Vicon Industries (VCON) 10-Q 16 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Dec. 31, 2015	Feb. 08, 2016
Entity Information [Line Items]
Entity Registrant Name	VICON INDUSTRIES INC /NY/
Entity Central Index Key	310,056
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		9,341,038

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Sep. 30, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 2,068,292	$ 2,390,409
Marketable securities	13,045	13,047
Accounts receivable, net	9,881,830	10,816,348
Inventories:
Parts, components, and materials	1,957,901	2,074,389
Work-in-process	884,442	981,878
Finished products	5,465,687	5,557,556
Inventory net	8,308,030	8,613,823
Prepaid expenses and other current assets	575,573	501,497
Assets Held-for-sale, Current	800,902	800,902
TOTAL CURRENT ASSETS	21,647,672	23,136,026
Property, plant and equipment	5,837,491	5,812,517
Less accumulated depreciation and amortization	(5,181,094)	(5,117,570)
Property, Plant and Equipment Net	656,397	694,947
Goodwill	6,016,469	6,016,469
Intangible assets, net	3,473,417	3,602,667
Other assets	724,707	722,022
TOTAL ASSETS	32,518,662	34,172,131
CURRENT LIABILITIES
Accounts payable	5,469,484	5,688,424
Accrued compensation and employee benefits	2,632,340	2,923,474
Accrued expenses	1,615,028	1,653,333
Unearned revenue	429,058	829,138
TOTAL CURRENT LIABILITIES	10,145,910	11,094,369
Unearned revenue	90,943	104,779
Other long-term liabilities	1,478,856	1,508,801
TOTAL LIABILITIES	11,715,709	12,707,949
SHAREHOLDERS’ EQUITY
Common stock, par value $.01	100,374	100,109
Capital in excess of par value	40,588,487	40,972,206
Retained earnings	(16,328,183)	(15,350,975)
Less treasury stock, at cost	(3,437,643)	(3,979,852)
Accumulated other comprehensive loss	(120,082)	(277,306)
TOTAL SHAREHOLDERS’ EQUITY	20,802,953	21,464,182
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 32,518,662	$ 34,172,131

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net sales	$ 10,880,556	$ 10,176,446
Cost of sales	6,609,381	6,405,755
Gross profit	4,271,175	3,770,691
Operating expenses:
Selling, general and administrative expense	3,930,151	4,211,404
Engineering & development expense	1,318,396	1,393,062
Restructuring Charges	0	348,786
Operating Expenses	5,248,547	5,953,252
Operating loss	(977,372)	(2,182,561)
Interest income	164	1,126
Loss before income taxes	(977,208)	(2,181,435)
Income tax expense	0	0
Net loss	$ (977,208)	$ (2,181,435)
Loss per share:
Earnings Per Share, Basic	$ (0.10)	$ (0.24)
Earnings Per Share, Diluted	$ (0.10)	$ (0.24)
Weighted average shares outstanding:
Basic	9,330,779	9,100,100
Diluted	9,330,779	9,100,100

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net loss	$ (977,208)	$ (2,181,435)
Other comprehensive income (loss):
Unrealized loss on securities, net of tax	(85)	1,349
Foreign currency translation adjustment	157,309	145,229
Other comprehensive loss	157,224	(143,880)
Comprehensive loss	$ (819,984)	$ (2,325,315)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (977,208)	$ (2,181,435)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	215,409	151,870
Amortization of deferred compensation	373	1,202
Stock compensation expense	153,198	146,830
Change in assets and liabilities:
Accounts receivable, net	864,267	1,500,845
Inventories	269,717	(1,192,025)
Prepaid expenses and other current assets	(78,812)	(201,526)
Other assets	(2,685)	107,809
Accounts payable	(182,058)	123,717
Accrued compensation and employee benefits	(287,007)	(320,922)
Accrued expenses	(34,741)	(332,293)
Unearned revenue	(413,916)	603,982
Other liabilities	(28,261)	71,220
Net cash provided by (used in)	(501,724)	(1,520,726)
Cash flows from investing activities:
Increase (Decrease) in Trading Securities	(83)	(869)
Payments to Acquire Property, Plant, and Equipment	(48,963)	(48,833)
Net Cash Provided by (Used in) Investing Activities	(49,046)	(49,702)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from Stock Options Exercised	5,184	40,454
Net Cash Provided by (Used in) Financing Activities	5,184	40,454
Effect of Exchange Rate on Cash and Cash Equivalents	223,469	(112,971)
Cash and Cash Equivalents, Period Increase (Decrease)	(322,117)	(1,642,945)
Cash at beginning of year	2,390,409	$ 2,390,409
Cash at end of period	$ 2,068,292

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2015
Basis of Presentation [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended December 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ended September 30, 2016 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2015 .

Marketable Securities

Marketable Securities	3 Months Ended
	Dec. 31, 2015
Marketable Securities [Abstract]
Cash, Cash Equivalents, and Marketable Securities [Text Block]	Marketable Securities Marketable securities consist of mutual fund investments principally in federal, state and local government debt securities of $13,045 as of December 31, 2015 . Such mutual fund investments are stated at market value based on quoted market prices (Level 1 inputs) and are classified as available-for-sale under the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, with unrealized gains and losses reported in accumulated other comprehensive loss as a component of shareholders’ equity. The cost of such securities at December 31, 2015 was $13,438 , with $393 of cumulative unrealized losses reported at December 31, 2015 .

Accounts Receivable

Accounts Receivable	3 Months Ended
	Dec. 31, 2015
Accounts Receivable [Abstract]
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	Accounts Receivable Accounts receivable is stated net of an allowance for uncollectible accounts of $993,000 and $993,000 as of December 31, 2015 and September 30, 2015 , respectively.

Loss per Share

Loss per Share	3 Months Ended
	Dec. 31, 2015
Loss per Share [Abstract]
Earnings Per Share [Text Block]	Loss per Share Basic loss per share (EPS) is computed based on the weighted average number of common shares outstanding for the period. Diluted EPS reflects the maximum dilution that would have resulted from incremental common shares issuable upon the exercise of stock options and under deferred compensation agreements. The following tables provide the components of the basic and diluted EPS computations for the three month periods ended December 31, 2015 and 2014 : Three Months Ended December 31, 2015 2014 Basic EPS Computation Net loss $ (977,208 ) $ (2,181,435 ) Weighted average shares outstanding 9,330,779 9,100,100 Basic loss per share $ (.10 ) $ (.24 ) Three Months Ended December 31, 2015 2014 Diluted EPS Computation Net loss $ (977,208 ) $ (2,181,435 ) Weighted average shares outstanding 9,330,779 9,100,100 Stock options — — Stock compensation arrangements — — Diluted shares outstanding 9,330,779 9,100,100 Diluted loss per share $ (.10 ) $ (.24 ) For the for the three month periods ended December 31, 2015 and 2014 , all outstanding stock options and shares issuable under stock compensation arrangements totaling 670,300 and 686,858 shares, respectively, have been omitted from the calculation of diluted EPS as their effect would have been antidilutive. The actual effect of these stock options and shares, if any, on the diluted earnings per share calculation will vary significantly depending on fluctuations in the market price of the Company's stock.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2015
Comprehensive Loss [Abstract]
Comprehensive Income (Loss) Note [Text Block]	Accumulated Other Comprehensive Loss The Company's accumulated other comprehensive loss balances at December 31, 2015 and September 30, 2015 consisted of the following: December 31, 2015 September 30, 2015 Foreign currency translation adjustment $ (119,689 ) $ (276,998 ) Unrealized loss on marketable securities (393 ) (308 ) Accumulated other comprehensive loss $ (120,082 ) $ (277,306 )

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets Disclosure [Text Block]	The Company’s goodwill represents the excess of the purchase price over the fair value of net identifiable assets acquired in the August 29, 2014 IQinVision business combination. Goodwill is not amortized and is tested for impairment on an annual basis during the Company's fourth quarter, or more frequently if circumstances indicate impairment might exist. Goodwill is evaluated for impairment through the comparison of fair value of reporting units to their carrying values. When evaluating goodwill for impairment, the Company may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit is more-likely-than-not greater than its carrying amount. This qualitative assessment is referred to as a "step zero" approach. If, based on the review of the qualitative factors, the Company determines it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying value, the required two-step impairment test can be bypassed. If the Company does not perform a qualitative assessment or if the fair value of the reporting unit is not more-likely-than-not greater than its carrying value, the Company must perform the first step of the two-step impairment test, and calculate the estimated fair value of the reporting unit. If the carrying value of the reporting unit exceeds the estimated fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment. The amount of impairment is determined by comparing the implied fair value of the reporting unit goodwill to the carrying value of the goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill is less than the recorded goodwill, an impairment loss for the difference would be recorded. In considering the step zero approach to testing goodwill for impairment, a qualitative analysis is performed evaluating factors including, but not limited to, macro-economic conditions, market and industry conditions, internal cost factors, competitive environment, share price fluctuations, results of past impairment tests, and the operational stability and the overall financial performance of the reporting units. At September 30, 2015, the Company conducted its annual Step 1 impairment test using the income approach and found no impairment that would require a remeasurement of the $6.0 million recorded goodwill valuation. The components and estimated useful lives of intangible assets as of December 31, 2015 and September 30, 2015 are stated below. Amortization is provided on a straight line method, or in the case of customer relationships, on an accelerated method, over the following estimated useful lives: December 31, 2015 September 30, 2015 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Estimated Useful Life Definite-lived intangibles: Technology $ 2,500,000 $ 333,333 $ 2,500,000 $ 270,833 10 years Customer relationships 910,000 204,583 910,000 148,833 7 years Tradenames 660,000 58,667 660,000 47,667 15 years $ 4,070,000 $ 596,583 $ 4,070,000 $ 467,333 The activity in the goodwill balance consists of the following: Balance at October 1, 2013 $ — Acquisition of IQinVision 6,016,469 Balance at September 30, 2014 6,016,469 Changes in Goodwill — Balance at September 30, 2015 6,016,469 Changes in Goodwill — Balance at December 31, 2015 $ 6,016,469 Amortization expense was $129,250 for the three months ended December 31, 2015 . Future amortization expense for intangible assets over the next five years ending September 30 and thereafter is summarized as follows: Fiscal Year Amount Remainder of 2016 $ 387,750 2017 518,000 2018 427,000 2019 373,000 2020 341,000 Thereafter $ 1,426,667

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Stock-Based Compensation The Company maintains stock option plans that include both incentive and non-qualified options reserved for issuance to key employees, including officers and directors. All options are issued at fair market value at the grant date and are exercisable in varying installments according to the plans. The plans allow for the payment of option exercises through the surrender of previously owned mature shares based on the fair market value of such shares at the date of surrender. The Company follows ASC 718 (“Share-Based Payment”), which requires that all share based payments to employees, including stock options, be recognized as compensation expense in the consolidated financial statements based on their grant date fair values and over the requisite service period. For the three month periods ended December 31, 2015 and 2014 , the Company recorded non-cash compensation expense of $153,198 and $146,830 , respectively ( $.02 and $.02 per basic and diluted share, respectively), relating to stock compensation.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2015
Recent Accounting Pronouncements [Abstract]
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	Recent Accounting Pronouncements In May 2014, the FASB issued guidance on revenue from contracts with customers. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved, in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance permits the use of either the retrospective or cumulative effect transition method and is effective for the Company beginning in 2019; early adoption is not permitted prior to 2018. The Company has not yet evaluated the impact of this guidance on the Company's financial condition, results of operations and related disclosures. In August 2014, the FASB issued guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and related footnote disclosures. Management will be required to evaluate, at each reporting period, whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. This guidance is effective prospectively for annual and interim reporting period beginning in 2017. The Company has not yet evaluated the impact of this guidance on the Company’s financial condition, results of operations and related disclosures.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Income Tax Disclosure [Text Block]	Income Taxes Deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets represent items to be used as a tax deduction or credit in future tax returns for which a tax benefit has been recorded in the income statement. The Company has a valuation allowance against its deferred tax assets due to the uncertainty of future realization. The full valuation allowance is determined to be appropriate due to the Company's operating losses since fiscal year 2010 and the inherent uncertainties of predicting future operating results in periods over which such net tax differences become deductible. At September 30, 2015, the Company had $11.1 million of unrecognized net deferred tax assets available, which includes approximately $7.0 million of tax effected U.S. and foreign net operating loss carryforwards. On August 29, 2014, the Company merged with IQinVision, Inc. In connection with this merger, the Company's ability to utilize pre-merger net operating losses and tax credit carryforwards in the future is subject to certain limitations pursuant to Section 382 of the Internal Revenue Code. The annual limitation on utilization of the Company's U.S. net operating loss carryforwards is presently estimated at $500,000 based on a preliminary entity valuation. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company files U.S. Federal and State income tax returns and foreign tax returns in the United Kingdom, Germany and Israel. The Company is generally no longer subject to tax examinations in such jurisdictions for fiscal years prior to 2011 in the U.S. and 2009 in the U.K., Germany and Israel.

Fair Value

Fair Value	3 Months Ended
	Dec. 31, 2015
Fair Value [Abstract]
Fair Value Disclosures [Text Block]	Fair Value The majority of the Company’s non-financial assets and liabilities are not required to be carried at fair value on a recurring basis, but the Company is required on a non-recurring basis to use fair value measurements when analyzing asset impairment as it relates to long-lived assets. The carrying amounts for trade accounts and other receivables and accounts payable approximate fair value due to the short-term maturity of these instruments. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Restructuring Charges (Notes)

Restructuring Charges (Notes)	3 Months Ended
	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	Restructuring Charges Pursuant to the August 29, 2014 IQinVision merger, the Company initiated certain integration and restructuring activities pursuant to an approved plan (the "Plan"). For the three month period ended December 31, 2015, no restructuring charges were recorded. For the three month period ended December 31, 2014, the Company recognized $349,000 of severance charges in connection with the Plan pursuant to notification of termination benefits to one affected employee. Accounting for restructuring activities, as compared to regular operating cost management activities, requires an evaluation of formally committed and approved plans. Restructuring activities have comparatively greater strategic significance and materiality and may involve exit activities, whereas regular cost containment activities are more tactical in nature and are rarely characterized by formal and integrated action plans or exiting a particular product, facility or service.

Product Warranties (Notes)

Product Warranties (Notes)	3 Months Ended
	Dec. 31, 2015
Product Warranties [Abstract]
Standard Product Warranty, Policy [Policy Text Block]	Product Warranties The Company provides for the estimated cost of product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, including monitoring and evaluating the quality of its component suppliers, its warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from its estimates, revisions to the estimated warranty liability may be required. Changes in the Company's warranty liability (included in accrued expenses) for the three month periods ended December 31, 2015 and 2014 were as follows: Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 650,000 $ 849,000 Provision for warranties 108,000 128,000 Expenses incurred (108,000 ) (140,000 ) Balance at end of period $ 650,000 $ 837,000

Subsequent Event (Notes)

Subsequent Event (Notes)	3 Months Ended
	Dec. 31, 2015
Subsequent Event [Line Items]
Subsequent Events [Text Block]	Subsequent Event In January 2016, the Company sold its United Kingdom based operating facility at a gross sales price of $1.5 million. The facility is classified as an asset held for sale in the accompanying consolidated balance sheets for the periods presented. A gain of approximately $750,000 will be recognized on the sale in the March 31, 2016 quarter after factoring in selling and transaction costs.

Loss per Share (Tables)

Loss per Share (Tables)	3 Months Ended
	Dec. 31, 2015
Loss per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The following tables provide the components of the basic and diluted EPS computations for the three month periods ended December 31, 2015 and 2014 : Three Months Ended December 31, 2015 2014 Basic EPS Computation Net loss $ (977,208 ) $ (2,181,435 ) Weighted average shares outstanding 9,330,779 9,100,100 Basic loss per share $ (.10 ) $ (.24 ) Three Months Ended December 31, 2015 2014 Diluted EPS Computation Net loss $ (977,208 ) $ (2,181,435 ) Weighted average shares outstanding 9,330,779 9,100,100 Stock options — — Stock compensation arrangements — — Diluted shares outstanding 9,330,779 9,100,100 Diluted loss per share $ (.10 ) $ (.24 )

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2015
Comprehensive Loss [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	The Company's accumulated other comprehensive loss balances at December 31, 2015 and September 30, 2015 consisted of the following: December 31, 2015 September 30, 2015 Foreign currency translation adjustment $ (119,689 ) $ (276,998 ) Unrealized loss on marketable securities (393 ) (308 ) Accumulated other comprehensive loss $ (120,082 ) $ (277,306 )

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Schedule of Goodwill [Table Text Block]	The activity in the goodwill balance consists of the following: Balance at October 1, 2013 $ — Acquisition of IQinVision 6,016,469 Balance at September 30, 2014 6,016,469 Changes in Goodwill — Balance at September 30, 2015 6,016,469 Changes in Goodwill — Balance at December 31, 2015 $ 6,016,469
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Future amortization expense for intangible assets over the next five years ending September 30 and thereafter is summarized as follows: Fiscal Year Amount Remainder of 2016 $ 387,750 2017 518,000 2018 427,000 2019 373,000 2020 341,000 Thereafter $ 1,426,667
Schedule of Finite-Lived Intangible Assets [Table Text Block]	The components and estimated useful lives of intangible assets as of December 31, 2015 and September 30, 2015 are stated below. Amortization is provided on a straight line method, or in the case of customer relationships, on an accelerated method, over the following estimated useful lives: December 31, 2015 September 30, 2015 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Estimated Useful Life Definite-lived intangibles: Technology $ 2,500,000 $ 333,333 $ 2,500,000 $ 270,833 10 years Customer relationships 910,000 204,583 910,000 148,833 7 years Tradenames 660,000 58,667 660,000 47,667 15 years $ 4,070,000 $ 596,583 $ 4,070,000 $ 467,333

Product Warranties (Tables)

Product Warranties (Tables)	3 Months Ended
	Dec. 31, 2015
Product Warranties [Abstract]
Schedule of Product Warranty Liability [Table Text Block]	Changes in the Company's warranty liability (included in accrued expenses) for the three month periods ended December 31, 2015 and 2014 were as follows: Three Months Ended December 31, 2015 2014 Balance at beginning of period $ 650,000 $ 849,000 Provision for warranties 108,000 128,000 Expenses incurred (108,000 ) (140,000 ) Balance at end of period $ 650,000 $ 837,000

Marketable Securities (Details)

Marketable Securities (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Marketable Securities [Abstract]
Available-for-sale Securities, Amortized Cost Basis	$ 13,438
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	393	$ 308
Available-for-sale Securities, Debt Securities	$ 13,045

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Accounts Receivable [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 993,000	$ 993,000

Loss per Share (Details)

Loss per Share (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net Income (Loss) Attributable to Parent	$ (977,208)	$ (2,181,435)
Weighted Average Number of Shares Outstanding, Basic	9,330,779	9,100,100
Earnings Per Share, Basic	$ (0.10)	$ (0.24)

Loss per Share schedule of earn

Loss per Share schedule of earnings per share diluted (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	670,300	686,858
Net Income (Loss) Attributable to Parent	$ (977,208)	$ (2,181,435)
Weighted Average Number of Shares Outstanding, Basic	9,330,779	9,100,100
Incremental Common Shares Attributable to Call Options and Warrants	0	0
Incremental Common Shares Attributable to Share-based Payment Arrangements	0	0
Weighted Average Number of Shares Outstanding, Diluted	9,330,779	9,100,100
Earnings Per Share, Diluted	$ (0.10)	$ (0.24)

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Comprehensive Loss [Abstract]
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ (119,689)	$ (276,998)
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(393)	(308)
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (120,082)	$ (277,306)

Goodwill and Intangible Asset28

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 6,016,469	$ 6,016,469	$ 6,016,469	$ 0
Finite-Lived Patents, Gross	2,500,000	2,500,000
finite lived patents, accumulated amortization	333,333	270,833
Finite-Lived Customer Relationships, Gross	910,000	910,000
finite lived customer relationships, accumulated amortization	204,583	148,833
Finite-Lived Trade Names, Gross	660,000	660,000
finite lived tradenames, accumulated amortization	58,667	47,667
Finite-Lived Intangible Assets, Gross	4,070,000	4,070,000
Finite-Lived Intangible Assets, Accumulated Amortization	596,583	467,333
Goodwill, Acquired During Period	0	$ 0	$ 6,016,469
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	387,750
Amortization of Intangible Assets	129,250
Finite-Lived Intangible Assets, Amortization Expense, Year Two	518,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	427,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	373,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	341,000
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five	$ 1,426,667

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	$ 153,198	$ 146,830
Share Based Compensation per share	$ 0.02	$ 0.02

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Sep. 30, 2015USD ($)
Valuation Allowance [Line Items]
Deferred tax assets net of liabilities before valuation allowance	$ 11.1
Deferred Tax Assets, Operating Loss Carryforwards	$ 7

Product Warranties (Details)

Product Warranties (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Product Warranties [Abstract]
Balance at beginning of period	$ 650,000	$ 837,000	$ 650,000	$ 849,000
Provision for warranties	108,000	128,000
Expenses incurred	$ (108,000)	$ (140,000)