Dynasil Corporation of America (DYSL) 10-Q 14 May 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 08, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
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		17,238,134

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Current Assets
Cash and cash equivalents	$ 1,130,000	$ 2,415,000
Accounts receivable, net of allowances of $186,000 and $200,000 at March 31, 2018 and September 30, 2017, respectively	4,276,000	3,407,000
Costs in excess of billings and unbilled receivables	846,000	1,317,000
Inventories, net of reserves	4,638,000	4,326,000
Prepaid expenses and other current assets	686,000	973,000
Total current assets	11,576,000	12,438,000
Property, Plant and Equipment, net	7,551,000	7,032,000
Other Assets
Intangibles, net	997,000	987,000
Deferred tax asset	3,351,000	2,642,000
Goodwill	6,009,000	5,940,000
Security deposits	33,000	58,000
Total other assets	10,390,000	9,627,000
Total Assets	29,517,000	29,097,000
Current Liabilities
Equipment line of credit	281,000	0
Current portion of long-term debt	1,615,000	2,007,000
Capital lease obligations, current	62,000	91,000
Accounts payable	1,744,000	2,380,000
Deferred revenue	126,000	129,000
Accrued expenses and other liabilities	2,745,000	2,667,000
Total current liabilities	6,573,000	7,274,000
Long-term Liabilities
Long-term debt, net of current portion	1,172,000	1,045,000
Capital lease obligations, net of current portion	61,000	81,000
Deferred tax liability, net	244,000	234,000
Other long-term liabilities	164,000	38,000
Total long-term liabilities	1,641,000	1,398,000
Stockholders' Equity
Common Stock, $0.0005 par value, 40,000,000 shares authorized, 18,008,871 and 17,893,763 shares issued, 17,198,711 and and 17,083,603 shares outstanding at March 31, 2018 and September 30, 2017, respectively.	9,000	9,000
Additional paid in capital	21,635,000	21,406,000
Accumulated other comprehensive income (loss)	(282,000)	(539,000)
Accumulated deficit	(428,000)	(919,000)
Less 810,160 shares of treasury stock - at cost	(986,000)	(986,000)
Total Dynasil stockholders' equity	19,948,000	18,971,000
Noncontrolling interest	1,355,000	1,454,000
Total stockholders' equity	21,303,000	20,425,000
Total Liabilities and Stockholders' Equity	$ 29,517,000	$ 29,097,000

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Allowance for doubtful accounts (in dollars)	$ 186,000	$ 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	18,008,871	17,893,763
Common stock, shares outstanding	17,198,711	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		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Net revenue	$ 10,255,000	$ 10,085,000	$ 19,443,000	$ 19,228,000
Cost of revenue	6,310,000	6,297,000	11,958,000	11,915,000
Gross profit	3,945,000	3,788,000	7,485,000	7,313,000
Operating expenses:
Sales and marketing	388,000	328,000	667,000	593,000
Research and development	215,000	335,000	524,000	531,000
General and administrative	3,262,000	3,128,000	6,418,000	6,115,000
Total operating expenses	3,865,000	3,791,000	7,609,000	7,239,000
Income (loss) from operations	80,000	(3,000)	(124,000)	74,000
Interest expense, net	45,000	45,000	88,000	112,000
Income (loss) before taxes	35,000	(48,000)	(212,000)	(38,000)
Income tax (benefit)	(1,255,000)	71,000	(595,000)	(2,658,000)
Net income (loss)	1,290,000	(119,000)	383,000	2,620,000
Less: Net loss attributable to noncontrolling interest	(33,000)	(64,000)	(108,000)	(133,000)
Net income (loss) attributable to common stockholders	1,323,000	(55,000)	491,000	2,753,000
Net income (loss)	1,290,000	(119,000)	383,000	2,620,000
Other comprehensive income (loss):
Foreign currency translation	222,000	65,000	257,000	(230,000)
Total comprehensive income (loss)	1,512,000	(54,000)	640,000	2,390,000
Less: comprehensive income (loss) attributable to noncontrolling interest	(33,000)	(64,000)	(108,000)	(133,000)
Total comprehensive income (loss) attributable to common stockholders	$ 1,545,000	$ 10,000	$ 748,000	$ 2,523,000
Basic net income (loss) per common share	$ 0.08	$ 0	$ 0.03	$ 0.16
Diluted net income (loss) per common share	$ 0.08	$ 0	$ 0.03	$ 0.16
Weighted average shares outstanding
Basic	17,133,468	16,886,628	17,090,530	16,847,679
Diluted	17,133,468	16,886,628	17,090,530	16,847,679

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - 6 months ended Mar. 31, 2018 - 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	8,000	$ 0	8,000	0	0	$ 0	0
Issuance of shares of common stock under employee stock purchase plan (in shares)		7,956				0
Stock-based compensation costs	230,000	$ 0	221,000	0	0	$ 0	9,000
Stock-based compensation costs (in shares)		107,152				0
Foreign currency translation adjustment	257,000	$ 0	0	257,000	0	$ 0	0
Net income (loss)	383,000	0	0	0	491,000	0	(108,000)
Balance at Mar. 31, 2018	$ 21,303,000	$ 9,000	$ 21,635,000	$ (282,000)	$ (428,000)	$ (986,000)	$ 1,355,000
Balance (in shares) at Mar. 31, 2018		18,008,871				810,160

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 383,000	$ 2,620,000
Adjustments to reconcile net income (loss) to net cash:
Stock compensation expense	230,000	227,000
Foreign exchange loss (gain)	(33,000)	47,000
Depreciation and amortization	610,000	624,000
Deferred income taxes	(710,000)	(2,655,000)
Non-cash R&D services	200,000	205,000
Other	50,000	49,000
Other changes in assets and liabilities:
Accounts receivable, net	(811,000)	152,000
Inventories	(279,000)	(332,000)
Costs in excess of billings and unbilled receivables	472,000	328,000
Prepaid expenses and other assets	189,000	263,000
Accounts payable	(646,000)	(410,000)
Accrued expenses and other liabilities	123,000	(542,000)
Deferred revenue	(3,000)	(140,000)
Net cash from operating activities	(225,000)	436,000
Cash flows from investing activities:
Purchases of property, plant and equipment	(1,005,000)	(228,000)
Purchase of intangibles	(45,000)	(64,000)
Net cash from investing activities	(1,050,000)	(292,000)
Cash flows from financing activities:
Proceeds from issuance of common stock	8,000	8,000
Principal payments on capital leases	(50,000)	(55,000)
Proceeds from (payments of) equipment line of credit, net	281,000	0
Proceeds from (payments of) bank and subordinated debt, net	(277,000)	(354,000)
Net cash from financing activities	(38,000)	(401,000)
Effect of exchange rates on cash and cash equivalents	28,000	(51,000)
Net change in cash and cash equivalents	(1,285,000)	(308,000)
Cash and cash equivalents, beginning	2,415,000	2,607,000
Cash and cash equivalents, ending	1,130,000	2,299,000
Supplemental disclosures of cash flow information:
Cash paid during the year for: Interest	77,000	92,000
Cash paid during the year for: Tax payments (refunds)	5,000	3,000
Non cash activities:
Recapitalization of Xcede - conversion of non controlling notes payable to preferred stock	0	(3,103,000)
Subsidiary stock options issued to settle liabilities	0	75,000
Subsidiary debt issued to fund research activities	$ 0	$ 500,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2018
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, 2018, the consolidated statements of operations and comprehensive income (loss) for the three and six months ended March 31, 2018 and 2017, changes in stockholders’ equity for the six months ended March 31, 2018 and cash flows for the six months ended March 31, 2018 and 2017 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, 2018, Dynasil Biomedical owned 63 37 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 March 31, 2018, 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, 2018
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). Revenue from Contracts with Customers 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 and 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 will 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	6 Months Ended
	Mar. 31, 2018
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 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 1.4 5.5 2.4 3.1 As of March 31, 2018, DBM owned approximately 63 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 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 trial 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 37,000 167,000 200,000 205,000

Inventories

Inventories	6 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 4 - Inventories Inventories, net of reserves, consists of the following: March 31, September 30, 2018 2017 Raw Materials $ 2,607,000 $ 2,540,000 Work-in-Process 1,080,000 798,000 Finished Goods 951,000 988,000 $ 4,638,000 $ 4,326,000

Intangible Assets

Intangible Assets	6 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	Note 5 – Intangible Assets Useful Gross Accumulated March 31, 2018 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 768,000 $ 607,000 $ 161,000 Know How 15 512,000 333,000 179,000 Trade Names Indefinite 293,000 - 293,000 Patents 20 378,000 14,000 364,000 Biomedical Technologies 5 260,000 260,000 - $ 2,211,000 $ 1,214,000 $ 997,000 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 March 31, 2018 and 2017 was $ 28,000 26,000 56,000 52,000 2018 (6 months) 2019 2020 2021 2022 Thereafter Total Acquired Customer Base $ 40,000 $ 80,000 $ 41,000 $ - $ - $ - $ 161,000 Know How 17,000 34,000 34,000 34,000 34,000 26,000 179,000 Patents 6,000 11,000 11,000 11,000 11,000 162,000 212,000 $ 63,000 $ 125,000 $ 86,000 $ 45,000 $ 45,000 $ 188,000 $ 552,000 As of March 31, 2018, Xcede had $ 152,000 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 six months ended March 31, 2018.

Goodwill

Goodwill	6 Months Ended
	Mar. 31, 2018
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 six months ended March 31, 2018.

Debt

Debt	6 Months Ended
	Mar. 31, 2018
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	6 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 8 – Earnings (Loss) Per Common Share Basic earnings (loss) per common share is computed by dividing the net income or loss attributable to common shares by the weighted average number of common shares outstanding. Diluted earnings per common share adjusts basic earnings per share for the effects of common stock options, common stock warrants, convertible preferred stock and other potential dilutive common shares outstanding during the periods. For purposes of computing diluted earnings per share for the three and six months ended March 31, 2018 and 2017, no common stock options were included in the calculation of dilutive shares as all of the 160,537 196,769 40,000 70,000 March 31, 2018 March 31, 2017 Weighted average shares outstanding Basic 17,133,468 16,886,628 Effect of dilutive securities Stock Options - - Restricted Stock - - Dilutive Average Shares Outstanding 17,133,468 16,886,628 The computation of the weighted shares outstanding for the six months ended March 31, 2018 and 2017 is as follows: March 31, 2018 March 31, 2017 Weighted average shares outstanding Basic 17,090,530 16,847,679 Effect of dilutive securities Stock Options - - Restricted Stock - - Dilutive Average Shares Outstanding 17,090,530 16,847,679

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Mar. 31, 2018
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 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 March 31, 2018 March 31, 2017 Stock Grants $ 92,000 $ 84,000 Restricted Stock Grants 13,000 13,000 Option Grants 4,000 13,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 28,000 28,000 Total $ 138,000 $ 139,000 Six Months Ended Six Months Ended March 31, 2018 March 31, 2017 Stock Grants $ 130,000 $ 123,000 Restricted Stock Grants 26,000 26,000 Option Grants 17,000 25,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 56,000 52,000 Total $ 230,000 $ 227,000 At March 31, 2018, there was approximately $ 58,000 Restricted Stock Grants Restricted Stock Activity for the Six Months ended Shares Weighted-Average Nonvested at September 30, 2017 70,000 $ 1.73 Granted - - Vested (30,000) 1.73 Cancelled - - Nonvested and expected to vest at March 31, 2018 40,000 $ 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 (36,232) 1.82 Balance at March 31, 2018 160,537 $ 2.01 1.43 Outstanding and exercisable at March 31, 2018 160,537 $ 2.01 1.43 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 March 31, 2018 1,375,956 1.00 8.18 Outstanding and exercisable at March 31, 2018 1,116,036 $ 1.00 7.91 At March 31, 2018, the Company’s Xcede joint venture had approximately $ 97,000

Segment, Customer and Geographi

Segment, Customer and Geographical Reporting	6 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Optics Contract Biomedical Total Revenue $ 5,910,000 $ 4,345,000 $ - $ 10,255,000 Gross profit 2,050,000 1,895,000 - 3,945,000 GM % 35 % 44 % - 38 % Operating expenses 1,858,000 1,813,000 194,000 3,865,000 Operating income (loss) 192,000 82,000 (194,000) 80,000 Depreciation and amortization 247,000 61,000 3,000 311,000 Capital expenditures 339,000 58,000 29,000 426,000 Intangibles, net 455,000 179,000 363,000 997,000 Goodwill 1,070,000 4,939,000 - 6,009,000 Total assets $ 20,903,000 $ 8,028,000 $ 586,000 $ 29,517,000 Results of Operations for the Three Months Ended March 31, 2017 Optics Contract 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 % Operating expenses 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 The Company’s segment information for the six months ended March 31, 2018 and 2017 is summarized below: Results of Operations for the Six Months Ended March 31, 2018 Optics Contract Biomedical Total Revenue $ 10,853,000 $ 8,590,000 $ - $ 19,443,000 Gross profit 3,740,000 3,745,000 - 7,485,000 GM % 34 % 44 % - 38 % Operating expenses 3,433,000 3,537,000 639,000 7,609,000 Operating income (loss) 307,000 208,000 (639,000) (124,000) Depreciation and amortization 477,000 126,000 7,000 610,000 Capital expenditures 928,000 77,000 45,000 1,050,000 Intangibles, net 455,000 179,000 363,000 997,000 Goodwill 1,070,000 4,939,000 - 6,009,000 Total assets $ 20,903,000 $ 8,028,000 $ 586,000 $ 29,517,000 Results of Operations for the Six Months Ended March 31, 2017 Optics Contract 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 % Operating expenses 2,924,000 3,542,000 773,000 7,239,000 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 Customer Financial Information For both the three and six months ended March 31, 2018 and 2017, no customer in the Optics segment represented more than 10 For the three and six months ended March 31, 2018, four customers of the Contract Research segment, all various agencies of the U.S. Government, each represented more than 10 10 72 59 70 60 Geographic Financial Information Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Geographic Location Revenue % of Total Revenue % of Total United States $ 8,129,000 79 % $ 7,931,000 79 % Europe 1,365,000 13 % 1,212,000 12 % Other 761,000 8 % 942,000 9 % $ 10,255,000 100 % $ 10,085,000 100 % Revenue by geographic location in total and as a percentage of total revenue, for the six months ended March 31, 2018 and 2017 are as follows: Six Months Ended Six Months Ended March 31, 2018 March 31, 2017 Geographic Location Revenue % of Total Revenue % of Total United States $ 15,481,000 80 % $ 15,120,000 79 % Europe 2,633,000 13 % 2,299,000 12 % Other 1,329,000 7 % 1,809,000 9 % $ 19,443,000 100 % $ 19,228,000 100 %

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2018
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 was 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, 2018 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 March 31, 2018 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, which 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 $ 0.2 There are Research and Experimentation tax credits available at both the federal and state levels resulting from the PATH Act of 2015 (“PATH 2015 R&E Tax Credit”). These credits are designed to encourage and reward companies for efforts in areas of research and experimentation. In March 2018, the Company has reasonably completed a study encompassing all business activities and contracts in these areas for the years 2012 through 2016. As a result, the Company is estimating it will have net tax credits of approximately $ 1.3 The effective tax rates were (3,586%) and (148%) for the three months ended March 31, 2018 and 2017, respectively. The effective tax rates were 281% and 6,995% for the six months ended March 31, 2018 and 2017, respectively. The results for both six month periods ended March 31, 2018 and 2017 had significant events which resulted in an extreme variation in tax rates. The effective tax rate for the six months ended, March 31, 2018 was primarily driven by the recently signed 2017 Tax Act, as well as the R&E tax credit study completed in the second quarter of fiscal year 2018. The effective tax rate for the six months ended March 31, 2017 was primarily the result of the tax benefit of $ 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 2014 are still subject to examination.

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2018
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, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories, net of reserves, consists of the following: March 31, September 30, 2018 2017 Raw Materials $ 2,607,000 $ 2,540,000 Work-in-Process 1,080,000 798,000 Finished Goods 951,000 988,000 $ 4,638,000 $ 4,326,000

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets at March 31, 2018 and September 30, 2017 consist of the following: Useful Gross Accumulated March 31, 2018 Life (years) Amount Amortization Net Acquired Customer Base 5 to 15 $ 768,000 $ 607,000 $ 161,000 Know How 15 512,000 333,000 179,000 Trade Names Indefinite 293,000 - 293,000 Patents 20 378,000 14,000 364,000 Biomedical Technologies 5 260,000 260,000 - $ 2,211,000 $ 1,214,000 $ 997,000 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 (6 months) 2019 2020 2021 2022 Thereafter Total Acquired Customer Base $ 40,000 $ 80,000 $ 41,000 $ - $ - $ - $ 161,000 Know How 17,000 34,000 34,000 34,000 34,000 26,000 179,000 Patents 6,000 11,000 11,000 11,000 11,000 162,000 212,000 $ 63,000 $ 125,000 $ 86,000 $ 45,000 $ 45,000 $ 188,000 $ 552,000

Earnings (Loss) Per Common Sh21

Earnings (Loss) Per Common Share (Tables)	6 Months Ended
	Mar. 31, 2018
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, 2018 and 2017 is as follows: March 31, 2018 March 31, 2017 Weighted average shares outstanding Basic 17,133,468 16,886,628 Effect of dilutive securities Stock Options - - Restricted Stock - - Dilutive Average Shares Outstanding 17,133,468 16,886,628 The computation of the weighted shares outstanding for the six months ended March 31, 2018 and 2017 is as follows: March 31, 2018 March 31, 2017 Weighted average shares outstanding Basic 17,090,530 16,847,679 Effect of dilutive securities Stock Options - - Restricted Stock - - Dilutive Average Shares Outstanding 17,090,530 16,847,679

Stock Based Compensation (Table

Stock Based Compensation (Tables)	6 Months Ended
	Mar. 31, 2018
Schedule Of Stock Compensation Expense [Table Text Block]	Stock compensation expense for the three and six months ended March 31, 2018 and 2017 is as follows: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Stock Grants $ 92,000 $ 84,000 Restricted Stock Grants 13,000 13,000 Option Grants 4,000 13,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 28,000 28,000 Total $ 138,000 $ 139,000 Six Months Ended Six Months Ended March 31, 2018 March 31, 2017 Stock Grants $ 130,000 $ 123,000 Restricted Stock Grants 26,000 26,000 Option Grants 17,000 25,000 Employee Stock Purchase Plan 1,000 1,000 Subsidiary Option Grants 56,000 52,000 Total $ 230,000 $ 227,000
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	A summary of restricted stock activity for the six months ended March 31, 2018 is presented below: Restricted Stock Activity for the Six Months ended Shares Weighted-Average Nonvested at September 30, 2017 70,000 $ 1.73 Granted - - Vested (30,000) 1.73 Cancelled - - Nonvested and expected to vest at March 31, 2018 40,000 $ 1.73
Stock Option Grants [Member]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	During the six months ended March 31, 2018, no Dynasil stock options were granted. A summary of stock option activity for the six months ended March 31, 2018 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 (36,232) 1.82 Balance at March 31, 2018 160,537 $ 2.01 1.43 Outstanding and exercisable at March 31, 2018 160,537 $ 2.01 1.43
Subsidiary Option Grants [Member]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	During the three months ended March 31, 2018, no Xcede stock options were granted. A summary of Xcede stock option activity for the six months ended March 31, 2018 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 March 31, 2018 1,375,956 1.00 8.18 Outstanding and exercisable at March 31, 2018 1,116,036 $ 1.00 7.91

Segment, Customer and Geograp23

Segment, Customer and Geographical Reporting (Tables)	6 Months Ended
	Mar. 31, 2018
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, 2018 and 2017 is summarized below: Results of Operations for the Three Months Ended March 31, 2018 Optics Contract Biomedical Total Revenue $ 5,910,000 $ 4,345,000 $ - $ 10,255,000 Gross profit 2,050,000 1,895,000 - 3,945,000 GM % 35 % 44 % - 38 % Operating expenses 1,858,000 1,813,000 194,000 3,865,000 Operating income (loss) 192,000 82,000 (194,000) 80,000 Depreciation and amortization 247,000 61,000 3,000 311,000 Capital expenditures 339,000 58,000 29,000 426,000 Intangibles, net 455,000 179,000 363,000 997,000 Goodwill 1,070,000 4,939,000 - 6,009,000 Total assets $ 20,903,000 $ 8,028,000 $ 586,000 $ 29,517,000 Results of Operations for the Three Months Ended March 31, 2017 Optics Contract 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 % Operating expenses 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 The Company’s segment information for the six months ended March 31, 2018 and 2017 is summarized below: Results of Operations for the Six Months Ended March 31, 2018 Optics Contract Biomedical Total Revenue $ 10,853,000 $ 8,590,000 $ - $ 19,443,000 Gross profit 3,740,000 3,745,000 - 7,485,000 GM % 34 % 44 % - 38 % Operating expenses 3,433,000 3,537,000 639,000 7,609,000 Operating income (loss) 307,000 208,000 (639,000) (124,000) Depreciation and amortization 477,000 126,000 7,000 610,000 Capital expenditures 928,000 77,000 45,000 1,050,000 Intangibles, net 455,000 179,000 363,000 997,000 Goodwill 1,070,000 4,939,000 - 6,009,000 Total assets $ 20,903,000 $ 8,028,000 $ 586,000 $ 29,517,000 Results of Operations for the Six Months Ended March 31, 2017 Optics Contract 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 % Operating expenses 2,924,000 3,542,000 773,000 7,239,000 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
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, 2018 and 2017 are as follows: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Geographic Location Revenue % of Total Revenue % of Total United States $ 8,129,000 79 % $ 7,931,000 79 % Europe 1,365,000 13 % 1,212,000 12 % Other 761,000 8 % 942,000 9 % $ 10,255,000 100 % $ 10,085,000 100 % Revenue by geographic location in total and as a percentage of total revenue, for the six months ended March 31, 2018 and 2017 are as follows: Six Months Ended Six Months Ended March 31, 2018 March 31, 2017 Geographic Location Revenue % of Total Revenue % of Total United States $ 15,481,000 80 % $ 15,120,000 79 % Europe 2,633,000 13 % 2,299,000 12 % Other 1,329,000 7 % 1,809,000 9 % $ 19,443,000 100 % $ 19,228,000 100 %

Basis of Presentation (Details

Basis of Presentation (Details Textual) - Xcede Technologies inc [Member]	Mar. 31, 2018	Nov. 18, 2016
Noncontrolling Interest, Ownership Percentage by Parent	63.00%	59.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	37.00%

Xcede Technologies, Inc. Join25

Xcede Technologies, Inc. Joint Venture (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 18, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
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%	63.00%		63.00%
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%
Expense Recognized In Long Term Contract			$ 37,000	$ 167,000	$ 200,000	$ 205,000
Imputed Interest Rate					5.40%
Secured Debt, Available Amount	$ 1,500,000
Secured Debt, Outstanding Amount	$ 500,000
Series B Preferred Stock [Member]
Preferred Stock, Liquidation Preference Per Share			$ 1.27		$ 1.27
Preferred Stock, Liquidation Preference, Value			$ 1,400,000		$ 1,400,000
Series A Preferred Stock [Member]
Debt Conversion, Converted Instrument, Amount					$ 3,600,000
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, 2018	Sep. 30, 2017
Inventory Current [Line Items]
Raw Materials	$ 2,607,000	$ 2,540,000
Work-in-Process	1,080,000	798,000
Finished Goods	951,000	988,000
Inventory, Net, Total	$ 4,638,000	$ 4,326,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 2,211,000	$ 2,123,000
Accumulated Amortization	1,214,000	1,136,000
Net	997,000	987,000	$ 1,057,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	768,000	737,000
Accumulated Amortization	607,000	551,000
Net	$ 161,000	$ 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	333,000	316,000
Net	179,000	196,000
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	293,000	281,000
Accumulated Amortization	0	0
Net	$ 293,000	$ 281,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life (years)	20 years	20 years
Gross Amount	$ 378,000	$ 333,000
Accumulated Amortization	14,000	9,000
Net	$ 364,000	$ 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)	Mar. 31, 2018USD ($)
Finite-Lived Intangible Assets [Line Items]
2018 (6 months)	$ 63,000
2,019	125,000
2,020	86,000
2,021	45,000
2,022	45,000
Thereafter	188,000
Total	552,000
Acquired Customer Base [Member]
Finite-Lived Intangible Assets [Line Items]
2018 (6 months)	40,000
2,019	80,000
2,020	41,000
2,021	0
2,022	0
Thereafter	0
Total	161,000
Know How [Member]
Finite-Lived Intangible Assets [Line Items]
2018 (6 months)	17,000
2,019	34,000
2,020	34,000
2,021	34,000
2,022	34,000
Thereafter	26,000
Total	179,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2018 (6 months)	6,000
2,019	11,000
2,020	11,000
2,021	11,000
2,022	11,000
Thereafter	162,000
Total	$ 212,000

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 28,000	$ 26,000	$ 56,000	$ 52,000
Xcede Technologies inc [Member] | Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Pre-Grant Intangible Assets	$ 152,000		$ 152,000

Debt (Details Textual)

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

Earnings (Loss) Per Common Sh31

Earnings (Loss) Per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Weighted average shares outstanding
Basic	17,133,468	16,886,628	17,090,530	16,847,679
Effect of dilutive securities
Dilutive Average Shares Outstanding	17,133,468	16,886,628	17,090,530	16,847,679
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	0

Earnings (Loss) Per Common Sh32

Earnings (Loss) Per Common Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Loss Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	160,537	196,769	160,537	196,769
Restricted Stock [Member]
Earnings Loss Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	40,000	70,000	40,000	70,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Stock Based Compensation [Line Items]
Stock Compensation Expense	$ 138,000	$ 139,000	$ 230,000	$ 227,000
Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	92,000	84,000	130,000	123,000
Restricted Stock Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	13,000	13,000	26,000	26,000
Option Grants [Member]
Stock Based Compensation [Line Items]
Stock Compensation Expense	4,000	13,000	17,000	25,000
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	$ 28,000	$ 56,000	$ 52,000

Stock Based Compensation (Det34

Stock Based Compensation (Details 1) - Restricted Stock [Member]	6 Months Ended
	Mar. 31, 2018$ / 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	(30,000)
Shares, Cancelled | shares	0
Shares, Nonvested and expected to vest, Ending Balance | shares	40,000
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) - $ / shares	6 Months Ended	12 Months Ended
	Mar. 31, 2018	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	160,537	196,769
Granted, Options Outstanding	0
Exercised, Options Outstanding	0
Cancelled, Options Outstanding	(36,232)
Balance, Options Outstanding	160,537	196,769
Beginning Balance, Weighted Average Exercise Price per Share	$ 1.98
Outstanding and exercisable, Weighted Average Exercise Price per Share	2.01	$ 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	1.82
Ending Balance, Weighted Average Exercise Price per Share	$ 2.01	$ 1.98
Balance, Weighted Average Remain Contractual Term (in Years)	1 year 5 months 5 days	1 year 7 months 20 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	1 year 5 months 5 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	1,116,036	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 2 months 5 days	8 years 8 months 12 days
Outstanding and exercisable, Weighted Average Remain Contractual Term (in Years)	7 years 10 months 28 days	8 years 3 months 18 days

Stock Based Compensation (Det36

Stock Based Compensation (Details Textual)	Mar. 31, 2018USD ($)
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	$ 97,000
Employee Stock Plan [Member]
Class of Stock [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 58,000

Segment, Customer and Geograp37

Segment, Customer and Geographical Reporting (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 10,255,000	$ 10,085,000	$ 19,443,000	$ 19,228,000
Gross profit	$ 3,945,000	$ 3,788,000	$ 7,485,000	$ 7,313,000
GM %	38.00%	38.00%	38.00%	38.00%
Operating expenses	$ 3,865,000	$ 3,791,000	$ 7,609,000	$ 7,239,000
Operating income (loss)	80,000	(3,000)	(124,000)	74,000
Depreciation and amortization	311,000	313,000	610,000	624,000
Capital expenditures	426,000	181,000	1,050,000	292,000
Intangibles, net	997,000	1,057,000	997,000	1,057,000	$ 987,000
Goodwill	6,009,000	5,838,000	6,009,000	5,838,000	5,940,000
Total assets	29,517,000	27,976,000	29,517,000	27,976,000	$ 29,097,000
Optics [Member]
Segment Reporting Information [Line Items]
Revenue	5,910,000	5,281,000	10,853,000	9,686,000
Gross profit	$ 2,050,000	$ 1,913,000	$ 3,740,000	$ 3,487,000
GM %	35.00%	36.00%	34.00%	36.00%
Operating expenses	$ 1,858,000	$ 1,597,000	$ 3,433,000	$ 2,924,000
Operating income (loss)	192,000	316,000	307,000	563,000
Depreciation and amortization	247,000	237,000	477,000	471,000
Capital expenditures	339,000	103,000	928,000	194,000
Intangibles, net	455,000	465,000	455,000	465,000
Goodwill	1,070,000	899,000	1,070,000	899,000
Total assets	20,903,000	19,705,000	20,903,000	19,705,000
Contract Research [Member]
Segment Reporting Information [Line Items]
Revenue	4,345,000	4,804,000	8,590,000	9,542,000
Gross profit	$ 1,895,000	$ 1,875,000	$ 3,745,000	$ 3,826,000
GM %	44.00%	39.00%	44.00%	40.00%
Operating expenses	$ 1,813,000	$ 1,802,000	$ 3,537,000	$ 3,542,000
Operating income (loss)	82,000	73,000	208,000	284,000
Depreciation and amortization	61,000	73,000	126,000	147,000
Capital expenditures	58,000	34,000	77,000	34,000
Intangibles, net	179,000	213,000	179,000	213,000
Goodwill	4,939,000	4,939,000	4,939,000	4,939,000
Total assets	8,028,000	7,477,000	8,028,000	7,477,000
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%
Operating expenses	$ 194,000	$ 392,000	$ 639,000	$ 773,000
Operating income (loss)	(194,000)	(392,000)	(639,000)	(773,000)
Depreciation and amortization	3,000	3,000	7,000	6,000
Capital expenditures	29,000	44,000	45,000	64,000
Intangibles, net	363,000	379,000	363,000	379,000
Goodwill	0	0	0	0
Total assets	$ 586,000	$ 794,000	$ 586,000	$ 794,000

Segment, Customer and Geograp38

Segment, Customer and Geographical Reporting (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 10,255,000	$ 10,085,000	$ 19,443,000	$ 19,228,000
% of Total	100.00%	100.00%	100.00%	100.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 8,129,000	$ 7,931,000	$ 15,481,000	$ 15,120,000
% of Total	79.00%	79.00%	80.00%	79.00%
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,365,000	$ 1,212,000	$ 2,633,000	$ 2,299,000
% of Total	13.00%	12.00%	13.00%	12.00%
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 761,000	$ 942,000	$ 1,329,000	$ 1,809,000
% of Total	8.00%	9.00%	7.00%	9.00%

Segment, Customer and Geograp39

Segment, Customer and Geographical Reporting (Details Textual)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Optics [Member] | Sales Revenue, Segment [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	10.00%	10.00%	10.00%	10.00%
Contract Research segment [Member] | Customer Three [Member] | Sales Revenue, Segment [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	10.00%	10.00%	10.00%	10.00%
Contract Research segment [Member] | Customer Four [Member] | Sales Revenue, Segment [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	10.00%	10.00%	10.00%	10.00%
Contract research revenue [Member]
Segment Reporting [Line Items]
Concentration Risk, Percentage	72.00%	59.00%	70.00%	60.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2018	Nov. 18, 2016
Income Tax [Line Items]
Income Tax Expense (Benefit)	$ (1,255,000)		$ 71,000	$ (2,700,000)	$ (595,000)	$ (2,658,000)
Provision for Income Tax Expense		$ 500,000
Additional Income Tax Expense		$ 200,000
Effective Income Tax Rate Reconciliation, Percent	(3586.00%)		(148.00%)		281.00%	6995.00%
Scenario, Plan [Member]
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent							21.00%
Excluding The Impact Of Valuation Allowance [Member]
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, Percent					(43.00%)	(437.00%)
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	63.00%				63.00%			59.00%