Dynasil Corporation of America (DYSL) 10-Q 13 Feb 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Feb. 07, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	DYNASIL CORP OF AMERICA
Entity Central Index Key	30,831
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	DYSL
Entity Common Stock, Shares Outstanding		16,960,329

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Current Assets
Cash and cash equivalents	$ 1,624,000	$ 2,607,000
Accounts receivable, net of allowances of $175,000 and $171,000 at December 31, 2016 and September 30, 2016, respectively	3,835,000	3,502,000
Costs in excess of billings and unbilled receivables	959,000	1,208,000
Inventories, net of reserves	3,916,000	3,726,000
Prepaid expenses and other current assets	1,358,000	1,078,000
Total current assets	11,692,000	12,121,000
Property, Plant and Equipment, net	6,936,000	7,223,000
Other Assets
Intangibles, net	1,033,000	1,067,000
Deferred tax asset	2,726,000	0
Goodwill	5,822,000	5,898,000
Security deposits	43,000	60,000
Total other assets	9,624,000	7,025,000
Total Assets	28,252,000	26,369,000
Current Liabilities
Current portion of long-term debt	1,950,000	2,477,000
Capital lease obligations, current	103,000	105,000
Convertible notes	0	3,085,000
Accounts payable	1,513,000	1,627,000
Deferred revenue	240,000	238,000
Accrued expenses and other liabilities	2,079,000	2,955,000
Total current liabilities	5,885,000	10,487,000
Long-term Liabilities
Long-term debt, net of current portion	1,545,000	736,000
Capital lease obligations, net of current portion	147,000	173,000
Deferred tax liability	246,000	263,000
Other long-term liabilities	39,000	43,000
Total long-term liabilities	1,977,000	1,215,000
Stockholders' Equity
Common Stock, $0.0005 par value, 40,000,000 shares authorized, 17,720,215 and 17,677,284 shares issued, 16,910,055 and and 16,867,124 shares outstanding at December 31, 2016 and September 30, 2016, respectively.	9,000	9,000
Additional paid in capital	21,070,000	20,128,000
Accumulated other comprehensive income (loss)	(994,000)	(699,000)
Accumulated deficit	(305,000)	(3,479,000)
Less 810,160 shares of treasury stock - at cost	(986,000)	(986,000)
Total Dynasil stockholders' equity	18,794,000	14,973,000
Noncontrolling interest	1,596,000	(306,000)
Total stockholders' equity	20,390,000	14,667,000
Total Liabilities and Stockholders' Equity	$ 28,252,000	$ 26,369,000

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Allowance for doubtful accounts (in dollars)	$ 175,000	$ 171,000
Common stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	17,720,215	17,677,284
Common stock, shares outstanding	16,910,055	16,867,124
Treasury stock, shares	810,160	810,160

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Net revenue	$ 9,143,000	$ 11,204,000
Cost of revenue	5,618,000	7,239,000
Gross profit	3,525,000	3,965,000
Operating expenses:
Sales and marketing	266,000	334,000
Research and development	196,000	288,000
General and administrative	2,987,000	3,183,000
Gain on sale of assets	0	(4,000)
Total operating expenses	3,449,000	3,801,000
Income (loss) from operations	76,000	164,000
Interest expense, net	67,000	59,000
Income (loss) before taxes	9,000	105,000
Income taxes (benefit)	(2,730,000)	36,000
Net income (loss)	2,739,000	69,000
Less: Net loss attributable to noncontrolling interest	(69,000)	(37,000)
Net income (loss) attributable to common stockholders	2,808,000	106,000
Net income (loss)	2,739,000	69,000
Other comprehensive income (loss):
Foreign currency translation	(295,000)	(114,000)
Total comprehensive loss	$ 2,444,000	$ (45,000)
Basic net income (loss) per common share	$ 0.17	$ 0.01
Diluted net income (loss) per common share	$ 0.17	$ 0.01
Weighted average shares outstanding
Basic	16,808,729	16,551,197
Diluted	16,808,729	16,578,634

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - 3 months ended Dec. 31, 2016 - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Balance at Sep. 30, 2016	$ 14,667,000	$ 9,000	$ 20,128,000	$ (699,000)	$ (3,479,000)	$ (986,000)	$ (306,000)
Balance (in shares) at Sep. 30, 2016		17,677,284				810,160
Issuance of shares of common stock under employee stock purchase plan	4,000	$ 0	4,000	0	0	$ 0	0
Issuance of shares of common stock under employee stock purchase plan (in shares)		3,790				0
Stock-based compensation costs	89,000	$ 0	72,000	0	0	$ 0	17,000
Stock-based compensation costs (in shares)		39,141				0
Stock options issued to settle liabilities	82,000	$ 0	82,000	0	0	$ 0	0
Recapitalization of Xcede	3,104,000	0	784,000	0	366,000	0	1,954,000
Foreign currency translation adjustment	(295,000)	0	0	(295,000)	0	0	0
Net income (loss)	2,739,000	0	0	0	2,808,000	0	(69,000)
Balance at Dec. 31, 2016	$ 20,390,000	$ 9,000	$ 21,070,000	$ (994,000)	$ (305,000)	$ (986,000)	$ 1,596,000
Balance (in shares) at Dec. 31, 2016		17,720,215				810,160

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 2,739,000	$ 69,000
Adjustments to reconcile net income (loss) to net cash:
Stock compensation expense	89,000	119,000
Foreign exchange loss (gain)	41,000	26,000
Depreciation and amortization	311,000	325,000
Deferred income taxes	(2,730,000)	(24,000)
Provision for inventory reserves	(3,000)	6,000
Other	76,000	34,000
Other changes in assets and liabilities:
Accounts receivable, net	(374,000)	(1,101,000)
Inventories	(280,000)	(218,000)
Costs in excess of billings and unbilled receivables	249,000	231,000
Prepaid expenses and other assets	189,000	(32,000)
Accounts payable	(99,000)	34,000
Accrued expenses and other liabilities	(790,000)	(303,000)
Deferred revenue	2,000	136,000
Net cash from operating activities	(580,000)	(698,000)
Cash flows from investing activities:
Purchases of property, plant and equipment	(111,000)	(603,000)
Net cash from investing activities	(111,000)	(603,000)
Cash flows from financing activities:
Proceeds from issuance of common stock	4,000	4,000
Net proceeds from issuance of convertible notes	0	390,000
Principal payments on capital leases	(28,000)	(46,000)
Proceeds from (payments of) line of credit, net	0	798,000
Proceeds from (payments of) bank and subordinated debt, net	(219,000)	(25,000)
Net cash from financing activities	(243,000)	1,121,000
Effect of exchange rates on cash and cash equivalents	(49,000)	(14,000)
Net change in cash and cash equivalents	(983,000)	(194,000)
Cash and cash equivalents, beginning	2,607,000	1,295,000
Cash and cash equivalents, ending	1,624,000	1,101,000
Non cash activities:
Assets purchased under capital leases	0	134,000
Recapitalization of Xcede - conversion of non controlling notes payable to preferred stock	3,104,000	0
Subsidiary stock options issued to settle liabilities	82,000	0
Subsidiary debt issued to fund research activities	$ 500,000	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	Note 1 - Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2016, the consolidated statements of operations and comprehensive income (loss) for the three months ended December 31, 2016 and 2015, changes in stockholders’ equity for the three months ended December 31, 2016 and cash flows for the three months ended December 31, 2016 and 2015 of Dynasil Corporation of America and subsidiaries (the “Company”), and the related information contained in these notes have been prepared by management and are unaudited. Xcede Technologies, Inc. (“Xcede”) is a joint venture between Dynasil Biomedical and Mayo Clinic to spin out and separately fund the development of a tissue sealant technology. As of December 31, 2016, Dynasil Biomedical owned 59 41 The preparation of our unaudited consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's September 30, 2016 Annual Report on Form 10-K previously filed by the Company with the Securities and Exchange Commission. The Company considers events or transactions that have occurred after the unaudited consolidated balance sheet date of December 31, 2016, but prior to the filing of the unaudited consolidated financial statements with the SEC on this Quarterly Report on Form 10-Q, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure, as applicable. Subsequent events have been evaluated through the date of the filing of this Quarterly Report on Form 10-Q with the SEC.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 2 – Recent Accounting Pronouncements Effective October 1, 2016, the Company adopted the guidance issued in Accounting Standards Update 2014-12, Compensation—Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Effective October 1, 2016, the Company adopted the guidance issued in Accounting Standards Update 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Effective October 1, 2016, the Company adopted the guidance issued in Accounting Standards Update 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments Revenue from Contracts with Customers (Topic 606) Section A—Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). Revenue from Contracts with Customers Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, Preparation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August 2014, the FASB issued ASU No. 2014-15, which states that under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this ASU should be followed to determine whether to disclose information about the relevant conditions and events. The new guidance is effective for the Company’s annual reporting for fiscal 2017, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company is assessing the impact of this ASU on its consolidated financial statements and plans to adopt it in the fourth quarter of fiscal year 2017. Business Combinations (Topic 805): Clarifying the Definition of a Business: In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for the Company beginning October 1, 2018. The Company is currently in the process of assessing the impact of this ASU on its consolidated financial statements. Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment: In January 2017, the FASB issued ASU 2017-04, which simplifies the test for goodwill impairment. This new guidance is effective for the Company beginning in fiscal year 2021. The Company is currently in the process of assessing the impact of this ASU on its consolidated financial statements.

Xcede Technologies, Inc. Joint

Xcede Technologies, Inc. Joint Venture	3 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments and Joint Ventures Disclosure [Text Block]	Note 3 – Xcede Technologies, Inc. Joint Venture In October 2013, the Company, through its subsidiary Dynasil Biomedical (“DBM”) formed Xcede, a joint venture with Mayo Clinic, in order to spin out and separately fund the development of its hemostatic tissue sealant technology, which formerly comprised the majority of its expense within the biomedical segment. Beginning at its inception and through November 2016, Xcede funded its pre-clinical research activities through the issuance of convertible notes bearing interest at 5 5.2 In November 2016, Dynasil committed to invest $ 1.2 5.5 5,394,120 20 3.5 5.5 2.0 1.7 0.3 Series A Preferred participants include both outside investors (accounted for as noncontrolling interest) and DBM. The outside investors converted $ 3.1 3,055,551 2.4 2,338,569 Each share of Series A Preferred and Series B Preferred (together “the Preferred Stock”) shall be convertible, at the option of the holder, into such number of fully paid and non-assessable shares of Xcede common stock (“Common Stock”) as determined by dividing the original issue price, as defined, by the conversion price in effect on the date of conversion, which is 1:1. Each holder of the Preferred Stock shall have one vote for each share of Common Stock that the holder of the Preferred Stock would be entitled to receive upon the conversion of the holder’s Preferred Stock into Common Stock. Upon any liquidation event, which includes certain change of control events, following payment of pre-equity distributions, the remaining proceeds or net assets of Xcede shall be paid and distributed in the following amounts and order of priority: (1) to satisfy the liquidation preference payment due to each holder of Series B Preferred, (2) to satisfy the liquidation preference payment due to each holder of Series A Preferred, (3) payment in full of any acquisition transaction payment, and (4) the remaining assets available to be distributed ratably among the holders of the Common Stock. If a liquidation event were to occur, the Series A Preferred’s liquidation value would be $ 1.016 1.27 0.2 5.5 2.4 3.1 As of December 31, 2016, DBM owned approximately 59 Noncontrolling interest represents the value of the Series A Preferred and common stock not owned by DBM plus 17% of cumulative losses of Xcede based on the 17% common stock ownership held by noncontrolling interests. Due to the issuance of Preferred Stock, DBM’s ownership percentage in Xcede decreased to less than 80%. Based on this ownership percentage, beginning in fiscal year 2017, Xcede will no longer be included in the Dynasil consolidated federal tax return and the Company will no longer be able to offset taxable income or benefit from net operating losses and other tax attributes related to Xcede. (See Note 11 – Income Taxes.) As previously disclosed, in January 2016, Xcede announced that it had signed three agreements with Cook Biotech Inc. of West Lafayette, Indiana (“Cook”), including a Development Agreement, a License Agreement and a Supply Agreement, in connection with the development, regulatory approval and production of Xcede’s resorbable hemostatic patch (“Xcede’s Patch”). In November 2016, Xcede entered into another Services Agreement, a Secured Promissory Note, a Loan Agreement, a Security Agreement and an Intellectual Property Security Agreement (collectively the “Note Agreement”) with Cook, in which Cook committed to fund the pre-clinical testing of, and subject to the receipt of applicable regulatory approvals to initiate first in human clinical trials for, the Xcede Patch. Under the terms of the Note Agreement, in exchange for the services performed by Cook, Xcede has committed to a multiple draw credit facility in the aggregate amount not to exceed $ 1.5 500,000 2 December 31, 2025 38,000

Inventories

Inventories	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 4 - Inventories December 31, September 30, 2016 2016 Raw Materials $ 2,024,000 $ 1,938,000 Work-in-Process 690,000 834,000 Finished Goods 1,202,000 954,000 $ 3,916,000 $ 3,726,000

Intangible Assets

Intangible Assets	3 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	Note 5 – Intangible Assets Useful Gross Accumulated December 31, 2016 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 683,000 $ 467,000 $ 216,000 Know How 15 512,000 290,000 222,000 Trade Names Indefinite 258,000 - 258,000 Patents 20 345,000 8,000 337,000 Biomedical Technologies 5 260,000 260,000 - $ 2,058,000 $ 1,025,000 $ 1,033,000 Useful Gross Accumulated September 30, 2016 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 718,000 $ 473,000 $ 245,000 Know How 15 512,000 282,000 230,000 Trade Names Indefinite 272,000 - 272,000 Patents 20 326,000 6,000 320,000 Biomedical Technologies 5 260,000 260,000 - $ 2,088,000 $ 1,021,000 $ 1,067,000 Amortization expense for the three months ended December 31, 2016 and 2015 was $ 26,000 44,000 2017 (9 months) 2018 2019 2020 2021 Thereafter Total Acquired Customer Base $ 60,000 $ 80,000 $ 76,000 $ - $ - $ - $ 216,000 Know How 26,000 34,000 34,000 34,000 34,000 60,000 222,000 Patents 6,000 9,000 9,000 9,000 9,000 79,000 121,000 $ 92,000 $ 123,000 $ 119,000 $ 43,000 $ 43,000 $ 139,000 $ 559,000 As of December 31, 2016, Xcede had $216,000 in patents that have not been granted, therefore, the amortization related to these patents is not included in the five-year amortization table above. The Company continually assesses whether events or changes in circumstances have occurred that may warrant revision of the estimated useful lives of its long-lived assets or whether the remaining balances of those assets should be evaluated for possible impairment. There were no changes, aside from foreign exchange rate fluctuations, in the carrying value of long-lived assets, during the three months ended December 31, 2016.

Goodwill

Goodwill	3 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill Disclosure [Text Block]	Note 6 – Goodwill Goodwill is subject to an annual impairment test. The Company considers many factors which may indicate the requirement to perform additional, interim impairment tests. These include: · A significant adverse long term outlook for any of its industries; · An adverse finding or rejection from a regulatory body involved in new product regulatory approvals; · Failure of an anticipated commercialization of a product or product line; · Unanticipated competition or the introduction of a disruptive technology; · The testing for recoverability under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 of a significant asset group within a reporting unit; · A loss of key personnel; and · An expectation that a reporting unit carrying goodwill, or a significant portion of a reporting unit, will be sold or otherwise disposed of. There were no changes, aside from foreign exchange rate fluctuations, in the carrying value of goodwill, during the three months ended December 31, 2016.

Debt

Debt	3 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 7 – Debt Senior Debt The Bank Loan Agreement between the Company and Middlesex Savings Bank was amended on December 2, 2016 to permit the Company to invest up to $ 1.2 Subordinated Debt On December 15, 2016, the Company amended the Note Purchase Agreement with Massachusetts Capital Resource Company to reinstate the interest only payment requirements of the loan and defer principal repayment requirements to November 30, 2017. Such amendment also extended the maturity date from July 31, 2018 to July 31, 2019. Subsidiary Debt In November 2016, the Xcede convertible notes along with related accrued interest were converted into 5,394,120

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	3 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 8 – Earnings (Loss) Per Common Share Basic earnings (loss) per common share is computed by dividing the net income or loss attributable to common shares by the weighted average number of common shares outstanding. Diluted earnings per common share adjusts basic earnings per share for the effects of common stock options, common stock warrants, convertible preferred stock and other potential dilutive common shares outstanding during the periods. For purposes of computing diluted earnings per share for the three months ended December 31, 2016 and 2015, no common stock options were included in the calculation of dilutive shares as all of the 123,147 58,212 For the three months ended December 31, 2016, 90,000 27,437 December 31, 2016 December 31, 2015 Weighted average shares outstanding Basic 16,808,729 16,551,197 Effect of dilutive securities Stock Options - - Restricted Stock - 27,437 Dilutive Average Shares Outstanding 16,808,729 16,578,634

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 9 - Stock Based Compensation The fair value of the stock options granted is estimated at the date of grant using the Black-Scholes option pricing model. The expected volatility was determined with reference to the historical volatility of the Company's stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that the options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate in effect at the time of grant. The dividend yield is expected to be zero because historically the Company has not paid dividends on common stock. The Company’s Xcede joint venture adopted an Equity Incentive Plan in 2013 which provides for, among other incentives, the granting of options to purchase shares in Xcede’s common stock to officers, directors, employees and consultants. The options granted generally vest over a three year period. The fair value of the stock options granted is estimated at the date of grant using the Black-Scholes option pricing model using assumptions generally consistent with those used for Company stock options. Because Xcede is not publicly traded, the expected volatility is estimated with reference to the average historical volatility of a group of publicly traded companies that are believed to have similar characteristics to Xcede. Three Months Ended Three Months Ended Stock Compensation Expense December 31, 2016 December 31, 2015 Stock Grants $ 39,000 $ 83,000 Restricted Stock Grants 13,000 8,000 Option Grants 12,000 6,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 24,000 21,000 Total $ 89,000 $ 119,000 At December 31, 2016, there was approximately $ 140,000 fourteen Restricted Stock Grants Restricted Stock Activity for the Three Months ended Weighted-Average December 31, 2016 Shares Grant-Date Fair Value Nonvested at September 30, 2016 100,000 $ 1.73 Granted - - Vested (10,000) $ 1.70 Cancelled - - Nonvested and expected to vest at December 31, 2016 90,000 $ 1.73 Stock Option Grants During the three months ended December 31, 2016, no Dynasil stock options were granted. Weighted Average Weighted Average Options Exercise Price per Remain Contractual Outstanding Share Term (in Years) Balance at September 30, 2016 123,147 $ 2.30 1.69 Outstanding and exercisable at September 30, 2016 123,147 $ 2.30 1.69 Granted - - Exercised - - Cancelled - - Balance at December 31, 2016 123,147 $ 2.30 1.43 Outstanding and exercisable at December 31, 2016 123,147 $ 2.30 1.43 Subsidiary Stock Option Grants During the three months ended December 31, 2016, 428,000 1.00 228,000 75,000 200,000 three ten Expected term in years 10 years Risk-free interest rate 2.37 % Expected volatility 83.12 % Expected dividend yield 0.00 % Weighted Average Weighted Average Options Exercise Price per Remain Contractual Outstanding Share Term (in Years) Balance at September 30, 2016 613,653 1.00 8.35 Outstanding and exercisable at September 30, 2016 320,586 1.00 8.01 Granted 428,000 1.00 Exercised - - Cancelled - - Balance at December 31, 2016 1,041,653 1.00 8.84 Outstanding and exercisable at December 31, 2016 629,126 1.00 8.74 At December 31, 2016, the Company’s Xcede joint venture had $ 163,000 seventeen

Segment, Customer and Geographi

Segment, Customer and Geographical Reporting	3 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Note 10 – Segment, Customer and Geographical Reporting Segment Financial Information Dynasil reports three reportable segments: contract research (“Contract Research”), optics (“Optics”) and biomedical (“Biomedical”). Within these segments, there is a segregation of operating segments based upon the organizational structure used to evaluate performance and make decisions on resource allocation, as well as availability and materiality of separate financial results consistent with that structure. The Optics segment aggregates four operating segments – Dynasil Fused Silica, Optometrics, Hilger Crystals, and Evaporated Metal Films – that manufacture commercial products, including optical crystals for sensing in the security and medical imaging markets, as well as optical components, optical coatings and optical materials for scientific instrumentation and other applications. The Contract Research segment is one of the largest small business participants in U.S. government-funded research. The Biomedical segment consists of a single operating segment, Dynasil Biomedical Corporation (“Dynasil Biomedical”), a medical technology incubator which owns rights to certain early stage medical technologies. Dynasil Biomedical holds common and preferred stock in the Xcede joint venture which is developing a tissue sealant technology and currently has no other operations. Results of Operations for the Three Months Ended December 31, 2016 Contract Optics Research Biomedical Total Revenue $ 4,405,000 $ 4,738,000 $ - $ 9,143,000 Gross profit 1,574,000 1,951,000 - 3,525,000 GM % 36 % 41 % - 39 % SG&A 1,328,000 1,740,000 381,000 3,449,000 Operating income (loss) 246,000 211,000 (381,000) 76,000 Depreciation and amortization 234,000 74,000 3,000 311,000 Capital expenditures 91,000 - 20,000 111,000 Intangibles, net 474,000 222,000 337,000 1,033,000 Goodwill 883,000 4,939,000 - 5,822,000 Total assets $ 18,785,000 $ 8,407,000 $ 1,060,000 $ 28,252,000 Results of Operations for the Three Months Ended December 31, 2015 Contract Optics Research Biomedical Total Revenue $ 6,214,000 $ 4,990,000 $ - $ 11,204,000 Gross profit 2,110,000 1,855,000 - 3,965,000 GM % 34 % 37 % - 35 % SG&A 1,751,000 1,706,000 348,000 3,805,000 Gain on sale of assets 4,000 - - 4,000 Operating income (loss) 363,000 149,000 (348,000) 164,000 Depreciation and amortization 228,000 80,000 17,000 325,000 Capital expenditures 565,000 7,000 31,000 603,000 Intangibles, net 644,000 256,000 297,000 1,197,000 Goodwill 1,155,000 4,939,000 - 6,094,000 Total assets $ 16,506,000 $ 8,273,000 $ 857,000 $ 25,636,000 Customer Financial Information For the three months ended December 31, 2016, no customer in the Optics segment represented more than 10% of the total segment revenue. For the three months ended December 31, 2015, one customer in the Optics segment represented more than 10 For the three months ended December 31, 2016, three customers of the Contract Research segment, all various agencies of the U.S. Government, each represented more than 10 10 Geographic Financial Information Three Months Ended Three Months Ended December 31, 2016 December 31, 2015 Geographic Location Revenue % of Total Revenue % of Total United States $ 7,189,000 79 % $ 8,235,000 74 % Europe 1,086,000 12 % 2,041,000 18 % Other 868,000 9 % 928,000 8 % $ 9,143,000 100 % $ 11,204,000 100 %

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 11 - Income Taxes The Company uses the asset and liability approach to account for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and net operating loss and tax credit carry forwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates, and tax laws, in the respective tax jurisdiction then in effect. Dynasil Corporation of America and its wholly-owned U.S. subsidiaries file a consolidated federal income tax return and various state returns. The Company’s U.K. subsidiary files tax returns in the U.K. Prior to November 18, 2016, the Company’s subsidiary, Xcede was included in the federal and state tax returns filed by Dynasil. As of November 18, 2016, Dynasil’s ownership in Xcede was reduced to approximately 59 In assessing the ability to realize the net deferred tax assets, management considers various factors including taxable income in carryback years, future reversals of existing taxable temporary differences, tax planning strategies and projections of future taxable income, to determine whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. As a result of Xcede’s de-consolidation from the Company’s federal tax returns, the Company will no longer be able to offset taxable income with Xcede’s current or cumulative operating losses. Upon review of relevant criteria for the new Dynasil federal consolidated group, it was determined that it is more likely than not that the federal, deferred tax assets of the new Dynasil federal consolidated group will be realized based upon positive earnings history and expected future profits of the group. As a result, the federal deferred tax asset valuation allowance associated with the Dynasil federal consolidated group has been reversed resulting in an income tax benefit in the amount of $ 2.7 The Company applies the authoritative provisions related to accounting for uncertainty in income taxes. As required by these provisions, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being reached upon ultimate settlement with the relevant tax authority. As of December 31, 2016 and September 30, 2016, the Company has no liabilities for uncertain tax positions. Interest and penalty charges, if any, related to uncertain tax positions would be classified as income tax expense in the accompanying consolidated statement of operations. As of December 31, 2016 and September 30, 2016, the Company had no accrued interest or penalties related to uncertain tax positions. The Company currently has no federal or state tax examinations in progress. The results for the three months ending December 31, 2016 result in an overall effective rate for the quarter of 679 34 34 The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company’s tax filings for federal and state jurisdictions for the tax years beginning with 2013 are still subject to examination.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 12 – Subsequent Events The Company has evaluated subsequent events through the date the financial statements were released.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories, net of reserves, consists of the following: December 31, September 30, 2016 2016 Raw Materials $ 2,024,000 $ 1,938,000 Work-in-Process 690,000 834,000 Finished Goods 1,202,000 954,000 $ 3,916,000 $ 3,726,000

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets at December 31, 2016 and September 30, 2016 consist of the following: Useful Gross Accumulated December 31, 2016 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 683,000 $ 467,000 $ 216,000 Know How 15 512,000 290,000 222,000 Trade Names Indefinite 258,000 - 258,000 Patents 20 345,000 8,000 337,000 Biomedical Technologies 5 260,000 260,000 - $ 2,058,000 $ 1,025,000 $ 1,033,000 Useful Gross Accumulated September 30, 2016 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 718,000 $ 473,000 $ 245,000 Know How 15 512,000 282,000 230,000 Trade Names Indefinite 272,000 - 272,000 Patents 20 326,000 6,000 320,000 Biomedical Technologies 5 260,000 260,000 - $ 2,088,000 $ 1,021,000 $ 1,067,000
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Estimated amortization expense for each of the next five fiscal years and thereafter is as follows: 2017 (9 months) 2018 2019 2020 2021 Thereafter Total Acquired Customer Base $ 60,000 $ 80,000 $ 76,000 $ - $ - $ - $ 216,000 Know How 26,000 34,000 34,000 34,000 34,000 60,000 222,000 Patents 6,000 9,000 9,000 9,000 9,000 79,000 121,000 $ 92,000 $ 123,000 $ 119,000 $ 43,000 $ 43,000 $ 139,000 $ 559,000

Earnings (Loss) Per Common Sh21

Earnings (Loss) Per Common Share (Tables)	3 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The computation of the weighted shares outstanding for the three months ended December 31 is as follows: December 31, 2016 December 31, 2015 Weighted average shares outstanding Basic 16,808,729 16,551,197 Effect of dilutive securities Stock Options - - Restricted Stock - 27,437 Dilutive Average Shares Outstanding 16,808,729 16,578,634

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2016
Schedule Of Stock Compensation Expense [Table Text Block]	Stock compensation expense for the three months ended December 31, 2016 and 2015 is as follows: Three Months Ended Three Months Ended Stock Compensation Expense December 31, 2016 December 31, 2015 Stock Grants $ 39,000 $ 83,000 Restricted Stock Grants 13,000 8,000 Option Grants 12,000 6,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 24,000 21,000 Total $ 89,000 $ 119,000
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	A summary of restricted stock activity for the three months ended December 31, 2016 is presented below: Restricted Stock Activity for the Three Months ended Weighted-Average December 31, 2016 Shares Grant-Date Fair Value Nonvested at September 30, 2016 100,000 $ 1.73 Granted - - Vested (10,000) $ 1.70 Cancelled - - Nonvested and expected to vest at December 31, 2016 90,000 $ 1.73
Stock Option Grants [Member]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	A summary of stock option activity for the three months ended December 31, 2016 is presented below: Weighted Average Weighted Average Options Exercise Price per Remain Contractual Outstanding Share Term (in Years) Balance at September 30, 2016 123,147 $ 2.30 1.69 Outstanding and exercisable at September 30, 2016 123,147 $ 2.30 1.69 Granted - - Exercised - - Cancelled - - Balance at December 31, 2016 123,147 $ 2.30 1.43 Outstanding and exercisable at December 31, 2016 123,147 $ 2.30 1.43
Subsidiary Option Grants [Member]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	A summary of Xcede stock option activity for the three months ended December 31, 2016 is presented below: Weighted Average Weighted Average Options Exercise Price per Remain Contractual Outstanding Share Term (in Years) Balance at September 30, 2016 613,653 1.00 8.35 Outstanding and exercisable at September 30, 2016 320,586 1.00 8.01 Granted 428,000 1.00 Exercised - - Cancelled - - Balance at December 31, 2016 1,041,653 1.00 8.84 Outstanding and exercisable at December 31, 2016 629,126 1.00 8.74
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	These options were valued using the Black-Scholes option pricing model and the assumptions for that were as follows: Expected term in years 10 years Risk-free interest rate 2.37% Expected volatility 83.12% Expected dividend yield 0.00%

Segment, Customer and Geograp23

Segment, Customer and Geographical Reporting (Tables)	3 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The Company’s segment information for the three months ended December 31, 2016 and 2015 is summarized below: Results of Operations for the Three Months Ended December 31, 2016 Contract Optics Research Biomedical Total Revenue $ 4,405,000 $ 4,738,000 $ - $ 9,143,000 Gross profit 1,574,000 1,951,000 - 3,525,000 GM % 36 % 41 % - 39 % SG&A 1,328,000 1,740,000 381,000 3,449,000 Operating income (loss) 246,000 211,000 (381,000) 76,000 Depreciation and amortization 234,000 74,000 3,000 311,000 Capital expenditures 91,000 - 20,000 111,000 Intangibles, net 474,000 222,000 337,000 1,033,000 Goodwill 883,000 4,939,000 - 5,822,000 Total assets $ 18,785,000 $ 8,407,000 $ 1,060,000 $ 28,252,000 Results of Operations for the Three Months Ended December 31, 2015 Contract Optics Research Biomedical Total Revenue $ 6,214,000 $ 4,990,000 $ - $ 11,204,000 Gross profit 2,110,000 1,855,000 - 3,965,000 GM % 34 % 37 % - 35 % SG&A 1,751,000 1,706,000 348,000 3,805,000 Gain on sale of assets 4,000 - - 4,000 Operating income (loss) 363,000 149,000 (348,000) 164,000 Depreciation and amortization 228,000 80,000 17,000 325,000 Capital expenditures 565,000 7,000 31,000 603,000 Intangibles, net 644,000 256,000 297,000 1,197,000 Goodwill 1,155,000 4,939,000 - 6,094,000 Total assets $ 16,506,000 $ 8,273,000 $ 857,000 $ 25,636,000
Schedule Of Segment Revenue By Geographical Location [Table Text Block]	Revenue by geographic location in total and as a percentage of total revenue, for the three months ended December 31, 2016 and 2015 are as follows: Three Months Ended Three Months Ended December 31, 2016 December 31, 2015 Geographic Location Revenue % of Total Revenue % of Total United States $ 7,189,000 79 % $ 8,235,000 74 % Europe 1,086,000 12 % 2,041,000 18 % Other 868,000 9 % 928,000 8 % $ 9,143,000 100 % $ 11,204,000 100 %

Basis of Presentation (Details

Basis of Presentation (Details Textual)	Dec. 31, 2016	Nov. 18, 2016
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	41.00%
Xcede Technologies inc [Member]
Noncontrolling Interest, Ownership Percentage by Parent	59.00%	59.00%

Xcede Technologies, Inc. Join25

Xcede Technologies, Inc. Joint Venture (Details Textual) - USD ($)	Nov. 30, 2016	Nov. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Nov. 18, 2016
Debt Conversion, Converted Instrument, Amount			$ 3,500,000
Extinguishment of Debt, Amount			5,500,000
Gain (Loss) on Extinguishment of Debt			2,000,000
Research and Development Expense, Total			196,000	$ 288,000
Noncontrolling Interest [Member]
Debt Conversion, Original Debt, Amount		$ 3,100,000
Debt Conversion, Converted Instrument, Shares Issued		3,055,551
Gain (Loss) on Extinguishment of Debt			$ 300,000
Xcede Technologies inc [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Debt Instrument, Face Amount	$ 5,500,000	$ 5,500,000
Committed Investment In Cash	$ 1,200,000	$ 1,200,000
Debt Conversion, Converted Instrument, Shares Issued		5,394,120
Capital Stock Financing Discount Percentage	20.00%	20.00%
Noncontrolling Interest, Ownership Percentage by Parent			59.00%		59.00%
Noncontrolling Interest, Description			Noncontrolling interest represents the value of the Series A Preferred and common stock not owned by DBM plus 17% of cumulative losses of Xcede based on the 17% common stock ownership held by noncontrolling interests.
Research and Development Expense, Total			$ 38,000
Dynasil Biomedical [Member]
Debt Conversion, Original Debt, Amount		$ 2,400,000
Debt Conversion, Converted Instrument, Shares Issued		2,338,569
Gain (Loss) on Extinguishment of Debt			$ 1,700,000
External Funding [Member] | Convertible Debt [Member]
Proceeds from Convertible Debt		$ 5,200,000
Secured Promissory Note [Member] | Xcede Technologies inc [Member]
Debt Instrument, Interest Rate, Stated Percentage	2.00%	2.00%
Debt Instrument, Maturity Date	Dec. 31, 2025
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500,000	$ 1,500,000
Line of Credit Facility, Current Borrowing Capacity	$ 500,000	$ 500,000
Series B Preferred Stock [Member]
Preferred Stock, Liquidation Preference Per Share			$ 1.27
Preferred Stock, Liquidation Preference, Value			$ 200,000
Series A Preferred Stock [Member]
Preferred Stock, Liquidation Preference Per Share			$ 1.016
Preferred Stock, Liquidation Preference, Value			$ 5,500,000
Series A Preferred Stock [Member] | Noncontrolling Shareholders [Member]
Preferred Stock, Liquidation Preference, Value			3,100,000
Series A Preferred Stock [Member] | Dynasil Biomedical [Member]
Preferred Stock, Liquidation Preference, Value			$ 2,400,000

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Inventory Current [Line Items]
Raw Materials	$ 2,024,000	$ 1,938,000
Work-in-Process	690,000	834,000
Finished Goods	1,202,000	954,000
Inventory, Net, Total	$ 3,916,000	$ 3,726,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 2,058,000	$ 2,088,000
Accumulated Amortization	1,025,000	1,021,000
Net	1,033,000	1,067,000	$ 1,197,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	683,000	718,000
Accumulated Amortization	467,000	473,000
Net	$ 216,000	$ 245,000
Acquired Customer Base [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	5 years	5 years
Acquired Customer Base [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	15 years	15 years
Know How [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	15 years	15 years
Gross Amount	$ 512,000	$ 512,000
Accumulated Amortization	290,000	282,000
Net	222,000	230,000
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	258,000	272,000
Accumulated Amortization	0	0
Net	$ 258,000	$ 272,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	20 years	20 years
Gross Amount	$ 345,000	$ 326,000
Accumulated Amortization	8,000	6,000
Net	$ 337,000	$ 320,000
Biomedical Technologies [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	5 years	5 years
Gross Amount	$ 260,000	$ 260,000
Accumulated Amortization	260,000	260,000
Net	$ 0	$ 0

Intangible Assets (Details 1)

Intangible Assets (Details 1)	Dec. 31, 2016USD ($)
Finite-Lived Intangible Assets [Line Items]
2017 (9 months)	$ 92,000
2,018	123,000
2,019	119,000
2,020	43,000
2,021	43,000
Thereafter	139,000
Total	559,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
2017 (9 months)	60,000
2,018	80,000
2,019	76,000
2,020	0
2,021	0
Thereafter	0
Total	216,000
Know How [Member]
Finite-Lived Intangible Assets [Line Items]
2017 (9 months)	26,000
2,018	34,000
2,019	34,000
2,020	34,000
2,021	34,000
Thereafter	60,000
Total	222,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2017 (9 months)	6,000
2,018	9,000
2,019	9,000
2,020	9,000
2,021	9,000
Thereafter	79,000
Total	$ 121,000

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 26,000	$ 44,000
Finite-Lived Intangible Assets, Gross	2,058,000		$ 2,088,000
Parent [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 216,000

Debt (Details Textual)

Debt (Details Textual) - Xcede Technologies inc [Member] - USD ($) $ in Millions	1 Months Ended
	Nov. 30, 2016	Dec. 31, 2016
Debt [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	5,394,120
Senior Debt [Member]
Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1.2

Earnings (Loss) Per Common Sh31

Earnings (Loss) Per Common Share (Details) - shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Weighted average shares outstanding
Basic	16,808,729	16,551,197
Effect of dilutive securities
Dilutive Average Shares Outstanding	16,808,729	16,578,634
Employee Stock Option [Member]
Effect of dilutive securities
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	0
Restricted Stock [Member]
Effect of dilutive securities
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	27,437

Earnings (Loss) Per Common Sh32

Earnings (Loss) Per Common Share (Details Textual) - shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnings Loss Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	123,147	58,212
Restricted Stock [Member]
Earnings Loss Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	90,000
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	27,437

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Stock Based Compensation [Line Items]
Stock Compensation Expense	$ 89,000	$ 119,000
Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	39,000	83,000
Restricted Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	13,000	8,000
Option Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	12,000	6,000
Employee Stock Purchase Plan [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	1,000	1,000
Subsidiary Option Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	$ 24,000	$ 21,000

Stock Based Compensation (Det34

Stock Based Compensation (Details 1) - Restricted Stock [Member]	3 Months Ended
	Dec. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Nonvested, Beginning Balance | shares	100,000
Shares, Granted | shares	0
Shares, Vested | shares	(10,000)
Shares, Cancelled | shares	0
Shares, Nonvested and expected to vest, Ending Balance | shares	90,000
Weighted-Average Grant-Date Fair Value, Nonvested, Beginning Balance | $ / shares	$ 1.73
Weighted-Average Grant-Date Fair Value, Granted | $ / shares	0
Weighted-Average Grant-Date Fair Value, Vested | $ / shares	1.7
Weighted-Average Grant-Date Fair Value, Cancelled | $ / shares	0
Weighted-Average Grant-Date Fair Value, Nonvested, Ending Balance | $ / shares	$ 1.73

Stock Based Compensation (Det35

Stock Based Compensation (Details 2) - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Stock Option Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance, Options Outstanding	123,147
Outstanding and exercisable, Options Outstanding	123,147	123,147
Granted, Options Outstanding	0
Exercised, Options Outstanding	0
Cancelled, Options Outstanding	0
Balance, Options Outstanding	123,147	123,147
Balance, Weighted Average Exercise Price per Share	$ 2.30
Outstanding and exercisable, Weighted Average Exercise Price per Share	2.30	$ 2.30
Granted, Weighted Average Exercise Price per Share	0
Exercised, Weighted Average Exercise Price per Share	0
Cancelled, Weighted Average Exercise Price per Share	0
Balance, Weighted Average Exercise Price per Share	$ 2.30	$ 2.30
Balance, Weighted Average Remain Contractual Term (in Years)	1 year 5 months 5 days	1 year 8 months 8 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	1 year 5 months 5 days	1 year 8 months 8 days
Subsidiary Option Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance, Options Outstanding	613,653
Outstanding and exercisable, Options Outstanding	629,126	320,586
Granted, Options Outstanding	428,000
Exercised, Options Outstanding	0
Cancelled, Options Outstanding	0
Balance, Options Outstanding	1,041,653	613,653
Balance, Weighted Average Exercise Price per Share	$ 1
Outstanding and exercisable, Weighted Average Exercise Price per Share	1	$ 1
Granted, Weighted Average Exercise Price per Share	1
Exercised, Weighted Average Exercise Price per Share	0
Cancelled, Weighted Average Exercise Price per Share	0
Balance, Weighted Average Exercise Price per Share	$ 1	$ 1
Balance, Weighted Average Remain Contractual Term (in Years)	8 years 10 months 2 days	8 years 4 months 6 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	8 years 8 months 26 days	8 years 4 days

Stock Based Compensation (Det36

Stock Based Compensation (Details 3) - Subsidiary Option Grants [Member]	3 Months Ended
	Dec. 31, 2016
Class of Stock [Line Items]
Expected term in years	10 years
Risk-free interest rate	2.37%
Expected volatility	83.12%
Expected dividend yield	0.00%

Stock Based Compensation (Det37

Stock Based Compensation (Details Textual)	3 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Employee Stock Option [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	200,000
Subsidiary Option Grants [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	428,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 1
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued | $	$ 75,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Deferred Compensation, Share-based Payments [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	228,000
Xcede joint venture [Member] | Subsidiary Option Grants [Member]
Class of Stock [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $	$ 163,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	17 months
Employee Stock Plan [Member]
Class of Stock [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $	$ 140,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	14 months

Segment, Customer and Geograp38

Segment, Customer and Geographical Reporting (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 9,143,000	$ 11,204,000
Gross profit	$ 3,525,000	$ 3,965,000
GM %	39.00%	35.00%
SG&A	$ 3,449,000	$ 3,805,000
Gain on sale of assets	0	(4,000)
Operating income (loss)	76,000	164,000
Depreciation and amortization	311,000	325,000
Capital expenditures	111,000	603,000
Intangibles, net	1,033,000	1,197,000	$ 1,067,000
Goodwill	5,822,000	6,094,000	5,898,000
Total assets	28,252,000	25,636,000	$ 26,369,000
Optics [Member]
Segment Reporting Information [Line Items]
Revenue	4,405,000	6,214,000
Gross profit	$ 1,574,000	$ 2,110,000
GM %	36.00%	34.00%
SG&A	$ 1,328,000	$ 1,751,000
Gain on sale of assets		4,000
Operating income (loss)	246,000	363,000
Depreciation and amortization	234,000	228,000
Capital expenditures	91,000	565,000
Intangibles, net	474,000	644,000
Goodwill	883,000	1,155,000
Total assets	18,785,000	16,506,000
Contract Research [Member]
Segment Reporting Information [Line Items]
Revenue	4,738,000	4,990,000
Gross profit	$ 1,951,000	$ 1,855,000
GM %	41.00%	37.00%
SG&A	$ 1,740,000	$ 1,706,000
Gain on sale of assets		0
Operating income (loss)	211,000	149,000
Depreciation and amortization	74,000	80,000
Capital expenditures	0	7,000
Intangibles, net	222,000	256,000
Goodwill	4,939,000	4,939,000
Total assets	8,407,000	8,273,000
Biomedical [Member]
Segment Reporting Information [Line Items]
Revenue	0	0
Gross profit	$ 0	$ 0
GM %	0.00%	0.00%
SG&A	$ 381,000	$ 348,000
Gain on sale of assets		0
Operating income (loss)	(381,000)	(348,000)
Depreciation and amortization	3,000	17,000
Capital expenditures	20,000	31,000
Intangibles, net	337,000	297,000
Goodwill	0	0
Total assets	$ 1,060,000	$ 857,000

Segment, Customer and Geograp39

Segment, Customer and Geographical Reporting (Details 1) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 9,143,000	$ 11,204,000
% of Total	100.00%	100.00%
United State [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 7,189,000	$ 8,235,000
% of Total	79.00%	74.00%
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,086,000	$ 2,041,000
% of Total	12.00%	18.00%
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 868,000	$ 928,000
% of Total	9.00%	8.00%

Segment, Customer and Geograp40

Segment, Customer and Geographical Reporting (Details Textual) - Sales Revenue, Segment [Member]	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Customer Five [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage		10.00%
Customer Three [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	10.00%
Optics [Member] | Customer One [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage		10.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Nov. 18, 2016
Income Tax [Line Items]
Income Tax Expense (Benefit)	$ (2,730,000)	$ 36,000
Effective Income Tax Rate Reconciliation, Percent	679.00%
Excluding The Impact Of Valuation Allowance [Member]
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, Percent	(25.00%)	34.00%
Xcede Technologies inc [Member]
Income Tax [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	59.00%		59.00%
Income Tax Expense (Benefit)	$ 2,700,000
Federal [Member]
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%