ Common Stock September 30, 2022, September 30, 2022 ( October 14, 2022) 2021 2022 2021 Issuable Common Stock options and warrants 160,881 457,075 Total Common Stock equivalents 160,881 457,075 At September 30, 2022 not September 30, 2021, Recent Accounting Pronouncements Recently Adopted Accounting Standards N/A Recently Issued Accounting Standards In January 2017, 2017 04, Intangibles Goodwill and Other: Simplifying the Test for Goodwill Impairment second two December 15, 2019 December 15, 2022. January 1, 2017. not In June 2016, 2016 13, Measurement of Credit Losses on Financial Instruments 2016 13 CECL 2016 13 December 15, 2019, December 15, 2022. 2016 13 2024. not |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | ( 3 Revenue Recognition Monitoring and Other Related Services. two The balance of accounts receivable at September 30, 2022 September 30, 2021 September 30, 2020 September 30, 2022, September 30, 2021 September 30, 2020 September 30, 2022 September 30, 2021, Product Sales and Other. 30 Multiple Element Arrangements. not may may The standalone selling price for each performance obligation is an amount that depicts the amount of consideration to which the entity expects to be entitled in exchange for transferring the good or service. When there is only one first not The following tables present the Company’s revenue disaggregated by geography, based on management’s assessment of available data: Twelve Months Ended September 30, 2022 Twelve Months Ended September 30, 2021 Total Revenue % of Total Revenue Total Revenue % of Total Revenue United States $ 26,427,402 72 % $ 29,053,294 73 % Latin America 9,389,482 25 % 10,186,554 26 % Other 1,151,615 3 % 421,477 1 % Total $ 36,968,499 100 % $ 39,661,325 100 % The above table includes total revenue for the Company, of which monitoring and other related services is the majority (approximately 97% for fiscal year ended September 30, 2022 September 30, 2021) |
Note 4 - Other Assets
Note 4 - Other Assets | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Investments and Other Noncurrent Assets [Text Block] | ( 4 Other Assets As of September 30, 2022 September 30, 2021, September 30, 2022 12 The Company was contractually obligated to construct and equip two September 30, 2022. June 2021. twelve September 30, 2022 7 |
Note 5 - Accrued Liabilities
Note 5 - Accrued Liabilities | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ( 5 Accrued Liabilities Accrued liabilities consisted of the following as of September 30, 2022 2021: September 30, 2022 September 30, 2021 Accrued payroll, taxes and employee benefits $ 1,412,055 $ 2,279,454 Deferred revenue 3,299 22,500 Accrued taxes - foreign and domestic 371,293 23,022 Accrued other expense 123,752 236,386 Accrued legal and other professional costs 57,905 738,306 Accrued costs of revenue 352,060 248,963 Right of use liability 177,431 162,313 Deferred financing fees 88,685 180,000 Accrued interest 455,963 459,086 Total accrued liabilities $ 3,042,443 $ 4,350,030 On March 1, 2021 7. |
Note 6 - Related Parties
Note 6 - Related Parties | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | ( 6 Related Parties ETS Limited is currently the beneficial owner of 4,871,745 shares of the Company's Common Stock (the “ Track Group Shares ADS September 28, 2017, Board February 7, 2018 |
Note 7 - Debt Obligations
Note 7 - Debt Obligations | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | ( 7 Debt Obligations Debt obligations, net of debt issuance costs, as of September 30, 2022 2021 September 30, 2022 September 30, 2021 The unsecured loan (the “ Amended Facility Agreement Conrent 42,864,000 4% 876,331 862,043 $ 42,653,649 $ 42,533,449 Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.56% 35,335 70,176 Note Payable Agreement with Banco Santander, net of unamortized issuance costs of $ 11,352 5.04% 177,463 332,354 Note Payable Agreement with Banco Estado, net of unamortized issuance costs of $ 7,419 3.50% 135,521 279,869 Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.61% 79,375 153,984 Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $ 161 2.54% 51,278 101,447 Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $ 17,307 3.12% 303,303 507,071 Total debt obligations 43,435,924 43,978,350 Less: current portion (456,681 ) (526,134 ) Long-term debt, less current portion $ 42,979,243 $ 43,452,216 On October 21, 2020, November 25, 2020, Noteholders July 1, 2024. December 21, 2020, July 1, 2024 (“ Amended Facility March 1, 2021, June 30 December 31 June 30, 2021. July 1, 2021. September 30, 2022, On January 6, 2021, CLP $101,186USD HP Note 1 1, 1 Santiago Monitoring Center Puerto Montt Monitoring Center 1 February 2021, February 6, 2024. On January 12, 2021, CLP $482,965USD CLP $3,897USD Banco Santander Note February 2021, May 11, 2024. CLP $27,275USD On February 2, 2021, CLP $338,954USD CLP $2,734USD Banco Estado Note 6 first 6 1 August 2, 2021, January 2, 2024. CLP $19,304USD On February 4, 2021, CLP $205,330USD HP Note 2 2, 2 2 March 2021, March 4, 2024. On February 5, 2021, CLP $136,564USD CLP $286USD Banco de Chile Note 1 March 2021, March 4, 2024. On February 15, 2021, CLP $678,214USD Banco de Chile Note 2 2, 2 2 March 2021, February 17, 2025. CLP $38,317USD The following table summarizes our future maturities of debt obligations, net of the amortization of debt discounts as of September 30, 2022: Twelve months ended September 30: Total 2023 $ 456,681 2024 43,168,809 2025 57,024 2026 - Total 43,682,514 Issuance costs (246,590 ) Debt obligations, net of unamortized issuance costs $ 43,435,924 |
Note 8 - Preferred Stock
Note 8 - Preferred Stock | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | ( 8 Preferred Stock The Company’s Certificate of Incorporation authorizes it to issue up to 20,000,000 shares of preferred stock, $0.0001 par value per share (“ Preferred Stock Series A Preferred Series A Convertible Preferred Stock On October 12, 2017, Certificate of Designation not Except with respect to transactions upon which holders of the Series A Preferred are entitled to vote separately as a class under the terms of the Certificate of Designation, the Series A Preferred has no The Series A Preferred has no one Each share of Series A Preferred has a Liquidation Preference of $35.00 per share, and is convertible, at the holder’s option, into ten five hundred forty As of September 30, 2022, no |
Note 9 - Common Stock
Note 9 - Common Stock | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Common Stock [Text Block] | ( 9 Common Stock Common Stock Issuances The Company is authorized to issue up to 30,000,000 shares of Common Stock, $0.0001 par value per share. On April 14, 2022, On April 13, 2022, On April 13, 2022, On December 30, 2021, On December 28, 2021, |
Note 10 - Stock Options and War
Note 10 - Stock Options and Warrants | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | ( 10 Stock Options and Warrants Stock Incentive Plan At the annual meeting of stockholders on April 13, 2022, 2022 2022 2022 2022 The 2022 2012 2012 June 30, 2020, 2012 2012 2012 2012 2012 2022 On April 13, 2022, 2022 The Company issued a nominal amount of stock for fully vested stock awards in fiscal 2021 may not September 30, 2021. During the fiscal years ended September 30, 2022 2021, no 2012 2022, The Company recorded expense of $207,547 and $0 for the year ended September 30, 2022 2021, 2022 September 30, 2022 2021, 2012 2022 September 30, 2022. 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 fiscal years ended September 30, 2022 2021, no 2012 five two three five September 30, 2022 2021, All options and warrants have vested and are exercisable at September 30, 2022 no As of September 30, 2022, no A summary of the compensation-based options and warrants activity for the fiscal years ended September 30, 2022 2021 Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding as of September 30, 2020 685,259 $ 1.56 1.90 - Granted - - - Expired - - - Exercised (228,184 ) $ (1.21 ) - Outstanding as of September 30, 2021 457,075 $ 1.74 1.04 - Granted - - - Expired (196,097 ) (2.41 ) - Exercised (100,097 ) (1.23 ) - Outstanding as of September 30, 2022 160,881 $ 1.24 0.60 $ 225 Exercisable as of September 30, 2022 160,881 $ 1.24 0.60 $ 225 The intrinsic value of options and warrants outstanding and exercisable is based on the Company’s share price of $0.51 per share at September 30, 2022. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 11 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 fiscal years ended September 30, 2022 2021, no not no At September 30, 2022, September 30, 2023. not September 30, 2022, September 30, 2021. 382 382 not September 30, 2022, September 30, 2022. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The tax provision for the year ended September 30, 2022 The deferred income tax assets (liabilities) were comprised of the following for the periods indicated: Fiscal Years Ended September 30, 2022 2021 Net loss carryforwards $ 34,261,003 $ 34,505,872 Accruals and reserves 723,617 840,656 Severance indemnity reserve 76,918 88,495 Contributions 2,478 1,028 Depreciation and amortization (219,722 ) 75,339 Stock-based compensation 109,397 633,677 Valuation allowance (35,182,109 ) (36,043,908 ) Total $ (228,418 ) $ 101,159 Reconciliations between the benefit for income taxes at the federal statutory income tax rate and the Company's benefit for income taxes for the years ended September 30, 2022 2021 Fiscal Years Ended September 30, 2022 2021 Federal income tax benefit at statutory rate $ (78,091 ) $ 739,557 State income tax benefit, net of federal income tax effect 42,086 149,910 Effect of foreign income taxes 679,605 644,307 Return to Provision (4,473 ) 65,144 Withholding Taxes 147,109 61,999 Deferred only adjustment 471,609 (896,662 ) Gain/(Loss) on deductible expenses 487,442 120,624 Change in valuation allowance (861,799 ) (167,770 ) Provision for income taxes $ 883,488 $ 717,109 The Company’s open tax years for federal and state income tax returns are for the tax years ended September 30, 2017 September 30, 2022. September 30, 2018 September 30, 2017. November 29, 2021, no |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 12 Commitments and Contingencies Legal Matters The Company is, from time to time, involved in various legal proceedings incidental to the conduct of our business. Historically, the outcome of nearly all such legal proceedings has not, no SecureAlert, Inc. v. Federal Government of Mexico (Department of the Interior). March 24, 2017, July 15, 2011, OADPRS Commonwealth of Puerto Rico, through its Trustees v. International Surveillance Services Corporation . January 23, 2020, ISS 2014 2017, 2011. July 6, 2020. August 26, 2021, March 15, 2022, April 15, 2022. April 14, 2022, May 23, 2022, November 1,2022 no Eli Sabag v. Track Group, Inc., et al. March 12, 2020, 01 20 0003 6931. SPA June 10, 2022. Jeffrey Mohamed Abed v. Track Group, Inc., et al. June 7, 2021, No. 21 21345, October 15, 2021 November 12, 2021. January 11, 2022 no Track Group Chile SpA. v. Republic of Chile. January 24, 2022, not no Jesus Valle Gonzalez, et al. v. Track Group-Puerto Rico, et al. May 9, 2022 June 8, 2016 June 2017 no June 29, 2022. October 5, 2022, Leases Effective October 1, 2019, No. 2016 02, 842 ASC Topic 842 not not October 1, 2019, not The following table shows right of use assets and lease liabilities and the associated financial statement line items as of September 30, 2022. September 30, 2022 September 30, 2021 Operating lease asset Operating lease liability Operating lease asset Operating lease liability Other assets $ 575,716 $ - $ 165,963 $ - Accrued liabilities - 177,431 - 162,313 Long-term liabilities - 398,285 - 3,650 The following table summarizes the supplemental cash flow information for the year ended September 30, 2022: September 30, 2022 September 30, 2021 Cash paid for noncancelable operating leases included in operating cash flows $ 272,921 $ 304,693 Right of use assets obtained in exchange for operating lease liabilities: $ 626,047 $ 2,245 The future minimum lease payments under noncancelable operating leases with terms greater than one September 30, 2022 Operating Leases From October 2022 to September 2023 $ 198,236 From October 2023 to September 2024 163,851 From October 2024 to September 2025 91,480 From October 2025 to September 2026 93,267 From October 2026 to September 2027 78,740 Thereafter - Undiscounted Cash Flow 625,574 Less: imputed interest (49,858 ) Total $ 575,716 Reconciliation to lease liabilities: Lease liabilities - current $ 177,431 Lease liabilities - long-term 398,285 Total Lease Liabilities $ 575,716 The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of September 30, 2022 Monitoring Equipment The Company leases monitoring equipment to its customers with contract terms varying from month-to-month to several years and each daily contract price varies. Devices supplied to customers are not may The Company’s tracking devices are considered operating leases under ASC 842 not not may not No 842. Operating lease revenue associated with the Company’s monitoring equipment as of September 30, 2022 2021, 2022 2021 Monitoring equipment operating revenue $ 29,867,266 $ 33,749,781 Performance Bonds As of September 30, 2022, two Performance Bonds two 2023, 2024, In March 2021, July 2, 2024, July 2,2024 The Company pays interest on the full amount of the Performance Bonds to the financial institution providing the guarantee at 3.5% interest per annum for the Performance Bond which will expire in January 2023 July 2024. September 30, 2022 September 30, 2021, |
Note 13 - Intangible Assets
Note 13 - Intangible Assets | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | ( 13 Intangible Assets The following table summarizes the activity of intangible assets for the years ended September 30, 2022 2021, September 30, 2022 September 30, 2021 Patent & royalty agreements $ 21,120,565 $ 21,120,565 Developed technology 9,206,006 14,919,562 Customer relationships - 1,860,000 Trade name 139,115 141,473 Total intangible assets 30,465,686 38,041,600 Accumulated amortization (14,804,269 ) (17,607,457 ) Intangible assets, net of accumulated amortization $ 15,661,417 $ 20,434,143 The intangible assets summarized above were purchased or developed on various dates from July 2011 September 30, 2022. three twenty September 30, 2022 2021 September 30, 2022 September 30, 2021 fourth 2022, September 30, 2022 The following table summarizes the future maturities of amortization of intangible assets as of September 30, 2022: Fiscal Year Amortization STOP Royalty 2023 2,317,048 450,000 2024 2,364,084 187,500 2025 2,363,913 - 2026 2,363,913 - 2027 2,279,461 Thereafter 3,335,498 Total $ 15,023,917 $ 637,500 Goodwill not September 30, 2022. no Goodwill, as of September 30, September 30, 2022 2021 Balance - beginning of year $ 8,519,998 $ 8,220,380 Effect of foreign currency translation on goodwill (458,996 ) 299,618 Balance - end of year $ 8,061,002 $ 8,519,998 |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 12 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | ( 14 Subsequent Events In accordance with the Subsequent Events Topic of the FASB ASC 855, no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Track Group, Inc. and its active wholly-owned subsidiaries, Track Group Analytics Limited, Track Group Americas, Inc., Track Group International LTD., and Track Group - Chile SpA. All significant inter-company transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the period presented. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not |
Business Combinations Policy [Policy Text Block] | Business Combinations Business combinations are accounted for under the provisions of ASC 805 10, Business Combinations 805 10 805 10 Goodwill represents costs in excess of purchase price over the fair value of the assets of businesses acquired, including other identifiable intangible assets. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Chilean Peso, New Israeli Shekel and the Canadian Dollar are used as functional currencies of the 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 September 30, 2022. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Other Intangible Assets Other intangible assets principally consist of patents, royalty purchase agreements, developed technology acquired, customer relationships, trade name, capitalized software development costs, and capitalized website development costs. The Company accounts for other intangible assets in accordance with generally accepted accounting principles and does not three twenty 13. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for accounts receivable, accounts payable, accrued liabilities and debt obligations approximate fair values because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value as the interest rates approximate market interest rates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Revenue & Credit Risk In the normal course of business, the Company provides credit terms to its customers and requires no The Company had sales to entities, two 10% September 30, 2022 2021. 2022 % 2021 % Customer A $ 6,095,403 16 % $ 6,155,718 16 % Customer B 4,871,073 13 % 6,119,965 15 % No 10% September 30, 2022 2021. Concentration of credit risk associated with the Company’s total and outstanding accounts receivable as of September 30, 2022 2021, 2022 % 2021 % Customer A 1,346,854 22 % 1,150,046 16 % Customer B 714,399 11 % 1,052,538 15 % Customer C 675,725 11 % 753,618 11 % |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents Cash equivalents consist of investments with original maturities to the Company of three may not September 30, 2022 2021, |
Receivable [Policy Text Block] | Accounts Receivable Accounts receivable, which is made up of trade receivables for monitoring and other related services, are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. The allowance is estimated by management based on certain assumptions and variables, including the customer’s financial condition, age of the customer’s receivables and changes in payment histories. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when cash is received. A trade receivable is considered to be past due if any portion of the receivable balance has not not September 30, 2022 September 30 2021, |
Prepaid Expense and Other, Policy [Policy Text Block] | Prepaid Expense and Other Prepaid assets and other is comprised largely of performance bond deposits, tax deposits, vendor deposits and other prepaid supplier expenses. We generally expect deposits to be returned to the Company as cash within 12 |
Inventory, Policy [Policy Text Block] | Inventory Inventory is valued at the lower of the cost or net realizable value. Cost is determined using the first Inventory consists of parts used for minor repairs of ReliAlert™, and other tracking devices as well as completed circuit boards used to manufacture new devices and components used to manufacture circuit boards. Completed and shipped ReliAlert™ and other tracking devices are reflected in Monitoring Equipment. As of September 30, 2022 September 30, 2021, 2022 2021 Parts to repair devices, components and circuit board inventory $ 1,053,245 $ 305,210 Reserve for damaged or obsolete inventory - - Total inventory, net of reserves $ 1,053,245 $ 305,210 The Company uses a third not September 30, 2022 2021, |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method over the estimated useful lives of the assets, typically three seven Property and equipment consisted of the following as of September 30, 2022 2021, 2022 2021 Equipment, software and tooling $ 1,399,288 $ 1,332,379 Automobiles 4,187 5,034 Leasehold improvements 380,586 1,268,486 Furniture and fixtures 215,856 212,294 Total property and equipment before accumulated depreciation 1,999,917 2,818,193 Accumulated depreciation (1,829,588 ) (2,615,967 ) Property and equipment, net of accumulated depreciation $ 170,329 $ 202,226 Property and equipment to be disposed of is reported at the lower of the carrying amount or fair value, less the estimated costs to sell and any gains or losses are included in the results of operations. During the fiscal years ended September 30, 2022 September 30, 2021, Depreciation expense recognized for property and equipment for the fiscal years ended September 30, 2022 2021 |
Loans and Leases Receivable, Lease Financing, Policy [Policy Text Block] | Monitoring Equipment The Company leases monitoring equipment to agencies for offender tracking under contractual service agreements. The monitoring equipment is depreciated using the straight-line method over an estimated useful life of between one five September 30, 2022 2021 2022 2021 Monitoring equipment $ 9,574,740 $ 9,045,193 Less: accumulated depreciation (5,950,639 ) (5,977,093 ) Monitoring equipment, net of accumulated depreciation $ 3,624,101 $ 3,068,100 Depreciation expense for the fiscal years ended September 30, 2022 2021 During the fiscal years ended September 30, 2022 2021, |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets and Goodwill The Company reviews long-lived assets for impairment when events or changes in circumstances indicate that the book value of an asset may not 13. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Our revenue is predominantly derived from two Monitoring and Other Related Services Monitoring services include two 30 Product Sales and Other The Company sells devices and replacement parts to customers under certain contracts, as well as law enforcement software licenses and maintenance, and analytical software. Revenue transactions associated with the sale of devices and replacement parts comprise a single performance obligation. We satisfy the performance obligation when the Company has transferred control of the product to the customer and they receive substantially all of the benefits. Transfer of control passes to customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. The transaction price is determined based upon the invoiced sales price and payment terms for the transaction depends on the agreement with the customer and payment is generally required within 60 may, not Multiple Element Arrangements The majority of our revenue transactions do not may may Other Matters The Company considers an arrangement with payment terms longer than the Company’s normal terms not 30 not no Shipping and handling fees charged to customers are included as part of total revenue. The related freight costs and supplies directly associated with shipping products to customers are included as a component of cost of revenue. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs The Company expenses research and development costs as incurred. During the fiscal year ended September 30, 2022 September 30, 2021, |
Advertising Cost [Policy Text Block] | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the fiscal years ended September 30, 2022 2021 |
Compensation Related Costs, Policy [Policy Text Block] | Stock-Based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The fair value of stock options is estimated using a Black-Scholes option pricing model, which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. |
Income Tax, Policy [Policy Text Block] | 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. The tax effects from uncertain tax positions can be recognized in the financial statements, provided the position is more likely than not not not 50 The Company's policy is to recognize interest and penalties related to income tax issues as components of other noninterest expense. As of September 30, 2022 September 30, 2021, not |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Common Share Basic net income (loss) per common share (“ Basic EPS Diluted net income (loss) per common share (“ Diluted EPS not Common share equivalents consist of shares issuable upon the exercise of options and warrants to purchase shares of the Company’s Common Stock, par value $0.0001 per share (“ Common Stock September 30, 2022, September 30, 2022 ( October 14, 2022) 2021 2022 2021 Issuable Common Stock options and warrants 160,881 457,075 Total Common Stock equivalents 160,881 457,075 At September 30, 2022 not September 30, 2021, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently Adopted Accounting Standards N/A Recently Issued Accounting Standards In January 2017, 2017 04, Intangibles Goodwill and Other: Simplifying the Test for Goodwill Impairment second two December 15, 2019 December 15, 2022. January 1, 2017. not In June 2016, 2016 13, Measurement of Credit Losses on Financial Instruments 2016 13 CECL 2016 13 December 15, 2019, December 15, 2022. 2016 13 2024. not |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | 2022 % 2021 % Customer A $ 6,095,403 16 % $ 6,155,718 16 % Customer B 4,871,073 13 % 6,119,965 15 % 2022 % 2021 % Customer A 1,346,854 22 % 1,150,046 16 % Customer B 714,399 11 % 1,052,538 15 % Customer C 675,725 11 % 753,618 11 % |
Schedule of Inventory, Current [Table Text Block] | 2022 2021 Parts to repair devices, components and circuit board inventory $ 1,053,245 $ 305,210 Reserve for damaged or obsolete inventory - - Total inventory, net of reserves $ 1,053,245 $ 305,210 |
Property, Plant and Equipment [Table Text Block] | 2022 2021 Equipment, software and tooling $ 1,399,288 $ 1,332,379 Automobiles 4,187 5,034 Leasehold improvements 380,586 1,268,486 Furniture and fixtures 215,856 212,294 Total property and equipment before accumulated depreciation 1,999,917 2,818,193 Accumulated depreciation (1,829,588 ) (2,615,967 ) Property and equipment, net of accumulated depreciation $ 170,329 $ 202,226 |
Schedule of Monitoring Property and Equipment [Table Text Block] | 2022 2021 Monitoring equipment $ 9,574,740 $ 9,045,193 Less: accumulated depreciation (5,950,639 ) (5,977,093 ) Monitoring equipment, net of accumulated depreciation $ 3,624,101 $ 3,068,100 |
Common Stock Equivalents [Table Text Block] | 2022 2021 Issuable Common Stock options and warrants 160,881 457,075 Total Common Stock equivalents 160,881 457,075 |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Disaggregated Revenue by Geography [Table Text Block] | Twelve Months Ended September 30, 2022 Twelve Months Ended September 30, 2021 Total Revenue % of Total Revenue Total Revenue % of Total Revenue United States $ 26,427,402 72 % $ 29,053,294 73 % Latin America 9,389,482 25 % 10,186,554 26 % Other 1,151,615 3 % 421,477 1 % Total $ 36,968,499 100 % $ 39,661,325 100 % |
Note 5 - Accrued Liabilities (T
Note 5 - Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, 2022 September 30, 2021 Accrued payroll, taxes and employee benefits $ 1,412,055 $ 2,279,454 Deferred revenue 3,299 22,500 Accrued taxes - foreign and domestic 371,293 23,022 Accrued other expense 123,752 236,386 Accrued legal and other professional costs 57,905 738,306 Accrued costs of revenue 352,060 248,963 Right of use liability 177,431 162,313 Deferred financing fees 88,685 180,000 Accrued interest 455,963 459,086 Total accrued liabilities $ 3,042,443 $ 4,350,030 |
Note 7 - Debt Obligations (Tabl
Note 7 - Debt Obligations (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 30, 2022 September 30, 2021 The unsecured loan (the “ Amended Facility Agreement Conrent 42,864,000 4% 876,331 862,043 $ 42,653,649 $ 42,533,449 Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.56% 35,335 70,176 Note Payable Agreement with Banco Santander, net of unamortized issuance costs of $ 11,352 5.04% 177,463 332,354 Note Payable Agreement with Banco Estado, net of unamortized issuance costs of $ 7,419 3.50% 135,521 279,869 Note Payable Agreement with HP Financial Services Chile Limitada bearing interest at a rate of 6.61% 79,375 153,984 Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $ 161 2.54% 51,278 101,447 Note Payable Agreement with Banco de Chile, net of unamortized issuance costs of $ 17,307 3.12% 303,303 507,071 Total debt obligations 43,435,924 43,978,350 Less: current portion (456,681 ) (526,134 ) Long-term debt, less current portion $ 42,979,243 $ 43,452,216 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | Twelve months ended September 30: Total 2023 $ 456,681 2024 43,168,809 2025 57,024 2026 - Total 43,682,514 Issuance costs (246,590 ) Debt obligations, net of unamortized issuance costs $ 43,435,924 |
Note 10 - Stock Options and W_2
Note 10 - Stock Options and Warrants (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Stock Options Roll Forward [Table Text Block] | Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding as of September 30, 2020 685,259 $ 1.56 1.90 - Granted - - - Expired - - - Exercised (228,184 ) $ (1.21 ) - Outstanding as of September 30, 2021 457,075 $ 1.74 1.04 - Granted - - - Expired (196,097 ) (2.41 ) - Exercised (100,097 ) (1.23 ) - Outstanding as of September 30, 2022 160,881 $ 1.24 0.60 $ 225 Exercisable as of September 30, 2022 160,881 $ 1.24 0.60 $ 225 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Fiscal Years Ended September 30, 2022 2021 Net loss carryforwards $ 34,261,003 $ 34,505,872 Accruals and reserves 723,617 840,656 Severance indemnity reserve 76,918 88,495 Contributions 2,478 1,028 Depreciation and amortization (219,722 ) 75,339 Stock-based compensation 109,397 633,677 Valuation allowance (35,182,109 ) (36,043,908 ) Total $ (228,418 ) $ 101,159 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Years Ended September 30, 2022 2021 Federal income tax benefit at statutory rate $ (78,091 ) $ 739,557 State income tax benefit, net of federal income tax effect 42,086 149,910 Effect of foreign income taxes 679,605 644,307 Return to Provision (4,473 ) 65,144 Withholding Taxes 147,109 61,999 Deferred only adjustment 471,609 (896,662 ) Gain/(Loss) on deductible expenses 487,442 120,624 Change in valuation allowance (861,799 ) (167,770 ) Provision for income taxes $ 883,488 $ 717,109 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Lessee, Operating Lease, Balance Sheet Information [Table Text Block] | September 30, 2022 September 30, 2021 Operating lease asset Operating lease liability Operating lease asset Operating lease liability Other assets $ 575,716 $ - $ 165,963 $ - Accrued liabilities - 177,431 - 162,313 Long-term liabilities - 398,285 - 3,650 |
Lease, Cost [Table Text Block] | September 30, 2022 September 30, 2021 Cash paid for noncancelable operating leases included in operating cash flows $ 272,921 $ 304,693 Right of use assets obtained in exchange for operating lease liabilities: $ 626,047 $ 2,245 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Operating Leases From October 2022 to September 2023 $ 198,236 From October 2023 to September 2024 163,851 From October 2024 to September 2025 91,480 From October 2025 to September 2026 93,267 From October 2026 to September 2027 78,740 Thereafter - Undiscounted Cash Flow 625,574 Less: imputed interest (49,858 ) Total $ 575,716 Reconciliation to lease liabilities: Lease liabilities - current $ 177,431 Lease liabilities - long-term 398,285 Total Lease Liabilities $ 575,716 |
Operating Lease, Lease Income [Table Text Block] | 2022 2021 Monitoring equipment operating revenue $ 29,867,266 $ 33,749,781 |
Note 13 - Intangible Assets (Ta
Note 13 - Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2022 September 30, 2021 Patent & royalty agreements $ 21,120,565 $ 21,120,565 Developed technology 9,206,006 14,919,562 Customer relationships - 1,860,000 Trade name 139,115 141,473 Total intangible assets 30,465,686 38,041,600 Accumulated amortization (14,804,269 ) (17,607,457 ) Intangible assets, net of accumulated amortization $ 15,661,417 $ 20,434,143 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Amortization STOP Royalty 2023 2,317,048 450,000 2024 2,364,084 187,500 2025 2,363,913 - 2026 2,363,913 - 2027 2,279,461 Thereafter 3,335,498 Total $ 15,023,917 $ 637,500 |
Schedule of Goodwill [Table Text Block] | September 30, 2022 2021 Balance - beginning of year $ 8,519,998 $ 8,220,380 Effect of foreign currency translation on goodwill (458,996 ) 299,618 Balance - end of year $ 8,061,002 $ 8,519,998 |
Note 1 - Organization and Nat_2
Note 1 - Organization and Nature of Operations (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Retained Earnings (Accumulated Deficit), Total | $ (306,218,889) | $ (298,828,527) |
Net Income (Loss) Attributable to Parent, Total | (7,390,362) | 3,442,406 |
Long-term Debt, Total | 43,435,924 | 43,978,350 |
Asset Impairment Charges, Total | 1,729,658 | $ 0 |
Debt Maturing in July 2024 [Member] | ||
Long-term Debt, Total | 42,864,000 | |
Notes Payable Related to Construction of Monitoring Centers [Member] | ||
Long-term Debt, Total | $ 818,514 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | |
Cash, Uninsured Amount | $ 3,037,903 | $ 5,907,344 |
Accounts Receivable, Allowance for Credit Loss, Writeoff | 201,469 | 91,611 |
Inventory Write-down | 0 | 11,103 |
Property, Plant and Equipment, Disposals | 794,555 | 202,353 |
Depreciation, Nonproduction | 144,054 | 309,869 |
Depreciation, Lessor Asset under Operating Lease | 1,380,558 | 1,475,118 |
Disposal of Lease Monitoring Equipment | 280,783 | 365,847 |
Research and Development Expense, Total | 2,432,448 | 1,548,527 |
Advertising Expense | 14,037 | 15,961 |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares | 0 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Total (in shares) | shares | 25,352 | |
Share Price (in dollars per share) | $ / shares | $ 0.51 | $ 3 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants (in shares) | shares | 442,075 | |
Stock Options and Warrants Outstanding (in shares) | shares | 457,075 | |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
Number of Major Customers | 2 | 2 |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | |
Property, Plant and Equipment, Useful Life (Year) | 3 years | |
Equipment Leased Under Contractual Service Agreements, Useful Life (Year) | 1 year | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years | |
Property, Plant and Equipment, Useful Life (Year) | 7 years | |
Equipment Leased Under Contractual Service Agreements, Useful Life (Year) | 5 years |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Customer Concentration Risk (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Customer revenue amount | $ 36,968,499 | $ 39,661,325 |
Customer Concentration Risk [Member] | Customer A [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
Customer revenue amount | $ 6,095,403 | $ 6,155,718 |
Customer concentration risk percentage | 16% | 16% |
Customer Concentration Risk [Member] | Customer A [Member] | Accounts Receivable [Member] | ||
Customer concentration risk percentage | 22% | 16% |
Customer accounts receivable amount | $ 1,346,854 | $ 1,150,046 |
Customer Concentration Risk [Member] | Customer B [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
Customer revenue amount | $ 4,871,073 | $ 6,119,965 |
Customer concentration risk percentage | 13% | 15% |
Customer Concentration Risk [Member] | Customer B [Member] | Accounts Receivable [Member] | ||
Customer concentration risk percentage | 11% | 15% |
Customer accounts receivable amount | $ 714,399 | $ 1,052,538 |
Customer Concentration Risk [Member] | Customer C [Member] | Accounts Receivable [Member] | ||
Customer concentration risk percentage | 11% | 11% |
Customer accounts receivable amount | $ 675,725 | $ 753,618 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Summary of Inventory (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Parts to repair devices, components and circuit board inventory | $ 1,053,245 | $ 305,210 |
Reserve for damaged or obsolete inventory | 0 | 0 |
Total inventory, net of reserves | $ 1,053,245 | $ 305,210 |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Equipment, software and tooling | $ 1,399,288 | $ 1,332,379 |
Automobiles | 4,187 | 5,034 |
Leasehold improvements | 380,586 | 1,268,486 |
Furniture and fixtures | 215,856 | 212,294 |
Total property and equipment before accumulated depreciation | 1,999,917 | 2,818,193 |
Accumulated depreciation | (1,829,588) | (2,615,967) |
Property, Plant, and Equipment, Excluding Monitoring Equipment [Member] | ||
Property and equipment, net of accumulated depreciation | $ 170,329 | $ 202,226 |
Note 2 - Summary of Significa_7
Note 2 - Summary of Significant Accounting Policies - Summary of Monitoring Equipment (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Monitoring equipment | $ 9,574,740 | $ 9,045,193 |
Less: accumulated depreciation | (5,950,639) | (5,977,093) |
Monitoring equipment, net of accumulated depreciation | $ 3,624,101 | $ 3,068,100 |
Note 2 - Summary of Significa_8
Note 2 - Summary of Significant Accounting Policies - Common Stock Equivalents Excluded from EPS Calculation (Details) - shares | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Issuable Common Stock options and warrants (in shares) | 160,881 | 457,075 | 685,259 |
Total Common Stock equivalents (in shares) | 160,881 | 457,075 | |
Stock Options and Warrants [Member] | |||
Issuable Common Stock options and warrants (in shares) | 160,881 | 457,075 |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Total | $ 6,236,555 | $ 7,163,615 | $ 5,546,213 |
Unbilled Receivables, Current | 777,514 | 420,697 | 509,095 |
Contract with Customer, Liability, Total | 3,299 | 22,500 | $ 147,921 |
Contract with Customer, Liability, Deferred Revenue Recognized | $ 120,958 | $ 155,518 | |
Monitoring and Other Related Services [Member] | |||
Revenue From Contract With Customer, Percent | 97% | 99% |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Customer revenue amount | $ 36,968,499 | $ 39,661,325 |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 100% | 100% |
UNITED STATES | ||
Customer revenue amount | $ 26,427,402 | $ 29,053,294 |
UNITED STATES | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 72% | 73% |
Latin America [Member] | ||
Customer revenue amount | $ 9,389,482 | $ 10,186,554 |
Latin America [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 25% | 26% |
Other than United States and Latin America [Member] | ||
Customer revenue amount | $ 1,151,615 | $ 421,477 |
Other than United States and Latin America [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Customer concentration risk percentage | 3% | 1% |
Note 4 - Other Assets (Details
Note 4 - Other Assets (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Other Assets, Total | $ 3,509,655 | $ 4,309,040 |
Costs for Monitoring Centers and Related Equipment | 1,500,000 | |
Capitalized Contract Cost, Santiago Monitoring Center [Member] | ||
Capitalized Contract Cost, Amortization | $ 494,001 |
Note 5 - Accrued Liabilities -
Note 5 - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Accrued payroll, taxes and employee benefits | $ 1,412,055 | $ 2,279,454 |
Deferred revenue | 3,299 | 22,500 |
Accrued taxes - foreign and domestic | 371,293 | 23,022 |
Accrued other expense | 123,752 | 236,386 |
Accrued legal and other professional costs | 57,905 | 738,306 |
Accrued costs of revenue | 352,060 | 248,963 |
Deferred financing fees | 88,685 | 180,000 |
Accrued interest | 455,963 | 459,086 |
Total accrued liabilities | 3,042,443 | 4,350,030 |
Right-of-use Liability [Member] | ||
Right of use liability | $ 177,431 | $ 162,313 |
Note 6 - Related Parties (Detai
Note 6 - Related Parties (Details Textual) | Sep. 28, 2017 shares |
Stock Issued During Period, Shares, Acquisitions (in shares) | 4,871,745 |
Note 7 - Debt Obligations (Deta
Note 7 - Debt Obligations (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Mar. 01, 2021 USD ($) | Feb. 15, 2021 USD ($) | Feb. 15, 2021 CLP ($) | Feb. 05, 2021 USD ($) | Feb. 05, 2021 CLP ($) | Feb. 04, 2021 USD ($) | Feb. 04, 2021 USD ($) | Feb. 04, 2021 CLP ($) | Feb. 02, 2021 USD ($) | Feb. 02, 2021 CLP ($) | Jan. 12, 2021 USD ($) | Jan. 12, 2021 CLP ($) | Jan. 06, 2021 USD ($) | Jan. 06, 2021 CLP ($) | Oct. 21, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jul. 01, 2021 USD ($) | Feb. 15, 2021 CLP ($) | Feb. 02, 2021 CLP ($) | Jan. 12, 2021 CLP ($) | Dec. 21, 2020 | Dec. 20, 2020 | |
Debt Obligations | $ 30,400,000 | ||||||||||||||||||||||
Accounts Payable and Other Accrued Liabilities, Current | $ 12,531,556 | ||||||||||||||||||||||
Principal Amount | 42,931,556 | $ 42,864,000 | $ 42,864,000 | ||||||||||||||||||||
Conrent Forgave Amount Due | $ 67,556 | ||||||||||||||||||||||
Amortization of Debt Issuance Costs | $ 137,540 | $ 47,667 | $ 360,000 | ||||||||||||||||||||
Repayments of Long-term Debt, Total | $ 678,214 | $ 136,564 | $ 205,330 | $ 338,954 | $ 482,965 | $ 101,186 | |||||||||||||||||
Other Expenses, Total | $ 286 | 2,734 | 3,897 | ||||||||||||||||||||
Broker Fees Others | $ 38,317 | $ 19,304 | $ 27,275 | ||||||||||||||||||||
Chilean Pesos [Member] | |||||||||||||||||||||||
Repayments of Long-term Debt, Total | $ 500,000,000 | $ 99,808,328 | $ 149,794,432 | $ 247,999,300 | $ 347,198,500 | $ 70,443,375 | |||||||||||||||||
Other Expenses, Total | $ 210,485 | $ 2,000,700 | $ 2,801,500 | ||||||||||||||||||||
Broker Fees Others | $ 28,248,588 | $ 14,124,294 | $ 19,607,843 | ||||||||||||||||||||
Agreement with Conrent [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4% | 4% | 4% | 8% | |||||||||||||||||||
Debt Instrument, Increase, Accrued Interest | $ 438,165 | ||||||||||||||||||||||
Note Payable With HP Financial Services Maturing on Feb 6, 2024 [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.56% | 6.56% | |||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.56% | 6.56% | |||||||||||||||||||||
Note Payable With Banco Santander [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.04% | 5.04% | |||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.04% | 5.04% | |||||||||||||||||||||
Note Payable With Banco Estado [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.50% | 3.50% | |||||||||||||||||||||
Note Payable with HP Financial Services Maturing on March 4, 2024 [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.61% | 6.61% | |||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.61% | 6.61% | 6.61% | ||||||||||||||||||||
Note Payable with Banco De Chile Maturing on March 4, 2024 [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% | |||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.54% | 2.54% | |||||||||||||||||||||
Note Payable with Banco De Chile Maturing on Feb 17, 2025 [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.12% | 3.12% | |||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.12% | 3.12% |
Note 7 - Debt Obligations - Sum
Note 7 - Debt Obligations - Summary of Debt Obligations (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Debt obligations, net of unamortized issuance costs | $ 43,435,924 | $ 43,978,350 |
Less: current portion | (456,681) | (526,134) |
Long-term debt, net of current portion | 42,979,243 | 43,452,216 |
Agreement with Conrent [Member] | ||
Debt obligations, net of unamortized issuance costs | 42,653,649 | 42,533,449 |
Note Payable With HP Financial Services Maturing on Feb 6, 2024 [Member] | ||
Debt obligations, net of unamortized issuance costs | 35,335 | 70,176 |
Note Payable With Banco Santander [Member] | ||
Debt obligations, net of unamortized issuance costs | 177,463 | 332,354 |
Note Payable With Banco Estado [Member] | ||
Debt obligations, net of unamortized issuance costs | 135,521 | 279,869 |
Note Payable with HP Financial Services Maturing on March 4, 2024 [Member] | ||
Debt obligations, net of unamortized issuance costs | 79,375 | 153,984 |
Note Payable with Banco De Chile Maturing on March 4, 2024 [Member] | ||
Debt obligations, net of unamortized issuance costs | 51,278 | 101,447 |
Note Payable with Banco De Chile Maturing on Feb 17, 2025 [Member] | ||
Debt obligations, net of unamortized issuance costs | $ 303,303 | $ 507,071 |
Note 7 - Debt Obligations - S_2
Note 7 - Debt Obligations - Summary of Debt Obligations (Details) (Parentheticals) - USD ($) | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 21, 2020 | Dec. 20, 2020 | |
Debt instrument, unamortized issuance costs | $ 246,590 | |||
Agreement with Conrent [Member] | ||||
Debt instrument, face amount | $ 42,864,000 | $ 42,864,000 | ||
Debt instrument, interest rate | 4% | 4% | 4% | 8% |
Interest paid | $ 876,331 | $ 862,043 | ||
Note Payable With HP Financial Services Maturing on Feb 6, 2024 [Member] | ||||
Debt instrument, interest rate | 6.56% | 6.56% | ||
Note Payable With Banco Santander [Member] | ||||
Debt instrument, interest rate | 5.04% | 5.04% | ||
Debt instrument, unamortized issuance costs | $ 11,352 | |||
Note Payable With Banco Estado [Member] | ||||
Debt instrument, interest rate | 3.50% | 3.50% | ||
Debt instrument, unamortized issuance costs | $ 7,419 | $ 7,419 | ||
Note Payable with HP Financial Services Maturing on March 4, 2024 [Member] | ||||
Debt instrument, interest rate | 6.61% | 6.61% | ||
Note Payable with Banco De Chile Maturing on March 4, 2024 [Member] | ||||
Debt instrument, interest rate | 2.54% | 2.54% | ||
Debt instrument, unamortized issuance costs | $ 161 | $ 161 | ||
Note Payable with Banco De Chile Maturing on Feb 17, 2025 [Member] | ||||
Debt instrument, interest rate | 3.12% | 3.12% | ||
Debt instrument, unamortized issuance costs | $ 17,307 | $ 17,307 |
Note 7 - Debt Obligations - Fut
Note 7 - Debt Obligations - Future Maturities of Debt Obligations (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
2023 | $ 456,681 | |
2024 | 43,168,809 | |
2025 | 57,024 | |
2026 | 0 | |
Total | 43,682,514 | |
Issuance costs | (246,590) | |
Debt obligations, net of unamortized issuance costs | $ 43,435,924 | $ 43,978,350 |
Note 8 - Preferred Stock (Detai
Note 8 - Preferred Stock (Details Textual) | 12 Months Ended | ||
Sep. 30, 2022 $ / shares shares | Sep. 30, 2021 $ / shares shares | Oct. 12, 2017 shares | |
Preferred Stock, Shares Authorized (in shares) | 20,000,000 | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.0001 | ||
Series A Convertible Preferred Stock [Member] | |||
Preferred Stock, Shares Authorized (in shares) | 1,200,000 | 1,200,000 | 1,200,000 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Preferred Stock, Liquidation Preference Per Share (in dollars per share) | $ / shares | $ 35 | ||
Preferred Stock, Convertible, Conversion Ratio | 10 | ||
Preferred Stock, Convertible, Convertibility, Period After Date of Issuance (Day) | 540 days | ||
Preferred Stock, Shares Issued, Total (in shares) | 0 | ||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Note 9 - Common Stock (Details
Note 9 - Common Stock (Details Textual) - $ / shares | Apr. 14, 2022 | Apr. 13, 2022 | Dec. 30, 2021 | Dec. 28, 2021 | Sep. 30, 2022 | Sep. 30, 2021 |
Common Stock, Shares Authorized (in shares) | 30,000,000 | 30,000,000 | ||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Restricted Stock [Member] | ||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 285,000 | |||||
Director [Member] | ||||||
Issuance of Common Stock for Options Warrants Exercised, Shares (in shares) | 37,306 | 9,191 | 7,283 | |||
Class of Warrant or Right, Exercised During Period (in shares) | 9,191 | |||||
Director [Member] | Warrants 1 [Member] | ||||||
Class of Warrant or Right, Exercised During Period (in shares) | 14,988 | |||||
Director [Member] | Warrants 2 [Member] | ||||||
Class of Warrant or Right, Exercised During Period (in shares) | 2,385 | |||||
Director [Member] | Warrants 1 [Member] | ||||||
Class of Warrant or Right, Exercised During Period (in shares) | 64,665 | |||||
Director [Member] | Warrants 2 [Member] | ||||||
Class of Warrant or Right, Exercised During Period (in shares) | 8,868 | |||||
Management [Member] | Restricted Stock [Member] | ||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 185,000 | |||||
Management 2 [Member] | Restricted Stock [Member] | ||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 100,000 |
Note 10 - Stock Options and W_3
Note 10 - Stock Options and Warrants (Details Textual) - USD ($) | 12 Months Ended | |||
Apr. 13, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock Issued During Period, Value, Issued for Services | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 215,000 | |||
Share Price (in dollars per share) | $ 0.51 | $ 3 | ||
Director [Member] | ||||
Warrants and Rights Outstanding, Term (Year) | 5 years | |||
Employees [Member] | Minimum [Member] | ||||
Class of Warrant or Right, Vesting Period (Year) | 2 years | |||
Employees [Member] | Maximum [Member] | ||||
Class of Warrant or Right, Vesting Period (Year) | 3 years | |||
Restricted Stock [Member] | ||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 285,000 | |||
Stock Issued During Period, Value, Issued for Services | $ 370,500 | |||
Stock Options and Warrants [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 0 | |||
Share Price (in dollars per share) | $ 0.51 | |||
Stock Options and Warrants [Member] | Director [Member] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 0 | |||
The 2022 Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 500,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 207,547 | |||
The 2022 Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 207,547 | $ 0 | ||
The 2012 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | |||
Class of Warrant or Right, Issued During Period (in shares) | 0 | 0 | ||
The 2012 Plan [Member] | Employees [Member] | ||||
Options and Warrants, Expiration Term Following the Final Vesting Date of Grant (Year) | 5 years | |||
The 2012 Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 0 |
Note 10 - Stock Options and W_4
Note 10 - Stock Options and Warrants - Summary of Stock Options and Warrants Activity (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Outstanding (in shares) | 457,075 | 685,259 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.74 | $ 1.56 | |
Outstanding, weighted average remaining contractual life (Year) | 7 months 6 days | 1 year 14 days | 1 year 10 months 24 days |
Outstanding, aggregate intrinsic value | $ 225 | $ 0 | $ 0 |
Expired (in shares) | (196,097) | 0 | |
ExpiredExpired, weighted average exercise price (in dollars per share) | $ (2.41) | $ 0 | |
Exercised (in shares) | (100,097) | (228,184) | |
Exercised (in dollars per share) | $ (1.23) | $ (1.21) | |
Outstanding (in shares) | 160,881 | 457,075 | 685,259 |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.24 | $ 1.74 | $ 1.56 |
Exercisable (in shares) | 160,881 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 1.24 | ||
Exercisable, weighted average remaining contractual life (Year) | 7 months 6 days | ||
Exercisable, aggregate intrinsic value | $ 225 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred Tax Assets, Capital Loss Carryforwards | $ 168,513,709 | $ 31,947,293 |
Note 11 - Income Taxes - Deferr
Note 11 - Income Taxes - Deferred Income Tax Assets (Liabilities) (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Net loss carryforwards | $ 34,261,003 | $ 34,505,872 |
Accruals and reserves | 723,617 | 840,656 |
Severance indemnity reserve | 76,918 | 88,495 |
Contributions | 2,478 | 1,028 |
Depreciation and amortization | (219,722) | 75,339 |
Stock-based compensation | 109,397 | 633,677 |
Valuation allowance | (35,182,109) | (36,043,908) |
Net liability | $ (228,418) | |
Net asset | $ 101,159 |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Federal income tax benefit at statutory rate | $ (78,091) | $ 739,557 |
State income tax benefit, net of federal income tax effect | 42,086 | 149,910 |
Effect of foreign income taxes | 679,605 | 644,307 |
Return to Provision | (4,473) | 65,144 |
Withholding Taxes | 147,109 | 61,999 |
Deferred only adjustment | 471,609 | (896,662) |
Gain/(Loss) on deductible expenses | 487,442 | 120,624 |
Change in valuation allowance | (861,799) | (167,770) |
Provision for income taxes | $ 883,488 | $ 717,109 |
Note 12 - Commitments and Con_3
Note 12 - Commitments and Contingencies (Details Textual) | 12 Months Ended | ||||||
Jun. 10, 2022 USD ($) | May 09, 2022 USD ($) | Mar. 01, 2021 USD ($) | Mar. 24, 2017 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Oct. 01, 2019 USD ($) | |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 4 years | ||||||
Operating Lease, Weighted Average Discount Rate, Percent | 4% | ||||||
Number of Performance Bonds in Connection with a Foreign Customer | 2 | 2 | |||||
Performance Bonds in Connection with a Foreign Customer | $ 2,027,970 | ||||||
Performance Bonds in Connection with a Foreign Customer, Amount Held in an Interest-bearing Account on Behalf of Customer | 1,449,497 | ||||||
Performance Bonds in Connection with a Foreign Customer, Amount Guaranteed By a Foreign Financial Institution | 578,473 | ||||||
Performance Bonds in Connection with a Foreign Customer, Amount to be Released Upon Expiration in Next Fiscal Year | 284,426 | ||||||
Performance Bonds in Connection with a Foreign Customer, Amount to be Released Upon Expiration in Third Fiscal Year | 1,165,071 | ||||||
Deposit Assets, Total | $ 653,220 | ||||||
Performance Bonds in Connection with a Foreign Customer, Bonds Expiring in Next Fiscal Year, Interest Rate | 3.50% | ||||||
Performance Bonds in Connection with a Foreign Customer, Bonds Expiring in Third Fiscal Year, Interest Rate | 2.80% | ||||||
Performance Bonds in Connection with a Foreign Customer, Interest Expense | $ 56,343 | $ 68,204 | |||||
Lease Assets [Member] | |||||||
Operating Lease, Right-of-Use Asset | $ 597,289 | ||||||
Minimum [Member] | |||||||
Portion Guaranteed by Financial Institution, Percentage | 30% | ||||||
Maximum [Member] | |||||||
Portion Guaranteed by Financial Institution, Percentage | 65% | ||||||
SecureAlert, Inc. v. Federal Government of Mexico [Member] | |||||||
Claim Amount | $ 6,000,000 | ||||||
Eli Sabag v Track Group Inc et al [Member] | Settled Litigation [Member] | |||||||
Litigation Settlement, Amount Awarded to Other Party | $ 1,600,000 | ||||||
Jesus Valle Gonzalez, et.al v. Track Group Puerto Rico [Member] | Pending Litigation [Member] | Minimum [Member] | |||||||
Loss Contingency, Damages Sought, Value | $ 1,500,000 |
Note 12 - Commitments and Con_4
Note 12 - Commitments and Contingencies - Right of Use Assets and Lease Liabilities (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Other Assets [Member] | ||
Operating lease asset | $ 575,716 | $ 165,963 |
Accounts Payable and Accrued Liabilities [Member] | ||
Lease liabilities - current | 177,431 | 162,313 |
Other Noncurrent Liabilities [Member] | ||
Lease liabilities - long-term | $ 398,285 | $ 3,650 |
Note 12 - Commitments and Con_5
Note 12 - Commitments and Contingencies - Cash Flow Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for noncancelable operating leases included in operating cash flows | $ 272,921 | $ 304,693 |
Right of use assets obtained in exchange for operating lease liabilities: | $ 2,245 |
Note 12 - Commitments and Con_6
Note 12 - Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
From October 2022 to September 2023 | $ 198,236 | |
From October 2023 to September 2024 | 163,851 | |
From October 2024 to September 2025 | 91,480 | |
From October 2025 to September 2026 | 93,267 | |
From October 2026 to September 2027 | 78,740 | |
Undiscounted Cash Flow | 625,574 | |
Less: imputed interest | (49,858) | |
Total | 575,716 | |
Under ASC 840 [Member] | ||
Thereafter | 0 | |
Accounts Payable and Accrued Liabilities [Member] | ||
Lease liabilities - current | 177,431 | $ 162,313 |
Long-term Liabilities [Member] | ||
Lease liabilities - long-term | 398,285 | |
Lease Liabilities [Member] | ||
Total | $ 575,716 |
Note 12 - Commitments and Con_7
Note 12 - Commitments and Contingencies - Operating Lease Revenue Associated With Monitoring Equipment (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Monitoring equipment operating revenue | $ 29,867,266 | $ 33,749,781 |
Note 13 - Intangible Assets (De
Note 13 - Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Amortization of Intangible Assets | $ 3,277,088 | $ 2,513,862 |
Write off of Amortized Intangible Assets | 1,860,000 | $ 1,353,425 |
Impairment of Intangible Assets (Excluding Goodwill), Total | $ 1,728,961 | |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years |
Note 13 - Intangible Assets - I
Note 13 - Intangible Assets - Intangible Asset Activity (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Gross carrying amount | $ 30,465,686 | $ 38,041,600 |
Accumulated amortization | (14,804,269) | (17,607,457) |
Intangible assets, net of accumulated amortization | 15,661,417 | 20,434,143 |
Patents [Member] | ||
Gross carrying amount | 21,120,565 | 21,120,565 |
Developed Technology Rights [Member] | ||
Gross carrying amount | 9,206,006 | 14,919,562 |
Customer Relationships [Member] | ||
Gross carrying amount | 0 | 1,860,000 |
Trade Names [Member] | ||
Gross carrying amount | $ 139,115 | $ 141,473 |
Note 13 - Intangible Assets - F
Note 13 - Intangible Assets - Future Maturities of Amortization of Intangible Assets (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Total | $ 15,661,417 | $ 20,434,143 |
Amortization [Member] | ||
2023 | 2,317,048 | |
2024 | 2,364,084 | |
2025 | 2,363,913 | |
2026 | 2,363,913 | |
2027 | 2,279,461 | |
Thereafter | 3,335,498 | |
Total | 15,023,917 | |
STOP Royalty [Member] | ||
2023 | 450,000 | |
2024 | 187,500 | |
2025 | 0 | |
2026 | 0 | |
2027 | ||
Thereafter | ||
Total | $ 637,500 |
Note 13 - Intangible Assets - G
Note 13 - Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Balance - beginning of year | $ 8,519,998 | $ 8,220,380 |
Effect of foreign currency translation on goodwill | (458,996) | 299,618 |
Balance - end of year | $ 8,061,002 | $ 8,519,998 |