Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 05, 2021 | |
Document and Entity Information | ||
Entity Registrant Name | CSP INC /MA/ | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 4,373,966 | |
Amendment Flag | false | |
Entity Central Index Key | 0000356037 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Dec. 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CSPI | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 19,927 | $ 19,264 |
Accounts receivable, net of allowances of $176 and $181 | 12,122 | 13,362 |
Investment in lease, net-current portion | 251 | 336 |
Inventories | 5,846 | 5,285 |
Refundable income taxes | 1,332 | 807 |
Other current assets | 2,461 | 2,535 |
Total current assets | 41,939 | 41,589 |
Property, equipment and improvements, net | 978 | 1,047 |
Operating lease right-of-use assets | 1,847 | 2,014 |
Intangibles, net | 26 | 28 |
Investment in lease, net-less current portion | 63 | 81 |
Long-term receivable | 3,542 | 3,642 |
Deferred income taxes | 515 | 1,149 |
Cash surrender value of life insurance | 3,981 | 3,948 |
Other assets | 146 | 147 |
Total assets | 53,037 | 53,645 |
Current liabilities: | ||
Accounts payable and accrued expenses | 8,888 | 8,523 |
Line of credit | 802 | 1,573 |
Notes payable - current portion | 729 | 1,613 |
Deferred revenue | 1,212 | 947 |
Pension and retirement plans | 322 | 321 |
Total current liabilities | 11,953 | 12,977 |
Pension and retirement plans | 6,767 | 6,471 |
Notes payable - noncurrent portion | 1,109 | 2,485 |
Operating lease liabilities - noncurrent portion | 1,216 | 1,390 |
Income taxes payable | 586 | 586 |
Other noncurrent liabilities | 154 | 202 |
Total liabilities | 21,785 | 24,111 |
Shareholders’ equity: | ||
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 4,276 and 4,276 shares, respectively | 43 | 43 |
Additional paid-in capital | 17,259 | 16,994 |
Retained earnings | 25,643 | 24,492 |
Accumulated other comprehensive loss | (11,693) | (11,995) |
Total shareholders’ equity | 31,252 | 29,534 |
Total liabilities and shareholders’ equity | $ 53,037 | $ 53,645 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowances (in Dollars) | $ 176 | $ 181 |
Common stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 7,500 | 7,500 |
Common stock, shares issued | 4,276 | 4,276 |
Common stock, shares outstanding | 4,276 | 4,276 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Sales: | ||
Total sales | $ 11,388 | $ 16,858 |
Cost of sales: | ||
Total cost of sales | 8,010 | 12,827 |
Gross profit | 3,378 | 4,031 |
Operating expenses: | ||
Engineering and development | 729 | 672 |
Selling, general and administrative | 3,186 | 3,761 |
Total operating expenses | 3,915 | 4,433 |
Operating loss | (537) | (402) |
Other income (expense): | ||
Foreign exchange loss | (467) | (335) |
Interest expense | (38) | (57) |
Interest income | 98 | 173 |
Gain on extinguishment of debt | 2,196 | |
Other income | 9 | 11 |
Total other income (expense) | 1,798 | (208) |
Income (loss) before income taxes | 1,261 | (610) |
Income tax expense (benefit) | 110 | (70) |
Net income (loss) | 1,151 | (540) |
Net income (loss) attributable to common stockholders | $ 1,097 | $ (540) |
Net income (loss) per share – basic | $ 0.27 | $ (0.14) |
Weighted average shares outstanding – basic (in Shares) | 4,074 | 3,963 |
Net income (loss) per share – diluted | $ 0.26 | $ (0.14) |
Weighted average shares outstanding – diluted (in Shares) | 4,172 | 3,963 |
Product | ||
Sales: | ||
Total sales | $ 8,408 | $ 13,559 |
Cost of sales: | ||
Total cost of sales | 6,949 | 11,604 |
Service | ||
Sales: | ||
Total sales | 2,980 | 3,299 |
Cost of sales: | ||
Total cost of sales | $ 1,061 | $ 1,223 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Loss | ||
Net income (loss) | $ 1,151 | $ (540) |
Other comprehensive income (loss): | ||
Foreign currency translation gain (loss) adjustments | 302 | 326 |
Total comprehensive income (loss) | $ 1,453 | $ (214) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive loss | Total |
Beginning Balance (in Shares) at Sep. 30, 2019 | 4,154 | ||||
Beginning Balance at Sep. 30, 2019 | $ 42 | $ 15,733 | $ 27,246 | $ (12,593) | $ 30,428 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (540) | (540) | |||
Other comprehensive gain | 326 | 326 | |||
Exercise of stock options | 2 | 2 | |||
Stock-based compensation | 205 | 205 | |||
Cash declared on common stock | (623) | (623) | |||
Ending Balance (in Shares) at Dec. 31, 2019 | 4,154 | ||||
Ending Balance at Dec. 31, 2019 | $ 42 | 15,940 | 26,083 | (12,267) | $ 29,798 |
Beginning Balance (in Shares) at Sep. 30, 2020 | 4,276 | 4,276 | |||
Beginning Balance at Sep. 30, 2020 | $ 43 | 16,994 | 24,492 | (11,995) | $ 29,534 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 1,151 | 1,151 | |||
Other comprehensive gain | 302 | 302 | |||
Stock-based compensation | 265 | $ 265 | |||
Ending Balance (in Shares) at Dec. 31, 2020 | 4,276 | 4,276 | |||
Ending Balance at Dec. 31, 2020 | $ 43 | $ 17,259 | $ 25,643 | $ (11,693) | $ 31,252 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (Parenthetical) | 3 Months Ended |
Dec. 31, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Net income (loss) | $ 1,151 | $ (540) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 102 | 123 |
Amortization of intangibles | 2 | 2 |
Loss on sale of fixed assets, net | 1 | |
Foreign exchange loss | 467 | 335 |
Non-cash changes in accounts receivable | (6) | 20 |
Non-cash changes in inventories | 12 | 116 |
Non-cash lease expense | 160 | 164 |
Stock-based compensation expense on stock options and restricted stock awards | 265 | 205 |
Deferred income taxes | 634 | (1) |
Increase in cash surrender value of life insurance | (33) | (30) |
Non-cash other | 17 | |
Adjustment for financing activities recognized in net income - Gain on extinguishment of debt | (2,196) | |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 1,300 | 2,718 |
(Increase) decrease in inventories | (572) | 2,199 |
Decrease (increase) in refundable income taxes | (524) | (68) |
Decrease (increase) in operating lease right-of-use assets | 8 | (2,288) |
Decrease in other assets | 86 | 80 |
Decrease in investment in lease | 102 | 82 |
Decrease in long-term receivable | 101 | 70 |
Increase (decrease) in accounts payable and accrued expenses | 415 | (6,451) |
(Decrease) increase in operating lease liabilities | (155) | 2,320 |
Increase in deferred revenue | 265 | 691 |
Increase in pension and retirement plans liabilities | 15 | 9 |
Decrease in other long-term liabilities | (49) | (127) |
Net cash provided by (used in) operating activities | 1,567 | (370) |
Investing activities | ||
Life insurance premiums paid | (60) | |
Purchases of property, equipment and improvements | (33) | (207) |
Net cash used in investing activities | (33) | (267) |
Financing activities | ||
Net payments under line-of-credit agreement | (771) | (1,588) |
Proceeds from debt | 2,037 | |
Repayments on debt | (81) | (506) |
Principal payments on finance leases | (86) | (78) |
Proceeds from issuance of shares under equity compensation plans | 2 | |
Net cash used in financing activities | (938) | (133) |
Effects of exchange rate on cash | 67 | 298 |
Net increase (decrease) in cash and cash equivalents | 663 | (472) |
Cash and cash equivalents beginning of period | 19,264 | 18,099 |
Cash and cash equivalents at end of period | 19,927 | 17,627 |
Supplementary cash flow information: | ||
Cash paid for income taxes | 2 | |
Cash paid for interest | 94 | 111 |
Non-cash accrual of dividend payable | $ 623 | |
Supplementary non-cash financing activities: | ||
Gain on extinguishment of debt | $ 2,196 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation | |
Basis of Presentation | Organization and Business CSP Inc. ("CSPi" or "CSPI" or "the Company" or "we" or "our") was incorporated in 1968 and is based in Lowell, Massachusetts. CSPi and its subsidiaries develop and market IT integration solutions, advanced security products, managed IT services, purpose built network adapters, and high-performance cluster computer systems to meet the diverse requirements of its commercial and defense customers worldwide. The Company operates in two segments, its Technology Solutions (“TS”) segment and High Performance Products (“HPP”) segment. 1. Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited consolidated financial statements should be read in conjunction with the footnotes contained in the Company’s Annual Report on Form 10‑K for the fiscal year ended September 30, 2020. Revision of Prior Period Financial Statements During the preparation of the consolidated financial statements for the year ended September 30, 2020, we identified an immaterial error in the first three quarters of fiscal year 2020 related to the recognition of certain revenue as “net,” when in fact the revenue should have been recorded on a “gross” basis. As a result of evaluating the error, we determined the impact was not material to our financial statements in any prior interim period. However, management has revised the first three quarters of fiscal year 2020. The first quarter revised numbers are reflected in this Form 10-Q. The only financial statement affected was the Consolidated Statement of Operations. Specifically, financial statement line items Sales - Product, Sales - Services, and Cost of sales – product. Net income (loss) and Gross profit did not change. Notes affected include Note 4 Revenue and Note 14 Segment Information. For the three months ended December 31, 2019 As reported Adjustment As revised Sales: Product $ 13,222 $ 337 $ 13,559 Services 3,350 (51) 3,299 Total sales 16,572 286 16,858 Cost of sales: Product 11,318 286 11,604 Services 1,223 — 1,223 Total cost of sales 12,541 286 12,827 Gross profit $ 4,031 $ — $ 4,031 Operating loss $ (402) $ — $ (402) Net loss $ (540) $ — $ (540) Net loss per share – basic $ (0.14) $ — $ (0.14) Net loss per share – diluted $ (0.14) $ — $ (0.14) |
Use of Estimates
Use of Estimates | 3 Months Ended |
Dec. 31, 2020 | |
Use of Estimates | |
Use of Estimates | 2. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are related to reserves for bad debt, reserves for inventory obsolescence, the impairment assessment of intangible assets, right-of-use assets and lease liabilities, and the calculation of standalone selling price for revenue recognition, the calculation of liabilities related to deferred compensation and retirement plans and the calculation of income tax liabilities. Actual results may differ from those estimates under different assumptions or conditions. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Accounting standards adopted in fiscal year 2021 In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018‑14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715‑20) , Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans, an amendment of the FASB Accounting Standards Codification. Under this ASU existing disclosures not considered cost beneficial are removed, disclosures identified as relevant are added, and there is added clarification regarding specific existing disclosures. For public entities, the new standard is effective for annual periods beginning after December 15, 2020. Beginning October 1, 2020, the Company adopted the ASU and it did not have a material impact on our consolidated financial statements. The disclosures will be expanded for the year ended September 30, 2021 as this standard does not affect interim disclosures. New accounting standards not adopted as of December 31, 2020 In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326) , an amendment of the FASB Accounting Standards Codification. This ASU will change how entities account for credit losses for most financial assets and certain other instruments. For trade receivables, loans and held-to-maturity debt securities entities will be required to estimate lifetime expected credit losses. For available-for-sale debt securities entities will be required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. Additionally, there will be a significant increase in the amount of disclosures by year of origination for certain financing receivables. For public entities classified as a smaller reporting company, the new standard is effective for annual periods beginning after December 15, 2022 (ASU 2019-10 Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ), including interim periods within that annual period. The Company is evaluating the effect that ASU 2016‑13 will have on its consolidated financial statements and related disclosures. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2020 | |
Revenue | |
Revenue | 4. Revenue We derive revenue from the sale of integrated hardware and software, third-party service contracts, professional services, managed services, financing of hardware and software, and other services. We recognize revenue from hardware upon transfer of control, which is at a point in time typically upon shipment when title transfers. Revenue from software is recognized at a point in time when the license is granted. Professional services generally include implementation, installation, and training services. Professional services are considered a series of distinct services that form one performance obligation and revenue is recognized over time as services are performed. Revenue generated from managed services is recognized over the term of the contract. Certain managed services contracts include financing of hardware and software. Revenues from arrangements which include financing are allocated considering relative standalone selling prices of lease and non-lease components within the agreement. The lease component includes hardware, which is subject to ASC 842, Leases . The non-lease components are subject to ASC 606, Revenue from Contracts with Customers . Other services generally include revenue generated through our royalty, extended warranty, multicomputer repair, and maintenance contracts. Royalty revenue is sales-based and recognized on date of subsequent sale of the product, which occurs on the date of customer shipment. Revenue from extended warranty contracts is recognized evenly over the period of the warranty. Multicomputer repair services revenue is recognized upon control transfer when the customer takes possession of the computer at time of shipping. Revenue generated from maintenance services is recognized evenly over the term of the contract. Variable consideration is immaterial. The right of return risk lies with the original manufacturer of the product. Managed service contracts contain the right to refund if canceled within 30 days of inception. Any products with a standard warranty are treated as a warranty obligation under ASC 460, Guarantees. The following policies are applicable to our major categories of segment revenue transactions: TS Segment Revenue TS Segment revenue is derived from the sale of hardware, software, professional services, third-party service contracts, maintenance contracts, managed services, and financing of hardware and software. Financing revenue pertaining to the portion of an arrangement containing a lease is recognized in accordance with ASC 842. Financing revenue related to the lease is recorded in revenue as equipment leasing is part of the Company’s operations. Third-party service contracts are evaluated to determine whether such service revenue should be recorded as gross or net sales and whether over time or at point in time. HPP Segment Revenue HPP segment revenue is derived from the sale of integrated hardware and software, maintenance, and other services through the Multicomputer, Myricom, and ARIA product lines. Myricom revenue is derived from the sale of products, which are comprised of both hardware and embedded software which is essential to the products’ functionality, and post contract maintenance and support. Post contract maintenance and support is considered immaterial in the context of the contract and therefore is not a separate performance obligation. See disaggregated revenues below by products/services and geography. Technology Solutions Segment High Performance Products United Consolidated For the three months ended December 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2020 Sales: Product $ $ $ $ $ Service Finance * — — Total sales $ $ $ $ $ Technology Solutions Segment High Performance Products United Consolidated For the three months ended December 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2019 Sales: Product $ $ $ $ $ Service Finance * — — Total sales $ $ $ $ $ * Finance revenue is related to equipment leasing and is not subject to the guidance on revenue from contracts with customers (ASC 606). Significant Judgments The input method using labor hours expended relative to the total expected hours is used to recognize revenue for professional services. Only the hours that depict the Company’s performance toward satisfying a performance obligation are used for progress. An estimate for professional services is made at the beginning of each contract based on prior experience and monitored throughout the services. This method is most appropriate as it depicts the measure of progress towards satisfaction of the performance obligation. A financing component exists when at contract inception the period between the transfer of a promised good and/or service to the customer differs from when the customer pays for the good and/or service. As a practical expedient, the Company has elected not to adjust the amount of consideration for effects of a significant financing component when it is anticipated the promised good or service will be transferred and the subsequent payment will be one year or less. Certain contracts contain a financing component including managed services contracts with financing of hardware and software. The interest rate used reflects the approximate interest rate consistent with a separate financing transaction with the customer at the inception of the agreement. Revenues from arrangements which include financing are allocated considering relative standalone selling prices of lease and non-lease components within the agreement. The lease component includes hardware, which is subject to ASC 842, Leases . The non-lease components are subject to ASC 606, Revenue from Contracts with Customers . When product and non-managed services are sold together, the allocation of the transaction price to each performance obligation is calculated based on the estimated relative selling price or a budgeted cost-plus margin approach, as appropriate. Due to the complex nature of these contracts, there is significant judgment in allocating the transaction price. These estimates are periodically reviewed by project managers, engineers, and other staff involved to ensure estimates are appropriate. For items sold separately, including hardware, software, professional services, maintenance contracts, other services, and third-party service contracts, there is no allocation as there is one performance obligation. We recognize revenue from third-party service contracts as either gross sales or net sales depending on whether the Company is acting as a principal party to the transaction or simply acting as an agent or broker based on control and timing. The Company is a principal if it controls the good or service before that good or service is transferred to the customer. We record revenue as gross when the Company is a principal party to the arrangement and net of cost when we are acting as a broker or agent for a third party. Under gross sales recognition, the entire selling price is recorded in revenue and our cost to the third-party service provider or vendor is recorded in cost of goods sold. Under net sales recognition, the cost to the third-party service provider or vendor is recorded as a reduction to revenue resulting in net sales equal to the gross profit on the transaction. Third-party service contracts are sold in different combinations with hardware, software, and services. When the Company is an agent, revenue is typically recorded at a point in time. When the Company is the principal, revenue is recognized over the contract term. We have concluded we are the agent in sales of third-party maintenance, software or hardware support, and certain security software that is sold with integral third-party delivered software maintenance that include critical updates. Contract Assets and Liabilities When the Company has performed work but does not have an unconditional right to payment, a contract asset is recorded. When the Company has the right to bill a customer, accounts receivable is recorded as an unconditional right exists. Current contract assets were $0.8 million and $1.0 million as of December 31, 2020 and September 30, 2020, respectively. The current portion is recorded in other current assets on the consolidated balance sheets. There were no non-current contract assets as of December 31, 2020 and September 30, 2020. The difference in the balances is due to regular timing differences between when work is performed and having an unconditional right to payment. Contract liabilities arise when payment is received before the Company transfers a good or service to the customer. Current contract liabilities were $1.2 million and $0.9 million as of December 31, 2020 and September 30, 2020, respectively. The current portion of contract liabilities is recorded in deferred revenue on the consolidated balance sheets. The long-term portion of contract liabilities were $0.2 million and $0.2 million as of December 31, 2020 and September 30, 2020, respectively. These non-current liabilities are recorded in other noncurrent liabilities. Revenue recognized for the year ended December 31, 2020 that was included in contract liabilities as of the beginning of the period was $0.3 million. Contract Costs Incremental costs of obtaining a contract involving customer transactions where the revenue and the related transfer of goods and services are equal to or less than a one-year period, are expensed as incurred, utilizing the practical expedient in ASC 340‑40‑25‑4 . For a period greater than one year, incremental contract costs are capitalized if the Company expects to recover these costs. The costs are amortized over the contract term and expected renewal periods. The period of amortization is generally three to six years. Incremental costs are related to commissions in the TS portion of the business. Current capitalized contract costs are within the other current assets on the consolidated balance sheets as of December 31, 2020 and September 30, 2020. The portion of current capitalized costs were $104 thousand and $130 thousand as of December 31, 2020 and September 30, 2020, respectively. There are no non-current capitalized costs on the consolidated balance sheets as these commissions are paid annually even when the contract extends beyond a one-year period. The amount of incremental costs amortized for the three months ended December 31, 2020 and 2019 were $87 thousand and $78 thousand, respectively. This is recorded in selling, general, and administrative expenses. There was no impairment related to incremental costs capitalized during the three ended December 31, 2020. Costs to fulfill a contract are capitalized when the costs are related to a contract or anticipated contract, generate or enhance resources that will be used in satisfying performance obligations in the future, and costs are recoverable. Costs to fulfill a contract are related to the TS portion of the business and involve activities performed before managed services can be completed. Current capitalized fulfillment costs are in the other current assets and noncurrent costs are in other assets on the consolidated balance sheets. The portion of current capitalized costs were $13 thousand and $13 thousand as of December 31, 2020 and September 30, 2020, respectively. The portion of noncurrent capitalized costs as of December 31, 2020 and September 30, 2020 were $18 thousand and $22 thousand, respectively. The amount of fulfillment costs amortized for three months ended December 31, 2020 and 2019 were $3 thousand and $3 thousand, respectively. These costs amortized were recorded in cost of sales. There was no impairment related to fulfillment costs capitalized. Other Projects are typically billed upon completion or at certain milestones. Product and services are typically billed when shipped or as services are being performed. Payment terms are typically 30 days to pay in full except in Europe where it could be up to 90 days. Most of the Company’s contracts are less than one year. There are certain contracts that do contain a financing component. See Note 6 to the consolidated financial statements for additional information. The Company elected to use the optional exemption to not disclose the aggregate amount of the transaction price allocated to performance obligations that have an original expected duration of one year or less. This is due to a low amount of performance obligations, which are less than one year from being unsatisfied at each period end. Most of these contracts are related to product sales. The Company has certain contracts that have an original term of more than one year. The royalty agreement is longer than one year, but not included in the table below as the royalties are sales-based. Managed service contracts are generally longer than one year. For these contracts the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2020 is set forth in the table below: (Amounts in thousands) Fiscal 2021 (remaining 9 months) $ Fiscal 2022 Fiscal 2023 Fiscal 2024 $ |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share of Common Stock | |
Earnings Per Share of Common Stock | 5. Earnings Per Share of Common Stock Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income (loss) by the assumed weighted average number of common shares outstanding. We are required to present earnings per share (“EPS”), utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic and diluted earnings per share computations for the Company’s reported net loss attributable to common stockholders are as follows: For the three months ended December 31, December 31, 2020 2019 (Amounts in thousands except per share data) Net income (loss) $ 1,151 $ (540) Less: net income (loss) attributable to nonvested common stock 54 — Net loss attributable to common stockholders $ 1,097 $ (540) Weighted average total shares outstanding – basic 4,277 3,963 Less: weighted average non–vested shares outstanding 203 — Weighted average number of common shares outstanding – basic 4,074 3,963 Potential common shares from non–vested stock awards and the assumed exercise of stock options 98 — Weighted average common shares outstanding – diluted 4,172 3,963 Net income (loss) per share – basic $ 0.27 $ (0.14) Net income (loss) per share – diluted $ 0.26 $ (0.14) Non-vested restricted stock awards of 190,000 shares were excluded from the diluted loss per share calculation for the three months ended December 31, 2019 because there was a net loss for this period and their inclusion would have been anti-dilutive. |
Accounts and Long Term Receivab
Accounts and Long Term Receivable | 3 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts and Long Term Receivable | 6 . Accounts and Long-Term Receivable Within accounts receivable and long-term receivable there are amounts due reflecting sales whose payment terms exceed one year. This financing is separate from agreements with a leasing component, see Note 8 Leases for financing through leases. These receivables are included in Accounts Receivable and Long-Term Receivable in the amount of $2.4 million and $3.4 million as of December 31, 2020. These receivables are included in Accounts Receivable and Long-Term Receivable in the amount of $2.3 million and $3.5 million as of September 30, 2020, respectively. The receivables with a payment term exceeding one year carry an average weighted interest rate of 6.2%, which reflects the approximate interest rate consistent with a separate financing transaction with the customer at the inception of the agreement. There is not an allowance for credit losses nor impairments for accounts and long-term receivables with a contractual maturity of over one year. All accounts have no past amounts due as of December 31, 2020 or September 30, 2020. There was no activity in the allowance for credit losses of these receivables for the three months ended December 31, 2020 and December 31, 2019, respectively. All these agreements are looked at as one portfolio in determining credit losses. There are various factors that are considered in extending a customer payment terms longer than one year including payment history, economic conditions, and capacity to pay. The credit quality of customers is monitored by payment activity. The unearned income represents a rate similar to market at the inception of the agreement. The amount of interest income earned from sales whose payment terms exceed one year for the three months ended December 31, 2020 and 2019 was $92 thousand and $116 thousand, respectively. Interest income from these agreements is recorded in Other income, net on the Consolidated Statements of Operations. Receivables whose payment terms exceed one year are placed on nonaccrual status, meaning interest income stops being recorded, when the customer has a past due amount in excess of 30 days or reasonable doubt exists in collecting all interest and principal. A payment due in excess of 30 days is considered delinquent. If a payment is received for a receivable on nonaccrual status the payment is first applied to interest and then principal. Recording interest income resumes once no reasonable doubt exists regarding collecting all interest and principal. Contractual maturities of outstanding financing with an original contractual maturity over one year are as follows: Fiscal year ending September 30: (Amounts in thousands) 2021 $ 2,564 2022 2,300 2023 1,423 Total payments 6,287 Less: unearned income 469 Total, net of unearned income $ 5,818 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Inventories | 7 . Inventories Inventories consist of the following: December 31, September 30, 2020 2020 (Amounts in thousands) Raw materials $ 833 $ 574 Work-in-process 426 213 Finished goods 4,587 4,498 Total $ 5,846 $ 5,285 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 8 . Information related to both lessee and lessor The components of lease costs for the three months ended December 31, 2020 and 2019 are as follows: Three months ended Consolidated Statements of Operations Location Consolidated Statements of Operations Location December 31, 2020 December 31, 2019 (Amounts in thousands) Finance Lease: Interest on lease liabilities Selling, general, and administrative $ 5 $ 13 Operating Lease: Operating lease cost Selling, general, and administrative 188 180 Short-term lease cost Selling, general, and administrative 3 3 Total lease costs $ 196 $ 196 Less sublease interest income Revenue (11) (26) Total lease costs, net of sublease interest income $ 185 $ 170 Supplemental cash flow information related to leases for the three months ended December 31, 2020 and 2019 are below: Three months ended December 31, 2020 December 31, 2019 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 191 $ 188 Operating cash flows from short-term leases 10 9 Operating cash flows from finance leases 5 13 Financing cash flows from finance leases 86 78 Lease assets obtained in exchange for new lease liabilities Operating leases — 4 Cash received from subleases 113 113 |
Notes Payable and Line of Credi
Notes Payable and Line of Credit | 3 Months Ended |
Dec. 31, 2020 | |
Notes Payable and Line of Credit | |
Notes Payable and Line of Credit | 9 . In September 2019, the Company borrowed $1.0 million with a 5.0% rate of interest related to a multi-year agreement with a customer. See Note 6 for the disclosure related to the receivables. In October 2019, the Company borrowed $2.0 million with a 5.1% rate of interest related to a multi-year agreement with a customer. On April 17, 2020, CSP, Inc. and Modcomp, Inc., its wholly owned subsidiary (collectively, the “Borrowers”) each received a loan in the form of a promissory note from Paragon Bank (“Lender”) in the amounts of $827,000 and $1,353,600, respectively (the “SBA Loans”) under the Paycheck Protection Program (“PPP”), which was established under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (“SBA”). The SBA Loans have a two-year term and carry an annual fixed interest rate of 1%. The SBA Loans provided for customary events of default, including, among others, those relating to failure to make payment, bankruptcy, materially false or misleading representations to Lender or SBA, and adverse changes in the financial condition or business operations that Lender believed could materially affect Borrowers’ ability to pay the SBA Loans. The Borrowers did not provide any collateral or guarantees for the SBA Loans and the Borrowers could prepay the principal of the SBA Loans at any time without penalty. The Borrowers applied to the Lender for forgiveness of an amount due on the SBA Loans in an amount equal to the sum of certain costs during the 24 week period beginning on the date of the first disbursement of the SBA Loans. The amount of SBA Loans forgiveness was calculated in accordance with the requirements of the PPP, including provisions of Section 1106 of the CARES Act. We used the SBA Loans proceeds in accordance with the applicable SBA guidelines . In November 2020 the SBA Loans were formally forgiven . The $2.2 million gain is displayed on the Consolidated Statement of Operations in the line item “Gain on extinguishment of debt.” Interest expense related to the notes for the three months ended December 31, 2020 and 2019 was $23 thousand and $30 thousand, respectively. Below are details of the notes payable. December 31, 2020 September 30, 2020 (Amounts in thousands) Current $ 808 $ 1,702 Less: notes discount 79 89 Notes payable - current portion $ 729 $ 1,613 Noncurrent $ 1,166 $ 2,559 Less: notes discount 57 74 Notes payable - noncurrent portion $ 1,109 $ 2,485 As of December 31, 2020 and September 30, 2020, the Company maintained an inventory line of credit with a borrowing capacity of $15.0 million. It may be used by the TS and HPP segments in the U.S. to purchase inventory from approved vendors with payment terms which exceed those offered by the vendors. No interest accrues under the inventory line of credit when advances are paid within terms, however, late payments are subject to an interest charge of Prime plus 5%. The credit agreement for the inventory line of credit contains financial covenants which require the Company to maintain the following TS segment-specific financial ratios: (1) a minimum current ratio of 1.2, (2) tangible net worth of no less than $4.0 million, and (3) a maximum ratio of total liabilities to total net worth of less than 5.0:1. As of December 31, 2020 and September 30, 2020, Company borrowings, all from the TS segment, under the inventory line of credit were $0.8 million and $1.6 million, respectively, and the Company was in compliance with all financial covenants. As of December 31, 2020 and September 30, 2020 this line of credit also includes availability of a limited cash withdrawal of up to $1.0 million and $1.5 million, respectively. As of December 31, 2020 and September 30, 2020 there were no cash withdrawals outstanding. |
Pension and Retirement Plans
Pension and Retirement Plans | 3 Months Ended |
Dec. 31, 2020 | |
Pension and Retirement Plans | |
Pension and Retirement Plans | 10. Pension and Retirement Plans The Company’s operations have defined benefit and defined contribution plans in the U.K. and in the U.S. In the U.K., the Company provides defined benefit pension plans and defined contribution plans for some of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain former employees. The U.S. supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. The Company also provides for officer death benefits through post-retirement plans to certain officers of the Company in the U.S. All the Company’s defined benefit plans are closed to newly hired employees and have been since September 2009. The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. The Company’s pension plan in the U.K. is the only plan with plan assets. The plan assets consist of an investment in a commingled fund which in turn comprises a diversified mix of assets including corporate equity securities, government securities and corporate debt securities. The components of net periodic benefit costs related to the U.S. and U.K. plans are as follows: Three Months Ended December 31, 2020 2019 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 58 $ 3 $ 61 $ 66 $ 4 $ 70 Expected return on plan assets (97) — (97) (74) — (74) Amortization of past service costs 2 — 2 1 — 1 Amortization of net gain 44 1 45 48 1 49 Net periodic benefit cost $ 7 $ 4 $ 11 $ 41 $ 5 $ 46 Post Retirement: Service cost $ — $ 11 $ 11 $ — $ 10 $ 10 Interest cost — 11 11 — 12 12 Amortization of net gain — 13 13 — 6 6 Net periodic cost $ — $ 35 $ 35 $ — $ 28 $ 28 The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of December 31, 2020 September 30, 2020 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 399 $ 399 $ — $ — $ 471 $ 471 $ — $ — Pooled funds 10,574 10,574 — — 9,269 9,269 — — Total plan assets $ 10,973 $ 10,973 $ — $ — $ 9,740 $ 9,740 $ — $ — |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 11. Income Taxes An income tax provision of $110 thousand was recorded for the three months ended December 31, 2020 compared to an income tax benefit of $70 thousand in the same period of 2019. The increase in tax expense is primarily related to the write down of a deferred tax asset as a result of the change in tax law, allowing for the immediate deduction of covered expenses incurred through the Paycheck Protection Program (“PPP”) loan with an associated change in the valuation allowance against deferred tax assets from the prior period, offset by the forgiveness of the PPP Loans for which the income is excluded for tax purposes. This additional expense was recorded discretely during the quarter. In the prior period, the Company established a deferred tax asset for these expenses that were expected to be deductible in a future period. The provisions above are estimates, and accordingly, changes to these estimates will be recorded in subsequent periods as more information and guidance becomes available. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 12. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: December 31, September 30, 2020 2020 (Amounts in thousands) Cumulative effect of foreign currency translation $ (4,394) $ (4,696) Cumulative unrealized loss on pension liability (7,299) (7,299) Accumulated other comprehensive loss $ (11,693) $ (11,995) |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Assets and Liabilities | |
Fair Value of Financial Assets and Liabilities | 13. Fair Value of Financial Assets and Liabilities Under the fair value standards fair value is based on the exit price and defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement should reflect all the assumptions that market participants would use in pricing an asset or liability. A fair value hierarchy is established in the authoritative guidance outlined in three levels ranking from Level 1 to Level 3 with Level 1 being the highest priority. Level 1: observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly Level 3: unobservable inputs (e.g., a reporting entity’s or other entity’s own data) The Company had no assets or liabilities measured at fair value on a recurring (except our pension plan assets and whole life insurance policies, see Note 10) or non-recurring basis as of December 31, 2020 or September 30, 2020. To estimate fair value of the financial instruments below, quoted market prices are used when available and classified within Level 1. If this data is not available, we use observable market-based inputs to estimate fair value, which are classified within Level 2. If the preceding information is unavailable, we use internally generated data to estimate fair value which is classified within Level 3. As of December 31, 2020 As of September 30, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Level Reference (Amounts in thousands) Assets: Cash and cash equivalents $ 19,927 $ 19,927 $ 19,264 $ 19,264 1 Consolidated Balance Sheets Accounts and long-term receivable* 5,818 5,818 5,839 5,839 3 Note 6 Liabilities: Notes payable 1,838 1,838 4,098 4,098 2 Note 9 *Original maturity over one year Cash and cash equivalents Carrying amount approximated fair value. Accounts and long-term receivable with original maturity over one year Fair value was estimated by discounting future cash flows based on the current rate with similar terms. Notes Payable Fair value was estimated based on quoted market prices. Fair value of accounts receivable with an original maturity of one year or less and accounts payable was not materially different from their carrying values at December 31, 2020 and September 30, 2020. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information The following tables present certain operating segment information for three months ended December 31, 2020 and 2019. Technology Solutions Segment High Performance Products United Consolidated For the three months ended December 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2020 Sales: Product $ 1,176 $ 1,403 $ 5,829 $ 7,232 $ 8,408 Service 380 87 2,513 2,600 2,980 Total sales $ 1,556 $ 1,490 $ 8,342 $ 9,832 $ 11,388 Income (loss) from operations $ (854) $ 31 $ 286 $ 317 $ (537) Total assets $ 9,192 $ 10,675 $ 33,170 $ 43,845 $ 53,037 Capital expenditures 6 — 27 27 33 Depreciation and amortization 48 — 56 56 104 2019 Sales: Product $ 767 $ 553 $ 12,239 $ 12,792 $ 13,559 Service 274 126 2,899 3,025 3,299 Total sales $ 1,041 $ 679 $ 15,138 $ 15,817 $ 16,858 Income (loss) from operations $ (1,263) $ 3 $ 858 $ 861 $ (402) Total assets $ 10,496 $ 10,847 $ 34,905 $ 45,752 $ 56,248 Capital expenditures 34 — 173 173 207 Depreciation and amortization 58 3 64 67 125 Income (loss) from operations consists of sales less cost of sales, engineering and development expenses, and selling, general and administrative expenses but is not affected by either other income/expense or by income taxes expense (benefit). Non-operating expenses/income consists principally of investment income, interest income from transactions with payment terms exceeding one year (see Note 6 for details), and interest expense. All intercompany transactions have been eliminated. The following table lists customers from which the Company derived revenues of 10% or more of total revenues for the three months ended December 31, 2020 and 2019. For the three months ended December 31, 2020 2019 Customer % of Total Customer % of Total Revenues Revenues Revenues Revenues (Amounts in thousands) Customer A $ 1,140 10 % $ 330 2 % Customer B $ 611 5 % $ 1,784 11 % Customer C $ 333 3 % $ 2,630 16 % Customer B totaled approximately $4.8 million, or 30%, and approximately $4.7 million, or 28%, of total consolidated accounts receivable and long-term receivable as of December 31, 2020 and September 30, 2020, respectively. There were no other customers that were more than 10% of total consolidated accounts receivable and long-term receivable as of December 31, 2020. We believe that the Company is not exposed to any significant credit risk with respect to the accounts receivable with any customers as of December 31, 2020 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation | |
Summary of revisions for previously reported financial statements | For the three months ended December 31, 2019 As reported Adjustment As revised Sales: Product $ 13,222 $ 337 $ 13,559 Services 3,350 (51) 3,299 Total sales 16,572 286 16,858 Cost of sales: Product 11,318 286 11,604 Services 1,223 — 1,223 Total cost of sales 12,541 286 12,827 Gross profit $ 4,031 $ — $ 4,031 Operating loss $ (402) $ — $ (402) Net loss $ (540) $ — $ (540) Net loss per share – basic $ (0.14) $ — $ (0.14) Net loss per share – diluted $ (0.14) $ — $ (0.14) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Revenue | |
Schedule of disaggregated revenues | See disaggregated revenues below by products/services and geography. Technology Solutions Segment High Performance Products United Consolidated For the three months ended December 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2020 Sales: Product $ $ $ $ $ Service Finance * — — Total sales $ $ $ $ $ Technology Solutions Segment High Performance Products United Consolidated For the three months ended December 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2019 Sales: Product $ $ $ $ $ Service Finance * — — Total sales $ $ $ $ $ * Finance revenue is related to equipment leasing and is not subject to the guidance on revenue from contracts with customers (ASC 606). |
Schedule of revenue, performance obligations | For these contracts the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2020 is set forth in the table below: (Amounts in thousands) Fiscal 2021 (remaining 9 months) $ Fiscal 2022 Fiscal 2023 Fiscal 2024 $ |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share of Common Stock | |
Schedule of basic and diluted earnings per share computations | Basic and diluted earnings per share computations for the Company’s reported net loss attributable to common stockholders are as follows: For the three months ended December 31, December 31, 2020 2019 (Amounts in thousands except per share data) Net income (loss) $ 1,151 $ (540) Less: net income (loss) attributable to nonvested common stock 54 — Net loss attributable to common stockholders $ 1,097 $ (540) Weighted average total shares outstanding – basic 4,277 3,963 Less: weighted average non–vested shares outstanding 203 — Weighted average number of common shares outstanding – basic 4,074 3,963 Potential common shares from non–vested stock awards and the assumed exercise of stock options 98 — Weighted average common shares outstanding – diluted 4,172 3,963 Net income (loss) per share – basic $ 0.27 $ (0.14) Net income (loss) per share – diluted $ 0.26 $ (0.14) |
Accounts and Long Term Receiv_2
Accounts and Long Term Receivable (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of contractual maturities of outstanding financing | Fiscal year ending September 30: (Amounts in thousands) 2021 $ 2,564 2022 2,300 2023 1,423 Total payments 6,287 Less: unearned income 469 Total, net of unearned income $ 5,818 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Schedule of Inventory, Current | Inventories consist of the following: December 31, September 30, 2020 2020 (Amounts in thousands) Raw materials $ 833 $ 574 Work-in-process 426 213 Finished goods 4,587 4,498 Total $ 5,846 $ 5,285 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of components of lease costs | Three months ended Consolidated Statements of Operations Location Consolidated Statements of Operations Location December 31, 2020 December 31, 2019 (Amounts in thousands) Finance Lease: Interest on lease liabilities Selling, general, and administrative $ 5 $ 13 Operating Lease: Operating lease cost Selling, general, and administrative 188 180 Short-term lease cost Selling, general, and administrative 3 3 Total lease costs $ 196 $ 196 Less sublease interest income Revenue (11) (26) Total lease costs, net of sublease interest income $ 185 $ 170 |
Supplemental cash flow information | Three months ended December 31, 2020 December 31, 2019 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 191 $ 188 Operating cash flows from short-term leases 10 9 Operating cash flows from finance leases 5 13 Financing cash flows from finance leases 86 78 Lease assets obtained in exchange for new lease liabilities Operating leases — 4 Cash received from subleases 113 113 |
Notes Payable and Line of Cre_2
Notes Payable and Line of Credit (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Notes Payable [Abstract] | |
Schedule of current and noncurrent notes payable | December 31, 2020 September 30, 2020 (Amounts in thousands) Current $ 808 $ 1,702 Less: notes discount 79 89 Notes payable - current portion $ 729 $ 1,613 Noncurrent $ 1,166 $ 2,559 Less: notes discount 57 74 Notes payable - noncurrent portion $ 1,109 $ 2,485 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Pension and Retirement Plans | |
Schedule of Net Benefit Costs | The components of net periodic benefit costs related to the U.S. and U.K. plans are as follows: Three Months Ended December 31, 2020 2019 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 58 $ 3 $ 61 $ 66 $ 4 $ 70 Expected return on plan assets (97) — (97) (74) — (74) Amortization of past service costs 2 — 2 1 — 1 Amortization of net gain 44 1 45 48 1 49 Net periodic benefit cost $ 7 $ 4 $ 11 $ 41 $ 5 $ 46 Post Retirement: Service cost $ — $ 11 $ 11 $ — $ 10 $ 10 Interest cost — 11 11 — 12 12 Amortization of net gain — 13 13 — 6 6 Net periodic cost $ — $ 35 $ 35 $ — $ 28 $ 28 |
Schedule of fair value of Plan Assets | The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of December 31, 2020 September 30, 2020 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 399 $ 399 $ — $ — $ 471 $ 471 $ — $ — Pooled funds 10,574 10,574 — — 9,269 9,269 — — Total plan assets $ 10,973 $ 10,973 $ — $ — $ 9,740 $ 9,740 $ — $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss are as follows: December 31, September 30, 2020 2020 (Amounts in thousands) Cumulative effect of foreign currency translation $ (4,394) $ (4,696) Cumulative unrealized loss on pension liability (7,299) (7,299) Accumulated other comprehensive loss $ (11,693) $ (11,995) |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Assets and Liabilities | |
Summary of assets and liabilities at fair value | As of December 31, 2020 As of September 30, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Level Reference (Amounts in thousands) Assets: Cash and cash equivalents $ 19,927 $ 19,927 $ 19,264 $ 19,264 1 Consolidated Balance Sheets Accounts and long-term receivable* 5,818 5,818 5,839 5,839 3 Note 6 Liabilities: Notes payable 1,838 1,838 4,098 4,098 2 Note 9 *Original maturity over one year |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Technology Solutions Segment High Performance Products United Consolidated For the three months ended December 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2020 Sales: Product $ 1,176 $ 1,403 $ 5,829 $ 7,232 $ 8,408 Service 380 87 2,513 2,600 2,980 Total sales $ 1,556 $ 1,490 $ 8,342 $ 9,832 $ 11,388 Income (loss) from operations $ (854) $ 31 $ 286 $ 317 $ (537) Total assets $ 9,192 $ 10,675 $ 33,170 $ 43,845 $ 53,037 Capital expenditures 6 — 27 27 33 Depreciation and amortization 48 — 56 56 104 2019 Sales: Product $ 767 $ 553 $ 12,239 $ 12,792 $ 13,559 Service 274 126 2,899 3,025 3,299 Total sales $ 1,041 $ 679 $ 15,138 $ 15,817 $ 16,858 Income (loss) from operations $ (1,263) $ 3 $ 858 $ 861 $ (402) Total assets $ 10,496 $ 10,847 $ 34,905 $ 45,752 $ 56,248 Capital expenditures 34 — 173 173 207 Depreciation and amortization 58 3 64 67 125 |
Schedule of Revenue by Major Customers | For the three months ended December 31, 2020 2019 Customer % of Total Customer % of Total Revenues Revenues Revenues Revenues (Amounts in thousands) Customer A $ 1,140 10 % $ 330 2 % Customer B $ 611 5 % $ 1,784 11 % Customer C $ 333 3 % $ 2,630 16 % |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | 3 Months Ended |
Dec. 31, 2020segment | |
Basis of Presentation | |
Number of Operating Segments | 2 |
Basis of Presentation - Revisio
Basis of Presentation - Revision of Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Sales: | ||
Total sales | $ 11,388 | $ 16,858 |
Cost of sales: | ||
Total cost of sales | 8,010 | 12,827 |
Gross profit | 3,378 | 4,031 |
Operating loss | (537) | (402) |
Net income (loss) | $ 1,151 | $ (540) |
Net income (loss) per share – basic | $ 0.27 | $ (0.14) |
Net income (loss) per share – diluted | $ 0.26 | $ (0.14) |
Product | ||
Sales: | ||
Total sales | $ 8,408 | $ 13,559 |
Cost of sales: | ||
Total cost of sales | 6,949 | 11,604 |
Service | ||
Sales: | ||
Total sales | 2,980 | 3,299 |
Cost of sales: | ||
Total cost of sales | $ 1,061 | 1,223 |
As Reported | ||
Sales: | ||
Total sales | 16,572 | |
Cost of sales: | ||
Total cost of sales | 12,541 | |
Gross profit | 4,031 | |
Operating loss | (402) | |
Net income (loss) | $ (540) | |
Net income (loss) per share – basic | $ (0.14) | |
Net income (loss) per share – diluted | $ (0.14) | |
As Reported | Product | ||
Sales: | ||
Total sales | $ 13,222 | |
Cost of sales: | ||
Total cost of sales | 11,318 | |
As Reported | Service | ||
Sales: | ||
Total sales | 3,350 | |
Cost of sales: | ||
Total cost of sales | 1,223 | |
Restatement Adjustment | ||
Sales: | ||
Total sales | 286 | |
Cost of sales: | ||
Total cost of sales | 286 | |
Restatement Adjustment | Product | ||
Sales: | ||
Total sales | 337 | |
Cost of sales: | ||
Total cost of sales | 286 | |
Restatement Adjustment | Service | ||
Sales: | ||
Total sales | $ (51) |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from External Customer [Line Items] | ||
Managed service contracts, right to refund, period | 30 days | |
Total sales | $ 11,388 | $ 16,858 |
Product | ||
Revenue from External Customer [Line Items] | ||
Sales | 8,397 | 13,533 |
Total sales | 8,408 | 13,559 |
Service | ||
Revenue from External Customer [Line Items] | ||
Sales | 2,980 | 3,299 |
Total sales | 2,980 | 3,299 |
Finance | ||
Revenue from External Customer [Line Items] | ||
Finance | 11 | 26 |
High Performance Products Segment | ||
Revenue from External Customer [Line Items] | ||
Total sales | 1,556 | 1,041 |
High Performance Products Segment | Product | ||
Revenue from External Customer [Line Items] | ||
Sales | 1,176 | 767 |
Total sales | 1,176 | 767 |
High Performance Products Segment | Service | ||
Revenue from External Customer [Line Items] | ||
Sales | 380 | 274 |
Total sales | 380 | 274 |
TS | ||
Revenue from External Customer [Line Items] | ||
Total sales | 9,832 | 15,817 |
TS | U.K. | ||
Revenue from External Customer [Line Items] | ||
Total sales | 1,490 | 679 |
TS | U.S. | ||
Revenue from External Customer [Line Items] | ||
Total sales | 8,342 | 15,138 |
TS | Product | ||
Revenue from External Customer [Line Items] | ||
Sales | 7,221 | 12,766 |
Total sales | 7,232 | 12,792 |
TS | Product | U.K. | ||
Revenue from External Customer [Line Items] | ||
Sales | 1,403 | 553 |
Total sales | 1,403 | 553 |
TS | Product | U.S. | ||
Revenue from External Customer [Line Items] | ||
Sales | 5,818 | 12,213 |
Total sales | 5,829 | 12,239 |
TS | Service | ||
Revenue from External Customer [Line Items] | ||
Sales | 2,600 | 3,025 |
Total sales | 2,600 | 3,025 |
TS | Service | U.K. | ||
Revenue from External Customer [Line Items] | ||
Sales | 87 | 126 |
Total sales | 87 | 126 |
TS | Service | U.S. | ||
Revenue from External Customer [Line Items] | ||
Sales | 2,513 | 2,899 |
Total sales | 2,513 | 2,899 |
TS | Finance | ||
Revenue from External Customer [Line Items] | ||
Finance | 11 | 26 |
TS | Finance | U.S. | ||
Revenue from External Customer [Line Items] | ||
Finance | $ 11 | $ 26 |
Revenue - Revenue Recognition (
Revenue - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Capitalized Contract Cost [Line Items] | |||
Practical Expedient, Financing Component | true | ||
Current contract assets | $ 800 | $ 1,000 | |
Non-current contract assets | 0 | 0 | |
Current contract liabilities | 1,212 | 947 | |
Non-current contract liabilities | 200 | 200 | |
Revenue recognized included in contract liabilities | 300 | ||
Current capitalized costs | 104 | 130 | |
Non-current capitalized costs | 0 | 0 | |
Incremental costs amortized | 87 | $ 78 | |
Impairment related to costs capitalized | $ 0 | ||
Payment terms | 30 days | ||
Practical Expedient, Incremental Costs | true | ||
Remaining Performance Obligation, Optional Exemption | true | ||
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Amortization Period | 3 years | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Amortization Period | 6 years | ||
Royalty Agreement | Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Payment terms | 1 year | ||
Managed Service Contracts | Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Payment terms | 1 year | ||
Europe | Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Payment terms | 90 days | ||
TS | |||
Capitalized Contract Cost [Line Items] | |||
Current capitalized costs | $ 13 | 13 | |
Non-current capitalized costs | 18 | $ 22 | |
Incremental costs amortized | 3 | $ 3 | |
Impairment related to costs capitalized | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation amount | $ 2,212 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligation amount | $ 1,380 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligation amount | $ 592 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligation amount | $ 210 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligation amount | $ 30 |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock - Basic and diluted earnings per share computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share of Common Stock | ||
Net income (loss) | $ 1,151 | $ (540) |
Less: net income (loss) attributable to nonvested common stock | 54 | |
Net loss attributable to common stockholders | $ 1,097 | $ (540) |
Weighted average total shares outstanding – basic | 4,277 | 3,963 |
Less: weighted average non-vested shares outstanding | 203 | |
Weighted average number of common shares outstanding – basic | 4,074 | 3,963 |
Potential common shares from non-vested stock awards and the assumed exercise of stock options | 98 | |
Weighted average common shares outstanding – diluted | 4,172 | 3,963 |
Net income (loss) per share – basic | $ 0.27 | $ (0.14) |
Net income (loss) per share – diluted | $ 0.26 | $ (0.14) |
Earnings Per Share of Common _4
Earnings Per Share of Common Stock - Anti-dilutive (Details) | 3 Months Ended |
Dec. 31, 2019shares | |
Earnings Per Share of Common Stock | |
Non-vested restricted stock awards shares were excluded from the diluted loss per share calculation | 190,000 |
Accounts and Long Term Receiv_3
Accounts and Long Term Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 12,122 | $ 13,362 | |
Long-term receivable | $ 3,542 | 3,642 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity term of accounts and long term receivables | 1 year | ||
Financing receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 2,400 | 2,300 | |
Long-term receivable | $ 3,400 | 3,500 | |
Long term receivables interest rate | 6.20% | ||
Amount of allowance for credit losses or impairments with a contractual maturity of over one year | $ 0 | ||
Accounts and long-term receivable past due | 0 | 0 | |
Activity in allowance for credit losses for accounts and long-term receivables | $ 0 | $ 0 | |
Contract Receivable, Fiscal Year Maturity [Abstract] | |||
2021 | 2,564 | ||
2022 | 2,300 | ||
2023 | 1,423 | ||
Total payments | 6,287 | ||
Less: unearned income | 469 | ||
Total, net of unearned income | $ 5,818 | ||
Financing receivables | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity term of accounts and long term receivables | 1 year | ||
Financing receivables | Other Income | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts And Long Term Receivable, Interest Income | $ 92 | $ 116 |
Inventories - Tabular Disclosur
Inventories - Tabular Disclosure - (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Inventories | ||
Raw materials | $ 833 | $ 574 |
Work-in-process | 426 | 213 |
Finished goods | 4,587 | 4,498 |
Total | $ 5,846 | $ 5,285 |
Leases - Components of lease co
Leases - Components of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Lease: | ||
Total lease costs | $ 196 | $ 196 |
Total lease costs, net of sublease interest income | 185 | 170 |
Selling, general, and administrative | ||
Finance Lease: | ||
Interest on lease liabilities | 5 | 13 |
Operating Lease: | ||
Operating lease cost | 188 | 180 |
Short-term Lease, Cost | 3 | 3 |
Revenue | ||
Operating Lease: | ||
Less sublease interest income | $ (11) | $ (26) |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 191 | $ 188 |
Operating cash flows from short-term leases | 10 | 9 |
Operating cash flows from finance leases | 5 | 13 |
Financing cash flows from finance leases | 86 | 78 |
Operating leases | 4 | |
Cash received from subleases | $ 113 | $ 113 |
Note Payable and Line of Credit
Note Payable and Line of Credit - Narrative - (Details) - USD ($) | Apr. 17, 2020 | Oct. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Note payable | |||||
Borrowings | $ 2,037,000 | ||||
Gain on extinguishment of debt | $ 2,196,000 | ||||
Notes payable | |||||
Note payable | |||||
Borrowings | $ 2,000,000 | $ 1,000,000 | |||
Interest rate | 5.10% | 5.00% | |||
Interest Expense, Debt | 23,000 | $ 30,000 | |||
Small Business Administration Loans | |||||
Note payable | |||||
Borrowings | $ 827,000 | ||||
Term of Loan | 2 years | ||||
Interest rate | 1.00% | ||||
Debt forgiveness term | 168 days | ||||
Gain on extinguishment of debt | $ 2,200,000 | ||||
Small Business Administration Loans | Modcomp Inc | |||||
Note payable | |||||
Borrowings | $ 1,353,600 |
Notes Payable and Line of Cre_3
Notes Payable and Line of Credit - Current and Noncurrent Portion (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Note payable - current | ||
Notes payable - current portion | $ 729 | $ 1,613 |
Note payable - noncurrent | ||
Notes payable - noncurrent portion | 1,109 | 2,485 |
Notes payable | ||
Note payable - current | ||
Current | 808 | 1,702 |
Less: notes discount | 79 | 89 |
Notes payable - current portion | 729 | 1,613 |
Note payable - noncurrent | ||
Noncurrent | 1,166 | 2,559 |
Less: notes discount | 57 | 74 |
Notes payable - noncurrent portion | $ 1,109 | $ 2,485 |
Notes Payable and Line of Cre_4
Notes Payable and Line of Credit - Line of Credit (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | |
Line of Credit Facility | ||
Line of Credit, Current | $ 802 | $ 1,573 |
Inventory Line of Credit | Line of Credit | ||
Line of Credit Facility | ||
Maximum borrowing capacity | 15,000 | 15,000 |
Minimum Net Worth Required for Compliance | 4,000 | |
Line of Credit, Current | 800 | 1,600 |
Cash withdrawal limit | 1,000 | 1,500 |
Cash withdrawals outstanding | $ 0 | $ 0 |
Inventory Line of Credit | Line of Credit | Minimum | ||
Line of Credit Facility | ||
Liquidity ratio | 1.2 | |
Inventory Line of Credit | Line of Credit | Maximum | ||
Line of Credit Facility | ||
Ratio of Indebtedness to Net Capital | 5 | |
Inventory Line of Credit | Line of Credit | Prime Rate | ||
Line of Credit Facility | ||
Basis spread on variable rate | 5.00% |
Pension and Retirement Plans -
Pension and Retirement Plans - Components of net periodic benefit costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension | ||
Pension: | ||
Interest cost | $ 61 | $ 70 |
Expected return on plan assets | (97) | (74) |
Amortization of: | ||
Amortization of past service costs | 2 | 1 |
Amortization of net gain (loss) | 45 | 49 |
Net periodic benefit cost | 11 | 46 |
Post Retirement | ||
Pension: | ||
Service cost | 11 | 10 |
Interest cost | 11 | 12 |
Amortization of: | ||
Amortization of net gain (loss) | 13 | 6 |
Net periodic benefit cost | 35 | 28 |
U.S. | Pension | ||
Pension: | ||
Interest cost | 3 | 4 |
Amortization of: | ||
Amortization of net gain (loss) | 1 | 1 |
Net periodic benefit cost | 4 | 5 |
U.S. | Post Retirement | ||
Pension: | ||
Service cost | 11 | 10 |
Interest cost | 11 | 12 |
Amortization of: | ||
Amortization of net gain (loss) | 13 | 6 |
Net periodic benefit cost | 35 | 28 |
U.K. | Pension | ||
Pension: | ||
Interest cost | 58 | 66 |
Expected return on plan assets | (97) | (74) |
Amortization of: | ||
Amortization of past service costs | 2 | 1 |
Amortization of net gain (loss) | 44 | 48 |
Net periodic benefit cost | $ 7 | $ 41 |
Pension and Retirement Plans _2
Pension and Retirement Plans - Fair value of the assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 10,973 | $ 9,740 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 10,973 | 9,740 |
Cash on deposit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 399 | 471 |
Cash on deposit | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 399 | 471 |
Pooled funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 10,574 | 9,269 |
Pooled funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 10,574 | $ 9,269 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
Income tax expense (benefit) | $ 110 | $ (70) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Accumulated Other Comprehensive Loss | ||
Cumulative effect of foreign currency translation | $ (4,394) | $ (4,696) |
Cumulative unrealized loss on pension liability | (7,299) | (7,299) |
Accumulated other comprehensive loss | $ (11,693) | $ (11,995) |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Fair Value, Recurring | ||
Assets: | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring | ||
Assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities Fair Value Disclosure | $ 0 | 0 |
Minimum | ||
Liabilities: | ||
Maturity term of accounts and long term receivables | 1 year | |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 19,927 | 19,264 |
Accounts and long-term receivable | 5,818 | 5,839 |
Liabilities: | ||
Notes payable | 1,838 | 4,098 |
Fair Value | ||
Assets: | ||
Cash and cash equivalents | 19,927 | 19,264 |
Accounts and long-term receivable | 5,818 | 5,839 |
Liabilities: | ||
Notes payable | $ 1,838 | $ 4,098 |
Segment Information - Operating
Segment Information - Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Total sales | $ 11,388 | $ 16,858 | |
Sales: | |||
Income (loss) from operations | (537) | (402) | |
Total assets | 53,037 | 56,248 | $ 53,645 |
Capital expenditures | 33 | 207 | |
Depreciation and amortization | 104 | 125 | |
High Performance Products Segment | |||
Segment Reporting Information [Line Items] | |||
Total sales | 1,556 | 1,041 | |
Sales: | |||
Income (loss) from operations | (854) | (1,263) | |
Total assets | 9,192 | 10,496 | |
Capital expenditures | 6 | 34 | |
Depreciation and amortization | 48 | 58 | |
TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 9,832 | 15,817 | |
Sales: | |||
Income (loss) from operations | 317 | 861 | |
Total assets | 43,845 | 45,752 | |
Capital expenditures | 27 | 173 | |
Depreciation and amortization | 56 | 67 | |
Product | |||
Segment Reporting Information [Line Items] | |||
Total sales | 8,408 | 13,559 | |
Product | High Performance Products Segment | |||
Segment Reporting Information [Line Items] | |||
Total sales | 1,176 | 767 | |
Product | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 7,232 | 12,792 | |
Service | |||
Segment Reporting Information [Line Items] | |||
Total sales | 2,980 | 3,299 | |
Service | High Performance Products Segment | |||
Segment Reporting Information [Line Items] | |||
Total sales | 380 | 274 | |
Service | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 2,600 | 3,025 | |
U.K. | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 1,490 | 679 | |
Sales: | |||
Income (loss) from operations | 31 | 3 | |
Total assets | 10,675 | 10,847 | |
Depreciation and amortization | 3 | ||
U.K. | Product | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 1,403 | 553 | |
U.K. | Service | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 87 | 126 | |
U.S. | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 8,342 | 15,138 | |
Sales: | |||
Income (loss) from operations | 286 | 858 | |
Total assets | 33,170 | 34,905 | |
Capital expenditures | 27 | 173 | |
Depreciation and amortization | 56 | 64 | |
U.S. | Product | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | 5,829 | 12,239 | |
U.S. | Service | TS | |||
Segment Reporting Information [Line Items] | |||
Total sales | $ 2,513 | $ 2,899 |
Segment Information - Major cus
Segment Information - Major customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Customer Revenues | $ 11,388 | $ 16,858 | |
Accounts Receivable | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer A | Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Customer Revenues | $ 1,140 | $ 330 | |
Concentration risk percentage | 10.00% | 2.00% | |
Customer B | Sales Revenue, Net | |||
Segment Reporting Information [Line Items] | |||
Customer Revenues | $ 611 | $ 1,784 | |
Concentration risk percentage | 5.00% | 11.00% | |
Customer B | Accounts Receivable | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Accounts receivable, gross | $ 4,800 | $ 4,700 | |
Concentration risk percentage | 30.00% | 28.00% | |
Customer C | Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Customer Revenues | $ 333 | $ 2,630 | |
Concentration risk percentage | 3.00% | 16.00% |