Dynasil Corporation of America (DYSL) 10-Q 13 Feb 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Feb. 06, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
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		17,175,175

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2017	Sep. 30, 2017
Current Assets
Cash and cash equivalents	$ 961,000	$ 2,415,000
Accounts receivable, net of allowances of $195,000 and $200,000 at December 31, 2017 and September 30, 2017, respectively	3,750,000	3,407,000
Costs in excess of billings and unbilled receivables	1,230,000	1,317,000
Inventories, net of reserves	4,491,000	4,326,000
Prepaid expenses and other current assets	792,000	973,000
Total current assets	11,224,000	12,438,000
Property, Plant and Equipment, net	7,377,000	7,032,000
Other Assets
Intangibles, net	978,000	987,000
Deferred tax asset	2,109,000	2,642,000
Goodwill	5,951,000	5,940,000
Security deposits	58,000	58,000
Total other assets	9,096,000	9,627,000
Total Assets	27,697,000	29,097,000
Current Liabilities
Current portion of long-term debt	1,840,000	2,007,000
Capital lease obligations, current	78,000	91,000
Accounts payable	1,899,000	2,380,000
Deferred revenue	34,000	129,000
Accrued expenses and other liabilities	2,336,000	2,667,000
Total current liabilities	6,187,000	7,274,000
Long-term Liabilities
Long-term debt, net of current portion	1,358,000	1,045,000
Capital lease obligations, net of current portion	68,000	81,000
Deferred tax liability, net	236,000	234,000
Other long-term liabilities	163,000	38,000
Total long-term liabilities	1,825,000	1,398,000
Stockholders' Equity
Common Stock, $0.0005 par value, 40,000,000 shares authorized, 17,929,183 and 17,893,763 shares issued, 17,119,023 and and 17,083,603 shares outstanding at December 31, 2017 and September 30, 2017, respectively.	9,000	9,000
Additional paid in capital	21,499,000	21,406,000
Accumulated other comprehensive income (loss)	(504,000)	(539,000)
Accumulated deficit	(1,716,000)	(919,000)
Less 810,160 shares of treasury stock - at cost	(986,000)	(986,000)
Total Dynasil stockholders' equity	18,302,000	18,971,000
Noncontrolling interest	1,383,000	1,454,000
Total stockholders' equity	19,685,000	20,425,000
Total Liabilities and Stockholders' Equity	$ 27,697,000	$ 29,097,000

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Dec. 31, 2017	Sep. 30, 2017
Allowance for doubtful accounts (in dollars)	$ 195,000	$ 200,000
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	17,929,183	17,893,763
Common stock, shares outstanding	17,119,023	17,083,603
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, 2017	Dec. 31, 2016
Net revenue	$ 9,189,000	$ 9,143,000
Cost of revenue	5,614,000	5,618,000
Gross profit	3,575,000	3,525,000
Operating expenses:
Sales and marketing	279,000	266,000
Research and development	308,000	196,000
General and administrative	3,157,000	2,987,000
Total operating expenses	3,744,000	3,449,000
Income (loss) from operations	(169,000)	76,000
Interest expense, net	43,000	67,000
Income (loss) before taxes	(212,000)	9,000
Income tax (benefit)	660,000	(2,730,000)
Net income (loss)	(872,000)	2,739,000
Less: Net income (loss) attributable to noncontrolling interest	(75,000)	(69,000)
Net income (loss) attributable to common stockholders	(797,000)	2,808,000
Net income (loss)	(872,000)	2,739,000
Other comprehensive income (loss):
Foreign currency translation	35,000	(295,000)
Total comprehensive income (loss)	(837,000)	2,444,000
Less: comprehensive income (loss) attributable to noncontrolling interest	(75,000)	(69,000)
Total comprehensive income (loss) attributable to common stockholders	$ (762,000)	$ 2,513,000
Basic net income (loss) per common share	$ (0.05)	$ 0.17
Diluted net income (loss) per common share	$ (0.05)	$ 0.17

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - 3 months ended Dec. 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, 2017	$ 20,425,000	$ 9,000	$ 21,406,000	$ (539,000)	$ (919,000)	$ (986,000)	$ 1,454,000
Balance (in shares) at Sep. 30, 2017		17,893,763				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)		4,420				0
Stock-based compensation costs	93,000	$ 0	89,000	0	0	$ 0	4,000
Stock-based compensation costs (in shares)		31,000				0
Foreign currency translation adjustment	35,000	$ 0	0	35,000	0	$ 0	0
Net income (loss)	(872,000)	0	0	0	(797,000)	0	(75,000)
Balance at Dec. 31, 2017	$ 19,685,000	$ 9,000	$ 21,499,000	$ (504,000)	$ (1,716,000)	$ (986,000)	$ 1,383,000
Balance (in shares) at Dec. 31, 2017		17,929,183				810,160

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ (872,000)	$ 2,739,000
Adjustments to reconcile net income (loss) to net cash:
Stock compensation expense	93,000	89,000
Foreign exchange loss (gain)	(7,000)	41,000
Depreciation and amortization	299,000	311,000
Deferred income taxes	533,000	(2,730,000)
Non-cash R&D services	163,000	38,000
Other	44,000	35,000
Other changes in assets and liabilities:
Accounts receivable, net	(333,000)	(374,000)
Inventories	(198,000)	(280,000)
Costs in excess of billings and unbilled receivables	88,000	249,000
Prepaid expenses and other assets	51,000	189,000
Accounts payable	(483,000)	(99,000)
Accrued expenses and other liabilities	(236,000)	(790,000)
Deferred revenue	(95,000)	2,000
Net cash from operating activities	(953,000)	(580,000)
Cash flows from investing activities:
Purchases of property, plant and equipment	(609,000)	(91,000)
Purchase of intangibles	(16,000)	(20,000)
Net cash from investing activities	(625,000)	(111,000)
Cash flows from financing activities:
Proceeds from issuance of common stock	4,000	4,000
Principal payments on capital leases	(26,000)	(28,000)
Proceeds from (payments of) equipment line of credit, net	281,000	0
Proceeds from (payments of) bank and subordinated debt, net	(141,000)	(219,000)
Net cash from financing activities	118,000	(243,000)
Effect of exchange rates on cash and cash equivalents	6,000	(49,000)
Net change in cash and cash equivalents	(1,454,000)	(983,000)
Cash and cash equivalents, beginning	2,415,000	2,607,000
Cash and cash equivalents, ending	961,000	1,624,000
Supplemental disclosures of cash flow information:
Cash paid during the year for: Interest	37,000	47,000
Cash paid during the year for: Tax payments (refunds)	4,000	0
Non cash activities:
Recapitalization of Xcede - conversion of non controlling notes payable to preferred stock	0	3,104,000
Subsidiary stock options issued to settle liabilities	0	82,000
Subsidiary debt issued to fund research activities	$ 0	$ 500,000

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 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 December 31, 2017, the consolidated statements of operations and comprehensive income (loss) for the three months ended December 31, 2017 and 2016, changes in stockholders’ equity for the three months ended December 31, 2017 and cash flows for the three months ended December 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 December 31, 2017, Dynasil Biomedical owned 62 38 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, 2017 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, 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	3 Months Ended
	Dec. 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 Effective October 1, 2017, the Company adopted the guidance issued in Accounting Standard Update 2016-09, Improvements to Employee Share-Based Payment Accounting, Effective October 1, 2017, the Company adopted the guidance issued in Accounting Standard Update 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control 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). • Identify the contract(s) with a customer; • Identify each performance obligation in the contract; • Determine the transaction price; • Allocate the transaction price to each performance obligation; and • Recognize revenue when or as each performance obligation is satisfied. The Company is currently evaluating how the adoption of ASU 2014-09 will impact its consolidated financial statements and results of operations by applying the five-step approach to each revenue stream. 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 government contractors, and evaluating potential changes to our business processes, systems, and controls to support the recognition and disclosure under the new standard. The Company has engaged a third party to assist in evaluating the impact of this new standard on its consolidated financial statements and related disclosures. The Company plans to complete the conversion and implementation phases by the end of fiscal year 2018 in conjunction with future interpretative guidance. Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. Business Combinations (Topic 805): Clarifying the Definition of a Business: Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services. Revenue from Contracts with Customers Leases (Topic 842). Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment: On December 22, 2017, the date the Tax Cuts and Jobs Act (“2017 Tax Act”) was signed into law, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118

Xcede Technologies, Inc. Joint

Xcede Technologies, Inc. Joint Venture	3 Months Ended
	Dec. 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 2016 5.2 In November 2016, Dynasil committed to invest $ 1.2 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 1.1 5.5 2.4 3.1 As of December 31, 2017, DBM owned approximately 62 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 is no longer included in the Dynasil consolidated federal tax return and the Company is no longer 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 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 5.4 163,000 38,000

Inventories

Inventories	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 4 - Inventories December 31, September 30, 2017 2017 Raw Materials $ 2,647,000 $ 2,540,000 Work-in-Process 806,000 798,000 Finished Goods 1,038,000 988,000 $ 4,491,000 $ 4,326,000

Intangible Assets

Intangible Assets	3 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	Note 5 – Intangible Assets Intangible assets at December 31, 2017 and September 30, 2017 consist of the following: Useful Gross Accumulated December 31, 2017 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 741,000 $ 570,000 $ 171,000 Know How 15 512,000 324,000 188,000 Trade Names Indefinite 282,000 - 282,000 Patents 20 348,000 11,000 337,000 Biomedical Technologies 5 260,000 260,000 - $ 2,143,000 $ 1,165,000 $ 978,000 Useful Gross Accumulated September 30, 2017 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 737,000 $ 551,000 $ 186,000 Know How 15 512,000 316,000 196,000 Trade Names Indefinite 281,000 - 281,000 Patents 20 333,000 9,000 324,000 Biomedical Technologies 5 260,000 260,000 - $ 2,123,000 $ 1,136,000 $ 987,000 Amortization expense for the three months ended December 31, 2017 and 2016 was $ 28,000 26,000 Estimated amortization expense for each of the next five fiscal years and thereafter is as follows: 2018 (9 months) 2019 2020 2021 2022 Thereafter Total Acquired Customer Base $ 60,000 $ 80,000 $ 31,000 $ - $ - $ - $ 171,000 Know How 26,000 34,000 34,000 34,000 34,000 26,000 188,000 Patents 9,000 11,000 11,000 11,000 11,000 162,000 215,000 $ 95,000 $ 125,000 $ 76,000 $ 45,000 $ 45,000 $ 188,000 $ 574,000 As of December 31, 2017, Xcede had $ 122,000 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, aside from foreign exchange rate fluctuations, in the carrying value of long-lived assets, during the three months ended December 31, 2017.

Goodwill

Goodwill	3 Months Ended
	Dec. 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; · 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, 2017.

Debt

Debt	3 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 7 – Debt Subordinated Debt On January 3, 2018, 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, 2018. Such amendment also increased the interest rate of the note from six percent ( 6 7

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	3 Months Ended
	Dec. 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 the three months ended December 31, 2017, no common share equivalents related to stock options or unvested restricted stock were included in the calculation of dilutive shares, since there was a loss attributable to common shareholders and the inclusion of common share equivalents would be anti-dilutive. For purposes of computing diluted earnings per share for the three months ended December 31, 2016, no common stock options were included in the calculation of dilutive shares as all of the 123,147 For the three months ended December 31, 2016, 90,000 December 31, 2017 December 31, 2016 Weighted average shares outstanding Basic 17,047,690 16,808,729 Effect of dilutive securities Stock options - - Restricted stock - - Dilutive average shares outstanding 17,047,690 16,808,729

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Dec. 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 December 31, 2017 December 31, 2016 Stock grants $ 39,000 $ 39,000 Restricted stock grants 13,000 13,000 Option grants 12,000 12,000 Employee stock purchase plan 1,000 1,000 Subsidiary option grants 28,000 24,000 Total $ 93,000 $ 89,000 At December 31, 2017, there was approximately $ 75,000 Restricted Stock Grants Restricted Stock Activity for the Three Months ended Shares Weighted-Average Nonvested at September 30, 2017 70,000 $ 1.73 Granted - Vested (10,000) $ 1.70 Cancelled - - Nonvested and expected to vest at December 31, 2017 60,000 $ 1.73 Stock Option Grants Options Weighted Average Weighted Average Balance at September 30, 2017 196,769 $ 1.98 1.64 Outstanding and exercisable at September 30, 2017 196,769 $ 1.98 1.64 Granted - - Exercised - - Cancelled - - Balance at December 31, 2017 196,769 $ 1.98 1.39 Outstanding and exercisable at December 31, 2017 196,769 $ 1.98 1.39 Subsidiary Stock Option Grants Options Weighted Average Weighted Average Balance at September 30, 2017 1,375,956 $ 1.00 8.70 Outstanding and exercisable at September 30, 2017 923,617 1.00 8.30 Granted - - Exercised - - Cancelled - - Balance at December 31, 2017 1,375,956 1.00 8.44 Outstanding and exercisable at December 31, 2017 1,020,078 $ 1.00 8.11 At December 31, 2017, the Company’s Xcede joint venture had approximately $ 125,000

Segment, Customer and Geographi

Segment, Customer and Geographical Reporting	3 Months Ended
	Dec. 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 (“Hilger”), 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, 2017 Optics Contract Biomedical Total Revenue $ 4,942,000 $ 4,247,000 $ - $ 9,189,000 Gross profit 1,724,000 1,851,000 - 3,575,000 GM % 35 % 44 % - 39 % Operating expenses 1,576,000 1,723,000 445,000 3,744,000 Operating income (loss) 148,000 128,000 (445,000) (169,000) Depreciation and amortization 231,000 65,000 3,000 299,000 Capital expenditures 590,000 19,000 16,000 625,000 Intangibles, net 453,000 188,000 337,000 978,000 Goodwill 1,012,000 4,939,000 - 5,951,000 Total assets $ 18,969,000 $ 8,114,000 $ 614,000 $ 27,697,000 Results of Operations for the Three Months Ended December 31, 2016 Optics Contract 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 % Operating expenses 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 Customer Financial Information For both the three months ended December 31, 2017 and 2016, no customer in the Optics segment represented more than 10% of the total segment revenue. For the three months ended December 31, 2017, four 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, 2017 December 31, 2016 Geographic Location Revenue % of Total Revenue % of Total United States $ 7,353,000 80 % $ 7,189,000 79 % Europe 1,268,000 14 % 1,086,000 12 % Other 568,000 6 % 868,000 9 % $ 9,189,000 100 % $ 9,143,000 100 %

Income Taxes

Income Taxes	3 Months Ended
	Dec. 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 million during the quarter ending December 31, 2016. Going forward, as the Company records income, it will be able to utilize the NOLs (net operating losses) within its deferred tax assets. Based upon the Company’s recent losses and uncertainty of future profits, the Company has determined that the uncertainty regarding the realization of the Company’s state and separate Xcede deferred tax assets is sufficient to warrant the continued need for a valuation allowance against these deferred tax assets. 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, 2017 and September 30, 2017, 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, 2017 and September 30, 2017, 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act, which is effective on December 22, 2017, significantly revises the U.S. tax code by, among other changes, lowering the corporate income tax rate from 35 21 The Company re-measured certain U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%, and provisionally recorded an income tax expense of $ 0.5 The one-time transition tax is based on the total unremitted earnings of the Company’s foreign subsidiary, Hilger, that has previously been deferred from U.S. income taxes. The Company recorded a provisional amount for its one-time transition liability of its foreign subsidiary resulting in additional income tax expense of $ 0.1 The effective tax rates were (309%) and 679 2.7 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, 2017
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 12 – Subsequent Events On January 3, 2018, the Company amended the Note Purchase Agreement with Massachusetts Capital Resource Company. (See Note 7 – Debt.) The Company has evaluated subsequent events through the date the financial statements were released.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories, net of reserves, consists of the following: December 31, September 30, 2017 2017 Raw Materials $ 2,647,000 $ 2,540,000 Work-in-Process 806,000 798,000 Finished Goods 1,038,000 988,000 $ 4,491,000 $ 4,326,000

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets at December 31, 2017 and September 30, 2017 consist of the following: Useful Gross Accumulated December 31, 2017 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 741,000 $ 570,000 $ 171,000 Know How 15 512,000 324,000 188,000 Trade Names Indefinite 282,000 - 282,000 Patents 20 348,000 11,000 337,000 Biomedical Technologies 5 260,000 260,000 - $ 2,143,000 $ 1,165,000 $ 978,000 Useful Gross Accumulated September 30, 2017 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 737,000 $ 551,000 $ 186,000 Know How 15 512,000 316,000 196,000 Trade Names Indefinite 281,000 - 281,000 Patents 20 333,000 9,000 324,000 Biomedical Technologies 5 260,000 260,000 - $ 2,123,000 $ 1,136,000 $ 987,000
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: 2018 (9 months) 2019 2020 2021 2022 Thereafter Total Acquired Customer Base $ 60,000 $ 80,000 $ 31,000 $ - $ - $ - $ 171,000 Know How 26,000 34,000 34,000 34,000 34,000 26,000 188,000 Patents 9,000 11,000 11,000 11,000 11,000 162,000 215,000 $ 95,000 $ 125,000 $ 76,000 $ 45,000 $ 45,000 $ 188,000 $ 574,000

Earnings (Loss) Per Common Sh21

Earnings (Loss) Per Common Share (Tables)	3 Months Ended
	Dec. 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 December 31, 2017 and 2016 is as follows: December 31, 2017 December 31, 2016 Weighted average shares outstanding Basic 17,047,690 16,808,729 Effect of dilutive securities Stock options - - Restricted stock - - Dilutive average shares outstanding 17,047,690 16,808,729

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2017
Schedule Of Stock Compensation Expense [Table Text Block]	Stock compensation expense for the three months ended December 31, 2017 and 2016 is as follows: Three Months Ended Three Months Ended Stock Compensation Expense December 31, 2017 December 31, 2016 Stock grants $ 39,000 $ 39,000 Restricted stock grants 13,000 13,000 Option grants 12,000 12,000 Employee stock purchase plan 1,000 1,000 Subsidiary option grants 28,000 24,000 Total $ 93,000 $ 89,000
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	A summary of restricted stock activity for the three months ended December 31, 2017 is presented below: Restricted Stock Activity for the Three Months ended Shares Weighted-Average Nonvested at September 30, 2017 70,000 $ 1.73 Granted - Vested (10,000) $ 1.70 Cancelled - - Nonvested and expected to vest at December 31, 2017 60,000 $ 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, 2017 is presented below: Options Weighted Average Weighted Average Balance at September 30, 2017 196,769 $ 1.98 1.64 Outstanding and exercisable at September 30, 2017 196,769 $ 1.98 1.64 Granted - - Exercised - - Cancelled - - Balance at December 31, 2017 196,769 $ 1.98 1.39 Outstanding and exercisable at December 31, 2017 196,769 $ 1.98 1.39
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, 2017 is presented below: Options Weighted Average Weighted Average Balance at September 30, 2017 1,375,956 $ 1.00 8.70 Outstanding and exercisable at September 30, 2017 923,617 1.00 8.30 Granted - - Exercised - - Cancelled - - Balance at December 31, 2017 1,375,956 1.00 8.44 Outstanding and exercisable at December 31, 2017 1,020,078 $ 1.00 8.11

Segment, Customer and Geograp23

Segment, Customer and Geographical Reporting (Tables)	3 Months Ended
	Dec. 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 December 31, 2017 and 2016 is summarized below: Results of Operations for the Three Months Ended December 31, 2017 Optics Contract Biomedical Total Revenue $ 4,942,000 $ 4,247,000 $ - $ 9,189,000 Gross profit 1,724,000 1,851,000 - 3,575,000 GM % 35 % 44 % - 39 % Operating expenses 1,576,000 1,723,000 445,000 3,744,000 Operating income (loss) 148,000 128,000 (445,000) (169,000) Depreciation and amortization 231,000 65,000 3,000 299,000 Capital expenditures 590,000 19,000 16,000 625,000 Intangibles, net 453,000 188,000 337,000 978,000 Goodwill 1,012,000 4,939,000 - 5,951,000 Total assets $ 18,969,000 $ 8,114,000 $ 614,000 $ 27,697,000 Results of Operations for the Three Months Ended December 31, 2016 Optics Contract 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 % Operating expenses 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
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, 2017 and 2016 are as follows: Three Months Ended Three Months Ended December 31, 2017 December 31, 2016 Geographic Location Revenue % of Total Revenue % of Total United States $ 7,353,000 80 % $ 7,189,000 79 % Europe 1,268,000 14 % 1,086,000 12 % Other 568,000 6 % 868,000 9 % $ 9,189,000 100 % $ 9,143,000 100 %

Basis of Presentation (Details

Basis of Presentation (Details Textual) - Xcede Technologies inc [Member]	Dec. 31, 2017	Nov. 18, 2016
Noncontrolling Interest, Ownership Percentage by Parent	62.00%	59.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	38.00%

Xcede Technologies, Inc. Join25

Xcede Technologies, Inc. Joint Venture (Details Textual) - USD ($)	1 Months Ended		3 Months Ended
	Nov. 30, 2016	Nov. 18, 2016	Dec. 31, 2017	Dec. 31, 2016
Debt Conversion, Original Debt, Amount		$ 5,500,000
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%
Committed Investment In Cash	$ 1,200,000
Debt Conversion, Converted Instrument, Shares Issued	5,394,120
Capital Stock Financing Discount Percentage	20.00%
Noncontrolling Interest, Ownership Percentage by Parent		59.00%	62.00%
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.
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			$ 1,600,000
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%
Debt Instrument, Maturity Date	Dec. 31, 2025
Notes Payable	$ 1,500,000
Proceeds from Notes Payable	$ 500,000
Expense Recognized In Long Term Contract			$ 163,000	$ 38,000
Imputed Interest Rate			5.40%
Series B Preferred Stock [Member]
Preferred Stock, Liquidation Preference Per Share			$ 1.27
Preferred Stock, Liquidation Preference, Value			$ 1,100,000
Series B Preferred Stock [Member] | Xcede Technologies inc [Member]
Proceeds from Notes Payable			2,016,000,000
Series A Preferred Stock [Member]
Debt Conversion, Converted Instrument, Amount			$ 3,600,000
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, 2017	Sep. 30, 2017
Inventory Current [Line Items]
Raw Materials	$ 2,647,000	$ 2,540,000
Work-in-Process	806,000	798,000
Finished Goods	1,038,000	988,000
Inventory, Net, Total	$ 4,491,000	$ 4,326,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 2,143,000	$ 2,123,000
Accumulated Amortization	1,165,000	1,136,000
Net	978,000	987,000	$ 1,033,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	741,000	737,000
Accumulated Amortization	570,000	551,000
Net	$ 171,000	$ 186,000
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	324,000	316,000
Net	188,000	196,000
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	282,000	281,000
Accumulated Amortization	0	0
Net	$ 282,000	$ 281,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	20 years	20 years
Gross Amount	$ 348,000	$ 333,000
Accumulated Amortization	11,000	9,000
Net	$ 337,000	$ 324,000
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, 2017USD ($)
Finite-Lived Intangible Assets [Line Items]
2018 (9 months)	$ 95,000
2,019	125,000
2,020	76,000
2,021	45,000
2,022	45,000
Thereafter	188,000
Total	574,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
2018 (9 months)	60,000
2,019	80,000
2,020	31,000
2,021	0
2,022	0
Thereafter	0
Total	171,000
Know How [Member]
Finite-Lived Intangible Assets [Line Items]
2018 (9 months)	26,000
2,019	34,000
2,020	34,000
2,021	34,000
2,022	34,000
Thereafter	26,000
Total	188,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2018 (9 months)	9,000
2,019	11,000
2,020	11,000
2,021	11,000
2,022	11,000
Thereafter	162,000
Total	$ 215,000

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 28,000	$ 26,000
Finite-Lived Intangible Assets, Gross	2,143,000		$ 2,123,000
Parent [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 122,000

Debt (Details Textual)

Debt (Details Textual) - Subordinate [Member]	Jan. 03, 2018	Sep. 30, 2017
Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		6.00%
Subsequent Event [Member]
Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	7.00%

Earnings (Loss) Per Common Sh31

Earnings (Loss) Per Common Share (Details) - shares	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Weighted average shares outstanding
Basic	17,047,690	16,808,729
Effect of dilutive securities
Dilutive Average Shares Outstanding	17,047,690	16,808,729
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	0

Earnings (Loss) Per Common Sh32

Earnings (Loss) Per Common Share (Details Textual) - shares	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Earnings Loss Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		123,147
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	0

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stock Based Compensation [Line Items]
Stock Compensation Expense	$ 93,000	$ 89,000
Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	39,000	39,000
Restricted Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	13,000	13,000
Option Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	12,000	12,000
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	$ 28,000	$ 24,000

Stock Based Compensation (Det34

Stock Based Compensation (Details 1) - Restricted Stock [Member]	3 Months Ended
	Dec. 31, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Nonvested, Beginning Balance | shares	70,000
Shares, Granted | shares	0
Shares, Vested | shares	(10,000)
Shares, Cancelled | shares	0
Shares, Nonvested and expected to vest, Ending Balance | shares	60,000
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 3) - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017
Stock Option Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance, Options Outstanding	196,769
Outstanding and exercisable, Options Outstanding	196,769	196,769
Granted, Options Outstanding	0
Exercised, Options Outstanding	0
Cancelled, Options Outstanding	0
Balance, Options Outstanding	196,769	196,769
Beginning Balance, Weighted Average Exercise Price per Share	$ 1.98
Outstanding and exercisable, Weighted Average Exercise Price per Share	1.98	$ 1.98
Granted, Weighted Average Exercise Price per Share	0
Exercised, Weighted Average Exercise Price per Share	0
Cancelled, Weighted Average Exercise Price per Share	0
Ending Balance, Weighted Average Exercise Price per Share	$ 1.98	$ 1.98
Balance, Weighted Average Remain Contractual Term (in Years)	1 year 4 months 20 days	1 year 7 months 20 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	1 year 4 months 20 days	1 year 7 months 20 days
Subsidiary Option Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance, Options Outstanding	1,375,956
Outstanding and exercisable, Options Outstanding	1,020,078	923,617
Granted, Options Outstanding	0
Exercised, Options Outstanding	0
Cancelled, Options Outstanding	0
Balance, Options Outstanding	1,375,956	1,375,956
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	0
Exercised, Weighted Average Exercise Price per Share	0
Cancelled, Weighted Average Exercise Price per Share	0
Ending Balance, Weighted Average Exercise Price per Share	$ 1	$ 1
Balance, Weighted Average Remain Contractual Term (in Years)	8 years 5 months 8 days	8 years 8 months 12 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	8 years 1 month 10 days	8 years 3 months 18 days

Stock Based Compensation (Det36

Stock Based Compensation (Details Textual)	Dec. 31, 2017USD ($)
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	$ 125,000
Employee Stock Plan [Member]
Class of Stock [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 75,000

Segment, Customer and Geograp37

Segment, Customer and Geographical Reporting (Details) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 9,189,000	$ 9,143,000
Gross profit	$ 3,575,000	$ 3,525,000
GM %	39.00%	39.00%
Operating expenses	$ 3,744,000	$ 3,449,000
Operating income (loss)	(169,000)	76,000
Depreciation and amortization	299,000	311,000
Capital expenditures	625,000	111,000
Intangibles, net	978,000	1,033,000	$ 987,000
Goodwill	5,951,000	5,822,000	5,940,000
Total assets	27,697,000	28,252,000	$ 29,097,000
Optics [Member]
Segment Reporting Information [Line Items]
Revenue	4,942,000	4,405,000
Gross profit	$ 1,724,000	$ 1,574,000
GM %	35.00%	36.00%
Operating expenses	$ 1,576,000	$ 1,328,000
Operating income (loss)	148,000	246,000
Depreciation and amortization	231,000	234,000
Capital expenditures	590,000	91,000
Intangibles, net	453,000	474,000
Goodwill	1,012,000	883,000
Total assets	18,969,000	18,785,000
Contract Research [Member]
Segment Reporting Information [Line Items]
Revenue	4,247,000	4,738,000
Gross profit	$ 1,851,000	$ 1,951,000
GM %	44.00%	41.00%
Operating expenses	$ 1,723,000	$ 1,740,000
Operating income (loss)	128,000	211,000
Depreciation and amortization	65,000	74,000
Capital expenditures	19,000	0
Intangibles, net	188,000	222,000
Goodwill	4,939,000	4,939,000
Total assets	8,114,000	8,407,000
Biomedical [Member]
Segment Reporting Information [Line Items]
Revenue	0	0
Gross profit	$ 0	$ 0
GM %	0.00%	0.00%
Operating expenses	$ 445,000	$ 381,000
Operating income (loss)	(445,000)	(381,000)
Depreciation and amortization	3,000	3,000
Capital expenditures	16,000	20,000
Intangibles, net	337,000	337,000
Goodwill	0	0
Total assets	$ 614,000	$ 1,060,000

Segment, Customer and Geograp38

Segment, Customer and Geographical Reporting (Details 1) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 9,189,000	$ 9,143,000
% of Total	100.00%	100.00%
United State [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 7,353,000	$ 7,189,000
% of Total	80.00%	79.00%
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,268,000	$ 1,086,000
% of Total	14.00%	12.00%
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 568,000	$ 868,000
% of Total	6.00%	9.00%

Segment, Customer and Geograp39

Segment, Customer and Geographical Reporting (Details Textual) - Sales Revenue, Segment [Member]	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Optics [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	10.00%	10.00%
Contract Research segment [Member] | Customer Three [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage		10.00%
Contract Research segment [Member] | Customer Four [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	10.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 22, 2017	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017	Nov. 18, 2016
Income Tax [Line Items]
Income Tax Expense (Benefit)		$ 660,000	$ (2,730,000)
Effective Income Tax Rate Reconciliation, Percent		(309.00%)	679.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%			35.00%
Provision for Income Tax Expense		$ 500,000
Additional Income Tax Expense		$ 100,000
Excluding The Impact Of Valuation Allowance [Member]
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, Percent			(25.00%)
Excluding The Impact Of The 2017 Tax Act [Member]
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, Percent		(16.00%)
Xcede Technologies inc [Member]
Income Tax [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent		62.00%			59.00%
Income Tax Expense (Benefit)			$ (2,700,000)