Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2023 | Aug. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-10843 | |
Entity Registrant Name | CSP Inc | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2441294 | |
Entity Address, Address Line One | 175 Cabot Street | |
Entity Address, Address Line Two | Suite 210 | |
Entity Address, City or Town | Lowell | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01854 | |
City Area Code | 978 | |
Local Phone Number | 954-5038 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CSPI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,727,573 | |
Entity Central Index Key | 0000356037 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 13,848 | $ 23,982 |
Investments - held-to-maturity | 2,351 | 0 |
Accounts receivable, net of allowances of $106 and $88 | 23,523 | 22,993 |
Investment in lease, net-current portion | 11 | 17 |
Inventories | 4,182 | 4,372 |
Refundable income taxes | 144 | 1,050 |
Other current assets | 4,450 | 7,043 |
Total current assets | 48,509 | 59,457 |
Property, equipment and improvements, net | 603 | 647 |
Operating lease right-of-use assets | 1,101 | 1,160 |
Intangibles, net | 50 | 10 |
Investment in lease, net-less current portion | 8 | 3 |
Long-term receivable | 8,361 | 7,412 |
Deferred income taxes | 2,053 | 0 |
Cash surrender value of life insurance | 5,323 | 5,163 |
Pension benefits assets | 1,483 | 1,099 |
Other assets | 112 | 111 |
Total assets | 67,603 | 75,062 |
Current liabilities: | ||
Accounts payable and accrued expenses | 13,924 | 22,463 |
Line of credit | 1,308 | 3,124 |
Notes payable - current portion | 443 | 427 |
Deferred revenue | 3,496 | 4,058 |
Pension and retirement plans | 110 | 110 |
Total current liabilities | 19,281 | 30,182 |
Pension and retirement plans | 1,210 | 1,337 |
Notes payable - noncurrent portion | 0 | 449 |
Operating lease liabilities - noncurrent portion | 600 | 623 |
Income taxes payable | 462 | 462 |
Other noncurrent liabilities | 1,823 | 3,046 |
Total liabilities | 23,376 | 36,099 |
Shareholders' equity: | ||
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 4,710 and 4,554 shares, respectively | 48 | 46 |
Additional paid-in capital | 20,406 | 19,476 |
Retained earnings | 30,093 | 26,769 |
Accumulated other comprehensive loss | (6,320) | (7,328) |
Total shareholders' equity | 44,227 | 38,963 |
Total liabilities and shareholders' equity | $ 67,603 | $ 75,062 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowances (in dollars) | $ 106 | $ 88 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 7,500 | 7,500 |
Common stock, shares issued | 4,710 | 4,554 |
Common stock, shares outstanding | 4,710 | 4,554 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Sales: | ||||
Total sales | $ 17,708 | $ 13,326 | $ 49,321 | $ 37,676 |
Cost of sales: | ||||
Total cost of sales | 11,781 | 8,352 | 32,587 | 24,888 |
Gross profit | 5,927 | 4,974 | 16,734 | 12,788 |
Operating expenses: | ||||
Engineering and development | 741 | 884 | 2,435 | 2,228 |
Selling, general and administrative | 4,611 | 4,071 | 12,123 | 10,961 |
Total operating expenses | 5,352 | 4,955 | 14,558 | 13,189 |
Operating income (loss) | 575 | 19 | 2,176 | (401) |
Other income (expense): | ||||
Foreign exchange (loss) gain | (93) | 618 | (709) | 777 |
Interest expense | (82) | (80) | (208) | (286) |
Interest income | 401 | 158 | 987 | 429 |
Other income (expense), net | 21 | (20) | 62 | (17) |
Total other income (expense), net | 247 | 676 | 132 | 903 |
Income before income taxes | 822 | 695 | 2,308 | 502 |
Income tax (benefit) expense | (1,692) | 11 | (1,488) | 28 |
Net income | 2,514 | 684 | 3,796 | 474 |
Net income attributable to common shareholders | $ 2,355 | $ 646 | $ 3,564 | $ 450 |
Net income per common share - basic | $ 0.53 | $ 0.15 | $ 0.82 | $ 0.11 |
Weighted average common shares outstanding - basic | 4,413 | 4,280 | 4,366 | 4,251 |
Net income per common share - diluted | $ 0.52 | $ 0.15 | $ 0.80 | $ 0.11 |
Weighted average common shares outstanding net income - diluted | 4,516 | 4,283 | 4,435 | 4,265 |
Product | ||||
Sales: | ||||
Total sales | $ 12,934 | $ 8,438 | $ 36,143 | $ 25,375 |
Cost of sales: | ||||
Total cost of sales | 9,960 | 6,548 | 27,311 | 20,090 |
Service | ||||
Sales: | ||||
Total sales | 4,774 | 4,888 | 13,178 | 12,301 |
Cost of sales: | ||||
Total cost of sales | $ 1,821 | $ 1,804 | $ 5,276 | $ 4,798 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income | $ 2,514 | $ 684 | $ 3,796 | $ 474 |
Other comprehensive income (loss): | ||||
Foreign currency translation gain (loss) adjustments, net | 166 | (558) | 1,008 | (710) |
Total comprehensive income (loss) | $ 2,680 | $ 126 | $ 4,804 | $ (236) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance (in Shares) at Sep. 30, 2021 | 4,394 | ||||
Beginning Balance at Sep. 30, 2021 | $ 45 | $ 18,258 | $ 25,191 | $ (9,448) | $ 34,046 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 474 | 474 | |||
Other comprehensive income (loss) | (710) | (710) | |||
Stock-based compensation | 726 | 726 | |||
Restricted stock cancellation | $ (1) | (1) | |||
Restricted stock cancellation (in shares) | (1) | ||||
Restricted stock issuance | $ 2 | 2 | |||
Restricted stock issuance (in shares) | 151 | ||||
Issuance of shares under employee stock purchase plan | 90 | 90 | |||
Issuance of shares under employee stock purchase plan (in shares) | 11 | ||||
Purchase of common stock | (151) | (151) | |||
Purchase of common stock (in shares) | (19) | ||||
Ending Balance (in Shares) at Jun. 30, 2022 | 4,536 | ||||
Ending Balance at Jun. 30, 2022 | $ 46 | 19,074 | 25,514 | (10,158) | 34,476 |
Beginning Balance (in Shares) at Mar. 31, 2022 | 4,533 | ||||
Beginning Balance at Mar. 31, 2022 | $ 46 | 18,820 | 24,881 | (9,600) | 34,147 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 684 | 684 | |||
Other comprehensive income (loss) | (558) | (558) | |||
Stock-based compensation | 254 | 254 | |||
Restricted stock cancellation (in shares) | (1) | ||||
Restricted stock issuance (in shares) | 10 | ||||
Purchase of common stock | (51) | (51) | |||
Purchase of common stock (in shares) | (6) | ||||
Ending Balance (in Shares) at Jun. 30, 2022 | 4,536 | ||||
Ending Balance at Jun. 30, 2022 | $ 46 | 19,074 | 25,514 | (10,158) | $ 34,476 |
Beginning Balance (in Shares) at Sep. 30, 2022 | 4,554 | 4,554 | |||
Beginning Balance at Sep. 30, 2022 | $ 46 | 19,476 | 26,769 | (7,328) | $ 38,963 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,796 | 3,796 | |||
Other comprehensive income (loss) | 1,008 | 1,008 | |||
Stock-based compensation | 832 | 832 | |||
Restricted stock issuance | $ 2 | 2 | |||
Restricted stock issuance (in shares) | 143 | ||||
Issuance of shares under employee stock purchase plan | 98 | 98 | |||
Issuance of shares under employee stock purchase plan (in shares) | 14 | ||||
Purchase of common stock | (6) | (6) | |||
Purchase of common stock (in shares) | (1) | ||||
Cash dividends paid on common stock | (466) | $ (466) | |||
Ending Balance (in Shares) at Jun. 30, 2023 | 4,710 | 4,710 | |||
Ending Balance at Jun. 30, 2023 | $ 48 | 20,406 | 30,093 | (6,320) | $ 44,227 |
Beginning Balance (in Shares) at Mar. 31, 2023 | 4,711 | ||||
Beginning Balance at Mar. 31, 2023 | $ 48 | 20,113 | 27,773 | (6,486) | 41,448 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,514 | 2,514 | |||
Other comprehensive income (loss) | 166 | 166 | |||
Stock-based compensation | 293 | 293 | |||
Purchase of common stock | (6) | (6) | |||
Purchase of common stock (in shares) | (1) | ||||
Cash dividends paid on common stock | (188) | $ (188) | |||
Ending Balance (in Shares) at Jun. 30, 2023 | 4,710 | 4,710 | |||
Ending Balance at Jun. 30, 2023 | $ 48 | $ 20,406 | $ 30,093 | $ (6,320) | $ 44,227 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Jun. 13, 2023 | Mar. 14, 2023 | Jan. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.04 | $ 0.10 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net income | $ 3,796 | $ 474 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation | 258 | 250 |
Amortization of intangibles | 11 | 9 |
Loss on sale of fixed assets, net | 0 | 15 |
Foreign exchange loss (gain) | 709 | (777) |
Provision for losses (recoveries) on accounts receivable | 34 | (27) |
Provision for obsolete inventory | 103 | 17 |
Amortization of lease right-of-use assets | 451 | 478 |
Stock-based compensation expense on stock options and restricted stock awards | 832 | 726 |
Deferred income taxes | (2,053) | 0 |
Decrease in cash surrender value of life insurance | (96) | (1,189) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (569) | 50 |
Decrease (increase) in inventories | 89 | (1,643) |
Decrease in refundable income taxes | 906 | 530 |
Increase in operating lease right-of-use assets | (393) | (63) |
Decrease (increase) in other assets | 2,609 | (860) |
Decrease in investment in lease | 1 | 50 |
(Increase) decrease in long-term receivable | (950) | 2,178 |
Decrease in accounts payable and accrued expenses | (8,393) | (322) |
Decrease in interest payable | (94) | (71) |
Decrease in operating lease liabilities | (67) | (420) |
(Decrease) increase in deferred revenue | (561) | 2,775 |
Decrease in pension and retirement plans liabilities | (350) | (226) |
Decrease in other long-term liabilities | (1,221) | (1,734) |
Net cash (used in) provided by operating activities | (4,948) | 220 |
Investing activities | ||
Life insurance premiums paid | (64) | (70) |
Purchase of held-to-maturity investments | (3,533) | 0 |
Proceeds from maturities of held-to-maturity investments | 1,182 | 0 |
Proceeds from corporate life insurance owned policy | 0 | 322 |
Proceeds from sales of property, equipment, and improvements | 0 | 2 |
Additions of intangible assets | (51) | 0 |
Purchases of property, equipment and improvements | (215) | (223) |
Net cash (used in) provided by investing activities | (2,681) | 31 |
Financing activities | ||
Dividends paid | (466) | 0 |
Net borrowing under line-of-credit agreement | (1,816) | 2,058 |
Repayments on notes payable | (406) | (647) |
Principal payments on finance leases | (4) | (35) |
Purchase of common stock | (6) | (151) |
Proceeds from issuance of shares under equity compensation plans | 98 | 90 |
Net cash (used in) provided by financing activities | (2,600) | 1,315 |
Effects of exchange rate on cash, net | 95 | (158) |
Net (decrease) increase in cash and cash equivalents | (10,134) | 1,408 |
Cash and cash equivalents beginning of year | 23,982 | 20,007 |
Cash and cash equivalents end of year | 13,848 | 21,415 |
Supplementary cash flow information: | ||
Cash paid (received) for income taxes | 42 | (233) |
Cash paid for interest | 308 | 184 |
Supplementary non-cash financing activities: | ||
Obtaining a right-of-use asset in exchange for a lease liability | 392 | 23 |
Customer financing for inventory sold (see Note 6 Accounts and Long-Term Receivable for details) | $ 5,436 | $ 1,232 |
Basis of Presentation and New S
Basis of Presentation and New Significant Accounting Policy | 9 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation and New Significant Accounting Policy | |
Basis of Presentation and New Significant Accounting Policy | 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 and New Significant Accounting Policy Basis of Presentation The accompanying interim condensed 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 condensed consolidated financial statements should be read in conjunction with the notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022. New Significant Accounting Policy – Held-to-maturity investment securities Our investment securities are classified as held-to-maturity investments and consists of treasury bills, which mature at different intervals with the last maturity date in August of 2023. These investments are stated at amortized cost. The carrying value of these investments as of June 30, 2023 was $2.4 |
Use of Estimates
Use of Estimates | 9 Months Ended |
Jun. 30, 2023 | |
Use of Estimates | |
Use of Estimates | 2. Use of Estimates The preparation of condensed 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 periods. 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 | 9 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements New accounting standards not adopted as of June 30, 2023 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) 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 |
Revenue
Revenue | 9 Months Ended |
Jun. 30, 2023 | |
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 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 the date of subsequent sale of the product, which occurs on the date of customer shipment. Revenue from extended warranty contracts is recognized ratably over the warranty period. 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. 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 our 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. Multicomputer revenue is derived from the sale of hardware, software, extended warranties, royalties, and repair services. See disaggregated revenues below by products/services and divisions/segments. Technology Solutions Segment High Performance Products United Consolidated Three months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 996 $ 141 $ 11,797 $ 11,938 $ 12,934 Service 339 65 4,370 4,435 4,774 Total sales $ 1,335 $ 206 $ 16,167 $ 16,373 $ 17,708 Technology Solutions Segment High Performance Products United Consolidated Three months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2022 Sales: Product $ 427 $ 128 $ 7,883 $ 8,011 $ 8,438 Service 311 83 4,494 4,577 4,888 Total sales $ 738 $ 211 $ 12,377 $ 12,588 $ 13,326 Technology Solutions Segment High Performance Products United Consolidated Nine months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 4,130 $ 507 $ 31,504 $ 32,011 $ 36,141 Service 1,170 244 11,764 12,008 13,178 Finance * — — 2 2 2 Total sales $ 5,300 $ 751 $ 43,270 $ 44,021 $ 49,321 Technology Solutions Segment High Performance Products United Consolidated Nine months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2022 Sales: Product $ 2,109 $ 402 $ 22,863 $ 23,265 $ 25,374 Service 836 280 11,185 11,465 12,301 Finance * — — 1 1 1 Total sales $ 2,945 $ 682 $ 34,049 $ 34,731 $ 37,676 * 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 our performance toward satisfying a performance obligation are used to measure progress. An estimate of hours for each professional service agreement is made at the beginning of each contract based on prior experience and monitored throughout the performance of 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, we have 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 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 remain 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 we are acting as a principal party to the transaction or simply acting as an agent or broker based on control and timing. We are a principal if we control the good or service before that good or service is transferred to the customer. We record revenue as gross when we are 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 sales. 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 we are an agent, revenue is typically recorded at a point in time. When we are 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 includes critical updates. Contract Assets and Liabilities When we have performed work but do not have an unconditional right to payment, a contract asset is recorded. When we have the right to bill a customer, accounts receivable is recorded as an unconditional right exists. Current contract assets were $2.1 million and $4.4 million as of June 30, 2023 and September 30, 2022, respectively. The current portion is recorded in other current assets on the condensed consolidated balance sheets. There were no noncurrent contract assets as of June 30, 2023 and September 30, 2022. 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 we transfer a good or service to the customer. Current contract liabilities were $3.5 million and $4.1 million as of June 30, 2023 and September 30, 2022, respectively. The current portion of contract liabilities is recorded in deferred revenue on the condensed consolidated balance sheets. There were no long-term contract liabilities as of June 30, 2023 and September 30, 2022, respectively. Revenue recognized for the three and nine months ended June 30, 2023 that was included in contract liabilities as of September 30, 2022 was $0.5 million and $2.4 million, respectively. 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 three Current capitalized contract costs are within the other current assets on the condensed consolidated balance sheets as of June 30, 2023 and September 30, 2022. The portion of current capitalized costs were $149 thousand and $128 thousand as of June 30, 2023 and September 30, 2022, respectively. There are no noncurrent capitalized costs on the condensed 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 June 30, 2023 and 2022 were $103 thousand and $91 thousand, respectively. The amount of incremental costs amortized for the nine months ended June 30, 2023 and 2022 were $302 thousand and $272 thousand, respectively. This is recorded in selling, general, and administrative expenses. There was no impairment related to incremental costs capitalized during the nine months ended June 30, 2023 and 2022. 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 condensed consolidated balance sheets. The were no current capitalized costs as of June 30, 2023 and $9 thousand as of September 30, 2022. The were no noncurrent capitalized costs as of June 30, 2023 and September 30, 2022, respectively. The amount of fulfillment costs amortized for the three months ended June 30, 2023 and 2022 were $3 thousand and $3 thousand, respectively. The amount of fulfillment costs amortized for the nine months ended June 30, 2023 and 2022 were $9 thousand and $9 thousand, respectively. These costs amortized were recorded in cost of sales. There was no impairment related to fulfillment costs capitalized for the nine months ended June 30, 2023 and 2022. 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 our contracts are less than one year. There are certain contracts that contain a financing component. See Note 6 to the condensed consolidated financial statements for additional information. We 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 number 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. We have 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 June 30, 2023 is set forth in the table below: (Amounts in thousands) Fiscal 2023 61 Fiscal 2024 61 $ 122 |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 9 Months Ended |
Jun. 30, 2023 | |
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 restricted stock awards and is computed by dividing net income 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 income attributable to common stockholders are as follows: Three months ended Nine months ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 (Amounts in thousands except per share data) Net income $ 2,514 $ 684 $ 3,796 $ 474 Less: net income attributable to nonvested common stock (159) (38) (232) (24) Net income attributable to common shareholders $ 2,355 $ 646 $ 3,564 $ 450 Weighted average total shares outstanding – basic 4,710 4,535 4,651 4,481 Less: weighted average non–vested shares outstanding (297) (255) (285) (230) Weighted average number of common shares outstanding – basic 4,413 4,280 4,366 4,251 Add: potential common shares from non–vested stock awards 103 3 69 14 Weighted average common shares outstanding – diluted 4,516 4,283 $ 4,435 4,265 Net income per common share - basic $ 0.53 $ 0.15 $ 0.82 $ 0.11 Net income per common share - diluted $ 0.52 $ 0.15 $ 0.80 $ 0.11 Anti-dilutive securities include restricted stock, which are excluded from the diluted income per share computation. Non-vested restricted stock awards of 16 thousand and 98 thousand shares were excluded from the diluted net income per share calculation for the three and nine months ended June 30, 2023, respectively. Non-vested restricted stock awards of 231 thousand and 194 thousand shares were excluded from the diluted net income per share calculation for the three and nine months ended June 30, 2022, respectively. |
Accounts and Long-Term Receivab
Accounts and Long-Term Receivable | 9 Months Ended |
Jun. 30, 2023 | |
Accounts and Long-Term Receivable | |
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 approximately $8.2 million and $8.4 million as of June 30, 2023, respectively. These receivables are included in Accounts receivable and Long-term receivable in the amount of $8.9 million and $7.4 million as of September 30, 2022, respectively. The receivables with a payment term exceeding one year carry an average weighted interest rate of 5.8%, 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 June 30, 2023 and September 30, 2022. There was no activity in the allowance for credit losses of these receivables for the three and nine months ended June 30, 2023 and 2022, 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 June 30, 2023 and 2022 was $234 thousand and $108 thousand, respectively. The amount of interest income earned from sales whose payment terms exceed one year for the nine months ended June 30, 2023 and 2022 was $605 thousand and $369 thousand, respectively. Interest income from these agreements is recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations. There was one new agreement effective in the first quarter of fiscal year 2023 causing an increase in Accounts and Long-term receivable. This agreement included approximately $3.0 million of payments to be received over the next 2 years from the effective date of the agreement. The revenue for this transaction was recorded net during the first quarter of fiscal year 2023. There was one new agreement effective in the third quarter of fiscal year 2023 causing an increase in Accounts and Long-term receivable. This agreement included approximately $3.1 million of payments to be received over the next 4 years from the effective date of the agreement. The revenue for this transaction was recorded net during the third quarter of fiscal year 2023. Receivables whose payment terms exceed one year are placed on non-accrual 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 non-accrual 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) 2023 $ 5,889 2024 7,487 2025 2,941 2026 628 2027 628 Total payments $ 17,573 Less: unearned interest income (977) Total, net of unearned interest income $ 16,596 |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2023 | |
Inventories | |
Inventories | 7 . Inventories Inventories consist of the following: June 30, September 30, 2023 2022 (Amounts in thousands) Raw materials $ 442 $ 421 Work-in-process 386 23 Finished goods 3,354 3,928 Total $ 4,182 $ 4,372 We evaluate inventory for obsolescence on at least a quarterly basis or more frequently if needed. Our HPP segment has a multi-faceted approach in determining obsolescence including reviewing inventory by product line, program, and individual part. In the TS segment, we seek to minimize obsolete inventory by having nearly all of our inventory purchased in conjunction with a sales agreement. From time to time, we do purchase certain inventory in bulk to receive discounts, but only when we anticipate selling this inventory. The inventory we purchase at the TS segment is in high demand, especially in the current environment, and has a limited risk of obsolescence. Several components used in our HPP segment products are obtained from sole-source suppliers. We are dependent on key vendors such as ADP, NXP, and BCRM for a variety of processors for certain products. We are dependent on NVIDIA for our high-speed interconnect components. Despite our dependence on these sole-source suppliers, based on our current forecast and our projected sales obligations, we believe we have adequate inventory on hand and our current near-term requirements can be met in the existing supply chain. COVID-19 has adversely affected the distribution channel leading to significantly longer lead times when ordering product. Manufacturers are not producing as much product as prior to the pandemic due to disruptions, resulting in supply shortages. The TS segment has many vendors it transacts with and supply shortages only remain with a few of our vendors. |
Leases
Leases | 9 Months Ended |
Jun. 30, 2023 | |
Leases | |
Leases | 8 . Leases Information related to both lessee and lessor The components of lease costs for the three months ended June 30, 2023 and 2022 are as follows: Three months ended Condensed Consolidated Statements of Operations Location June 30, 2023 June 30, 2022 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ — $ 1 Operating Lease: Operating lease cost Selling, general, and administrative 162 130 Short-term lease cost Selling, general, and administrative 15 62 Total lease costs $ 177 $ 193 The components of lease costs for the nine months ended June 30, 2023 and 2022 are as follows: Nine months ended Condensed Consolidated Statements of Operations Location June 30, 2023 June 30, 2022 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ 1 $ 3 Operating Lease: Operating lease cost Selling, general, and administrative 486 472 Short-term lease cost Selling, general, and administrative 36 93 Total lease costs $ 523 $ 568 Less sublease interest income Revenue (2) (1) Total lease costs, net of sublease interest income $ 521 $ 567 Supplemental cash flow information related to leases for the nine months ended June 30, 2023 and 2022 is below: Nine months ended June 30, 2023 June 30, 2022 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 495 $ 486 Operating cash flows from short-term leases 36 93 Operating cash flows from finance leases 1 3 Financing cash flows from finance leases 4 35 Lease assets obtained in exchange for new lease liabilities Operating leases 392 23 Cash received from subleases 15 51 |
Accounts payable and Other nonc
Accounts payable and Other noncurrent liabilities | 9 Months Ended |
Jun. 30, 2023 | |
Accounts payable and Other noncurrent liabilities | |
Accounts payable and Other noncurrent liabilities | 9. Accounts payable and Other noncurrent liabilities The Company enters into certain multi-year agreements with vendors when also entering into some of the multi-year contracts the Company enters into with customers. See Note 6, “Accounts and Long-Term Receivable” for further information related to the multi-year agreements with customers. There was not an interest rate stated in the agreements and therefore interest was imputed under ASC 835 Interest Interest expense related to these agreements for the three months ended June 30, 2023 and 2022 was $74 thousand and $57 thousand, respectively. Interest expense related to these agreements for the nine months ended June 30, 2023 and 2022 was $185 thousand and $203 thousand, respectively. The amounts owed for these agreements are in Accounts payable and Other noncurrent liabilities because they are owed to vendors rather than banks or financial institutions for borrowings. See Note 10, “Notes Payable and Line of Credit” for amounts due to banks and other financial institutions for borrowings. Below are details of the agreements with the vendors that contain imputed interest: June 30, 2023 September 30, 2022 (Amounts in thousands) Current $ 1,925 $ 1,758 Less: discount 160 184 Accounts payable and accrued expenses $ 1,765 $ 1,574 Noncurrent $ 1,967 $ 3,186 Less: discount 142 138 Other noncurrent liabilities $ 1,825 $ 3,048 The Company had a total of approximately $3.3 million due (net of interest) to one of these vendors as of June 30, 2023. This is approximately 21% of Accounts payable and other noncurrent liabilities. The Company had a total of approximately $16.1 million due (net of interest) to one of these vendors as of September 30, 2022. This is approximately 63% of Accounts payable and other noncurrent liabilities. It was the same vendor as of June 30, 2023 and September 30, 2022 that only transacts with the U.S. division of the TS segment. The TS segment has many vendors it transacts with and does not have any specific agreement with this vendor that it must purchase certain products from the vendor. Management believes other suppliers could provide similar products on comparable terms. |
Notes Payable and Line of Credi
Notes Payable and Line of Credit | 9 Months Ended |
Jun. 30, 2023 | |
Notes Payable and Line of Credit | |
Notes Payable and Line of Credit | 10. Notes Payable and Line of Credit 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. Interest expense related to the notes for the three months ended June 30, 2023 and 2022 was $5 thousand and $12 thousand, respectively. Interest expense related to the notes for the nine months ended June 30, 2023 and 2022 was $16 thousand and $39 thousand, respectively. June 30, 2023 September 30, 2022 (Amounts in thousands) Current $ 449 $ 449 Less: notes discount (6) (22) Notes payable - current portion $ 443 $ 427 Noncurrent $ — $ 449 Less: notes discount — — Notes payable - noncurrent portion $ — $ 449 As of June 30, 2023 and September 30, 2022, 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 June 30, 2023 and September 30, 2022, Company borrowings, all from the TS segment, under the inventory line of credit were $1.3 million and $3.1 million, respectively, and the Company was in compliance with all financial covenants. As of June 30, 2023 and September 30, 2022, this line of credit also includes availability of a limited cash withdrawal of up to $1.0 million. As of June 30, 2023 and September 30, 2022 there were no cash withdrawals outstanding. |
Pension and Retirement Plans
Pension and Retirement Plans | 9 Months Ended |
Jun. 30, 2023 | |
Pension and Retirement Plans | |
Pension and Retirement Plans | 11. 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 current 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 condensed 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 June 30, 2023 2022 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 110 $ 4 $ 114 $ 68 $ 2 $ 70 Expected return on plan assets (148) — (148) (118) — (118) Amortization of past service costs 1 — 1 2 — 2 Amortization of net (gain) loss — (1) (1) 24 — 24 Net periodic (benefit) cost $ (37) $ 3 $ (34) $ (24) $ 2 $ (22) Post Retirement: Service cost $ — $ 19 $ 19 $ — $ 9 $ 9 Interest cost — 4 4 — 12 12 Amortization of net loss (gain) — 84 84 — (10) (10) Net periodic cost $ — $ 107 $ 107 $ — $ 11 $ 11 Nine months ended June 30, 2023 2022 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 321 $ 11 $ 332 $ 206 $ 7 $ 213 Expected return on plan assets (430) — (430) (354) — (354) Amortization of past service costs 5 — 5 6 — 6 Amortization of net (gain) loss — (3) (3) 73 1 74 Net periodic (benefit) cost $ (104) $ 8 $ (96) $ (69) $ 8 $ (61) Post Retirement: Service cost $ — $ 31 $ 31 $ — $ 31 $ 31 Interest cost — 35 35 — 35 35 Amortization of net gain — (14) (14) — (14) (14) Net periodic cost $ — $ 52 $ 52 $ — $ 52 $ 52 The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of June 30, 2023 September 30, 2022 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 $ 537 $ 537 $ — $ — $ 200 $ 200 $ — $ — Fixed income 9,173 9,173 — — 1,801 1,801 — — Equity 927 271 656 — 6,824 3,539 3,285 — Total plan assets $ 10,637 $ 9,981 $ 656 $ — $ 8,825 $ 5,540 $ 3,285 $ — |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2023 | |
Income Taxes | |
Income Taxes | 12. Income Taxes An income tax benefit of $1.7 million was recorded for the three months ended June 30, 2023 compared to an income tax expense of $11 thousand in the same prior year period. An income tax benefit of $1.5 million was recorded for the nine months ended June 30, 2023 compared to an income tax expense of $28 thousand in the same prior year period. The Company undertakes a review of its valuation allowance at each financial statement period, reviewing the positive and negative evidence to help determine whether it is more likely than not that the Company will realize the future tax benefits from its deferred tax balances. In the year ended September 30, 2020, the Company established a partial valuation allowance against its deferred tax assets in light of results at the time, the COVID-19 pandemic, and the resulting economic fallout, and established a full valuation during the year ended September 30, 2021. Since that time, the COVID-19 pandemic has ended, and the Company’s Technology Solutions business has grown in fiscal years 2022 and 2023, which provided strong financial results including growth in product and software sales, third party maintenance sales, and recurring managed services and cloud software sales. The backlog continues to be strong as of June 30, 2023. As a result, the Company has determined that it is more likely than not that substantially all of its net deferred tax assets in the U.S. jurisdiction will be utilized and that associated valuation allowances should be reversed during the three months ended June 30, 2023. The valuation reversed during the period resulted in a $1.8 million benefit. The Company separately analyzed the realizability of its federal and state credits and determined $731 thousand (net of federal benefit) of state credits are expected to expire unutilized and kept a valuation allowance against these credits. The Company will continue to maintain a valuation allowance against certain state tax credits in the U.S. and a full valuation allowance against the net deferred tax assets in the U.K. jurisdiction. The income tax provision for interim periods is generally determined based upon the expected effective income tax rate for the full year and the tax rate applicable to certain discrete transactions in the interim period. To determine the annual effective income tax rate, we must estimate both the total income (loss) before income tax for the full year and the jurisdictions in which that income (loss) is subject to tax. The actual effective income tax rate for the full year may differ from these estimates if income (loss) before income tax is greater than or less than what was estimated or if the allocation of income (loss) to jurisdictions in which it is taxed is different from the estimated allocations. With the economic uncertainty surrounding the Company’s business settling since previous quarters, we have been able to produce more accurate forecasts of our full year earnings and small changes in ordinary income no longer result in significant changes to the annualized effective tax rates. As a result, the Company has resumed using the annualized effective tax rate method to calculate income taxes as prescribed under ASC 740 for the three months ended June 30, 2023. The estimated annualized effective income tax rate for the nine months ended June 30, 2023 was 21.99%. Other differences between our effective income tax rate and the U.S. federal statutory rate are the impact of state taxes and tax credits that we expect to be able utilize against federal and state taxes. The effective tax rate for the three and nine months ended June 30, 2023 was a benefit of (205.8%) and (64.5%), respectively, which was primarily driven by the release of the valuation against the Company's deferred tax assets. The income tax expense for the three and nine months ended June 30, 2022 was primarily driven by minimum state tax expenses due to the full valuation allowance in place during the period. As of June 30, 2023, management assessed the balances of its deferred tax assets and liabilities to determine if any uncertain tax positions existed that would require a reserve under ASC 740-10. It determined that a reserve was required against federal and state research and development credits of $117 thousand and $118 thousand, respectively. Management will continue to evaluate the need for reserves under ASC 740-10 in future reporting periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: June 30, September 30, 2023 2022 (Amounts in thousands) Cumulative effect of foreign currency translation, net $ (4,783) $ (5,791) Cumulative unrealized loss on pension liability (1,537) (1,537) Accumulated other comprehensive loss, net $ (6,320) $ (7,328) |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value of Financial Assets and Liabilities | |
Fair Value of Financial Assets and Liabilities | 14. 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 11 for pension plan assets) or non-recurring basis as of June 30, 2023 or September 30, 2022. 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 June 30, 2023 As of September 30, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Level Reference (Amounts in thousands) Assets: Cash and cash equivalents $ 13,848 $ 13,848 $ 23,982 $ 23,982 1 Condensed Consolidated Balance Sheets Accounts and long-term receivable* 16,596 16,596 16,328 16,328 3 Note 6 Liabilities: Accounts payable and accrued expenses and other long-term liabilities* 3,590 3,590 4,622 4,622 3 Note 9 Line of Credit 1,308 1,308 3,124 3,124 2 Note 10 Notes payable 443 443 876 876 3 Note 10 *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. Line of credit The fair value of our line of credit is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our outstanding revolving line of credit approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. No interest accrues under the inventory line of credit when advances are paid within terms. Notes Payable Fair value was estimated by discounting future cash flows based on the current rate the Company could get in another transaction with similar terms based on historical information. 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 as of June 30, 2023 and September 30, 2022. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2023 | |
Segment Information | |
Segment Information | 15. Segment Information The following tables present certain operating segment information for the three and nine months ended June 30, 2023 and 2022. Technology Solutions Segment High Performance Products United Consolidated Three months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 996 $ 141 $ 11,797 $ 11,938 $ 12,934 Service 339 65 4,370 4,435 4,774 Total sales $ 1,335 $ 206 $ 16,167 $ 16,373 $ 17,708 Operating (loss) income $ (850) $ (10) $ 1,435 $ 1,425 $ 575 Interest expense $ (3) $ — $ (79) $ (79) $ (82) Interest income $ 2 $ 47 $ 352 $ 399 $ 401 Total assets $ 10,165 $ 6,914 $ 50,524 $ 57,438 $ 67,603 Capital expenditures $ 27 $ — $ 7 $ 7 $ 34 Depreciation and amortization $ 27 $ — $ 64 $ 64 $ 91 2022 Sales: Product $ 427 $ 128 $ 7,883 $ 8,011 $ 8,438 Service 311 83 4,494 4,577 4,888 Total sales $ 738 $ 211 $ 12,377 $ 12,588 $ 13,326 Operating (loss) income $ (1,370) $ (29) $ 1,418 $ 1,389 $ 19 Interest expense $ (11) $ — $ (69) $ (69) $ (80) Interest income $ 38 $ 12 $ 108 $ 120 $ 158 Total assets $ 8,862 $ 9,057 $ 46,597 $ 55,654 $ 64,516 Capital expenditures $ 27 $ — $ 1 $ 1 $ 28 Depreciation and amortization $ 28 $ — $ 51 $ 51 $ 79 Technology Solutions Segment High Performance Products United Consolidated Nine months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 4,130 $ 507 $ 31,506 $ 32,013 $ 36,143 Service 1,170 244 11,764 12,008 13,178 Total sales $ 5,300 $ 751 $ 43,270 $ 44,021 $ 49,321 Operating (loss) income $ (1,641) $ (6) $ 3,823 $ 3,817 $ 2,176 Interest expense $ (9) $ — $ (199) $ (199) $ (208) Interest income $ 10 $ 126 $ 851 $ 977 $ 987 Total assets $ 10,165 $ 6,914 $ 50,524 $ 57,438 $ 67,603 Capital expenditures $ 67 $ — $ 148 $ 148 $ 215 Depreciation and amortization $ 83 $ — $ 186 $ 186 $ 269 2022 Sales: Product $ 2,109 $ 402 $ 22,864 $ 23,266 $ 25,375 Service 836 280 11,185 11,465 12,301 Total sales $ 2,945 $ 682 $ 34,049 $ 34,731 $ 37,676 Operating (loss) income $ (3,477) $ (120) $ 3,196 $ 3,076 $ (401) Interest expense $ (42) $ — $ (244) $ (244) $ (286) Interest income $ 39 $ 23 $ 367 $ 390 $ 429 Total assets $ 8,862 $ 9,057 $ 46,597 $ 55,654 $ 64,516 Capital expenditures $ 87 $ — $ 136 $ 136 $ 223 Depreciation and amortization $ 91 $ — $ 168 $ 168 $ 259 Operating income (loss) 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 tax expense (benefit). Non-operating expenses/income consists principally of interest income from transactions with payment terms exceeding one year (see Note 6, “Accounts and Long-Term Receivable” for details) and interest income from money market accounts in fiscal year 2023 year as interest rates have increased significantly, and interest expense primarily from multi-year agreements with vendors (see Note 9, “Accounts payable and other noncurrent liabilities”). 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 and nine months ended June 30, 2023 and 2022. Three months ended June 30, Nine months ended June 30, 2023 2022 2023 2022 (in millions) (in millions) Customer % of Total Customer % of Total Customer % of Total Customer % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues (Amounts in millions) Customer A $ 0.5 3 % $ 2.1 15 % $ 2.8 6 % $ 6.4 17 % Customer B $ 2.3 13 % $ 0.4 3 % $ 4.1 8 % $ 1.1 3 % One customer, not listed above, had a balance of $12.2 million, or 38%, of total consolidated accounts receivable and long-term receivable as of June 30, 2023 and a balance of $15.8 million, or 52%, of total consolidated accounts receivable and long-term receivable as of September 30, 2022. There were no other customers with more than 10% of total consolidated accounts receivable and long-term receivable as of June 30, 2023. We believe that the Company is not exposed to any significant credit risk with respect to the accounts receivable with any customers as of June 30, 2023. |
Dividend
Dividend | 9 Months Ended |
Jun. 30, 2023 | |
Dividend | |
Dividend | 16. Dividend On December 6, 2022, the Company’s board of directors declared a cash dividend of $0.03 per share which was paid on January 6, 2023 to shareholders of record as of December 21, 2022, the record date. On February 8, 2023, the Company’s board of directors declared a cash dividend of $0.03 per share which was paid on March 14, 2023 to shareholders of record as of February 24, 2023, the record date. On May 10, 2023, the Company’s board of directors declared a cash dividend of $0.04 per share which was paid on June 13, 2023 to shareholders of record as of May 25, 2023, the record date. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2023 | |
Use of Estimates | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed 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 condensed consolidated financial statements should be read in conjunction with the notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022. |
New Significant Accounting Policy - Held-to-Maturity Investment Securities | New Significant Accounting Policy – Held-to-maturity investment securities Our investment securities are classified as held-to-maturity investments and consists of treasury bills, which mature at different intervals with the last maturity date in August of 2023. These investments are stated at amortized cost. The carrying value of these investments as of June 30, 2023 was $2.4 |
Use of Estimates | The preparation of condensed 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 periods. 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. |
New accounting standards not adopted as of June 30, 2023 | New accounting standards not adopted as of June 30, 2023 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) 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 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Revenue | |
Schedule of disaggregated revenues | See disaggregated revenues below by products/services and divisions/segments. Technology Solutions Segment High Performance Products United Consolidated Three months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 996 $ 141 $ 11,797 $ 11,938 $ 12,934 Service 339 65 4,370 4,435 4,774 Total sales $ 1,335 $ 206 $ 16,167 $ 16,373 $ 17,708 Technology Solutions Segment High Performance Products United Consolidated Three months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2022 Sales: Product $ 427 $ 128 $ 7,883 $ 8,011 $ 8,438 Service 311 83 4,494 4,577 4,888 Total sales $ 738 $ 211 $ 12,377 $ 12,588 $ 13,326 Technology Solutions Segment High Performance Products United Consolidated Nine months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 4,130 $ 507 $ 31,504 $ 32,011 $ 36,141 Service 1,170 244 11,764 12,008 13,178 Finance * — — 2 2 2 Total sales $ 5,300 $ 751 $ 43,270 $ 44,021 $ 49,321 Technology Solutions Segment High Performance Products United Consolidated Nine months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2022 Sales: Product $ 2,109 $ 402 $ 22,863 $ 23,265 $ 25,374 Service 836 280 11,185 11,465 12,301 Finance * — — 1 1 1 Total sales $ 2,945 $ 682 $ 34,049 $ 34,731 $ 37,676 * 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 | (Amounts in thousands) Fiscal 2023 61 Fiscal 2024 61 $ 122 |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
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 income attributable to common stockholders are as follows: Three months ended Nine months ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 (Amounts in thousands except per share data) Net income $ 2,514 $ 684 $ 3,796 $ 474 Less: net income attributable to nonvested common stock (159) (38) (232) (24) Net income attributable to common shareholders $ 2,355 $ 646 $ 3,564 $ 450 Weighted average total shares outstanding – basic 4,710 4,535 4,651 4,481 Less: weighted average non–vested shares outstanding (297) (255) (285) (230) Weighted average number of common shares outstanding – basic 4,413 4,280 4,366 4,251 Add: potential common shares from non–vested stock awards 103 3 69 14 Weighted average common shares outstanding – diluted 4,516 4,283 $ 4,435 4,265 Net income per common share - basic $ 0.53 $ 0.15 $ 0.82 $ 0.11 Net income per common share - diluted $ 0.52 $ 0.15 $ 0.80 $ 0.11 |
Accounts and Long-Term Receiv_2
Accounts and Long-Term Receivable (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Accounts and Long-Term Receivable | |
Summary of contractual maturities of outstanding financing | Contractual maturities of outstanding financing with an original contractual maturity over one year are as follows: Fiscal year ending September 30: (Amounts in thousands) 2023 $ 5,889 2024 7,487 2025 2,941 2026 628 2027 628 Total payments $ 17,573 Less: unearned interest income (977) Total, net of unearned interest income $ 16,596 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Inventories | |
Schedule of Inventory, Current | Inventories consist of the following: June 30, September 30, 2023 2022 (Amounts in thousands) Raw materials $ 442 $ 421 Work-in-process 386 23 Finished goods 3,354 3,928 Total $ 4,182 $ 4,372 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Leases | |
Schedule of components of lease costs | Three months ended Condensed Consolidated Statements of Operations Location June 30, 2023 June 30, 2022 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ — $ 1 Operating Lease: Operating lease cost Selling, general, and administrative 162 130 Short-term lease cost Selling, general, and administrative 15 62 Total lease costs $ 177 $ 193 Nine months ended Condensed Consolidated Statements of Operations Location June 30, 2023 June 30, 2022 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ 1 $ 3 Operating Lease: Operating lease cost Selling, general, and administrative 486 472 Short-term lease cost Selling, general, and administrative 36 93 Total lease costs $ 523 $ 568 Less sublease interest income Revenue (2) (1) Total lease costs, net of sublease interest income $ 521 $ 567 |
Supplemental cash flow information | Nine months ended June 30, 2023 June 30, 2022 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 495 $ 486 Operating cash flows from short-term leases 36 93 Operating cash flows from finance leases 1 3 Financing cash flows from finance leases 4 35 Lease assets obtained in exchange for new lease liabilities Operating leases 392 23 Cash received from subleases 15 51 |
Accounts payable and Other no_2
Accounts payable and Other noncurrent liabilities (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Accounts payable and Other noncurrent liabilities | |
Schedule of agreements with vendors contain imputed interest | June 30, 2023 September 30, 2022 (Amounts in thousands) Current $ 1,925 $ 1,758 Less: discount 160 184 Accounts payable and accrued expenses $ 1,765 $ 1,574 Noncurrent $ 1,967 $ 3,186 Less: discount 142 138 Other noncurrent liabilities $ 1,825 $ 3,048 |
Notes Payable and Line of Cre_2
Notes Payable and Line of Credit (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Notes Payable and Line of Credit. | |
Schedule of current and noncurrent notes payable | June 30, 2023 September 30, 2022 (Amounts in thousands) Current $ 449 $ 449 Less: notes discount (6) (22) Notes payable - current portion $ 443 $ 427 Noncurrent $ — $ 449 Less: notes discount — — Notes payable - noncurrent portion $ — $ 449 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 2022 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 110 $ 4 $ 114 $ 68 $ 2 $ 70 Expected return on plan assets (148) — (148) (118) — (118) Amortization of past service costs 1 — 1 2 — 2 Amortization of net (gain) loss — (1) (1) 24 — 24 Net periodic (benefit) cost $ (37) $ 3 $ (34) $ (24) $ 2 $ (22) Post Retirement: Service cost $ — $ 19 $ 19 $ — $ 9 $ 9 Interest cost — 4 4 — 12 12 Amortization of net loss (gain) — 84 84 — (10) (10) Net periodic cost $ — $ 107 $ 107 $ — $ 11 $ 11 Nine months ended June 30, 2023 2022 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 321 $ 11 $ 332 $ 206 $ 7 $ 213 Expected return on plan assets (430) — (430) (354) — (354) Amortization of past service costs 5 — 5 6 — 6 Amortization of net (gain) loss — (3) (3) 73 1 74 Net periodic (benefit) cost $ (104) $ 8 $ (96) $ (69) $ 8 $ (61) Post Retirement: Service cost $ — $ 31 $ 31 $ — $ 31 $ 31 Interest cost — 35 35 — 35 35 Amortization of net gain — (14) (14) — (14) (14) Net periodic cost $ — $ 52 $ 52 $ — $ 52 $ 52 |
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 June 30, 2023 September 30, 2022 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 $ 537 $ 537 $ — $ — $ 200 $ 200 $ — $ — Fixed income 9,173 9,173 — — 1,801 1,801 — — Equity 927 271 656 — 6,824 3,539 3,285 — Total plan assets $ 10,637 $ 9,981 $ 656 $ — $ 8,825 $ 5,540 $ 3,285 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Loss. | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: June 30, September 30, 2023 2022 (Amounts in thousands) Cumulative effect of foreign currency translation, net $ (4,783) $ (5,791) Cumulative unrealized loss on pension liability (1,537) (1,537) Accumulated other comprehensive loss, net $ (6,320) $ (7,328) |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value of Financial Assets and Liabilities | |
Summary of assets and liabilities at fair value | As of June 30, 2023 As of September 30, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Level Reference (Amounts in thousands) Assets: Cash and cash equivalents $ 13,848 $ 13,848 $ 23,982 $ 23,982 1 Condensed Consolidated Balance Sheets Accounts and long-term receivable* 16,596 16,596 16,328 16,328 3 Note 6 Liabilities: Accounts payable and accrued expenses and other long-term liabilities* 3,590 3,590 4,622 4,622 3 Note 9 Line of Credit 1,308 1,308 3,124 3,124 2 Note 10 Notes payable 443 443 876 876 3 Note 10 *Original maturity over one year |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Segment Information | |
Schedule of Segment Reporting Information, by Segment | The following tables present certain operating segment information for the three and nine months ended June 30, 2023 and 2022. Technology Solutions Segment High Performance Products United Consolidated Three months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 996 $ 141 $ 11,797 $ 11,938 $ 12,934 Service 339 65 4,370 4,435 4,774 Total sales $ 1,335 $ 206 $ 16,167 $ 16,373 $ 17,708 Operating (loss) income $ (850) $ (10) $ 1,435 $ 1,425 $ 575 Interest expense $ (3) $ — $ (79) $ (79) $ (82) Interest income $ 2 $ 47 $ 352 $ 399 $ 401 Total assets $ 10,165 $ 6,914 $ 50,524 $ 57,438 $ 67,603 Capital expenditures $ 27 $ — $ 7 $ 7 $ 34 Depreciation and amortization $ 27 $ — $ 64 $ 64 $ 91 2022 Sales: Product $ 427 $ 128 $ 7,883 $ 8,011 $ 8,438 Service 311 83 4,494 4,577 4,888 Total sales $ 738 $ 211 $ 12,377 $ 12,588 $ 13,326 Operating (loss) income $ (1,370) $ (29) $ 1,418 $ 1,389 $ 19 Interest expense $ (11) $ — $ (69) $ (69) $ (80) Interest income $ 38 $ 12 $ 108 $ 120 $ 158 Total assets $ 8,862 $ 9,057 $ 46,597 $ 55,654 $ 64,516 Capital expenditures $ 27 $ — $ 1 $ 1 $ 28 Depreciation and amortization $ 28 $ — $ 51 $ 51 $ 79 Technology Solutions Segment High Performance Products United Consolidated Nine months ended June 30, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 4,130 $ 507 $ 31,506 $ 32,013 $ 36,143 Service 1,170 244 11,764 12,008 13,178 Total sales $ 5,300 $ 751 $ 43,270 $ 44,021 $ 49,321 Operating (loss) income $ (1,641) $ (6) $ 3,823 $ 3,817 $ 2,176 Interest expense $ (9) $ — $ (199) $ (199) $ (208) Interest income $ 10 $ 126 $ 851 $ 977 $ 987 Total assets $ 10,165 $ 6,914 $ 50,524 $ 57,438 $ 67,603 Capital expenditures $ 67 $ — $ 148 $ 148 $ 215 Depreciation and amortization $ 83 $ — $ 186 $ 186 $ 269 2022 Sales: Product $ 2,109 $ 402 $ 22,864 $ 23,266 $ 25,375 Service 836 280 11,185 11,465 12,301 Total sales $ 2,945 $ 682 $ 34,049 $ 34,731 $ 37,676 Operating (loss) income $ (3,477) $ (120) $ 3,196 $ 3,076 $ (401) Interest expense $ (42) $ — $ (244) $ (244) $ (286) Interest income $ 39 $ 23 $ 367 $ 390 $ 429 Total assets $ 8,862 $ 9,057 $ 46,597 $ 55,654 $ 64,516 Capital expenditures $ 87 $ — $ 136 $ 136 $ 223 Depreciation and amortization $ 91 $ — $ 168 $ 168 $ 259 |
Schedule of Revenue by Major Customers | The following table lists customers from which the Company derived revenues of 10% or more of total revenues for the three and nine months ended June 30, 2023 and 2022. Three months ended June 30, Nine months ended June 30, 2023 2022 2023 2022 (in millions) (in millions) Customer % of Total Customer % of Total Customer % of Total Customer % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues (Amounts in millions) Customer A $ 0.5 3 % $ 2.1 15 % $ 2.8 6 % $ 6.4 17 % Customer B $ 2.3 13 % $ 0.4 3 % $ 4.1 8 % $ 1.1 3 % |
Basis of Presentation and New_2
Basis of Presentation and New Significant Accounting Policy - Narrative (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Basis of Presentation and New Significant Accounting Policy | ||
Number of Operating Segments | segment | 2 | |
Investments - held-to-maturity | $ | $ 2,351 | $ 0 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Managed service contracts, right to refund, period | 30 days | |||
Total sales | $ 17,708 | $ 13,326 | $ 49,321 | $ 37,676 |
Product | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 12,934 | 8,438 | 36,141 | 25,374 |
Total sales | 12,934 | 8,438 | 36,143 | 25,375 |
Service | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 4,774 | 4,888 | 13,178 | 12,301 |
Total sales | 4,774 | 4,888 | 13,178 | 12,301 |
Finance | ||||
Revenue from External Customer [Line Items] | ||||
Finance | 2 | 1 | ||
HPP | ||||
Revenue from External Customer [Line Items] | ||||
Total sales | 1,335 | 738 | 5,300 | 2,945 |
HPP | Product | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 996 | 427 | 4,130 | 2,109 |
Total sales | 996 | 427 | 4,130 | 2,109 |
HPP | Service | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 339 | 311 | 1,170 | 836 |
Total sales | 339 | 311 | 1,170 | 836 |
HPP | Finance | ||||
Revenue from External Customer [Line Items] | ||||
Finance | 0 | 0 | ||
TS | ||||
Revenue from External Customer [Line Items] | ||||
Total sales | 16,373 | 12,588 | 44,021 | 34,731 |
TS | U.K.. | ||||
Revenue from External Customer [Line Items] | ||||
Total sales | 206 | 211 | 751 | 682 |
TS | UNITED STATES | ||||
Revenue from External Customer [Line Items] | ||||
Total sales | 16,167 | 12,377 | 43,270 | 34,049 |
TS | Product | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 11,938 | 8,011 | 32,011 | 23,265 |
Total sales | 11,938 | 8,011 | 32,013 | 23,266 |
TS | Product | U.K.. | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 141 | 128 | 507 | 402 |
Total sales | 141 | 128 | 507 | 402 |
TS | Product | UNITED STATES | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 11,797 | 7,883 | 31,504 | 22,863 |
Total sales | 11,797 | 7,883 | 31,506 | 22,864 |
TS | Service | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 4,435 | 4,577 | 12,008 | 11,465 |
Total sales | 4,435 | 4,577 | 12,008 | 11,465 |
TS | Service | U.K.. | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 65 | 83 | 244 | 280 |
Total sales | 65 | 83 | 244 | 280 |
TS | Service | UNITED STATES | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 4,370 | 4,494 | 11,764 | 11,185 |
Total sales | $ 4,370 | $ 4,494 | 11,764 | 11,185 |
TS | Finance | ||||
Revenue from External Customer [Line Items] | ||||
Finance | 2 | 1 | ||
TS | Finance | U.K.. | ||||
Revenue from External Customer [Line Items] | ||||
Finance | 0 | 0 | ||
TS | Finance | UNITED STATES | ||||
Revenue from External Customer [Line Items] | ||||
Finance | $ 2 | $ 1 |
Revenue - Revenue Recognition (
Revenue - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Capitalized Contract Cost [Line Items] | |||||
Current contract assets | $ 2,100 | $ 2,100 | $ 4,400 | ||
Non-current contract assets | 0 | 0 | 0 | ||
Current contract liabilities | 3,500 | 3,500 | 4,100 | ||
Non-current contract liabilities | 0 | 0 | 0 | ||
Revenue recognized included in contract liability | 2,400 | 500 | |||
Current capitalized costs | 149 | 149 | 128 | ||
Non-current capitalized costs | 0 | 0 | 0 | ||
Incremental costs amortized | $ 103 | $ 91 | 302 | $ 272 | |
Impairment related to costs capitalized | $ 0 | 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 | 3 years | |||
Maximum | |||||
Capitalized Contract Cost [Line Items] | |||||
Amortization Period | 6 years | 6 years | |||
Europe | Maximum | |||||
Capitalized Contract Cost [Line Items] | |||||
Payment terms | 90 days | ||||
TS | |||||
Capitalized Contract Cost [Line Items] | |||||
Current capitalized costs | $ 0 | $ 0 | 9 | ||
Non-current capitalized costs | 0 | 0 | $ 0 | ||
Incremental costs amortized | $ 3 | $ 3 | 9 | 9 | |
Impairment related to costs capitalized | $ 0 | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 122 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, Expected Timing of Satisfaction, Period | 3 months |
Remaining performance obligation, amount | $ 61 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligation, amount | $ 61 |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock - Basic and diluted EPS computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share of Common Stock | ||||
Net income | $ 2,514 | $ 684 | $ 3,796 | $ 474 |
Less: net income attributable to nonvested common stock | (159) | (38) | (232) | (24) |
Net income attributable to common shareholders | $ 2,355 | $ 646 | $ 3,564 | $ 450 |
Weighted average total shares outstanding - basic | 4,710 | 4,535 | 4,651 | 4,481 |
Less: weighted average non-vested shares outstanding | (297) | (255) | (285) | (230) |
Weighted average number of common shares outstanding - basic | 4,413 | 4,280 | 4,366 | 4,251 |
Add: potential common shares from non-vested stock awards | 103 | 3 | 69 | 14 |
Weighted average common shares outstanding - diluted | 4,516 | 4,283 | 4,435 | 4,265 |
Net income per common share - basic | $ 0.53 | $ 0.15 | $ 0.82 | $ 0.11 |
Net income per common share - diluted | $ 0.52 | $ 0.15 | $ 0.80 | $ 0.11 |
Earnings Per Share of Common _4
Earnings Per Share of Common Stock - Anti-dilutive (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock awards shares were excluded from the diluted loss per share calculation | 16 | 231 | 98 | 194 |
Accounts and Long-Term Receiv_3
Accounts and Long-Term Receivable (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2023 USD ($) agreement | Dec. 31, 2022 USD ($) agreement | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | $ 23,523 | $ 23,523 | $ 22,993 | |||
Long-term receivable | $ 8,361 | 8,361 | 7,412 | |||
Number of agreements increase in accounts and long term receivable | agreement | 1 | 1 | ||||
Payments to be received from transaction over next two years | $ 3,000 | |||||
Payments to be received from transaction over next four years | $ 3,100 | $ 3,100 | ||||
Period of payments to be received for accounts and long term receivable | 4 years | 2 years | ||||
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 | $ 8,200 | $ 8,200 | 8,900 | |||
Long-term receivable | $ 8,400 | $ 8,400 | 7,400 | |||
Long term receivables interest rate | 5.80% | 5.80% | ||||
Amount of allowance for credit losses or impairments with a contractual maturity of over one year | $ 0 | $ 0 | 0 | |||
Accounts and long-term receivable past due | 0 | 0 | $ 0 | |||
Activity in allowance for credit losses for accounts and long-term receivables | 0 | $ 0 | 0 | $ 0 | ||
Construction Contractor, Receivable, Excluding Contract Retainage, Fiscal Year Maturity [Abstract] | ||||||
2023 | 5,889 | 5,889 | ||||
2024 | 7,487 | 7,487 | ||||
2025 | 2,941 | 2,941 | ||||
2026 | 628 | 628 | ||||
2027 | 628 | 628 | ||||
Total payments | 17,573 | 17,573 | ||||
Less: unearned interest income | (977) | (977) | ||||
Total, net of unearned interest income | 16,596 | $ 16,596 | ||||
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 | $ 234 | $ 108 | $ 605 | $ 369 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Inventories | ||
Raw materials | $ 442 | $ 421 |
Work-in-process | 386 | 23 |
Finished goods | 3,354 | 3,928 |
Total | $ 4,182 | $ 4,372 |
Leases - Components of lease co
Leases - Components of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Lease: | ||||
Total lease costs | $ 177 | $ 193 | $ 523 | $ 568 |
Total lease costs, net of sublease interest income | 521 | 567 | ||
Interest expense | ||||
Finance Lease: | ||||
Interest on lease liabilities | 0 | 1 | 1 | 3 |
Selling, general and administrative | ||||
Operating Lease: | ||||
Operating lease cost | 162 | 130 | 486 | 472 |
Short-term lease cost | $ 15 | $ 62 | 36 | 93 |
Revenue. | ||||
Operating Lease: | ||||
Less sublease interest income | $ (2) | $ (1) |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 495 | $ 486 |
Operating cash flows from short-term leases | 36 | 93 |
Operating cash flows from finance leases | 1 | 3 |
Financing cash flows from finance leases | 4 | 35 |
Operating leases | 392 | 23 |
Cash received from subleases | $ 15 | $ 51 |
Accounts payable and Other no_3
Accounts payable and Other noncurrent liabilities - Narrative (Details) - Vendor Agreement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Accounts payable and other noncurrent liabilities | |||||
Imputed interest rate | 5.60% | 5.60% | |||
Interest expense | $ 74 | $ 57 | $ 185 | $ 203 | |
Payable to vendor | $ 3,300 | $ 3,300 | $ 16,100 | ||
Percentage of accounts payable and noncurrent liabilities | 21% | 21% | 63% |
Accounts payable and Other no_4
Accounts payable and Other noncurrent liabilities - Agreements with Vendors (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Accounts payable and other noncurrent liabilities | ||
Accounts payable and accrued expenses | $ 13,924 | $ 22,463 |
Other noncurrent liabilities | 1,823 | 3,046 |
Vendor Agreement | ||
Accounts payable and other noncurrent liabilities | ||
Current | 1,925 | 1,758 |
Less: discount | 160 | 184 |
Accounts payable and accrued expenses | 1,765 | 1,574 |
Noncurrent | 1,967 | 3,186 |
Less: discount | 142 | 138 |
Other noncurrent liabilities | $ 1,825 | $ 3,048 |
Notes Payable and Line of Cre_3
Notes Payable and Line of Credit - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Note payable | |||||||
Inventory line of credit | $ 1,308 | $ 1,308 | $ 3,124 | ||||
Notes payable | |||||||
Note payable | |||||||
Borrowings | $ 2,000 | $ 1,000 | |||||
Interest rate | 5.10% | 5% | |||||
Interest Expense, Debt | 5 | $ 12 | 16 | $ 39 | |||
Inventory Line of Credit | Line of Credit. | |||||||
Note payable | |||||||
Maximum borrowing capacity | 15,000 | 15,000 | 15,000 | ||||
Interest Payable | 0 | 0 | |||||
Minimum Net Worth Required for Compliance | 4,000 | 4,000 | |||||
Inventory line of credit | 1,300 | 1,300 | 3,100 | ||||
Cash withdrawal limit | 1,000 | 1,000 | 1,000 | ||||
Cash withdrawals outstanding | $ 0 | $ 0 | $ 0 | ||||
Inventory Line of Credit | Line of Credit. | Prime Rate | |||||||
Note payable | |||||||
Interest rate | 5% | 5% | |||||
Inventory Line of Credit | Minimum | Line of Credit. | |||||||
Note payable | |||||||
Liquidity ratio | 1.2 | 1.2 | |||||
Inventory Line of Credit | Maximum | Line of Credit. | |||||||
Note payable | |||||||
Ratio of Indebtedness to Net Capital | 5 | 5 |
Notes Payable and Line of Cre_4
Notes Payable and Line of Credit - Current and Noncurrent Portion (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Note payable - current | ||
Notes payable - current portion | $ 443 | $ 427 |
Note payable - noncurrent | ||
Notes payable - noncurrent portion | 0 | 449 |
Notes payable | ||
Note payable - current | ||
Current | 449 | 449 |
Less: notes discount | (6) | (22) |
Notes payable - current portion | 443 | 427 |
Note payable - noncurrent | ||
Noncurrent | 0 | 449 |
Less: notes discount | 0 | 0 |
Notes payable - noncurrent portion | $ 0 | $ 449 |
Pension and Retirement Plans -
Pension and Retirement Plans - Components of net periodic benefit costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension: | ||||
Pension: | ||||
Interest cost | $ 114 | $ 70 | $ 332 | $ 213 |
Expected return on plan assets | (148) | (118) | (430) | (354) |
Amortization of: | ||||
Amortization of past service costs | 1 | 2 | 5 | 6 |
Amortization of net (gain) loss | (1) | 24 | (3) | 74 |
Net periodic benefit cost | (34) | (22) | (96) | (61) |
Post Retirement: | ||||
Pension: | ||||
Service cost | 19 | 9 | 31 | 31 |
Interest cost | 4 | 12 | 35 | 35 |
Amortization of: | ||||
Amortization of net (gain) loss | 84 | (10) | (14) | (14) |
Net periodic benefit cost | 107 | 11 | 52 | 52 |
UNITED STATES | Pension: | ||||
Pension: | ||||
Interest cost | 4 | 2 | 11 | 7 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Amortization of past service costs | 0 | 0 | 0 | 0 |
Amortization of net (gain) loss | (1) | 0 | (3) | 1 |
Net periodic benefit cost | 3 | 2 | 8 | 8 |
UNITED STATES | Post Retirement: | ||||
Pension: | ||||
Service cost | 19 | 9 | 31 | 31 |
Interest cost | 4 | 12 | 35 | 35 |
Amortization of: | ||||
Amortization of net (gain) loss | 84 | (10) | (14) | (14) |
Net periodic benefit cost | 107 | 11 | 52 | 52 |
U.K.. | Pension: | ||||
Pension: | ||||
Interest cost | 110 | 68 | 321 | 206 |
Expected return on plan assets | (148) | (118) | (430) | (354) |
Amortization of: | ||||
Amortization of past service costs | 1 | 2 | 5 | 6 |
Amortization of net (gain) loss | 0 | 24 | 0 | 73 |
Net periodic benefit cost | (37) | (24) | (104) | (69) |
U.K.. | Post Retirement: | ||||
Pension: | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Amortization of net (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 0 | $ 0 | $ 0 | $ 0 |
Pension and Retirement Plans _2
Pension and Retirement Plans - Fair value of the assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 10,637 | $ 8,825 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 9,981 | 5,540 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 656 | 3,285 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Cash on deposit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 537 | 200 |
Cash on deposit | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 537 | 200 |
Cash on deposit | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Cash on deposit | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 9,173 | 1,801 |
Fixed income | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 9,173 | 1,801 |
Fixed income | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed income | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 927 | 6,824 |
Equity | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 271 | 3,539 |
Equity | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 656 | 3,285 |
Equity | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes | ||||
Income tax (benefit) expense | $ (1,692) | $ 11 | $ (1,488) | $ 28 |
Estimated annualized effective income tax rate | 21.99% | |||
Effective Income Tax Rate, Continuing Operations | (205.80%) | (64.50%) | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Release Of Allowances Amount | $ 1,800 | |||
State credits that are expected to expire unutilized | $ 731 | 731 | ||
Federal | ||||
Income Taxes | ||||
Research and development credits | 117 | 117 | ||
State | ||||
Income Taxes | ||||
Research and development credits | $ 118 | $ 118 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Accumulated Other Comprehensive Loss. | ||
Cumulative effect of foreign currency translation, net | $ (4,783) | $ (5,791) |
Cumulative unrealized loss on pension liability | (1,537) | (1,537) |
Accumulated other comprehensive loss, net | $ (6,320) | $ (7,328) |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | |
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 | Level 1 | ||
Assets: | ||
Cash and cash equivalents | $ 13,848 | 23,982 |
Carrying Amount | Level 2 | ||
Liabilities: | ||
Line of Credit | 1,308 | 3,124 |
Carrying Amount | Level 3 | ||
Assets: | ||
Accounts and long-term receivable | 16,596 | 16,328 |
Liabilities: | ||
Accounts payable and accrued expenses and other long-term liabilities | 3,590 | 4,622 |
Notes payable | 443 | 876 |
Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 13,848 | 23,982 |
Fair Value | Level 2 | ||
Liabilities: | ||
Line of Credit | 1,308 | 3,124 |
Fair Value | Level 3 | ||
Assets: | ||
Accounts and long-term receivable | 16,596 | 16,328 |
Liabilities: | ||
Accounts payable and accrued expenses and other long-term liabilities | 3,590 | 4,622 |
Notes payable | $ 443 | $ 876 |
Segment Information - Operating
Segment Information - Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total sales | $ 17,708 | $ 13,326 | $ 49,321 | $ 37,676 | |
Sales: | |||||
(Loss) income from operations | 575 | 19 | 2,176 | (401) | |
Interest income | 401 | 158 | 987 | 429 | |
Interest expense | (82) | (80) | (208) | (286) | |
Total assets | 67,603 | 64,516 | 67,603 | 64,516 | $ 75,062 |
Capital expenditures | 34 | 28 | 215 | 223 | |
Depreciation and amortization | 91 | 79 | 269 | 259 | |
HPP | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 1,335 | 738 | 5,300 | 2,945 | |
Sales: | |||||
(Loss) income from operations | (850) | (1,370) | (1,641) | (3,477) | |
Interest income | 2 | 38 | 10 | 39 | |
Interest expense | (3) | (11) | (9) | (42) | |
Total assets | 10,165 | 8,862 | 10,165 | 8,862 | |
Capital expenditures | 27 | 27 | 67 | 87 | |
Depreciation and amortization | 27 | 28 | 83 | 91 | |
TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 16,373 | 12,588 | 44,021 | 34,731 | |
Sales: | |||||
(Loss) income from operations | 1,425 | 1,389 | 3,817 | 3,076 | |
Interest income | 399 | 120 | 977 | 390 | |
Interest expense | (79) | (69) | (199) | (244) | |
Total assets | 57,438 | 55,654 | 57,438 | 55,654 | |
Capital expenditures | 7 | 1 | 148 | 136 | |
Depreciation and amortization | 64 | 51 | 186 | 168 | |
Product | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 12,934 | 8,438 | 36,143 | 25,375 | |
Product | HPP | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 996 | 427 | 4,130 | 2,109 | |
Product | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 11,938 | 8,011 | 32,013 | 23,266 | |
Service | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 4,774 | 4,888 | 13,178 | 12,301 | |
Service | HPP | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 339 | 311 | 1,170 | 836 | |
Service | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 4,435 | 4,577 | 12,008 | 11,465 | |
U.K.. | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 206 | 211 | 751 | 682 | |
Sales: | |||||
(Loss) income from operations | (10) | (29) | (6) | (120) | |
Interest income | 47 | 12 | 126 | 23 | |
Interest expense | 0 | 0 | 0 | ||
Total assets | 6,914 | 9,057 | 6,914 | 9,057 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
U.K.. | Product | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 141 | 128 | 507 | 402 | |
U.K.. | Service | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 65 | 83 | 244 | 280 | |
UNITED STATES | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 16,167 | 12,377 | 43,270 | 34,049 | |
Sales: | |||||
(Loss) income from operations | 1,435 | 1,418 | 3,823 | 3,196 | |
Interest income | 352 | 108 | 851 | 367 | |
Interest expense | (79) | (69) | (199) | (244) | |
Total assets | 50,524 | 46,597 | 50,524 | 46,597 | |
Capital expenditures | 7 | 1 | 148 | 136 | |
Depreciation and amortization | 64 | 51 | 186 | 168 | |
UNITED STATES | Product | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 11,797 | 7,883 | 31,506 | 22,864 | |
UNITED STATES | Service | TS | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | $ 4,370 | $ 4,494 | $ 11,764 | $ 11,185 |
Segment Information - Major cus
Segment Information - Major customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Customer Revenues | $ 17,708 | $ 13,326 | $ 49,321 | $ 37,676 | |
Customer A | Sales Revenue, Net | Customer Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Customer Revenues | $ 500 | $ 2,100 | $ 2,800 | $ 6,400 | |
Concentration risk percentage | 3% | 15% | 6% | 17% | |
Customer B | Sales Revenue, Net | Customer Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Customer Revenues | $ 2,300 | $ 400 | $ 4,100 | $ 1,100 | |
Concentration risk percentage | 13% | 3% | 8% | 3% | |
Customer C | Accounts Receivable | Customer Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Accounts receivable, gross | $ 12,200 | $ 12,200 | $ 15,800 | ||
Concentration risk percentage | 38% | 52% |
Dividend (Details)
Dividend (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Jun. 13, 2023 | Mar. 14, 2023 | Jan. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | |
Dividend | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.04 | $ 0.10 |