Dynasil Corporation of America (DYSL) 10-Q 15 May 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2017	May 07, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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		17,011,352

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Current Assets
Cash and cash equivalents	$ 2,299,000	$ 2,607,000
Accounts receivable, net of allowances of $166,000 and $171,000 at March 31, 2017 and September 30, 2016, respectively	3,325,000	3,502,000
Costs in excess of billings and unbilled receivables	880,000	1,208,000
Inventories, net of reserves	3,965,000	3,726,000
Prepaid expenses and other current assets	1,148,000	1,078,000
Total current assets	11,617,000	12,121,000
Property, Plant and Equipment, net	6,802,000	7,223,000
Other Assets
Intangibles, net	1,057,000	1,067,000
Deferred tax asset	2,649,000	0
Goodwill	5,838,000	5,898,000
Security deposits	13,000	60,000
Total other assets	9,557,000	7,025,000
Total Assets	27,976,000	26,369,000
Current Liabilities
Current portion of long-term debt	1,979,000	2,477,000
Capital lease obligations, current	100,000	105,000
Convertible notes	0	3,085,000
Accounts payable	1,205,000	1,627,000
Deferred revenue	99,000	238,000
Accrued expenses and other liabilities	2,335,000	2,955,000
Total current liabilities	5,718,000	10,487,000
Long-term Liabilities
Long-term debt, net of current portion and deferred financing costs	1,384,000	736,000
Capital lease obligations, net of current portion	123,000	173,000
Deferred tax liability	246,000	263,000
Other long-term liabilities	35,000	43,000
Total long-term liabilities	1,788,000	1,215,000
Stockholders' Equity
Common Stock, $0.0005 par value, 40,000,000 shares authorized, 17,790,759 and 17,677,284 shares issued, 16,980,599 and and 16,867,124 shares outstanding at March 31, 2017 and September 30, 2016, respectively.	9,000	9,000
Additional paid in capital	21,178,000	20,128,000
Accumulated other comprehensive income (loss)	(929,000)	(699,000)
Accumulated deficit	(359,000)	(3,479,000)
Less 810,160 shares of treasury stock - at cost	(986,000)	(986,000)
Total Dynasil stockholders' equity	18,913,000	14,973,000
Noncontrolling interest	1,557,000	(306,000)
Total stockholders' equity	20,470,000	14,667,000
Total Liabilities and Stockholders' Equity	$ 27,976,000	$ 26,369,000

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Allowance for doubtful accounts (in dollars)	$ 166,000	$ 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	17,790,759	17,677,284
Common stock, shares outstanding	16,980,599	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		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Net revenue	$ 10,085,000	$ 11,296,000	$ 19,228,000	$ 22,493,000
Cost of revenue	6,297,000	7,218,000	11,915,000	14,451,000
Gross profit	3,788,000	4,078,000	7,313,000	8,042,000
Operating expenses:
Sales and marketing	328,000	343,000	593,000	678,000
Research and development	335,000	277,000	531,000	565,000
General and administrative	3,128,000	3,417,000	6,115,000	6,600,000
Gain on sale of assets	0	0	0	(4,000)
Total operating expenses	3,791,000	4,037,000	7,239,000	7,839,000
Income (loss) from operations	(3,000)	41,000	74,000	203,000
Interest expense, net	45,000	77,000	112,000	136,000
Income (loss) before taxes	(48,000)	(36,000)	(38,000)	67,000
Income tax (credit)	71,000	33,000	(2,658,000)	68,000
Net income (loss)	(119,000)	(69,000)	2,620,000	(1,000)
Less: Net loss attributable to noncontrolling interest	(64,000)	(38,000)	(133,000)	(76,000)
Net income (loss) attributable to common stockholders	(55,000)	(31,000)	2,753,000	75,000
Net income (loss)	(119,000)	(69,000)	2,620,000	(1,000)
Other comprehensive income (loss):
Foreign currency translation	65,000	(142,000)	(230,000)	(256,000)
Total comprehensive income (loss)	(54,000)	(211,000)	2,390,000	(257,000)
Less: comprehensive income (loss) attributable to noncontrolling interest	(64,000)	(38,000)	(133,000)	(76,000)
Total comprehensive income (loss) attributable to common stockholders	$ 10,000	$ (173,000)	$ 2,523,000	$ (181,000)
Basic net income (loss) per common share	$ 0	$ 0	$ 0.16	$ 0
Diluted net income (loss) per common share	$ 0	$ 0	$ 0.16	$ 0
Weighted average shares outstanding
Basic	16,886,628	16,636,950	16,847,679	16,594,074
Diluted	16,886,628	16,636,950	16,847,679	16,650,606

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - 6 months ended Mar. 31, 2017 - 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	8,000	$ 0	8,000	0	0	$ 0	0
Issuance of shares of common stock under employee stock purchase plan (in shares)		7,810				0
Stock-based compensation costs	227,000	$ 0	205,000	0	0	$ 0	22,000
Stock-based compensation costs (in shares)		105,665				0
Stock options issued to settle liabilities	75,000	$ 0	75,000	0	0	$ 0	0
Recapitalization of Xcede	3,103,000	0	762,000	0	367,000	0	1,974,000
Foreign currency translation adjustment	(230,000)	0	0	(230,000)	0	0	0
Net income (loss)	2,620,000	0	0	0	2,753,000	0	(133,000)
Balance at Mar. 31, 2017	$ 20,470,000	$ 9,000	$ 21,178,000	$ (929,000)	$ (359,000)	$ (986,000)	$ 1,557,000
Balance (in shares) at Mar. 31, 2017		17,790,759				810,160

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 2,620,000	$ (1,000)
Adjustments to reconcile net income (loss) to net cash:
Stock compensation expense	227,000	262,000
Foreign exchange loss (gain)	47,000	61,000
Depreciation and amortization	624,000	652,000
Deferred income taxes	(2,655,000)	19,000
Provision for inventory reserves	23,000	12,000
Other	231,000	84,000
Other changes in assets and liabilities:
Accounts receivable, net	152,000	(1,551,000)
Inventories	(332,000)	(1,063,000)
Costs in excess of billings and unbilled receivables	328,000	81,000
Prepaid expenses and other assets	263,000	(150,000)
Accounts payable	(410,000)	796,000
Accrued expenses and other liabilities	(542,000)	204,000
Deferred revenue	(140,000)	127,000
Net cash from operating activities	436,000	(467,000)
Cash flows from investing activities:
Purchases of property, plant and equipment	(228,000)	(931,000)
Purchase of intangibles	(64,000)	(51,000)
Net cash from investing activities	(292,000)	(982,000)
Cash flows from financing activities:
Proceeds from issuance of common stock	8,000	7,000
Net proceeds from issuance of convertible notes	0	390,000
Principal payments on capital leases	(55,000)	(69,000)
Proceeds from (payments of) line of credit, net	0	735,000
Proceeds from (payments of) bank and subordinated debt, net	(354,000)	(76,000)
Net cash from financing activities	(401,000)	987,000
Effect of exchange rates on cash and cash equivalents	(51,000)	(19,000)
Net change in cash and cash equivalents	(308,000)	(481,000)
Cash and cash equivalents, beginning	2,607,000	1,295,000
Cash and cash equivalents, ending	2,299,000	814,000
Non cash activities:
Assets purchased under capital leases	0	134,000
Recapitalization of Xcede - conversion of non controlling notes payable to preferred stock	(3,103,000)	0
Subsidiary stock options issued to settle liabilities	75,000	0
Subsidiary debt issued to fund research activities	$ 500,000	$ 0

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2017
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 March 31, 2017, the consolidated statements of operations and comprehensive income (loss) for the three and six months ended March 31, 2017 and 2016, changes in stockholders’ equity for the six months ended March 31, 2017 and cash flows for the six months ended March 31, 2017 and 2016 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 March 31, 2017, Dynasil Biomedical owned 60 83 17 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 March 31, 2017, 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	6 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 2 – Recent Accounting Pronouncements 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). In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The standard is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. The ASU becomes effective for the Company at the beginning of its 2019 fiscal year. In 2016 and 2017, the FASB issued several ASU’s related to ASU 2014-09, which simplify and provide additional guidance to companies for implementation of the standard. The Company is evaluating the recently issued guidance on practical expedients in order to select a transition method. The Company is also assessing the impact that ASU 2014-09 will have on its consolidated financial statements and disclosures. This evaluation includes completing an inventory of revenue streams by like contracts to allow for ease of implementation, monitoring developments for the manufacturing industry, and evaluating potential changes to our business processes, systems, and controls to support the recognition and disclosure under the new standard. 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	6 Months Ended
	Mar. 31, 2017
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 3.6 5.5 1.9 1.6 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 0.5 5.5 2.4 3.1 As of March 31, 2017, DBM owned approximately 60 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 167,000 205,000

Inventories

Inventories	6 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 4 - Inventories Inventories, net of reserves, consists of the following: March 31, September 30, 2017 2016 Raw Materials $ 2,129,000 $ 1,938,000 Work-in-Process 665,000 834,000 Finished Goods 1,171,000 954,000 $ 3,965,000 $ 3,726,000

Intangible Assets

Intangible Assets	6 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	Note 5 – Intangible Assets Intangible assets at March 31, 2017 and September 30, 2016 consist of the following: Useful Gross Accumulated March 31, 2017 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 691,000 $ 487,000 $ 204,000 Know How 15 512,000 299,000 213,000 Trade Names Indefinite 261,000 - 261,000 Patents 20 389,000 10,000 379,000 Biomedical Technologies 5 260,000 260,000 - $ 2,113,000 $ 1,056,000 $ 1,057,000 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 March 31, 2017 and 2016 was $26,000 and $43,000, respectively. Amortization expense for the six months ended March 31, 2017 and 2016 was $ 52,000 86,000 Estimated amortization expense for each of the next five fiscal years and thereafter is as follows: 2017 (6 months) 2018 2019 2020 2021 Thereafter Total Acquired Customer Base $ 40,000 $ 80,000 $ 84,000 $ - $ - $ - $ 204,000 Know How 17,000 34,000 34,000 34,000 34,000 60,000 213,000 Patents 4,000 9,000 9,000 9,000 9,000 80,000 120,000 $ 61,000 $ 123,000 $ 127,000 $ 43,000 $ 43,000 $ 140,000 $ 537,000 As of March 31, 2017, Xcede had $ 259,000 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 in the carrying value of the long-lived assets, aside from current additions and foreign exchange rate fluctuations, during the six months ended March 31, 2017.

Goodwill

Goodwill	6 Months Ended
	Mar. 31, 2017
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 holding goodwill; · 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 and six months ended March 31, 2017.

Debt

Debt	6 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 7 – Debt Senior Debt On May 1, 2017, the Company received a commitment letter from Middlesex Savings Bank to extend the existing Bank Loan Agreement between the Company and Middlesex Savings Bank through May 2020. This agreement is expected to be finalized in May 2017. Additionally, the new agreement between the two organizations will include an annual $ 1.0 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	6 Months Ended
	Mar. 31, 2017
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 six months ended March 31, 2017 and 2016, no common stock options were included in the calculation of dilutive shares as all of the 196,769 123,147 70,000 The computation of the weighted shares outstanding for the three months ended March 31, 2017 and 2016 is as follows: March 31, 2017 March 31, 2016 Weighted average shares outstanding Basic 16,886,628 16,636,950 Effect of dilutive securities Stock Options - - Restricted Stock - - Dilutive Average Shares Outstanding 16,886,628 16,636,950 The computation of the weighted shares outstanding for the six months ended March 31, 2017 and 2016 is as follows: March 31, 2017 March 31, 2016 Weighted average shares outstanding Basic 16,847,679 16,594,074 Effect of dilutive securities Stock Options - - Restricted Stock - 56,532 Dilutive Average Shares Outstanding 16,847,679 16,650,606

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Mar. 31, 2017
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 March 31, 2017 March 31, 2016 Stock Grants $ 84,000 $ 102,000 Restricted Stock Grants 13,000 11,000 Option Grants 13,000 10,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 28,000 19,000 Total $ 139,000 $ 143,000 Six Months Ended Six Months Ended Stock Compensation Expense March 31, 2017 March 31, 2016 Stock Grants $ 123,000 $ 185,000 Restricted Stock Grants 26,000 19,000 Option Grants 25,000 17,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 52,000 40,000 Total $ 227,000 $ 262,000 At March 31, 2017, there was approximately $ 160,000 Restricted Stock Grants Restricted Stock Activity for the Six Months ended Weighted-Average March 31, 2017 Shares Grant-Date Fair Value Nonvested at September 30, 2016 100,000 $ 1.73 Granted - - Vested (30,000) 1.73 Cancelled - - Nonvested and expected to vest at March 31, 2017 70,000 $ 1.73 Stock Option Grants Six Months Ended March 31, 2017 Expected term in years 3 years Risk-free interest rate 1.48 % Expected volatility 69.57 % 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 123,147 $ 2.30 1.69 Outstanding and exercisable at September 30, 2016 123,147 $ 2.30 1.69 Granted 95,602 1.80 2.84 Exercised - - Cancelled (21,980) 3.03 Balance at March 31, 2017 196,769 $ 1.98 2.14 Outstanding and exercisable at March 31, 2017 196,769 $ 1.98 2.14 Subsidiary Stock Option Grants During the six months ended March 31, 2017, 810,500 1.00 228,000 75,000 582,500 Expected term in years 10 years Risk-free interest rate 2.42 % Expected volatility 83.11 % 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 810,500 1.00 Exercised - - Cancelled (48,197) 1.00 Balance at March 31, 2017 1,375,956 1.00 9.22 Outstanding and exercisable at March 31, 2017 730,694 $ 1.00 8.62 At March 31, 2017, the Company’s Xcede joint venture had $ 202,000

Segment, Customer and Geographi

Segment, Customer and Geographical Reporting	6 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Contract Optics Research Biomedical Total Revenue $ 5,281,000 $ 4,804,000 $ - $ 10,085,000 Gross profit 1,913,000 1,875,000 - 3,788,000 GM % 36 % 39 % - 38 % SG&A 1,597,000 1,802,000 392,000 3,791,000 Operating income (loss) 316,000 73,000 (392,000) (3,000) Depreciation and amortization 237,000 73,000 3,000 313,000 Capital expenditures 103,000 34,000 44,000 181,000 Intangibles, net 465,000 213,000 379,000 1,057,000 Goodwill 899,000 4,939,000 - 5,838,000 Total assets $ 19,705,000 $ 7,477,000 $ 794,000 $ 27,976,000 Results of Operations for the Three Months Ended March 31, 2016 Contract Optics Research Biomedical Total Revenue $ 6,428,000 $ 4,868,000 $ - $ 11,296,000 Gross profit 2,208,000 1,870,000 - 4,078,000 GM % 34 % 38 % - 36 % SG&A 1,882,000 1,800,000 355,000 4,037,000 Operating income (loss) 326,000 70,000 (355,000) 41,000 Depreciation and amortization 225,000 85,000 17,000 327,000 Capital expenditures 329,000 30,000 20,000 379,000 Intangibles, net 608,000 247,000 301,000 1,156,000 Goodwill 1,109,000 4,939,000 - 6,048,000 Total assets $ 17,653,000 $ 8,502,000 $ 571,000 $ 26,726,000 The Company’s segment information for the six months ended March 31, 2017 and 2016 is summarized below: Results of Operations for the Six Months Ended March 31, 2017 Contract Optics Research Biomedical Total Revenue $ 9,686,000 $ 9,542,000 $ - $ 19,228,000 Gross profit 3,487,000 3,826,000 - 7,313,000 GM % 36 % 40 % - 38 % SG&A 2,924,000 3,542,000 773,000 7,239,000 Gain on sale of assets - - - - Operating income (loss) 563,000 284,000 (773,000) 74,000 Depreciation and amortization 471,000 147,000 6,000 624,000 Capital expenditures 194,000 34,000 64,000 292,000 Intangibles, net 465,000 213,000 379,000 1,057,000 Goodwill 899,000 4,939,000 - 5,838,000 Total assets $ 19,705,000 $ 7,477,000 $ 794,000 $ 27,976,000 Results of Operations for the Six Months Ended March 31, 2016 Contract Optics Research Biomedical Total Revenue $ 12,635,000 $ 9,858,000 $ - $ 22,493,000 Gross profit 4,318,000 3,724,000 - 8,042,000 GM % 34 % 38 % - 36 % SG&A 3,634,000 3,506,000 703,000 7,843,000 Gain on sale of assets 4,000 - - 4,000 Operating income (loss) 688,000 218,000 (703,000) 203,000 Depreciation and amortization 454,000 164,000 34,000 652,000 Capital expenditures 894,000 37,000 51,000 982,000 Intangibles, net 608,000 247,000 301,000 1,156,000 Goodwill 1,109,000 4,939,000 - 6,048,000 Total assets $ 17,653,000 $ 8,502,000 $ 571,000 $ 26,726,000 Customer Financial Information For the three and six months ended March 31, 2017, no customer in the Optics segment represented more than 10% of the total segment revenue. For the three and six months ended March 31, 2016, one customer in the Optics segment represented more than 10 For the three and six months ended March 31, 2017, three customers of the Contract Research segment, all various agencies of the U.S. Government, each represented more than 10 10 59 57 60 77 Geographic Financial Information Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Geographic Location Revenue % of Total Revenue % of Total United States $ 7,931,000 79 % $ 8,226,000 73 % Europe 1,212,000 12 % 2,452,000 22 % Other 942,000 9 % 618,000 5 % $ 10,085,000 100 % $ 11,296,000 100 % Revenue by geographic location in total and as a percentage of total revenue, for the six months ended March 31, 2016 and 2015 are as follows: Six Months Ended Six Months Ended March 31, 2017 March 31, 2016 Geographic Location Revenue % of Total Revenue % of Total United States $ 15,120,000 79 % $ 16,455,000 73 % Europe 2,299,000 12 % 4,493,000 20 % Other 1,809,000 9 % 1,545,000 7 % $ 19,228,000 100 % $ 22,493,000 100 %

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2017
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 net 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 March 31, 2017 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 March 31, 2017 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 effective tax rates were ( 148 92 6,995 2.7 437 101 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	6 Months Ended
	Mar. 31, 2017
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)	6 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories, net of reserves, consists of the following: March 31, September 30, 2017 2016 Raw Materials $ 2,129,000 $ 1,938,000 Work-in-Process 665,000 834,000 Finished Goods 1,171,000 954,000 $ 3,965,000 $ 3,726,000

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets at March 31, 2017 and September 30, 2016 consist of the following: Useful Gross Accumulated March 31, 2017 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 691,000 $ 487,000 $ 204,000 Know How 15 512,000 299,000 213,000 Trade Names Indefinite 261,000 - 261,000 Patents 20 389,000 10,000 379,000 Biomedical Technologies 5 260,000 260,000 - $ 2,113,000 $ 1,056,000 $ 1,057,000 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 (6 months) 2018 2019 2020 2021 Thereafter Total Acquired Customer Base $ 40,000 $ 80,000 $ 84,000 $ - $ - $ - $ 204,000 Know How 17,000 34,000 34,000 34,000 34,000 60,000 213,000 Patents 4,000 9,000 9,000 9,000 9,000 80,000 120,000 $ 61,000 $ 123,000 $ 127,000 $ 43,000 $ 43,000 $ 140,000 $ 537,000

Earnings (Loss) Per Common Sh21

Earnings (Loss) Per Common Share (Tables)	6 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and 2016 is as follows: March 31, 2017 March 31, 2016 Weighted average shares outstanding Basic 16,886,628 16,636,950 Effect of dilutive securities Stock Options - - Restricted Stock - - Dilutive Average Shares Outstanding 16,886,628 16,636,950 The computation of the weighted shares outstanding for the six months ended March 31, 2017 and 2016 is as follows: March 31, 2017 March 31, 2016 Weighted average shares outstanding Basic 16,847,679 16,594,074 Effect of dilutive securities Stock Options - - Restricted Stock - 56,532 Dilutive Average Shares Outstanding 16,847,679 16,650,606

Stock Based Compensation (Table

Stock Based Compensation (Tables)	6 Months Ended
	Mar. 31, 2017
Schedule Of Stock Compensation Expense [Table Text Block]	Three Months Ended Three Months Ended Stock Compensation Expense March 31, 2017 March 31, 2016 Stock Grants $ 84,000 $ 102,000 Restricted Stock Grants 13,000 11,000 Option Grants 13,000 10,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 28,000 19,000 Total $ 139,000 $ 143,000 Six Months Ended Six Months Ended Stock Compensation Expense March 31, 2017 March 31, 2016 Stock Grants $ 123,000 $ 185,000 Restricted Stock Grants 26,000 19,000 Option Grants 25,000 17,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 52,000 40,000 Total $ 227,000 $ 262,000
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	Restricted Stock Activity for the Six Months ended Weighted-Average March 31, 2017 Shares Grant-Date Fair Value Nonvested at September 30, 2016 100,000 $ 1.73 Granted - - Vested (30,000) 1.73 Cancelled - - Nonvested and expected to vest at March 31, 2017 70,000 $ 1.73
Stock Option Grants [Member]
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	The weighted average assumptions used in the Black-Scholes option pricing model for the stock option grant during the six months ended March 31, 2017 were as follows: Six Months Ended March 31, 2017 Expected term in years 3 years Risk-free interest rate 1.48 % Expected volatility 69.57 % Expected dividend yield 0.00 %
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	A summary of stock option activity for the six months ended March 31, 2017 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 95,602 1.80 2.84 Exercised - - Cancelled (21,980) 3.03 Balance at March 31, 2017 196,769 $ 1.98 2.14 Outstanding and exercisable at March 31, 2017 196,769 $ 1.98 2.14
Subsidiary Option Grants [Member]
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 2.42 % Expected volatility 83.11 % Expected dividend yield 0.00 %
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	A summary of Xcede stock option activity for the six months ended March 31, 2017 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 810,500 1.00 Exercised - - Cancelled (48,197) 1.00 Balance at March 31, 2017 1,375,956 1.00 9.22 Outstanding and exercisable at March 31, 2017 730,694 $ 1.00 8.62

Segment, Customer and Geograp23

Segment, Customer and Geographical Reporting (Tables)	6 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The Company’s segment information for the three months ended March 31, 2017 and 2016 is summarized below: Results of Operations for the Three Months Ended March 31, 2017 Contract Optics Research Biomedical Total Revenue $ 5,281,000 $ 4,804,000 $ - $ 10,085,000 Gross profit 1,913,000 1,875,000 - 3,788,000 GM % 36 % 39 % - 38 % SG&A 1,597,000 1,802,000 392,000 3,791,000 Operating income (loss) 316,000 73,000 (392,000) (3,000) Depreciation and amortization 237,000 73,000 3,000 313,000 Capital expenditures 103,000 34,000 44,000 181,000 Intangibles, net 465,000 213,000 379,000 1,057,000 Goodwill 899,000 4,939,000 - 5,838,000 Total assets $ 19,705,000 $ 7,477,000 $ 794,000 $ 27,976,000 Results of Operations for the Three Months Ended March 31, 2016 Contract Optics Research Biomedical Total Revenue $ 6,428,000 $ 4,868,000 $ - $ 11,296,000 Gross profit 2,208,000 1,870,000 - 4,078,000 GM % 34 % 38 % - 36 % SG&A 1,882,000 1,800,000 355,000 4,037,000 Operating income (loss) 326,000 70,000 (355,000) 41,000 Depreciation and amortization 225,000 85,000 17,000 327,000 Capital expenditures 329,000 30,000 20,000 379,000 Intangibles, net 608,000 247,000 301,000 1,156,000 Goodwill 1,109,000 4,939,000 - 6,048,000 Total assets $ 17,653,000 $ 8,502,000 $ 571,000 $ 26,726,000 The Company’s segment information for the six months ended March 31, 2017 and 2016 is summarized below: Results of Operations for the Six Months Ended March 31, 2017 Contract Optics Research Biomedical Total Revenue $ 9,686,000 $ 9,542,000 $ - $ 19,228,000 Gross profit 3,487,000 3,826,000 - 7,313,000 GM % 36 % 40 % - 38 % SG&A 2,924,000 3,542,000 773,000 7,239,000 Gain on sale of assets - - - - Operating income (loss) 563,000 284,000 (773,000) 74,000 Depreciation and amortization 471,000 147,000 6,000 624,000 Capital expenditures 194,000 34,000 64,000 292,000 Intangibles, net 465,000 213,000 379,000 1,057,000 Goodwill 899,000 4,939,000 - 5,838,000 Total assets $ 19,705,000 $ 7,477,000 $ 794,000 $ 27,976,000 Results of Operations for the Six Months Ended March 31, 2016 Contract Optics Research Biomedical Total Revenue $ 12,635,000 $ 9,858,000 $ - $ 22,493,000 Gross profit 4,318,000 3,724,000 - 8,042,000 GM % 34 % 38 % - 36 % SG&A 3,634,000 3,506,000 703,000 7,843,000 Gain on sale of assets 4,000 - - 4,000 Operating income (loss) 688,000 218,000 (703,000) 203,000 Depreciation and amortization 454,000 164,000 34,000 652,000 Capital expenditures 894,000 37,000 51,000 982,000 Intangibles, net 608,000 247,000 301,000 1,156,000 Goodwill 1,109,000 4,939,000 - 6,048,000 Total assets $ 17,653,000 $ 8,502,000 $ 571,000 $ 26,726,000
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 March 31, 2017 and 2016 are as follows: Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Geographic Location Revenue % of Total Revenue % of Total United States $ 7,931,000 79 % $ 8,226,000 73 % Europe 1,212,000 12 % 2,452,000 22 % Other 942,000 9 % 618,000 5 % $ 10,085,000 100 % $ 11,296,000 100 % Revenue by geographic location in total and as a percentage of total revenue, for the six months ended March 31, 2016 and 2015 are as follows: Six Months Ended Six Months Ended March 31, 2017 March 31, 2016 Geographic Location Revenue % of Total Revenue % of Total United States $ 15,120,000 79 % $ 16,455,000 73 % Europe 2,299,000 12 % 4,493,000 20 % Other 1,809,000 9 % 1,545,000 7 % $ 19,228,000 100 % $ 22,493,000 100 %

Basis of Presentation (Details

Basis of Presentation (Details Textual)	Mar. 31, 2017	Nov. 18, 2016
Xcede Technologies inc [Member]
Noncontrolling Interest, Ownership Percentage by Parent	60.00%	59.00%
Xcede Technologies inc [Member] | Common Stock Owned By Others [Member]
Noncontrolling Interest, Ownership Percentage by Parent	17.00%
Dynasil Biomedical [Member]
Noncontrolling Interest, Ownership Percentage by Parent	83.00%

Xcede Technologies, Inc. Join25

Xcede Technologies, Inc. Joint Venture (Details Textual) - USD ($)	Nov. 30, 2016	Nov. 30, 2016	Mar. 31, 2017	Mar. 31, 2017	Nov. 18, 2016
Debt Conversion, Original Debt, Amount				$ 5,500,000
Debt Conversion, Converted Instrument, Amount				3,600,000
Gain (Loss) on Extinguishment of Debt				1,900,000
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%
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			60.00%	60.00%	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.
Expense Recognized In Long Term Contract			$ 167,000	$ 205,000
Dynasil Biomedical [Member]
Debt Conversion, Original Debt, Amount		$ 2,400,000
Debt Conversion, Converted Instrument, Shares Issued		2,338,569
Noncontrolling Interest, Ownership Percentage by Parent			83.00%	83.00%
Gain (Loss) on Extinguishment of Debt				$ 1,600,000
External Funding [Member] | Convertible Debt [Member]
Debt Conversion, Original Debt, Amount		$ 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
Notes Payable	$ 1,500,000	$ 1,500,000
Proceeds from Notes Payable		$ 500,000
Series B Preferred Stock [Member]
Preferred Stock, Liquidation Preference Per Share			$ 1.27	$ 1.27
Preferred Stock, Liquidation Preference, Value			$ 500,000	$ 500,000
Series A Preferred Stock [Member]
Preferred Stock, Liquidation Preference Per Share			$ 1.016	$ 1.016
Preferred Stock, Liquidation Preference, Value			$ 5,500,000	$ 5,500,000
Series A Preferred Stock [Member] | Noncontrolling Shareholders [Member]
Preferred Stock, Liquidation Preference, Value			3,100,000	3,100,000
Series A Preferred Stock [Member] | Dynasil Biomedical [Member]
Preferred Stock, Liquidation Preference, Value			$ 2,400,000	$ 2,400,000

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Inventory Current [Line Items]
Raw Materials	$ 2,129,000	$ 1,938,000
Work-in-Process	665,000	834,000
Finished Goods	1,171,000	954,000
Inventory, Net, Total	$ 3,965,000	$ 3,726,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2017	Sep. 30, 2016	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 2,113,000	$ 2,088,000
Accumulated Amortization	1,056,000	1,021,000
Net	1,057,000	1,067,000	$ 1,156,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	691,000	718,000
Accumulated Amortization	487,000	473,000
Net	$ 204,000	$ 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	299,000	282,000
Net	213,000	230,000
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	261,000	272,000
Accumulated Amortization	0	0
Net	$ 261,000	$ 272,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	20 years	20 years
Gross Amount	$ 389,000	$ 326,000
Accumulated Amortization	10,000	6,000
Net	$ 379,000	$ 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)	Mar. 31, 2017USD ($)
Finite-Lived Intangible Assets [Line Items]
2017 (6 months)	$ 61,000
2,018	123,000
2,019	127,000
2,020	43,000
2,021	43,000
Thereafter	140,000
Total	537,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
2017 (6 months)	40,000
2,018	80,000
2,019	84,000
2,020	0
2,021	0
Thereafter	0
Total	204,000
Know How [Member]
Finite-Lived Intangible Assets [Line Items]
2017 (6 months)	17,000
2,018	34,000
2,019	34,000
2,020	34,000
2,021	34,000
Thereafter	60,000
Total	213,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2017 (6 months)	4,000
2,018	9,000
2,019	9,000
2,020	9,000
2,021	9,000
Thereafter	80,000
Total	$ 120,000

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 26,000	$ 43,000	$ 52,000	$ 86,000
Finite-Lived Intangible Assets, Gross	2,113,000		2,113,000		$ 2,088,000
Parent [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 259,000		$ 259,000

Debt (Details Textual)

Debt (Details Textual) - USD ($) $ in Millions	1 Months Ended
	Nov. 30, 2016	May 31, 2017	Dec. 02, 2016
Xcede Technologies inc [Member]
Debt [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	5,394,120
Xcede Technologies inc [Member] | Senior Debt [Member]
Debt [Line Items]
Invest Amount In Exchange For Series B Preferred Stock			$ 1.2
Equipment Line of Credit [Member] | Middlesex Savings Bank [Member] | Subsequent Event [Member]
Debt [Line Items]
Debt, Current		$ 1

Earnings (Loss) Per Common Sh31

Earnings (Loss) Per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Weighted average shares outstanding
Basic	16,886,628	16,636,950	16,847,679	16,594,074
Effect of dilutive securities
Dilutive Average Shares Outstanding	16,886,628	16,636,950	16,847,679	16,650,606
Employee Stock Option [Member]
Effect of dilutive securities
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	0	0	0
Restricted Stock [Member]
Effect of dilutive securities
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	0	0	56,532

Earnings (Loss) Per Common Sh32

Earnings (Loss) Per Common Share (Details Textual) - shares	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Loss Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	196,769	123,147
Restricted Stock [Member]
Earnings Loss Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	70,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Stock Based Compensation [Line Items]
Stock Compensation Expense	$ 139,000	$ 143,000	$ 227,000	$ 262,000
Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	84,000	102,000	123,000	185,000
Restricted Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	13,000	11,000	26,000	19,000
Option Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	13,000	10,000	25,000	17,000
Employee Stock Purchase Plan [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	1,000	1,000	1,000	1,000
Subsidiary Option Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	$ 28,000	$ 19,000	$ 52,000	$ 40,000

Stock Based Compensation (Det34

Stock Based Compensation (Details 1) - Restricted Stock [Member]	6 Months Ended
	Mar. 31, 2017$ / 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	(30,000)
Shares, Cancelled | shares	0
Shares, Nonvested and expected to vest, Ending Balance | shares	70,000
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	1.73
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)	6 Months Ended
	Mar. 31, 2017
Subsidiary Option Grants [Member]
Expected term in years	10 years
Risk-free interest rate	2.42%
Expected volatility	83.11%
Expected dividend yield	0.00%
Stock Option Grants [Member]
Expected term in years	3 years
Risk-free interest rate	1.48%
Expected volatility	69.57%
Expected dividend yield	0.00%

Stock Based Compensation (Det36

Stock Based Compensation (Details 3) - $ / shares	6 Months Ended	12 Months Ended
	Mar. 31, 2017	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	196,769	123,147
Granted, Options Outstanding	95,602
Exercised, Options Outstanding	0
Cancelled, Options Outstanding	(21,980)
Balance, Options Outstanding	196,769	123,147
Beginning Balance, Weighted Average Exercise Price per Share	$ 2.3
Outstanding and exercisable, Weighted Average Exercise Price per Share	1.98	$ 2.3
Granted, Weighted Average Exercise Price per Share	1.8
Exercised, Weighted Average Exercise Price per Share	0
Cancelled, Weighted Average Exercise Price per Share	3.03
Ending Balance, Weighted Average Exercise Price per Share	$ 1.98	$ 2.3
Granted, Weighted Average Remaining Contractual Term (in Year)	2 years 10 months 2 days
Balance, Weighted Average Remain Contractual Term (in Years)	2 years 1 month 20 days	1 year 8 months 8 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	2 years 1 month 20 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	730,694	320,586
Granted, Options Outstanding	810,500
Exercised, Options Outstanding	0
Cancelled, Options Outstanding	(48,197)
Balance, Options Outstanding	1,375,956	613,653
Beginning 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	1
Ending Balance, Weighted Average Exercise Price per Share	$ 1	$ 1
Balance, Weighted Average Remain Contractual Term (in Years)	9 years 2 months 19 days	8 years 4 months 6 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	8 years 7 months 13 days	8 years 4 days

Stock Based Compensation (Det37

Stock Based Compensation (Details Textual)	6 Months Ended
	Mar. 31, 2017USD ($)$ / 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	582,500
Subsidiary Option Grants [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	810,500
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
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 | $	$ 202,000
Employee Stock Plan [Member]
Class of Stock [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $	$ 160,000

Segment, Customer and Geograp38

Segment, Customer and Geographical Reporting (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 10,085,000	$ 11,296,000	$ 19,228,000	$ 22,493,000
Gross profit	$ 3,788,000	$ 4,078,000	$ 7,313,000	$ 8,042,000
GM %	38.00%	36.00%	38.00%	36.00%
SG&A	$ 3,791,000	$ 4,037,000	$ 7,239,000	$ 7,843,000
Gain on sale of assets	0	0	0	(4,000)
Operating income (loss)	(3,000)	41,000	74,000	203,000
Depreciation and amortization	313,000	327,000	624,000	652,000
Capital expenditures	181,000	379,000	292,000	982,000
Intangibles, net	1,057,000	1,156,000	1,057,000	1,156,000	$ 1,067,000
Goodwill	5,838,000	6,048,000	5,838,000	6,048,000	5,898,000
Total assets	27,976,000	26,726,000	27,976,000	26,726,000	$ 26,369,000
Optics [Member]
Segment Reporting Information [Line Items]
Revenue	5,281,000	6,428,000	9,686,000	12,635,000
Gross profit	$ 1,913,000	$ 2,208,000	$ 3,487,000	$ 4,318,000
GM %	36.00%	34.00%	36.00%	34.00%
SG&A	$ 1,597,000	$ 1,882,000	$ 2,924,000	$ 3,634,000
Gain on sale of assets			0	4,000
Operating income (loss)	316,000	326,000	563,000	688,000
Depreciation and amortization	237,000	225,000	471,000	454,000
Capital expenditures	103,000	329,000	194,000	894,000
Intangibles, net	465,000	608,000	465,000	608,000
Goodwill	899,000	1,109,000	899,000	1,109,000
Total assets	19,705,000	17,653,000	19,705,000	17,653,000
Contract Research [Member]
Segment Reporting Information [Line Items]
Revenue	4,804,000	4,868,000	9,542,000	9,858,000
Gross profit	$ 1,875,000	$ 1,870,000	$ 3,826,000	$ 3,724,000
GM %	39.00%	38.00%	40.00%	38.00%
SG&A	$ 1,802,000	$ 1,800,000	$ 3,542,000	$ 3,506,000
Gain on sale of assets			0	0
Operating income (loss)	73,000	70,000	284,000	218,000
Depreciation and amortization	73,000	85,000	147,000	164,000
Capital expenditures	34,000	30,000	34,000	37,000
Intangibles, net	213,000	247,000	213,000	247,000
Goodwill	4,939,000	4,939,000	4,939,000	4,939,000
Total assets	7,477,000	8,502,000	7,477,000	8,502,000
Biomedical [Member]
Segment Reporting Information [Line Items]
Revenue	0	0	0	0
Gross profit	$ 0	$ 0	$ 0	$ 0
GM %	0.00%	0.00%	0.00%	0.00%
SG&A	$ 392,000	$ 355,000	$ 773,000	$ 703,000
Gain on sale of assets			0	0
Operating income (loss)	(392,000)	(355,000)	(773,000)	(703,000)
Depreciation and amortization	3,000	17,000	6,000	34,000
Capital expenditures	44,000	20,000	64,000	51,000
Intangibles, net	379,000	301,000	379,000	301,000
Goodwill	0	0	0	0
Total assets	$ 794,000	$ 571,000	$ 794,000	$ 571,000

Segment, Customer and Geograp39

Segment, Customer and Geographical Reporting (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 10,085,000	$ 11,296,000	$ 19,228,000	$ 22,493,000
% of Total	100.00%	100.00%	100.00%	100.00%
United State [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 7,931,000	$ 8,226,000	$ 15,120,000	$ 16,455,000
% of Total	79.00%	73.00%	79.00%	73.00%
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,212,000	$ 2,452,000	$ 2,299,000	$ 4,493,000
% of Total	12.00%	22.00%	12.00%	20.00%
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 942,000	$ 618,000	$ 1,809,000	$ 1,545,000
% of Total	9.00%	5.00%	9.00%	7.00%

Segment, Customer and Geograp40

Segment, Customer and Geographical Reporting (Details Textual)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Customer Five [Member] | Sales Revenue, Segment [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage				10.00%
Customer Three [Member] | Sales Revenue, Segment [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage			10.00%
Optics [Member] | Customer One [Member] | Sales Revenue, Segment [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage				10.00%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	59.00%	57.00%	60.00%	77.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Nov. 18, 2016
Income Tax [Line Items]
Income Tax Expense (Benefit)	$ 71,000	$ 33,000	$ (2,658,000)	$ 68,000
Effective Income Tax Rate Reconciliation, Percent	148.00%	92.00%	6995.00%
Excluding The Impact Of Valuation Allowance [Member]
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, Percent			437.00%	101.00%
Xcede Technologies inc [Member]
Income Tax [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	60.00%		60.00%		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%