Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 05, 2014 | Mar. 31, 2014 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'FORWARD INDUSTRIES INC | ' | ' |
Entity Central Index Key | '0000038264 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'FORD | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 8,443,046 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $11,422,633 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $6,477,132 | $6,616,995 |
Marketable securities | 1,051,230 | 1,080,747 |
Accounts receivable | 6,124,871 | 4,382,406 |
Inventories | 2,374,837 | 2,050,710 |
Prepaid expenses and other current assets | 401,510 | 390,153 |
Current assets of discontinued operations | 39 | 339,382 |
Total current assets | 16,429,619 | 14,860,393 |
Property and equipment, net | 98,990 | 129,987 |
Other assets | 40,962 | 40,493 |
Total Assets | 16,569,571 | 15,030,873 |
Current liabilities: | ' | ' |
Accounts payable | 666,630 | 3,433,408 |
Due to Forward China | 5,215,768 | 107,785 |
Accrued expenses and other current liabilities | 548,515 | 1,195,560 |
Current liabilities of discontinued operations | 3,396 | 25,438 |
Total current liabilities | 6,434,309 | 4,762,191 |
Other liabilities | 115,202 | 157,708 |
Total Liabilities | 6,549,511 | 4,919,899 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, par value $0.01 per share; 40,000,000 shares authorized; 9,159,796 and 9,190,467 shares issued, plus 8,453,386 and 8,484,057 shares outstanding, at September 30, 2014 and 2013, respectively | 91,598 | 91,905 |
Additional paid-in capital | 18,747,371 | 17,961,613 |
Treasury stock, 706,410 shares at cost | -1,260,057 | -1,260,057 |
Accumulated deficit | -8,371,806 | -7,378,700 |
Accumulated other comprehensive loss | -20,411 | -20,451 |
Total shareholders' equity | 9,186,695 | 9,394,310 |
Total liabilities and shareholders' equity | 16,569,571 | 15,030,873 |
Series A Participating Preferred Stock | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, par value $0.01 per share; 4,000,000 shares authorized; 2,400,000 undesignated: Series A participating preferred stock, par value $0.01; 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Convertible Preferred Stock | ' | ' |
Current liabilities: | ' | ' |
6% Senior convertible preferred stock, par value $0.01 per share; 1,500,000 shares authorized; 648,846 shares issued and outstanding (aggregate liquidation value of $1,275,000 as of September 30, 2014 and 2013) | $833,365 | $716,664 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Common stock, par or stated value per share (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 9,159,796 | 9,190,467 |
Common stock, shares outstanding (in shares) | 8,453,386 | 8,484,057 |
Treasury Stock, shares (in shares) | 706,410 | 706,410 |
Convertible Preferred Stock | ' | ' |
Preferred Stock, Dividend Rate, Percentage | 6.00% | 6.00% |
Temporary equity, par or stated value per share (in dollars per share) | $0.01 | $0.01 |
Temporary equity, liquidation preference (in dollars) | $1,275,000 | $1,275,000 |
Temporary equity, shares authorized (in shares) | 1,500,000 | 1,500,000 |
Temporary equity, shares issued (in shares) | 648,846 | 648,846 |
Temporary equity, shares outstanding (in shares) | 648,846 | 648,846 |
Preferred stock, shares authorized (in shares) | 1,500,000 | ' |
Series A Participating Preferred Stock | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred Stock [Member] | ' | ' |
Preferred Stock, Shares Undesignated | 2,400,000 | 2,400,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $33,359,918 | $30,910,506 |
Cost of goods sold | 26,805,193 | 24,533,154 |
Gross profit | 6,554,725 | 6,377,352 |
Operating expenses | ' | ' |
Sales and marketing | 2,805,643 | 2,187,315 |
General and administrative | 3,847,759 | 3,484,222 |
Total operating expenses | 6,653,402 | 5,671,537 |
(Loss) income from operations | -98,677 | 705,815 |
Other (income) expense: | ' | ' |
Interest income | -33,916 | -4,626 |
Loss on marketable securities, net | 246,687 | 722,347 |
Loss (gain) on change in fair market value of warrant liabilities | 136,258 | -49,618 |
Other expense, net | 26,166 | 31,770 |
Total other expense, net | 375,195 | 699,873 |
(Loss) income from continuing operations before income tax expense | -473,872 | 5,942 |
Income tax expense | 0 | 507 |
(Loss) income from continuing operations | -473,872 | 5,435 |
Loss from discontinued operations, net of tax benefit of $0 and $(6,002), respectively | -326,034 | -212,321 |
Net loss | -799,906 | -206,886 |
Preferred stock dividends, accretion and beneficial conversion feature | -193,200 | -546,888 |
Net loss applicable to common equity | -993,106 | -753,774 |
Net loss | -799,906 | -206,886 |
Other comprehensive income (loss): | ' | ' |
Change in unrealized gains on marketable securities, net of tax | 0 | 23,744 |
Translation adjustments | 40 | -8,254 |
Total other comprehensive income | 40 | 15,490 |
Comprehensive loss | ($799,866) | ($191,396) |
Net loss per basic and diluted common shares: | ' | ' |
Loss from continuing operations (in dollars per share) | ($0.08) | ($0.07) |
Loss from discontinued operations (in dollars per share) | ($0.04) | ($0.02) |
Net loss per share (in dollars per share) | ($0.12) | ($0.09) |
Weighted average number of common and common equivalent shares outstanding | ' | ' |
Basic and diluted (in shares) | 8,186,926 | 8,111,226 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Parenthetical] (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Tax effect on loss from discontinued operations (in dollars) | $0 | ($6,002) |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Sep. 30, 2012 | $9,187,963 | $88,191 | $17,020,696 | ($1,260,057) | ($6,624,926) | ($35,941) |
Balance (in shares) at Sep. 30, 2012 | ' | 8,819,092 | ' | 706,410 | ' | ' |
Restricted stock award issuances | 0 | 3,714 | -3,714 | 0 | 0 | 0 |
Restricted stock award issuances (in shares) | ' | 371,375 | ' | 0 | ' | ' |
Share-based compensation | 436,422 | 0 | 436,422 | 0 | 0 | 0 |
Share-based compensation (in shares) | ' | 0 | ' | 0 | ' | ' |
Preferred stock dividends | -14,527 | 0 | 0 | 0 | -14,527 | 0 |
Preferred stock accretion | -24,152 | 0 | 0 | 0 | -24,152 | 0 |
Beneficial conversion on preferred stock | 0 | 0 | 508,209 | 0 | -508,209 | 0 |
Foreign currency translation | -8,254 | 0 | 0 | 0 | 0 | -8,254 |
Net reclassification of adjustments on marketable securities | 23,744 | 0 | 0 | 0 | 0 | 23,744 |
Net loss | -206,886 | 0 | 0 | 0 | -206,886 | 0 |
Balance at Sep. 30, 2013 | 9,394,310 | 91,905 | 17,961,613 | -1,260,057 | -7,378,700 | -20,451 |
Balance (in shares) at Sep. 30, 2013 | ' | 9,190,467 | ' | 706,410 | ' | ' |
Restricted stock award issuances | 0 | 950 | -950 | 0 | 0 | 0 |
Restricted stock award issuances (in shares) | ' | 95,000 | ' | 0 | ' | ' |
Restricted stock award forfeitures | 0 | -850 | 850 | 0 | 0 | 0 |
Restricted stock award forfeitures (in shares) | ' | -85,000 | ' | 0 | ' | ' |
Restricted stock repurchased and retired | -47,178 | -407 | -46,771 | 0 | 0 | 0 |
Restricted stock repurchased and retired (in shares) | ' | -40,671 | ' | 0 | ' | ' |
Share-based compensation | 232,700 | 0 | 232,700 | 0 | 0 | 0 |
Share-based compensation (in shares) | ' | 0 | ' | 0 | ' | ' |
Preferred stock dividends | -76,499 | 0 | 0 | 0 | -76,499 | 0 |
Preferred stock accretion | -116,701 | 0 | 0 | 0 | -116,701 | 0 |
Reclassification of warrant liability | 599,929 | 0 | 599,929 | 0 | 0 | 0 |
Foreign currency translation | 40 | 0 | 0 | 0 | 0 | 40 |
Net loss | -799,906 | 0 | 0 | 0 | -799,906 | 0 |
Balance at Sep. 30, 2014 | $9,186,695 | $91,598 | $18,747,371 | ($1,260,057) | ($8,371,806) | ($20,411) |
Balance (in shares) at Sep. 30, 2014 | ' | 9,159,796 | ' | 706,410 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash Flows From Operating Activities: | ' | ' |
Net loss | ($799,906) | ($206,886) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Realized and unrealized loss on marketable securities | 246,687 | 722,347 |
Share-based compensation | 232,700 | 436,422 |
Depreciation and amortization | 64,482 | 75,188 |
Bad debt expense | 280,034 | 35,028 |
Change in fair value of warrant liability | 136,258 | -49,618 |
Loss on disposal of property and equipment | 0 | 9,486 |
Deferred rent | -42,506 | 74,492 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,742,465 | 2,862,208 |
Inventories | -324,127 | 1,681,045 |
Prepaid expenses and other current assets | 47,952 | 161,103 |
Other assets | -469 | -51 |
Accounts payable and due to Forward China | 2,319,203 | -2,416,091 |
Accrued expenses and other current liabilities | -183,374 | -1,173,710 |
Other liabilities | 0 | 39,449 |
Net cash provided by operating activities | 234,469 | 2,250,412 |
Cash Flows From Investing Activities: | ' | ' |
Sales of marketable securities | 5,566,758 | 87,275,809 |
Purchases of marketable securities | -5,783,928 | -88,634,554 |
Purchases of property and equipment | -33,485 | -74,187 |
Net cash used in investing activities | -250,655 | -1,432,932 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from issuance of convertible preferred stock and warrants, net | 0 | 1,205,796 |
Dividends paid | -76,499 | -14,527 |
Restricted stock repurchased and retired | -47,178 | 0 |
Net cash (used in) provided by financing activities | -123,677 | 1,191,269 |
Net (decrease) increase in cash and cash equivalents | -139,863 | 2,008,749 |
Cash and cash equivalents at beginning of year | 6,616,995 | 4,608,246 |
Cash and cash equivalents at end of year | 6,477,132 | 6,616,995 |
Supplemental Disclosures of Cash Flow Information: | ' | ' |
Income taxes | 6,449 | 5,962 |
Supplemental disclosure of non-cash financing activities: | ' | ' |
Preferred stock accretion | -116,701 | -24,152 |
Reclassification of warrant liabilities to equity | $599,929 | $0 |
OVERVIEW
OVERVIEW | 12 Months Ended |
Sep. 30, 2014 | |
Overview [Abstract] | ' |
Nature Of Operations [Text Block] | ' |
NOTE 1 OVERVIEW | |
Forward Industries, Inc. (“Forward” or the “Company”) was incorporated under the laws of the State of New York and began operations in 1961 as a manufacturer and distributor of specialty and promotional products. The Company designs, markets, and distributes carry and protective solutions, primarily for hand held electronic devices. The Company’s principal customer market is original equipment manufacturers, or “OEMs” (or the contract manufacturing firms of these OEM customers), that either package its products as accessories “in box” together with their branded product offerings, or sell them through their retail distribution channels. The Company’s OEM products include carrying cases and other accessories for medical monitoring and diagnostic kits and a variety of other portable electronic and non-electronic products (such as sporting & recreational products, bar code scanners, smartphones, GPS location devices, tablets, and firearms). The Company’s OEM customers are located in the Americas, the EMEA Region, and the APAC Region. The Company does not manufacture any of its OEM products and sources substantially all of its OEM products from independent suppliers in China (refer to Note 12 – Buying Agency and Supply Agreement). | |
On June 21, 2012, the Company determined to exit its global retail business and focus solely on growing its OEM business. The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong top line growth and cost rationalizations in the OEM business. The Retail business is presented as discontinued operations. | |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 2 ACCOUNTING POLICIES | |
Accounting Estimates | |
The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. | |
Basis of Presentation | |
The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US and Forward Switzerland; Forward HK and Forward UK are inactive). All significant intercompany transactions and balances have been eliminated in consolidation. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist primarily of cash on deposit and highly liquid money market accounts, short-term bonds, and certificates of deposit with original contractual maturities of three months or less, predominately in U.S. dollar denominated instruments. The Company may purchase these short-term bonds with anticipated maturity of 90 days or less at a premium or discount. The Company records these investments as cash and cash equivalents net of amortization of premium or discount. The Company minimizes its credit risk associated with cash and cash equivalents by investing in high quality instruments and by periodically evaluating the credit quality of the primary financial institution issuers of such instruments. The Company holds cash and cash equivalents at major financial institutions in the United States, at which cash amounts may significantly exceed the Federal Deposit Insurance Corporation’s insured limits. At September 30, 2014 and 2013, this amount was approximately $6.3 million (which includes $1.7 million in a foreign bank) and $6.5 million (which includes $1.4 million in a foreign bank), respectively. Historically, the Company has not experienced any losses due to such cash concentrations. | |
Marketable Securities | |
At September 30, 2014 and 2013, the Company has investments in marketable securities that are classified as trading and are recorded at fair value with the corresponding unrealized holding gains or losses recognized in earnings. The fair value of marketable securities is determined based on quoted market prices. The cost of marketable securities sold is determined by the specific identification method. The Company classifies its realized and unrealized gains and losses as non-operating income (expense) in its consolidated statements of operations and comprehensive loss. In addition, the Company classifies the cash flows from the trading of these marketable securities as investing activities in its consolidated statements of cash flows. | |
Accounts Receivable | |
Accounts receivable consist of unsecured trade accounts with customers or their contract manufacturers. The Company performs periodic credit evaluations of its customers including an evaluation of days outstanding, payment history, recent payment trends, and perceived creditworthiness, and believes that adequate allowances for any uncollectible receivables are maintained. Credit terms to customers generally range from net thirty (30) days to net one hundred and twenty (120) days. The Company has not historically experienced significant credit or collection problems with its OEM customers or their contract manufacturers. At September 30, 2014 and 2013, no allowance for doubtful accounts relating to the Company’s continuing operations was deemed necessary. | |
Inventories | |
Inventories consist primarily of finished goods and are stated at the lower of cost (determined by the first-in, first-out method) or market. Based on management’s estimates, an allowance is made to reduce excess, obsolete, or otherwise un-saleable inventories to net realizable value. The allowance is established through charges to cost of goods sold in the Company’s consolidated statements of operations and comprehensive loss. As reserved inventory is disposed of, the Company charges off the associated allowance. In determining the adequacy of the allowance, management’s estimates are based upon several factors, including analyses of inventory levels, historical loss trends, sales history and projections of future sales demand. The Company’s estimates of the allowance may change from time to time based on management’s assessments, and such changes could be material. | |
Property and Equipment | |
Property and equipment consist of furniture, fixtures, and equipment and leasehold improvements and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful life for furniture, fixtures and equipment ranges from three to ten years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. For the fiscal years ended September 30, 2014 and 2013, the Company recorded approximately $64,000 and $75,000 of depreciation and amortization expense from continuing operations, respectively. | |
Income Taxes | |
The Company accounts for its income taxes in accordance with accounting principles generally accepted in the United States of America, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carry-forwards to the extent that realization of these benefits is more likely than not. The Company periodically evaluates the realizability of its net deferred tax assets. See Note 9 to these Notes to Consolidated Financial Statements. The Company’s policy is to account for interest and penalties relating to income taxes, if any, in “income tax expense” in its consolidated statements of operations and comprehensive loss and include accrued interest and penalties within “accrued liabilities” in its consolidated balance sheets, if applicable. For fiscal years ended September 30, 2014 and 2013, no income tax related interest or penalties were assessed or recorded. | |
6% Senior Convertible Preferred Stock | |
Temporary Equity | |
The 6% Senior Convertible Preferred Stock has been classified as temporary equity in accordance with Accounting Standards Codification (“ASC”) 480-10-s99 - Distinguishing Liabilities from Equity – Overall – SEC Materials and Accounting Series Release (“ASR”) 268 – Presentation in Financial Statements of “Redeemable Preferred Stock”, as the redemption feature is not solely within the control of the Company. | |
Warrants | |
In accordance with ASC 815-40 – Derivatives and Hedging – Contracts in Entity’s Own Equity, the Company’s warrants were initially classified as a liability, at fair value, as a result of a related registration rights agreement that contained certain requirements for registering the underlying common shares, but has no provision for penalties upon the failure to register. At each consolidated balance sheet date, this liability’s fair value was re-measured and adjusted with the corresponding change in fair value recorded in the consolidated statements of operations and comprehensive loss. After the Company met the requirements for registering the underlying common shares in the fiscal year ended September 30, 2014, the warrants were reclassified to equity (additional paid-in capital). The liability associated with the warrants was included in “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheet at September 30, 2013. | |
Preferred Stock Accretion | |
The carrying amount of the convertible preferred stock is less than the redemption value. As a result of the Company’s determination that redemption is probable, the carrying value will be increased by periodic accretions so that the carrying value will equal the redemption amount at the earliest redemption date. Such accretion is recorded as a preferred stock dividend. | |
Preferred Stock Beneficial Conversion Feature | |
On the date of issuance, the fair value, or carrying amount, of preferred stock was convertible into common stock at a discount to the market price of the underlying common stock at the conversion date. Such embedded “beneficial conversion feature”, which was equal to the difference between the accounting conversion price and the fair value of the common stock, is analogous to a dividend and was recorded as a return to preferred shareholders as of the date of issuance, which was the earliest possible conversion date. | |
Revenue Recognition | |
The Company generally recognizes revenue from product sales to its customers when: (1) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (2) persuasive evidence of an arrangement exists; (3) the Company has no continuing obligations to the customer; and (4) collection of the related accounts receivable is reasonably assured. | |
Shipping and Handling Costs | |
The Company classifies shipping and handling costs, including inbound and outbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs, as a component of cost of goods sold in the accompanying consolidated statements of operations and comprehensive loss. | |
Foreign Currency Transactions | |
Foreign currency transactions may generate receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in “other income (expense), net” in the accompanying consolidated statements of operations and comprehensive loss. The approximate net losses from foreign currency transactions for continuing operations was approximately $28,000 and $16,000 for the fiscal years ended September 30, 2014 and 2013, respectively. Such foreign currency transaction losses were primarily the result of Euro denominated sales to certain customers. | |
Accumulated Other Comprehensive Loss | |
Accumulated other comprehensive loss as of September 30, 2014 and 2013, which is included as a component of shareholders’ equity, represents translation adjustments related to the Company’s foreign subsidiaries. | |
Fair Value of Financial Instruments | |
For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and other accrued liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments. The Company records its financial instruments that are accounted for under ASC 320, “Investments-Debt and Equity Securities” (“ASC 320”) at fair value. In addition, the Company recorded its warrant liability at fair value, prior to its reclassification to equity. The determination of fair value is based upon the fair value framework established by ASC 820 “Fair Value Measurement”. ASC 820 provides that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable; either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable, thus, reflecting assumptions about the market participants. | |
Share-Based Payment Expense | |
The Company recognizes employee and director share-based compensation in its consolidated statements of operations and comprehensive loss at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 8 – Share Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period. | |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This ASU addresses the requirements regarding the financial statement presentation of an unrecognized tax benefit within ASC Topic 740 for the purpose of providing consistency between the financial reporting of U.S. GAAP entities. Generally, this ASU provides guidance for the preparation of financial statements and disclosures when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2013 and is not expected to have a material impact on the Company’s consolidated financial statements or disclosures. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605 - Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC Topic No. 718, "Compensation - Stock Compensation" as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company does not anticipate that the adoption of ASU 2014-12 will have a material impact on its consolidated financial statements. | |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | |||||||
NOTE 3 DISCONTINUED OPERATIONS | ||||||||
On June 21, 2012, the Company determined to exit its global retail business and focus solely on growing its OEM business. The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong net sales growth and cost rationalizations in the OEM business. Accordingly, the results of operations for the Retail division have been recorded as discontinued operations in the accompanying consolidated financial statements for the fiscal years presented. The Company has substantially completed its exit of its Retail business. Summarized operating results of discontinued operations are presented in the following table: | ||||||||
For the Fiscal Years Ended September 30, | ||||||||
2014 | 2013 | |||||||
Net sales | $ | - | $ | 655,658 | ||||
Gross (loss) profit | -9,700 | 181,039 | ||||||
Operating expenses | -316,404 | -406,297 | ||||||
Other income | 70 | 6,935 | ||||||
Loss from discontinued operations, net of | ||||||||
tax benefit of $0 and $(6,002), respectively | $ | -326,034 | $ | -212,321 | ||||
Summarized assets and liabilities of discontinued operations are presented in the following table: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Accounts receivable | $ | - | $ | 280,034 | ||||
Prepaid assets and other current assets | 39 | 59,348 | ||||||
Total assets of discontinued operations | $ | 39 | $ | 339,382 | ||||
Accounts payable | $ | 3,396 | $ | 25,438 | ||||
Total liabilities of discontinued operations | $ | 3,396 | $ | 25,438 | ||||
The above accounts receivable relate to overdue payments pursuant to a Settlement Agreement and General Release (“Settlement Agreement”) executed on July 3, 2013 between the Company and G-Form LLC (“G-Form”) in exchange for certain retail inventories, the Company’s cooperation with certain administrative matters, and a mutual general release. On November 12, 2014, a U.S. District Court entered a Judgment compelling G-Form to remit $331,282 (includes legal fees and interest) to Forward. The Company is currently working to enforce the Court’s Order. However, due to the age of the account receivable and G-Form’s non-responsiveness to the Company’s communications on the subject, the Company has fully reserved for the $280,034 receivable as of September 30, 2014. | ||||||||
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||
Investments In Debt and Marketable Equity Securities (And Certain Trading Assets) Disclosure [Text Block] | ' | |||||||||||||
NOTE 4 MARKETABLE SECURITIES | ||||||||||||||
Effective October 1, 2012, the Company changed its classification of marketable equity securities from available-for-sale to trading. As a result of this reclassification, an unrealized net loss of $23,744 was reclassified out of accumulated other comprehensive loss and charged to earnings. Marketable equity securities are carried at fair value, as determined by quoted market prices, which is a Level 1 input, as established by the fair value hierarchy under ASC 820. The corresponding unrealized holding gains or losses of securities classified as trading are recognized in earnings. The Company’s marketable securities are summarized in the table below: | ||||||||||||||
For the Fiscal Years Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Trading: | ||||||||||||||
Cost | $ | 1,320,816 | $ | 954,053 | ||||||||||
Unrealized gains | 48,560 | 174,940 | ||||||||||||
Unrealized losses | -318,146 | -48,246 | ||||||||||||
Total fair value | $ | 1,051,230 | $ | 1,080,747 | ||||||||||
Realized gains and losses on marketable securities for the fiscal year ended September 30, 2014 were $606,000 and ($583,000), respectively and are included in the accompanying consolidated statements of operations and comprehensive loss. Realized gains and losses on marketable securities for the fiscal year ended September 30, 2013 were approximately $3,146,000 and $(3,868,000), respectively and are included in the accompanying consolidated statements of operations and comprehensive loss. | ||||||||||||||
The following table presents the Company’s fair value hierarchy for assets, consisting of marketable securities, measured at fair value on a recurring basis at September 30, 2014 and 2013: | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Equity securities | $ | 1,051,230 | $ | - | $ | - | $ | 1,051,230 | ||||||
Total assets at fair value at September 30, 2014 | $ | 1,051,230 | $ | - | $ | - | $ | 1,051,230 | ||||||
Equity securities | $ | 1,080,747 | $ | - | $ | - | $ | 1,080,747 | ||||||
Total assets at fair value at September 30, 2013 | $ | 1,080,747 | $ | - | $ | - | $ | 1,080,747 | ||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
NOTE 5 PROPERTY AND EQUIPMENT | ||||||||
Property and equipment and related accumulated depreciation and amortization of continuing operations are summarized in the table below: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Furniture, fixtures and equipment | $ | 436,120 | $ | 404,871 | ||||
Leasehold improvements | 99,854 | 97,618 | ||||||
Property and equipment, cost | 535,974 | 502,489 | ||||||
Less: accumulated depreciation and amortization | -436,984 | -372,502 | ||||||
Property and equipment, net | $ | 98,990 | $ | 129,987 | ||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ' | |||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | |||||||
NOTE 6 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
Accrued expenses and other current liabilities of continuing operations are summarized in the table below: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Warrants, net of unamortized transaction cost of $29,452 | $ | - | $ | 463,671 | ||||
Personnel cost | 277,430 | 372,766 | ||||||
Taxes | - | 44,128 | ||||||
Professional fees | 32,762 | 11,000 | ||||||
Accrued legal settlement | 150,000 | 139,500 | ||||||
Other | 88,323 | 164,495 | ||||||
Accrued expenses and other current liabilities | $ | 548,515 | $ | 1,195,560 | ||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stockholders Equity Note [Abstract] | ' | ||||||||||||
Stockholders Equity Note Disclosure [Text Block] | ' | ||||||||||||
NOTE 7 SHAREHOLDERS’ EQUITY | |||||||||||||
“Blank Check” Preferred Stock | |||||||||||||
The Company is authorized to issue up to 4,000,000 shares of “blank check” preferred stock. The Board of Directors (the “Board”) has the authority and discretion, without shareholder approval, to issue preferred stock in one or more series for any consideration it deems appropriate, and to fix the relative rights and preferences thereof including their redemption, dividend and conversion rights. Of these shares, 1,500,000 shares have been authorized as the 6% Senior Convertible Preferred Stock and 100,000 shares have been authorized as the Series A Participating Preferred Stock | |||||||||||||
6% Senior Convertible Preferred Stock and Warrants | |||||||||||||
On June 28, 2013, the Company completed the sale of (i) 381,674 shares of its newly authorized 6% Senior Convertible Preferred Stock, par value $0.01 per share (the “Convertible Preferred Stock”) and (ii) warrants to purchase a total of 381,674 shares of the Company’s common stock (“Common Stock”) (the “Warrants” and together with the Convertible Preferred Stock, the “Securities”) to accredited investors in a private placement pursuant to the terms of securities purchase agreements, dated June 28, 2013, by and between the Company and each investor. The June 28, 2013 private placement included purchases of Securities by two directors of the Company that, in the aggregate, purchased 114,502 shares of Convertible Preferred Stock and Warrants. | |||||||||||||
On August 7, 2013, the Company completed the sale of (i) an additional 216,282 shares of its Convertible Preferred Stock and (ii) Warrants to purchase a total of 216,282 shares of the Company’s Common Stock to accredited investors in a private placement pursuant to the terms of a securities purchase agreement, dated August 7, 2013, by and between the Company and such accredited investors. | |||||||||||||
On August 14, 2013, the Company completed the sale of (i) an additional 50,890 shares of its Convertible Preferred Stock and (ii) Warrants to purchase a total of 50,890 shares of the Company’s Common Stock to accredited investors in a private placement pursuant to the terms of a securities purchase agreement, dated August 14, 2013, by and between the Company and such accredited investors. | |||||||||||||
The total aggregate purchase price paid by accredited investors via the June 28, 2013, August 7, 2013 and August 14, 2013 private placements (together, the “Investors”) for each share of Convertible Preferred Stock and Warrant was $1.965. The June 28, 2013, August 7, 2013 and August 14, 2013 private placements (together, the “Private Placements”) resulted in gross proceeds of approximately $1,275,000 to the Company. The Company has sold a total of 648,846 shares of Convertible Preferred Stock and Warrants to purchase 648,846 shares of Common Stock through these Private Placements. | |||||||||||||
The total purchase price paid by the Investors for each share of Convertible Preferred Stock and Warrant purchased in the Closing was $1.965, consisting of (i) fair values ranging from $1.105 to $1.145 in respect of the Convertible Preferred Stock, plus (ii) fair values ranging from $0.82 to $0.86 in respect of the Warrant. The Warrants have an initial exercise price of $1.84 per share, subject to adjustment upon the occurrence of certain customary events. The Warrants are exercisable at any time on or after January 1, 2014 (the “Initial Exercise Date”) and terminate on the 10-year anniversary of the Initial Exercise Date. Each share of Convertible Preferred Stock is convertible into one share of Common Stock at an initial conversion price of $1.84 per share, subject to adjustment upon the occurrence of certain customary events (the “Conversion Price”). At the initial Conversion Price, the total of 648,846 shares of Convertible Preferred Stock issued in the Private Placement as of the date of the Closing are convertible into an aggregate of 692,919 shares of Common Stock. The proceeds from these Private Placements of $1,275,000 have been allocated to the Convertible Preferred Stock and the Warrants based upon their fair values assigned (net of issuance costs of approximately $69,000) of approximately $693,000 and $513,000, respectively, as of the dates of issuance. | |||||||||||||
As of September 30, 2014 and September 30, 2013, the carrying value of the Convertible Preferred Stock was approximately $833,000 and $717,000, respectively, and is included on the Company’s consolidated balance sheets as temporary equity. The change in the carrying value, or accretion, of the Convertible Preferred Stock from the issuance dates to September 30, 2014 is classified as a preferred stock dividend and is included as a component of “net loss applicable to common equity” in calculating loss per share, which was approximately $117,000 and $24,000 for the fiscal years ended September 30, 2014 and 2013, respectively. As a result of the Convertible Preferred Stock containing a beneficial conversion feature, whereby the accounting conversion price is lower than the fair value of the common stock, the Company recorded a preferred stock dividend in the amount of approximately $508,000 for the fiscal year ended September 30, 2013. This amount has been recorded as an increase to additional paid-in capital. | |||||||||||||
Dividends on the Convertible Preferred Stock are payable, on a cumulative basis, in cash, at the rate per annum of 6% of the Liquidation Preference (as defined below) and are payable quarterly, in arrears, on each March 31, June 30, September 30 and December 31, commencing on September 30, 2013. The Company is prohibited from paying any dividend with respect to shares of Common Stock or other junior securities in any quarter unless full dividends are paid on the Convertible Preferred Stock in such quarter. Dividends on the Convertible Preferred Stock totaled approximately $76,000 and $15,000 for the fiscal years ended September 30, 2014 and 2013. These dividends, in addition to the accretion and beneficial conversion feature, totaled approximately $193,000 and $547,000 for the fiscal years ended September 30, 2014 and 2013, respectively. | |||||||||||||
In the event of a liquidation (or deemed liquidation, as described below) of the Company, the holders of the Convertible Preferred Stock shall receive in preference to the holders of Common Stock and any junior securities of the Company an amount (the “Liquidation Preference”) equal to (i) $1.965 (the “Original Issue Price”) per each outstanding share of Convertible Preferred Stock (subject to adjustment upon the occurrence of certain customary events), plus (ii) any accrued but unpaid dividends. A Change of Control of the Company (as defined in the Certificate of Amendment) will be treated as a liquidation at the option of the holders of a majority of the Convertible Preferred Stock; provided that the amount paid to holders of Convertible Preferred Stock in such event will be equal to 101% of the Original Issue Price, plus accrued but unpaid dividends. | |||||||||||||
Each share of Convertible Preferred Stock is convertible at any time, at the option of the holder, into shares of Common Stock at the then applicable Conversion Price. In addition, upon the consent of 80% of the holders of the Convertible Preferred Stock, the Convertible Preferred Stock automatically will be converted to shares of Common Stock at the then-applicable Conversion Price. | |||||||||||||
On or after June 28, 2018, the Company may, at its option and upon at least 30 days prior written notice to the holders of the Convertible Preferred Stock, redeem all or any portion of the outstanding Convertible Preferred Stock in cash at a redemption price equal to the full Liquidation Preference as of the redemption date. In addition, at any time on or after June 28, 2023, each holder of the Convertible Preferred Stock will have the right to require the Company to redeem (provided that funds are legally available to do so) all or any portion of such holder’s outstanding Convertible Preferred Stock at a redemption price equal to the full Liquidation Preference of such shares of Convertible Preferred Stock as of the redemption date. | |||||||||||||
The Convertible Preferred Stock will vote together with the Common Stock on an as-converted basis on all matters except as required by law. In addition, for so long as 50% of the shares of Convertible Preferred Stock remains outstanding, without the approval of the holders of a majority of the Convertible Preferred Stock, voting as a separate class, the Company may not: (i) authorize or issue any equity security senior to the Convertible Preferred Stock; (ii) declare or pay any dividends on the Common Stock or any series of preferred stock that ranks junior to the Convertible Preferred Stock; (iii) increase or decrease the total number of authorized shares of Convertible Preferred Stock; (iv) alter or change the rights, preferences or privileges of the Convertible Preferred Stock so as to affect materially and adversely the Convertible Preferred Stock; or (v) increase the authorized capitalization of the Company, or otherwise amend its certificate of incorporation or bylaws in a manner which adversely affects the rights or preferences of the Convertible Preferred Stock. | |||||||||||||
During the quarter ended March 31, 2014, the Company met the requirements of the registration rights agreement for registering the underlying common shares and the convertible preferred stock warrant liabilities with fair value of $599,000 (net of issuance costs) were reclassified to equity (additional paid-in capital). As of September 30, 2013, the liability associated with the Warrants was approximately $464,000 (net of issuance costs) and was included in “Accrued expenses and other current liabilities” in the Company’s consolidated balance sheet. | |||||||||||||
The fair value of the Warrants was determined using a Black-Scholes closed-form call option pricing model, which is considered a level 3 instrument under the fair value hierarchy. The fair value of the Warrants were estimated using the following weighted average assumptions during the fiscal years ended September 30, 2014 and 2013: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Risk free interest rate | 2.70% | 2.60% | |||||||||||
Expected term (years) | 9.8 | 10.3 | |||||||||||
Expected volatility | 32.90% | 30.00% | |||||||||||
Expected dividends | 0.00% | 0.00% | |||||||||||
The change in the fair value of the convertible preferred stock warrant liability (net of issuance costs) for the years ended September 30, 2014 and 2013 is summarized below: | |||||||||||||
Warrant Liabilities | |||||||||||||
Balance - September 30, 2012 | $ | - | |||||||||||
Issuance of convertible preferred stock warrant | 542,741 | ||||||||||||
Change in fair value | -49,618 | ||||||||||||
Balance - September 30, 2013 | 493,123 | ||||||||||||
Change in fair value | 136,258 | ||||||||||||
Reclassification of warrants to equity | -629,381 | ||||||||||||
Balance - September 30, 2014 | $ | - | |||||||||||
The following table presents the Company’s fair value hierarchy for warrant liabilities measured at fair value and prior to issuance costs, on a recurring basis at September 30, 2013: | |||||||||||||
As of September 30, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Liabilities: | |||||||||||||
Warrant liabilities | $ | - | $ | - | $ | 493,123 | $ | 493,123 | |||||
Total liabilities | $ | - | $ | - | $ | 493,123 | $ | 493,123 | |||||
Anti-takeover Provisions | |||||||||||||
Shareholder Rights Plan | |||||||||||||
On April 26, 2013, the Board adopted a Shareholder Rights Plan, as set forth in the Rights Agreement between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent. Pursuant to the Rights Agreement, the Board declared a dividend distribution of one Right (a “Right”) for each outstanding share of Company Common Stock, par value $0.01 per share (the “Common Stock”) to shareholders of record at the close of business on May 6, 2013, which date will be the record date, and for each share of Common Stock issued (including shares distributed from treasury) by the Company thereafter and prior to the Distribution Date (as described below and defined in the Rights Agreement). Each Right entitles the registered holder, subject to the terms of the Rights Agreement, to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, $0.01 par value per share (the “Series A Preferred Stock”), at an exercise price of $4.00 per one one-thousandth of a share of Series A Preferred Stock, subject to adjustment. | |||||||||||||
Initially, no separate Rights certificates will be distributed and instead the Rights will attach to all certificates representing shares of outstanding Common Stock. Subject to certain exceptions specified in the Rights Agreement, the Rights will separate from the Common Stock and become exercisable on the distribution date (the “Distribution Date”), which will occur on the earlier of (i) the 10th business day (or such later date as may be determined by the Board) after the public announcement that an Acquiring Person (as defined in the Rights Agreement) has acquired beneficial ownership of 20% or more of the Common Stock then outstanding or (ii) the 10th business day (or such later date as may be determined by the Board) after a person or group announces a tender or exchange offer that would result in a person or group of affiliated and associated persons beneficially owning 20% or more of the Common Stock then outstanding. | |||||||||||||
“Blank Check” Preferred Stock | |||||||||||||
As discussed above, the Company is authorized to issue up to 4,000,000 shares of “blank check” preferred stock. The Board has the authority and discretion, without shareholder approval, to issue preferred stock in one or more series for any consideration it deems appropriate, and to fix the relative rights and preferences thereof including their redemption, dividend and conversion rights. Of these shares, 1,500,000 shares have been authorized as the 6% Senior Convertible Preferred Stock and 100,000 shares have been authorized as the Series A Participating Preferred Stock. | |||||||||||||
Stock Repurchase | |||||||||||||
In September 2002 and January 2004, the Board authorized the repurchase of up to an aggregate of 486,200 shares of outstanding common stock. Under those authorizations, through September 30, 2014, the Company repurchased an aggregate of 213,274 shares at a cost of approximately $473,000. The Company repurchased and retired an aggregate of 40,671 shares at a cost of approximately $47,000 during the fiscal year ended September 30, 2014, in connection with the vesting of employee restricted stock awards, wherein certain employees surrendered a portion of their award in order to fund certain tax withholding obligations. No shares were repurchased during the fiscal year ended September 30, 2013. See Note 16 – Subsequent Events. | |||||||||||||
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Text Block] | ' | |||||||||||||
NOTE 8 SHARE BASED COMPENSATION | ||||||||||||||
2011 Long Term Incentive Plan | ||||||||||||||
In March 2011, shareholders of the Company approved the 2011 Long Term Incentive Plan (the “2011 Plan”), which authorizes 850,000 shares of common stock for grants of various types of equity awards to officers, directors, employees, consultants, and independent contractors. Forfeited awards are eligible for re-grant under the 2011 Plan. The total shares of common stock available for grants of equity awards under the 2011 Plan was 185,647 as of September 30, 2014. The exercise prices of stock options granted may not be less than the fair market value of the common stock as quoted at the close on the Nasdaq Stock Market on the grant date. The Compensation Committee administers the plan. Options generally expire ten years after the date of grant. | ||||||||||||||
2007 Equity Incentive Plan | ||||||||||||||
The 2007 Equity Incentive Plan (the “2007 Plan”), which was approved by shareholders of the Company in May 2007, and, as amended, in February 2010, authorizes an aggregate of 800,000 shares of common stock for grants of restricted common stock and stock options to officers, employees, and non-employee directors of the Company. Forfeited awards are eligible for re-grant under the 2007 Plan. The total shares of common stock available for grants of equity awards under the 2007 Plan was 130,015 as of September 30, 2014. The exercise price of stock options granted may not be less than the fair market value of the common stock as quoted at the close on the Nasdaq Stock Market on the grant date. The Compensation Committee administers the 2007 Plan. Options generally expire ten years after the date of grant. | ||||||||||||||
1996 Stock Incentive Plan | ||||||||||||||
The Company’s 1996 Stock Incentive Plan (the “1996 Plan”) expired in accordance with its terms in November 2006. The exercise price of incentive stock options granted under the 1996 Plan to officers, employees, and non-employee directors of the Company was required by 1996 Plan provisions to be equal at least to the fair market value of the common stock at the date of grant. In general, options under this plan expire ten years after the date of grant. Unexercised options granted prior to 1996 Plan expiration remain outstanding until the earlier of exercise or option expiration. Under the 1996 Plan, 30,000 fully vested common stock options are the only awards that remain outstanding and unexercised, all at exercise prices higher than the fair market value of the common stock at September 30, 2014. | ||||||||||||||
Stock Option Awards | ||||||||||||||
On October 1, 2012, the Company granted a ten-year incentive stock option to purchase 60,000 shares of common stock at exercise prices ranging from $3.77 to $5.31 per share to an executive of the Company, pursuant to the 2011 Plan. The option vests on April 3, 2015. The option had a grant date value of $30,000. | ||||||||||||||
On October 16, 2012, the Company granted ten-year non-qualified stock options to purchase an aggregate of 60,000 shares of common stock at an exercise price of $1.23 per share to directors of the Company, pursuant to the 2011 Plan. The options vested on the first anniversary of the date of grant. The options had an aggregate grant date value of $42,600. | ||||||||||||||
On December 11, 2013, the Company granted ten-year incentive stock options to purchase an aggregate of 32,500 shares of common stock (25,000 shares were granted pursuant to the 2007 Plan and 7,500 shares were granted pursuant to the 2011 Plan) at an exercise price of $1.59 per share to executives of the Company. The options vest ratably over three years on the anniversaries of the date of grant. The options had an aggregate grant date value of $29,250. | ||||||||||||||
The fair value of each stock option on the date of grant was estimated using a Black-Scholes option-pricing formula applying the following assumptions for each respective period: | ||||||||||||||
Fiscal Years Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Risk free interest rate | 1.86 | % | 0.06% to 0.70 | % | ||||||||||
Expected term (years) | 6 | 5 | ||||||||||||
Expected volatility | 63.2 | % | 70% to 70.4 | % | ||||||||||
Expected dividends | 0 | % | 0 | % | ||||||||||
Estimated annual forfeiture rate | 10 | % | 0% to 10 | % | ||||||||||
During the fiscal years ended September 30, 2014 and 2013, the Company granted 32,500 and 120,000 stock options at weighted average grant date fair values per share of $0.90 and $0.61, respectively. | ||||||||||||||
The expected term represents the period over which the stock option awards are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company based the risk-free interest rate used in its assumptions on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s expected term. The volatility factor used in the Company’s assumptions is based on the historical price of its stock over the most recent period commensurate with the expected term of the award. The Company historically has not paid any dividends on its common stock and had no intention to do so on the date the share-based awards were granted. | ||||||||||||||
The Company recognized approximately $43,000 and $220,000 of compensation expense in continuing operations for stock option awards in its consolidated statements of operations and comprehensive loss for the fiscal years ended September 30, 2014 and 2013, respectively. | ||||||||||||||
As of September 30, 2014, there was approximately $50,574 of total unrecognized compensation cost related to unvested stock option awards, which is expected to be recognized over the remainder of the weighted average vesting period of 1.08 years. | ||||||||||||||
The following table summarizes stock option activity during the fiscal years ended September 30, 2014 and 2013: | ||||||||||||||
Weighted | ||||||||||||||
Weighted | Average | |||||||||||||
Average | Remaining | |||||||||||||
Number of | Exercise | Life | Intrinsic | |||||||||||
Options | Price | In Years | Value | |||||||||||
Outstanding, September 30, 2012 | 1,142,000 | $ | 3.31 | |||||||||||
Granted | 120,000 | 3.14 | ||||||||||||
Exercised | - | - | ||||||||||||
Forfeited | -365,000 | 3.43 | ||||||||||||
Outstanding, September 30, 2013 | 897,000 | $ | 3.24 | |||||||||||
Granted | 32,500 | 1.59 | ||||||||||||
Exercised | - | - | ||||||||||||
Forfeited | -151,000 | 3.5 | ||||||||||||
Outstanding, September 30, 2014 | 778,500 | $ | 2.7 | 5.4 | $ | 12,000 | ||||||||
Exercisable, September 30, 2014 | 642,582 | $ | 2.96 | 4.5 | $ | 6,000 | ||||||||
The table below provides additional information regarding stock option awards that were outstanding and exercisable at September 30, 2014: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Weighted | ||||||||||||||
Outstanding | Average | Exercisable | ||||||||||||
Exercise | Number of | Remaining Life | Number of | |||||||||||
Price | Options | In Years | Options | |||||||||||
$1.23 to $1.80 | 105,000 | 7.1 | 80,000 | |||||||||||
$2.02 to $2.85 | 271,000 | 2 | 268,000 | |||||||||||
$3.00 to $3.79 | 322,500 | 6.5 | 264,582 | |||||||||||
$5.31 | 50,000 | - | - | |||||||||||
$6.02 | 20,000 | 1.6 | 20,000 | |||||||||||
$15.91 | 10,000 | 0.6 | 10,000 | |||||||||||
778,500 | 642,582 | |||||||||||||
Restricted Stock Awards | ||||||||||||||
On November 8, 2012, the Company granted an aggregate of 371,375 shares of restricted stock (141,375 shares were granted pursuant to the 2007 Plan and 230,000 shares were granted pursuant to the 2011 Plan) to executives and employees of the Company. The shares vest ratably over three years on the anniversaries of the date of grant. The aggregate grant date value of $430,795 will be recognized proportionate to the vesting period. | ||||||||||||||
On December 11, 2013, the Company granted an aggregate of 90,000 shares of restricted stock to directors of the Company, pursuant to the 2007 Plan. The shares vest on the first anniversary of the date of grant. The aggregate grant date value of $143,100 will be recognized proportionate to the vesting period. | ||||||||||||||
On January 9, 2014, the Company granted 5,000 shares of restricted stock to an employee of the Company, pursuant to the 2011 Plan. The shares vest ratably on each of November 11, 2014, November 11, 2015 and November 11, 2016. The grant date value of $8,350 will be recognized proportionate to the vesting period. | ||||||||||||||
For the fiscal years ended September 30, 2014 and 2013, the Company recognized approximately $189,000 and $217,000 of compensation, net of forfeitures, from continuing operations in its consolidated statements of operations and comprehensive loss related to restricted stock awards. | ||||||||||||||
As of September 30, 2014, there was approximately $112,000 of unrecognized compensation cost related to shares of unvested restricted stock that will be recognized over the weighted average remaining vesting period 0.51 years. | ||||||||||||||
The following table summarizes restricted stock activity during the fiscal years ended September 30, 2014 and 2013: | ||||||||||||||
Weighted | ||||||||||||||
Average | Total | |||||||||||||
Number of | Grant Date | Grant Date | ||||||||||||
Shares | Fair Value | Fair Value | ||||||||||||
Non-vested, September 30, 2012 | 7,500 | $ | 2.02 | $ | 15,150 | |||||||||
Granted | 371,375 | 1.16 | 430,795 | |||||||||||
Vested | -7,500 | 2.02 | -15,150 | |||||||||||
Forfeited | - | - | - | |||||||||||
Non-vested, September 30, 2013 | 371,375 | $ | 1.16 | $ | 430,795 | |||||||||
Granted | 95,000 | 1.59 | 151,450 | |||||||||||
Vested | -123,794 | 1.16 | -143,601 | |||||||||||
Forfeited | -85,000 | 1.16 | -98,600 | |||||||||||
Non-vested, September 30, 2014 | 257,581 | $ | 1.32 | $ | 340,044 | |||||||||
Warrants | ||||||||||||||
As of September 30, 2014, warrants to purchase 75,000 shares of the Company’s common stock at an exercise price of $1.75 issued in the fiscal year ended September 30, 1999 were outstanding. By their terms these warrants expire 90 days after a registration statement registering common stock (other than pursuant to employee benefit plans) is declared effective by the United States Securities and Exchange Commission (the “Commission”). As of September 30, 2014, no such registration statement has been filed with the Commission. | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
NOTE 9 INCOME TAXES | ||||||||
The Company’s provision (benefit) for income taxes consists of the following United States federal and state, and foreign components: | ||||||||
For The Fiscal Years Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Current: | ||||||||
Federal | $ | - | $ | - | ||||
State | - | 75 | ||||||
Foreign | - | -5,570 | ||||||
Deferred: | ||||||||
Federal | -364,106 | 89,832 | ||||||
State | -21,418 | -107,296 | ||||||
Foreign | 11,669 | -5,598 | ||||||
-373,855 | -28,557 | |||||||
Change in valuation allowance | 373,855 | 23,062 | ||||||
Income tax provision (benefit) | $ | - | $ | -5,495 | ||||
Income tax benefit from discontinued operations of approximately $0 and $(6,000) in the fiscal years ended September 30, 2014 and 2013, respectively, is attributable to Forward UK. | ||||||||
The deferred tax expense (benefit) is the change in the deferred tax assets and liabilities representing the tax consequences of changes in the amounts of temporary differences, net operating loss carry forwards and changes in tax rates during the fiscal year. The Company’s deferred tax assets and liabilities are comprised of the following: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Net operating losses | $ | 3,338,494 | $ | 3,213,001 | ||||
Realized losses on securities | 321,557 | 304,586 | ||||||
Unrealized losses on securities | 105,139 | - | ||||||
Share-based compensation | 361,337 | 303,164 | ||||||
Alternative minimum tax credit | 99,757 | 99,757 | ||||||
Excess tax over book basis in inventory | 64,682 | 87,381 | ||||||
Other | 34,437 | 2,369 | ||||||
4,325,403 | 4,010,258 | |||||||
Valuation allowance | -4,214,813 | -3,840,958 | ||||||
Net deferred tax assets | 110,590 | 169,300 | ||||||
Deferred tax liabilities: | ||||||||
Prepaid insurance | -89,721 | -92,602 | ||||||
Unrealized gains on securities | - | -44,950 | ||||||
Excess book over tax basis in fixed assets | -20,869 | -31,748 | ||||||
-110,590 | -169,300 | |||||||
Total | $ | - | $ | - | ||||
As of September 30, 2014 and 2013, the Company has no unrecognized income tax benefits. At September 30, 2014, the Company had available total net operating loss carryforwards for U.S. federal and state income tax purposes of approximately $7,809,000 and $5,009,000, respectively, expiring through 2034, resulting in deferred tax assets in respect of U.S. Federal and state income taxes of approximately $2,655,000 and $262,000, respectively. In addition, at September 30, 2014, the Company had total available net operating loss carryforwards for foreign income tax purposes of approximately $4,796,000 resulting in a deferred tax asset of approximately $422,000, expiring through 2021. Total net deferred tax assets, before valuation allowances, was $4,215,000 and $3,841,000 at September 30, 2014 and 2013, respectively. Undistributed earnings of the Company’s foreign subsidiaries are considered to be permanently invested; therefore, in accordance with U.S. generally accepted accounting principles, no provision for U.S. Federal and state income taxes would result. As of September 30, 2014, there were no accumulated earnings of any of the Company’s foreign subsidiaries. | ||||||||
As of September 30, 2014, as part of its periodic evaluation of the necessity to maintain a valuation allowance against its deferred tax assets, and after consideration of all factors, both positive and negative (including, among others, projections of future taxable income, current year net operating loss carryforward utilization and the extent of the Company’s cumulative losses in recent years), the Company determined that, on a more likely than not basis, it would not be able to use its remaining deferred tax assets (except in respect of United States income taxes in the event the Company elects to effect the repatriation of certain foreign source income of its Swiss subsidiary, which income is currently considered to be permanently invested and for which no United States tax liability has been accrued). Accordingly, the Company has determined to maintain a full valuation allowance against its total deferred tax assets. As of September 30, 2014 and 2013, the valuation allowances were approximately $4,215,000 and $3,841,000, respectively. In the future, the utilization of the Company's net operating loss carryfowards could be subject to certain change of control limitations. If the Company determines in a future reporting period that it will be able to use some or all of its deferred tax assets, the adjustment to reduce or eliminate the valuation allowance would reduce its tax expense and increase after-tax income. Changes in deferred tax assets and valuation allowance are reflected in the “Income tax expense” line item of the Company’s consolidated statements of operations and comprehensive loss. | ||||||||
The significant elements contributing to the difference between the United States Federal statutory tax rate and the Company’s effective tax rate are as follows: | ||||||||
For The Fiscal Years Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
US federal statutory rate | 34 | % | 34 | % | ||||
State tax rate, net of federal benefit | 5 | % | 1.9 | % | ||||
Permanent differences: | ||||||||
- Share-based compensation | -0.4 | % | -20 | % | ||||
- Other | -7.4 | % | -2.8 | % | ||||
Foreign rate differential | 5 | % | -5.6 | % | ||||
Other | 10.5 | % | -2 | % | ||||
Change in valuation allowance | -46.7 | % | -8.1 | % | ||||
Income tax provision (benefit) | 0 | % | -2.6 | % | ||||
As of September 30, 2014 and 2013, the Company has not accrued any interest and penalties related to uncertain tax positions. It is the Company’s policy to recognize interest and/or penalties, if any, related to income tax matters in income tax expense in the consolidated statements of operations and comprehensive loss. For the periods presented in the accompanying consolidated statements of operations and comprehensive loss, no income tax related interest or penalties were assessed or recorded. All fiscal years prior to the fiscal year ended September 30, 2011 are closed to federal and state examination, except with respect to net operating losses generated in prior fiscal years. | ||||||||
LOSS_PER_SHARE
LOSS PER SHARE | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
NOTE 10 LOSS PER SHARE | ||||||||
Basic loss per share data for each period presented is computed using the weighted-average number of shares of common stock outstanding during each such period. Diluted loss per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of (a) shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method, (b) shares that would be issued upon the conversion of convertible preferred stock and (c) shares of non-vested restricted stock. Net loss from continuing operations per basic and diluted share for the fiscal years ended September 30, 2014 and 2013 includes preferred stock cash dividends and accretion, plus a beneficial conversion feature in the fiscal year ended September 30, 2013. | ||||||||
The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Options | 778,500 | 897,000 | ||||||
Warrants | 723,846 | 723,846 | ||||||
Convertible preferred stock | 692,919 | 692,919 | ||||||
Non-vested restricted stock | 257,581 | 371,375 | ||||||
Total potentially dilutive shares | 2,452,846 | 2,685,140 | ||||||
The calculation of basic and diluted loss per share for the fiscal years ended September 30, 2014 and 2013 was as follows: | ||||||||
For the Fiscal Years Ended September 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | -799,906 | $ | -206,886 | ||||
Preferred stock dividends, accretion and | ||||||||
beneficial conversion feature | -193,200 | -546,888 | ||||||
Net loss to common shareholders | $ | -993,106 | $ | -753,774 | ||||
Denominator: | ||||||||
Weighted average basic common shares | 8,186,926 | 8,111,226 | ||||||
Effect of dilutive securities (1) | - | - | ||||||
Weighted average diluted common shares | 8,186,926 | 8,111,226 | ||||||
Basic loss per share | $ | -0.12 | $ | -0.09 | ||||
Diluted loss per share (1) | $ | -0.12 | $ | -0.09 | ||||
(1) Due to the net loss to common shareholders in each of the years presented above, diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been antidilutive. Potentially dilutive instruments include stock options, warrants, convertible preferred stock and non-vested restricted stock. | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments Contingencies and Guarantees [Text Block] | ' | ||||
NOTE 11 COMMITMENTS AND CONTINGENCIES | |||||
Employment Agreement | |||||
An executive’s employment agreement provides for successive one-year renewal terms, unless either party provides written notice of its intention not to renew the agreement not later than 90 days prior to the end of the term (or renewal period). In the event of the termination of the executive’s employment, depending on the circumstances, the executive could be entitled to receive a severance payment which could be up to (12) twelve months of his salary, and under certain circumstances, the immediate vesting of any unvested options pursuant to applicable equity compensation plans, as well as any accrued discretionary bonus. | |||||
Guarantee Obligation | |||||
In February 2010, Forward Switzerland and its European logistics provider (freight forwarding and customs agent) entered into a Representation Agreement (the “Representation Agreement”) whereby, among other things, the European logistics provider agreed to act as Forward Switzerland's fiscal representative in The Netherlands for the purpose of providing services in connection with any value added tax matters. As part of this agreement, which succeeds a substantially similar agreement (except as to the amount and term of the undertaking) between the parties that expired June 30, 2009, Forward Switzerland agreed to provide an undertaking (in the form of a bank letter of guarantee) to the logistics provider with respect to any value added tax liability arising in The Netherlands that the logistics provider is required to pay to Dutch tax authorities on its behalf. | |||||
As of February 1, 2010, Forward Switzerland entered into a guarantee agreement with a Swiss bank relating to the repayment of any amount up to €75,000 (equal to approximately $95,000 as of September 30, 2014) paid by such bank to the logistics provider in order to satisfy such undertaking pursuant to the bank letter of guarantee. Forward Switzerland would be required to perform under the guarantee agreement only in the event that: (i) a value added tax liability is imposed on the Company's sales in The Netherlands, (ii) the logistics provider asserts that it has been called upon in its capacity as surety by the Dutch Receiver of Taxes to pay such taxes, (iii) Forward Switzerland or the Company on its behalf fails or refuses to remit the amount of value added tax due to the logistics provider upon its demand, and (iv) the logistics provider makes a drawing under the bank letter of guarantee. Under the Representation Agreement, Forward Switzerland agreed that the letter of guarantee would remain available for drawing for three years following the date that its relationship terminates with the logistics provider to satisfy any value added tax liability arising prior to expiration of the Representation Agreement but asserted by The Netherlands after expiration. | |||||
The initial term of the bank letter of guarantee expired February 28, 2011, but renews automatically for one-year periods until February 28, 2015 (as amended), unless Forward Switzerland provides the Swiss bank with written notice of termination at least 60 days prior to the renewal date. It is the intent of Forward Switzerland and the logistics provider that the bank letter of guarantee amount be adjusted annually. In consideration of the issuance of the letter of guarantee, Forward Switzerland has granted the Swiss bank a security interest in all of its assets on deposit with, held by, or credited to Forward Switzerland’s accounts with, the Swiss bank (approximately $1,741,000 at September 30, 2014). As of September 30, 2014, the Company had not incurred a liability in connection with this guarantee. | |||||
Lease Commitments | |||||
The Company rents certain of its facilities under leases expiring at various dates through September 2020. Total rent expense included in continuing operations for the years ended September 30, 2014 and 2013, amounted to approximately $179,000 and $252,000 (net of $185,000 and $46,000 of rental income from a sub-lease), respectively. The following table summarizes the future minimum lease payments required under these leases (exclusive of future minimum sublease rental receipts in the aggregate of approximately $397,000 due under non-cancelable subleases). | |||||
Fiscal Years Ended September 30, | Amount | ||||
2015 | $ | 268,000 | |||
2016 | 267,000 | ||||
2017 | 85,000 | ||||
2018 | 87,000 | ||||
2019 | 90,000 | ||||
Thereafter | 93,000 | ||||
Total lease commitments | $ | 890,000 | |||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 12 RELATED PARTY TRANSACTIONS | |
New York Office Rent | |
On February 1, 2014, the Company began leasing office space in New York, New York for its Chief Executive Officer at a rate of $2,500 per month from LaGrange Capital Administration, L.L.C. (“LCA”). Frank LaGrange Johnson, the Company’s Chairman of the Board, serves as the Managing Member of LCA. This lease is month-to-month and is cancellable by either the Company or LCA at any time. Effective April 1, 2014, LCA increased the monthly rental charge (inclusive of rent, allocable share of office assistant, and equipment leases) from $2,500 to approximately $12,700 per month. During the fiscal year ended September 30, 2014, the Company recognized approximately $81,000 of rent expense related to the New York office. | |
Buying Agency and Supply Agreement | |
On March 12, 2012, the Company, entered into a Buying Agency and Supply Agreement (the “Agreement”) with Forward Industries Asia-Pacific Corporation (f/k/a Seaton Global Corporation), a British Virgin Islands corporation (“Forward China”). On March 13, 2014, the Company entered into Amendment No. 1 to the Sourcing Agreement with Forward China, dated as of March 11, 2014. The Agreement, as amended, provides that, upon the terms and subject to the conditions set forth therein, Forward China will act as the Company’s exclusive buying agent and supplier of Products (as defined in the Agreement) in the Asia Pacific region. The Company purchases products at Forward China’s cost and pays a service fee to Forward China. The service fee is calculated at $100K monthly plus 4% of “Adjusted Gross Profit.” “Adjusted Gross Profit” gross profit is defined as the selling price less the cost from Forward China. The Agreement, as amended, terminates on March 11, 2015, subject to renewal. Terence Bernard Wise, a director of the Company, is a principal of Forward China. In addition, Jenny P. Yu, a Managing Director of Forward China, owns shares of the Company’s common stock. The Company incurred approximately $1,406,000 and $1,292,000, respectively, during the fiscal years ended September 30, 2014 and 2013, in service fees paid to Forward China, which are included as a component of costs of goods sold in continuing operations in the accompanying consolidated statements of operations and comprehensive loss. | |
Investment Management Agreement | |
On April 16, 2013, the Company entered into an Investment Management Agreement (the “Investment Management Agreement”) with LCA, pursuant to which the Company retained LCA to manage certain investment accounts funded by the Company (collectively, the “Account”). Frank LaGrange Johnson, the Company’s Chairman of the Board, serves as the Managing Member of LCA. | |
Pursuant to the Investment Management Agreement, LCA is authorized, subject to supervision of the Investment Committee of the Board and the terms and conditions of the Investment Management Agreement, to take all actions and make all decisions regarding the investment and reinvestment of the assets of the Account utilizing the Investment Strategy (as defined in the Investment Management Agreement). As compensation for its services to the Company, LCA shall be entitled to advisory fees, comprised of an asset-based fee and a performance fee, as provided in the Investment Management Agreement. The asset-based fee will equal 1% per annum of the average Account Net Asset Value (“Account NAV”). The performance fee will equal 20% of the increase (if any) in the Account NAV over an annual period. No performance fee will be payable for any annual period in which the Account NAV at the end of such annual period is below the highest Account NAV at the end of any previous annual period. In addition to such advisory fees, the Company will reimburse LCA for certain investment and operational expenses. Under the Investment Management Agreement, the Company or its designees may make cash withdrawals from the Account on March 31, June 30, September 30 or December 31 of each year upon 45 days’ prior written notice to LCA; provided, that, in the event of a breach of certain terms of the Investment Management Agreement, the Company may make a complete cash withdrawal from the Account immediately without LCA’s consent. During the fiscal years ended September 30, 2014 and 2013, the Company recognized approximately $12,000 and $13,000, respectively, of expense in continuing operations in its consolidated statements of operations and comprehensive loss related to asset based advisory fees. The Company has not recorded any expense related to performance based advisory fees during the fiscal years ended September 30, 2014 and 2013. | |
The Investment Management Agreement is effective as of February 1, 2013 and shall continue until the second anniversary of the effective date. Thereafter, the term of the Investment Management Agreement shall automatically renew for additional one year terms unless terminated in accordance with the terms of the Investment Management Agreement or if a party provides notice to the other party no less than 60 days prior to the end of a term of its decision to terminate the Investment Management Agreement at the end of the then current term. | |
The amount of new funds invested with LCA during the fiscal years ended September 30, 2014 and 2013 were $0 and $1,200,000, respectively. | |
During the fiscal years ended September 30, 2014 and 2013, the Company purchased approximately $5,800,000 and $88,600,000 of marketable securities, respectively. During the fiscal years ended September 30, 2014 and 2013, the Company sold approximately $5,600,000 and $87,300,000 of marketable securities, respectively. As a result of these activities, the Company recognized approximately $247,000 and $722,000 of net investment losses during the fiscal years ended September 30, 2014 and 2013, respectively. | |
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Sep. 30, 2014 | |
Legal Matters and Contingencies [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
NOTE 13 LEGAL PROCEEDINGS | |
From time to time, the Company may become a party to other legal actions or proceedings in the ordinary course of its business. As of September 30, 2014, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely to the Company’s interests, the Company believes would be material to its business. | |
On July 15, 2014, Terence Bernard Wise, a director of the Company, filed a derivative complaint in the Supreme Court of the State of New York, New York County, against directors Frank LaGrange Johnson, Robert Garrett, and John F. Chiste and then-directors (now former directors) Timothy Gordon and Owen P.J. King, also naming the Company as a nominal defendant, alleging breaches of fiduciary duty and seeking declaratory and injunctive relief (both preliminary and final), including a temporary restraining order (“TRO”), that would have prevented the Board of the Company from voting on proposals to raise capital or engage in any extraordinary transactions. The court rejected Mr. Wise’s request for a TRO and Mr. Wise then withdrew his request for preliminary injunctive relief. Mr. Wise then amended his complaint to add allegations of breach of fiduciary duties under various provisions of New York’s Business Corporation Law. On December 4, 2014, Mr. Wise brought a new application to the court, once again seeking a TRO and a preliminary injunction that would enjoin his fellow Company directors from causing the Company to issue any Series B Senior Convertible Preferred Stock (the “Preferred Stock”), or take any antecedent or preparatory steps to effectuate such issuance, prior to the Company’s 2014 annual meeting of shareholders (the “2014 Annual Meeting”). The court granted the TRO, in part, by prohibiting the Company from issuing—but not from taking antecedent or preparatory steps to issue—such Preferred Stock prior to December 8, 2014. At a hearing on December 8, 2014, the court then granted Mr. Wise’s motion for a preliminary injunction, enjoining the Company’s issuance of the Preferred Stock prior to the Company’s 2014 Annual Meeting. On December 8, 2014, the Company filed a notice of appeal of the court’s order to the Supreme Court of the State of New York, Appellate Division, First Department. On December 9, 2014, the Company moved, before such appellate court, to vacate the lower court’s injunction, which motion has not yet been decided.. The case otherwise remains pending before the lower court. | |
On July 16, 2014, the Company filed a lawsuit in the U.S. District Court for the Southern District of New York against Mr. Wise and his long-time business partner, Jenny P. Yu, alleging multiple violations of federal securities laws, including the filing with the Commission of deceptive and misleading Schedules 13D and proxy solicitation materials. Specifically, the Company alleged that Mr. Wise and Ms. Yu have been acting as an improperly undisclosed “group” engaged in an effort to replace the entire Board with Mr. Wise’s hand-picked candidates. The Company’s lawsuit seeks expedited injunctive and declaratory relief that would require Mr. Wise and Ms. Yu to comply with the federal securities laws and submit corrected, accurate disclosures in advance of any vote by the Company’s shareholders. On September 20, 2014, the Court granted Wise’s and Yu’s respective motions to dismiss the case, after which the Company filed an appeal to the United States Court of Appeals for the Second Circuit. The Company’s appeal currently is pending before the Court of Appeals. | |
On August 26, 2014, James McKenna, the Company’s former Chief Financial Officer, filed a lawsuit in the U.S. District Court for the Southern District of New York against the Company and directors Frank LaGrange Johnson, Robert Garrett and John F. Chiste and then-directors (now former directors) Timothy Gordon and Owen P.J. King, alleging purported claims of retaliation for whistleblowing under the Dodd-Frank Act, breach of contract and breach of the covenant of good faith and fair dealing all as against the Company, and a single claim for tortious interference with contract as against the individual defendants. The complaint seeks an unspecified amount of monetary consequential damages and punitive damages. The case currently is pending before the court. | |
401K_PLAN
401(K) PLAN | 12 Months Ended |
Sep. 30, 2014 | |
Postemployment Benefits [Abstract] | ' |
Postemployment Benefits Disclosure [Text Block] | ' |
NOTE 14 401(K) PLAN | |
The Company maintains a 401(k) benefit plan allowing eligible United States-based employees to contribute a portion of their salary in an amount up to the annual maximum amounts as set periodically by the Internal Revenue Service. There were no matching contributions during the fiscal year ended September 30, 2013. In accordance with applicable Safe Harbor provisions, the Company made matching contributions related to its continuing operations for the fiscal year ended September 30, 2014 of approximately $69,000, which are reflected in the accompanying consolidated statements of operations and comprehensive loss. The Company’s contributions vest immediately. | |
OPERATING_SEGMENT_INFORMATION
OPERATING SEGMENT INFORMATION | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||
NOTE 15 OPERATING SEGMENT INFORMATION | ||||||||||
The Company reports and manages its continuing operations based on a single operating segment: the design and distribution of carry and protective solutions, primarily for hand held electronic devices. Products designed and distributed by this segment include carrying cases and other accessories for medical monitoring and diagnostic kits, portable consumer electronic devices (such as smartphones, tablets, personnel computers, notebooks, and GPS devices), and a variety of other portable electronic and non-electronic products (such as firearms, sporting, and other recreational products). This segment operates in geographic regions that include primarily APAC, the Americas, and EMEA. Geographic regions are defined by reference primarily to the location of the customer or its contract manufacturer. | ||||||||||
On June 21, 2012, the Company determined to wind down its Retail segment and focus solely on growing its OEM business. The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong net sales growth and cost rationalizations in the OEM business. The Company has substantially completed its exit of its Retail business. | ||||||||||
Revenues from External Customers | ||||||||||
The following table presents net sales by geographic region. | ||||||||||
(dollars in thousands) | ||||||||||
Fiscal Years Ended September 30, | ||||||||||
2014 | 2013 | |||||||||
Americas: | ||||||||||
United States | $ | 9,382 | $ | 9,424 | ||||||
Other | 467 | 1,538 | ||||||||
Total Americas | 9,849 | 10,962 | ||||||||
APAC Region: | ||||||||||
Hong Kong | 8,608 | 7,491 | ||||||||
Other | 3,043 | 3,273 | ||||||||
Total APAC | 11,651 | 10,764 | ||||||||
EMEA Region: | ||||||||||
Germany | 7,238 | 5,097 | ||||||||
Poland | 3,955 | 3,525 | ||||||||
Other | 667 | 563 | ||||||||
Total Europe | 11,860 | 9,185 | ||||||||
Total net sales | $ | 33,360 | $ | 30,911 | ||||||
Long-Lived Assets (Net of Accumulated Depreciation and Amortization) | ||||||||||
Identifiable long-lived assets, consisting predominately of property, plant and equipment, were located in the Americas at September 30, 2014 and 2013. | ||||||||||
Supplier Concentration | ||||||||||
The Company procures substantially all its supply of carrying solutions products from independent suppliers in China through Forward China. Depending on the product, the Company may require several different suppliers to furnish component parts or pieces. The Company purchased approximately 94% and 90% of its OEM products from four such suppliers in Fiscal 2014 and 2013, respectively. The approximate percentages of purchases of OEM products from each of these four suppliers with respect to continuing operations for Fiscal 2014 and Fiscal 2013 are as follows: | ||||||||||
Fiscal Year Ended September 30, | ||||||||||
2014 | 2013 | |||||||||
Supplier: | ||||||||||
OEM Supplier A | 66 | % | 0 | % | ||||||
OEM Supplier B | 20 | % | 50 | % | ||||||
OEM Supplier C | 5 | % | 19 | % | ||||||
OEM Supplier D | 3 | % | 14 | % | ||||||
OEM Supplier E | 1 | % | 9 | % | ||||||
Totals | 95 | % | 92 | % | ||||||
Major Customers | ||||||||||
The following customers or their affiliates or contract manufacturers accounted for more than ten percent of the Company’s net sales, by geographic region. | ||||||||||
Fiscal Year Ended September 30, 2014 | ||||||||||
Americas | APAC Region | EMEA Region | Total Company | |||||||
Diabetic Customer A | - | % | 87 | % | 4 | % | 27 | % | ||
Diabetic Customer B | 24 | % | 3 | % | 19 | % | 14 | % | ||
Diabetic Customer C | 24 | % | - | % | 58 | % | 24 | % | ||
Diabetic Customer D | 14 | % | 2 | % | 22 | % | 11 | % | ||
Fiscal Year Ended September 30, 2013 | ||||||||||
Americas | APAC Region | EMEA Region | Total Company | |||||||
Diabetic Customer A | - | % | 70 | % | 1 | % | 24 | % | ||
Diabetic Customer B | 21 | % | 3 | % | 15 | % | 13 | % | ||
Diabetic Customer C | 24 | % | - | % | 51 | % | 24 | % | ||
Diabetic Customer D | 18 | % | 2 | % | 24 | % | 14 | % | ||
Four customers (including their affiliates or contract manufacturers) accounted for approximately 77% and 73% of the Company's accounts receivable at September 30, 2014 and 2013, respectively. | ||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 16 SUBSEQUENT EVENTS | |
Stock Repurchase | |
In November 2014, the Company repurchased and retired an aggregate of 10,340 shares of its outstanding Common Stock at a cost of approximately $12,000, in connection with the vesting of employee restricted stock awards, wherein certain employees surrendered a portion of their award in order to fund certain tax withholding obligations. | |
Legal Proceedings | |
On November 13, 2014, the Company filed a lawsuit in the Supreme Court of the State of New York, Kings County, against Terence Bernard Wise, a director of the Company, and the following six individuals whom Mr. Wise claims that he has purportedly nominated to stand for election as directors at the Company’s Annual Meeting: Howard Morgan, Michael Luetkemeyer, Eric Freitag, Sangita Shah, N. Scott Fine, and Darryl Keyes. The Company’s complaint seeks a judicial declaration that Mr. Wise’s purported nominations are invalid, as they were not received within the timeframe expressly provided by the Company’s Bylaws for such nominations. The complaint also seeks injunctive relief from the court, enjoining Mr. Wise from soliciting proxies for his purported nominees to stand for election as directors at the 2014 annual meeting of shareholders. At a hearing on December 1, 2014, the court denied the Company’s request for preliminary injunctive relief. On December 2, 2014, the Company filed a notice of appeal of the court’s order to the Supreme Court of the State of New York, Appellate Division, Second Department and on December 3, 2014, the Company moved before such appellate court for the preliminary injunctive relief denied below. That motion remains pending, as does the case before the lower court. | |
Restricted Stock | |
Subsequent to September 30, 2014, as a result of the resignation of two directors of the Company, an aggregate of 30,000 shares of restricted stock were forfeited. On December 5, 2014, the Board granted an aggregate of 30,000 shares of restricted stock to two new directors of the Company. | |
Treasury Stock Retirement | |
On December 5, 2014, the Board of Directors approved the retirement of 706,410 shares of treasury stock. | |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
Accounting Estimates | |
The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. | |
Basis Of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US and Forward Switzerland; Forward HK and Forward UK are inactive). All significant intercompany transactions and balances have been eliminated in consolidation. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist primarily of cash on deposit and highly liquid money market accounts, short-term bonds, and certificates of deposit with original contractual maturities of three months or less, predominately in U.S. dollar denominated instruments. The Company may purchase these short-term bonds with anticipated maturity of 90 days or less at a premium or discount. The Company records these investments as cash and cash equivalents net of amortization of premium or discount. The Company minimizes its credit risk associated with cash and cash equivalents by investing in high quality instruments and by periodically evaluating the credit quality of the primary financial institution issuers of such instruments. The Company holds cash and cash equivalents at major financial institutions in the United States, at which cash amounts may significantly exceed the Federal Deposit Insurance Corporation’s insured limits. At September 30, 2014 and 2013, this amount was approximately $6.3 million (which includes $1.7 million in a foreign bank) and $6.5 million (which includes $1.4 million in a foreign bank), respectively. Historically, the Company has not experienced any losses due to such cash concentrations. | |
Marketable Securities, Policy [Policy Text Block] | ' |
Marketable Securities | |
At September 30, 2014 and 2013, the Company has investments in marketable securities that are classified as trading and are recorded at fair value with the corresponding unrealized holding gains or losses recognized in earnings. The fair value of marketable securities is determined based on quoted market prices. The cost of marketable securities sold is determined by the specific identification method. The Company classifies its realized and unrealized gains and losses as non-operating income (expense) in its consolidated statements of operations and comprehensive loss. In addition, the Company classifies the cash flows from the trading of these marketable securities as investing activities in its consolidated statements of cash flows. | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' |
Accounts Receivable | |
Accounts receivable consist of unsecured trade accounts with customers or their contract manufacturers. The Company performs periodic credit evaluations of its customers including an evaluation of days outstanding, payment history, recent payment trends, and perceived creditworthiness, and believes that adequate allowances for any uncollectible receivables are maintained. Credit terms to customers generally range from net thirty (30) days to net one hundred and twenty (120) days. The Company has not historically experienced significant credit or collection problems with its OEM customers or their contract manufacturers. At September 30, 2014 and 2013, no allowance for doubtful accounts relating to the Company’s continuing operations was deemed necessary. | |
Inventory, Policy [Policy Text Block] | ' |
Inventories | |
Inventories consist primarily of finished goods and are stated at the lower of cost (determined by the first-in, first-out method) or market. Based on management’s estimates, an allowance is made to reduce excess, obsolete, or otherwise un-saleable inventories to net realizable value. The allowance is established through charges to cost of goods sold in the Company’s consolidated statements of operations and comprehensive loss. As reserved inventory is disposed of, the Company charges off the associated allowance. In determining the adequacy of the allowance, management’s estimates are based upon several factors, including analyses of inventory levels, historical loss trends, sales history and projections of future sales demand. The Company’s estimates of the allowance may change from time to time based on management’s assessments, and such changes could be material. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property and Equipment | |
Property and equipment consist of furniture, fixtures, and equipment and leasehold improvements and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful life for furniture, fixtures and equipment ranges from three to ten years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. For the fiscal years ended September 30, 2014 and 2013, the Company recorded approximately $64,000 and $75,000 of depreciation and amortization expense from continuing operations, respectively. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
The Company accounts for its income taxes in accordance with accounting principles generally accepted in the United States of America, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carry-forwards to the extent that realization of these benefits is more likely than not. The Company periodically evaluates the realizability of its net deferred tax assets. See Note 9 to these Notes to Consolidated Financial Statements. The Company’s policy is to account for interest and penalties relating to income taxes, if any, in “income tax expense” in its consolidated statements of operations and comprehensive loss and include accrued interest and penalties within “accrued liabilities” in its consolidated balance sheets, if applicable. For fiscal years ended September 30, 2014 and 2013, no income tax related interest or penalties were assessed or recorded. | |
Stockholders' Equity Note, Redeemable Preferred Stock, Issue, Policy [Policy Text Block] | ' |
6% Senior Convertible Preferred Stock | |
Temporary Equity | |
The 6% Senior Convertible Preferred Stock has been classified as temporary equity in accordance with Accounting Standards Codification (“ASC”) 480-10-s99 - Distinguishing Liabilities from Equity – Overall – SEC Materials and Accounting Series Release (“ASR”) 268 – Presentation in Financial Statements of “Redeemable Preferred Stock”, as the redemption feature is not solely within the control of the Company. | |
Warrants | |
In accordance with ASC 815-40 – Derivatives and Hedging – Contracts in Entity’s Own Equity, the Company’s warrants were initially classified as a liability, at fair value, as a result of a related registration rights agreement that contained certain requirements for registering the underlying common shares, but has no provision for penalties upon the failure to register. At each consolidated balance sheet date, this liability’s fair value was re-measured and adjusted with the corresponding change in fair value recorded in the consolidated statements of operations and comprehensive loss. After the Company met the requirements for registering the underlying common shares in the fiscal year ended September 30, 2014, the warrants were reclassified to equity (additional paid-in capital). The liability associated with the warrants was included in “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheet at September 30, 2013. | |
Preferred Stock Accretion | |
The carrying amount of the convertible preferred stock is less than the redemption value. As a result of the Company’s determination that redemption is probable, the carrying value will be increased by periodic accretions so that the carrying value will equal the redemption amount at the earliest redemption date. Such accretion is recorded as a preferred stock dividend. | |
Preferred Stock Beneficial Conversion Feature | |
On the date of issuance, the fair value, or carrying amount, of preferred stock was convertible into common stock at a discount to the market price of the underlying common stock at the conversion date. Such embedded “beneficial conversion feature”, which was equal to the difference between the accounting conversion price and the fair value of the common stock, is analogous to a dividend and was recorded as a return to preferred shareholders as of the date of issuance, which was the earliest possible conversion date. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
The Company generally recognizes revenue from product sales to its customers when: (1) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (2) persuasive evidence of an arrangement exists; (3) the Company has no continuing obligations to the customer; and (4) collection of the related accounts receivable is reasonably assured. | |
Shipping and Handling Cost, Policy [Policy Text Block] | ' |
Shipping and Handling Costs | |
The Company classifies shipping and handling costs, including inbound and outbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs, as a component of cost of goods sold in the accompanying consolidated statements of operations and comprehensive loss. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
Foreign Currency Transactions | |
Foreign currency transactions may generate receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in “other income (expense), net” in the accompanying consolidated statements of operations and comprehensive loss. The approximate net losses from foreign currency transactions for continuing operations was approximately $28,000 and $16,000 for the fiscal years ended September 30, 2014 and 2013, respectively. Such foreign currency transaction losses were primarily the result of Euro denominated sales to certain customers. | |
Accumulated And Other Comprehensive Income [Policy Text Block] | ' |
Accumulated Other Comprehensive Loss | |
Accumulated other comprehensive loss as of September 30, 2014 and 2013, which is included as a component of shareholders’ equity, represents translation adjustments related to the Company’s foreign subsidiaries. | |
Fair Value Of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments | |
For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and other accrued liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments. The Company records its financial instruments that are accounted for under ASC 320, “Investments-Debt and Equity Securities” (“ASC 320”) at fair value. In addition, the Company recorded its warrant liability at fair value, prior to its reclassification to equity. The determination of fair value is based upon the fair value framework established by ASC 820 “Fair Value Measurement”. ASC 820 provides that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable; either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable, thus, reflecting assumptions about the market participants. | |
Share-Based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Share-Based Payment Expense | |
The Company recognizes employee and director share-based compensation in its consolidated statements of operations and comprehensive loss at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 8 – Share Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This ASU addresses the requirements regarding the financial statement presentation of an unrecognized tax benefit within ASC Topic 740 for the purpose of providing consistency between the financial reporting of U.S. GAAP entities. Generally, this ASU provides guidance for the preparation of financial statements and disclosures when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2013 and is not expected to have a material impact on the Company’s consolidated financial statements or disclosures. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605 - Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC Topic No. 718, "Compensation - Stock Compensation" as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company does not anticipate that the adoption of ASU 2014-12 will have a material impact on its consolidated financial statements. | |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Schedule Of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||
Summarized operating results of discontinued operations are presented in the following table: | ||||||||
For the Fiscal Years Ended September 30, | ||||||||
2014 | 2013 | |||||||
Net sales | $ | - | $ | 655,658 | ||||
Gross (loss) profit | -9,700 | 181,039 | ||||||
Operating expenses | -316,404 | -406,297 | ||||||
Other income | 70 | 6,935 | ||||||
Loss from discontinued operations, net of | ||||||||
tax benefit of $0 and $(6,002), respectively | $ | -326,034 | $ | -212,321 | ||||
Summarized assets and liabilities of discontinued operations are presented in the following table: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Accounts receivable | $ | - | $ | 280,034 | ||||
Prepaid assets and other current assets | 39 | 59,348 | ||||||
Total assets of discontinued operations | $ | 39 | $ | 339,382 | ||||
Accounts payable | $ | 3,396 | $ | 25,438 | ||||
Total liabilities of discontinued operations | $ | 3,396 | $ | 25,438 | ||||
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||
Marketable Securities [Table Text Block] | ' | |||||||||||||
The Company’s marketable securities are summarized in the table below: | ||||||||||||||
For the Fiscal Years Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Trading: | ||||||||||||||
Cost | $ | 1,320,816 | $ | 954,053 | ||||||||||
Unrealized gains | 48,560 | 174,940 | ||||||||||||
Unrealized losses | -318,146 | -48,246 | ||||||||||||
Total fair value | $ | 1,051,230 | $ | 1,080,747 | ||||||||||
Fair Value, Assets Measured On Recurring Basis [Table Text Block] | ' | |||||||||||||
The following table presents the Company’s fair value hierarchy for assets, consisting of marketable securities, measured at fair value on a recurring basis at September 30, 2014 and 2013: | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Equity securities | $ | 1,051,230 | $ | - | $ | - | $ | 1,051,230 | ||||||
Total assets at fair value at September 30, 2014 | $ | 1,051,230 | $ | - | $ | - | $ | 1,051,230 | ||||||
Equity securities | $ | 1,080,747 | $ | - | $ | - | $ | 1,080,747 | ||||||
Total assets at fair value at September 30, 2013 | $ | 1,080,747 | $ | - | $ | - | $ | 1,080,747 | ||||||
PROPERTY_AND_EQUIPMENTTables
PROPERTY AND EQUIPMENT(Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property and equipment and related accumulated depreciation and amortization of continuing operations are summarized in the table below: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Furniture, fixtures and equipment | $ | 436,120 | $ | 404,871 | ||||
Leasehold improvements | 99,854 | 97,618 | ||||||
Property and equipment, cost | 535,974 | 502,489 | ||||||
Less: accumulated depreciation and amortization | -436,984 | -372,502 | ||||||
Property and equipment, net | $ | 98,990 | $ | 129,987 | ||||
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ' | |||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | |||||||
Accrued expenses and other current liabilities of continuing operations are summarized in the table below: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Warrants, net of unamortized transaction cost of $29,452 | $ | - | $ | 463,671 | ||||
Personnel cost | 277,430 | 372,766 | ||||||
Taxes | - | 44,128 | ||||||
Professional fees | 32,762 | 11,000 | ||||||
Accrued legal settlement | 150,000 | 139,500 | ||||||
Other | 88,323 | 164,495 | ||||||
Accrued expenses and other current liabilities | $ | 548,515 | $ | 1,195,560 | ||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Stockholders Equity Note [Abstract] | ' | |||||||||||||
Schedule Of Stockholders Equity [Table Text Block] | ' | |||||||||||||
The fair value of the Warrants was determined using a Black-Scholes closed-form call option pricing model, which is considered a level 3 instrument under the fair value hierarchy. The fair value of the Warrants were estimated using the following weighted average assumptions during the fiscal years ended September 30, 2014 and 2013: | ||||||||||||||
Fiscal Years Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Risk free interest rate | 2.7 | % | 2.6 | % | ||||||||||
Expected term (years) | 9.8 | 10.3 | ||||||||||||
Expected volatility | 32.9 | % | 30 | % | ||||||||||
Expected dividends | 0 | % | 0 | % | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||
The change in the fair value of the convertible preferred stock warrant liability (net of issuance costs) for the years ended September 30, 2014 and 2013 is summarized below: | ||||||||||||||
Warrant Liabilities | ||||||||||||||
Balance - September 30, 2012 | $ | - | ||||||||||||
Issuance of convertible preferred stock warrant | 542,741 | |||||||||||||
Change in fair value | -49,618 | |||||||||||||
Balance - September 30, 2013 | 493,123 | |||||||||||||
Change in fair value | 136,258 | |||||||||||||
Reclassification of warrants to equity | -629,381 | |||||||||||||
Balance - September 30, 2014 | $ | - | ||||||||||||
Schedule Of Fair Value Hierarchy For Liabilities Consisting Of Warrant Liability Measured At Fair Value Prior To Issuance Costs [Table Text Block] | ' | |||||||||||||
The following table presents the Company’s fair value hierarchy for warrant liabilities measured at fair value and prior to issuance costs, on a recurring basis at September 30, 2013: | ||||||||||||||
As of September 30, 2013 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Liabilities: | ||||||||||||||
Warrant liabilities | $ | - | $ | - | $ | 493,123 | $ | 493,123 | ||||||
Total liabilities | $ | - | $ | - | $ | 493,123 | $ | 493,123 | ||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule Of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||
The fair value of each stock option on the date of grant was estimated using a Black-Scholes option-pricing formula applying the following assumptions for each respective period: | ||||||||||||||
Fiscal Years Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Risk free interest rate | 1.86 | % | 0.06% to 0.70 | % | ||||||||||
Expected term (years) | 6 | 5 | ||||||||||||
Expected volatility | 63.2 | % | 70% to 70.4 | % | ||||||||||
Expected dividends | 0 | % | 0 | % | ||||||||||
Estimated annual forfeiture rate | 10 | % | 0% to 10 | % | ||||||||||
Schedule Of Share-Based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||
The following table summarizes stock option activity during the fiscal years ended September 30, 2014 and 2013: | ||||||||||||||
Weighted | ||||||||||||||
Weighted | Average | |||||||||||||
Average | Remaining | |||||||||||||
Number of | Exercise | Life | Intrinsic | |||||||||||
Options | Price | In Years | Value | |||||||||||
Outstanding, September 30, 2012 | 1,142,000 | $ | 3.31 | |||||||||||
Granted | 120,000 | 3.14 | ||||||||||||
Exercised | - | - | ||||||||||||
Forfeited | -365,000 | 3.43 | ||||||||||||
Outstanding, September 30, 2013 | 897,000 | $ | 3.24 | |||||||||||
Granted | 32,500 | 1.59 | ||||||||||||
Exercised | - | - | ||||||||||||
Forfeited | -151,000 | 3.5 | ||||||||||||
Outstanding, September 30, 2014 | 778,500 | $ | 2.7 | 5.4 | $ | 12,000 | ||||||||
Exercisable, September 30, 2014 | 642,582 | $ | 2.96 | 4.5 | $ | 6,000 | ||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||
The table below provides additional information regarding stock option awards that were outstanding and exercisable at September 30, 2014: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Weighted | ||||||||||||||
Outstanding | Average | Exercisable | ||||||||||||
Exercise | Number of | Remaining Life | Number of | |||||||||||
Price | Options | In Years | Options | |||||||||||
$1.23 to $1.80 | 105,000 | 7.1 | 80,000 | |||||||||||
$2.02 to $2.85 | 271,000 | 2 | 268,000 | |||||||||||
$3.00 to $3.79 | 322,500 | 6.5 | 264,582 | |||||||||||
$5.31 | 50,000 | - | - | |||||||||||
$6.02 | 20,000 | 1.6 | 20,000 | |||||||||||
$15.91 | 10,000 | 0.6 | 10,000 | |||||||||||
778,500 | 642,582 | |||||||||||||
Schedule Of Share-Based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | |||||||||||||
The following table summarizes restricted stock activity during the fiscal years ended September 30, 2014 and 2013: | ||||||||||||||
Weighted | ||||||||||||||
Average | Total | |||||||||||||
Number of | Grant Date | Grant Date | ||||||||||||
Shares | Fair Value | Fair Value | ||||||||||||
Non-vested, September 30, 2012 | 7,500 | $ | 2.02 | $ | 15,150 | |||||||||
Granted | 371,375 | 1.16 | 430,795 | |||||||||||
Vested | -7,500 | 2.02 | -15,150 | |||||||||||
Forfeited | - | - | - | |||||||||||
Non-vested, September 30, 2013 | 371,375 | $ | 1.16 | $ | 430,795 | |||||||||
Granted | 95,000 | 1.59 | 151,450 | |||||||||||
Vested | -123,794 | 1.16 | -143,601 | |||||||||||
Forfeited | -85,000 | 1.16 | -98,600 | |||||||||||
Non-vested, September 30, 2014 | 257,581 | $ | 1.32 | $ | 340,044 | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule Of Components Of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||
The Company’s provision (benefit) for income taxes consists of the following United States federal and state, and foreign components: | ||||||||
For The Fiscal Years Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Current: | ||||||||
Federal | $ | - | $ | - | ||||
State | - | 75 | ||||||
Foreign | - | -5,570 | ||||||
Deferred: | ||||||||
Federal | -364,106 | 89,832 | ||||||
State | -21,418 | -107,296 | ||||||
Foreign | 11,669 | -5,598 | ||||||
-373,855 | -28,557 | |||||||
Change in valuation allowance | 373,855 | 23,062 | ||||||
Income tax provision (benefit) | $ | - | $ | -5,495 | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
The Company’s deferred tax assets and liabilities are comprised of the following: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Net operating losses | $ | 3,338,494 | $ | 3,213,001 | ||||
Realized losses on securities | 321,557 | 304,586 | ||||||
Unrealized losses on securities | 105,139 | - | ||||||
Share-based compensation | 361,337 | 303,164 | ||||||
Alternative minimum tax credit | 99,757 | 99,757 | ||||||
Excess tax over book basis in inventory | 64,682 | 87,381 | ||||||
Other | 34,437 | 2,369 | ||||||
4,325,403 | 4,010,258 | |||||||
Valuation allowance | -4,214,813 | -3,840,958 | ||||||
Net deferred tax assets | 110,590 | 169,300 | ||||||
Deferred tax liabilities: | ||||||||
Prepaid insurance | -89,721 | -92,602 | ||||||
Unrealized gains on securities | - | -44,950 | ||||||
Excess book over tax basis in fixed assets | -20,869 | -31,748 | ||||||
-110,590 | -169,300 | |||||||
Total | $ | - | $ | - | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
The significant elements contributing to the difference between the United States Federal statutory tax rate and the Company’s effective tax rate are as follows: | ||||||||
For The Fiscal Years Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
US federal statutory rate | 34 | % | 34 | % | ||||
State tax rate, net of federal benefit | 5 | % | 1.9 | % | ||||
Permanent differences: | ||||||||
- Share-based compensation | -0.4 | % | -20 | % | ||||
- Other | -7.4 | % | -2.8 | % | ||||
Foreign rate differential | 5 | % | -5.6 | % | ||||
Other | 10.5 | % | -2 | % | ||||
Change in valuation allowance | -46.7 | % | -8.1 | % | ||||
Income tax provision (benefit) | 0 | % | -2.6 | % | ||||
LOSS_PER_SHARE_Tables
LOSS PER SHARE (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | |||||||
The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: | ||||||||
As of September 30, | ||||||||
2014 | 2013 | |||||||
Options | 778,500 | 897,000 | ||||||
Warrants | 723,846 | 723,846 | ||||||
Convertible preferred stock | 692,919 | 692,919 | ||||||
Non-vested restricted stock | 257,581 | 371,375 | ||||||
Total potentially dilutive shares | 2,452,846 | 2,685,140 | ||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The calculation of basic and diluted loss per share for the fiscal years ended September 30, 2014 and 2013 was as follows: | ||||||||
For the Fiscal Years Ended September 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | -799,906 | $ | -206,886 | ||||
Preferred stock dividends, accretion and | ||||||||
beneficial conversion feature | -193,200 | -546,888 | ||||||
Net loss to common shareholders | $ | -993,106 | $ | -753,774 | ||||
Denominator: | ||||||||
Weighted average basic common shares | 8,186,926 | 8,111,226 | ||||||
Effect of dilutive securities (1) | - | - | ||||||
Weighted average diluted common shares | 8,186,926 | 8,111,226 | ||||||
Basic loss per share | $ | -0.12 | $ | -0.09 | ||||
Diluted loss per share (1) | $ | -0.12 | $ | -0.09 | ||||
(1) Due to the net loss to common shareholders in each of the years presented above, diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been antidilutive. Potentially dilutive instruments include stock options, warrants, convertible preferred stock and non-vested restricted stock. | ||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
The following table summarizes the future minimum lease payments required under these leases (exclusive of future minimum sublease rental receipts in the aggregate of approximately $397,000 due under non-cancelable subleases). | |||||
Fiscal Years Ended September 30, | Amount | ||||
2015 | $ | 268,000 | |||
2016 | 267,000 | ||||
2017 | 85,000 | ||||
2018 | 87,000 | ||||
2019 | 90,000 | ||||
Thereafter | 93,000 | ||||
Total lease commitments | $ | 890,000 | |||
OPERATING_SEGMENT_INFORMATION_
OPERATING SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Schedule Of Segment Reporting Information, By Segment [Table Text Block] | ' | |||||||||
The following table presents net sales by geographic region. | ||||||||||
(dollars in thousands) | ||||||||||
Fiscal Years Ended September 30, | ||||||||||
2014 | 2013 | |||||||||
Americas: | ||||||||||
United States | $ | 9,382 | $ | 9,424 | ||||||
Other | 467 | 1,538 | ||||||||
Total Americas | 9,849 | 10,962 | ||||||||
APAC Region: | ||||||||||
Hong Kong | 8,608 | 7,491 | ||||||||
Other | 3,043 | 3,273 | ||||||||
Total APAC | 11,651 | 10,764 | ||||||||
EMEA Region: | ||||||||||
Germany | 7,238 | 5,097 | ||||||||
Poland | 3,955 | 3,525 | ||||||||
Other | 667 | 563 | ||||||||
Total Europe | 11,860 | 9,185 | ||||||||
Total net sales | $ | 33,360 | $ | 30,911 | ||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | |||||||||
The approximate percentages of purchases of OEM products from each of these four suppliers with respect to continuing operations for Fiscal 2014 and Fiscal 2013 are as follows: | ||||||||||
Fiscal Year Ended September 30, | ||||||||||
2014 | 2013 | |||||||||
Supplier: | ||||||||||
OEM Supplier A | 66 | % | 0 | % | ||||||
OEM Supplier B | 20 | % | 50 | % | ||||||
OEM Supplier C | 5 | % | 19 | % | ||||||
OEM Supplier D | 3 | % | 14 | % | ||||||
OEM Supplier E | 1 | % | 9 | % | ||||||
Totals | 95 | % | 92 | % | ||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | |||||||||
The following customers or their affiliates or contract manufacturers accounted for more than ten percent of the Company’s net sales, by geographic region. | ||||||||||
Fiscal Year Ended September 30, 2014 | ||||||||||
Americas | APAC Region | EMEA Region | Total Company | |||||||
Diabetic Customer A | - | % | 87 | % | 4 | % | 27 | % | ||
Diabetic Customer B | 24 | % | 3 | % | 19 | % | 14 | % | ||
Diabetic Customer C | 24 | % | - | % | 58 | % | 24 | % | ||
Diabetic Customer D | 14 | % | 2 | % | 22 | % | 11 | % | ||
Fiscal Year Ended September 30, 2013 | ||||||||||
Americas | APAC Region | EMEA Region | Total Company | |||||||
Diabetic Customer A | - | % | 70 | % | 1 | % | 24 | % | ||
Diabetic Customer B | 21 | % | 3 | % | 15 | % | 13 | % | ||
Diabetic Customer C | 24 | % | - | % | 51 | % | 24 | % | ||
Diabetic Customer D | 18 | % | 2 | % | 24 | % | 14 | % | ||
ACCOUNTING_POLICIES_Detail_Tex
ACCOUNTING POLICIES (Detail Textuals 1) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization expense | $64,482 | $75,188 |
FDIC insured limits for cash and cash equivalents | 6,300,000 | 6,500,000 |
Cash Holdings In Foreign Bank | 1,700,000 | 1,400,000 |
Maturity of short term bonds | '90 days or less | ' |
Foreign currency transaction gain (loss) | ($28,000) | ($16,000) |
Furniture Fixtures and Equipment | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '10 years | ' |
Furniture Fixtures and Equipment | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful life | '3 years | ' |
ACCOUNTING_POLICIES_Detail_Tex1
ACCOUNTING POLICIES (Detail Textuals 2) | 12 Months Ended |
Sep. 30, 2014 | |
Maximum | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Debt Instrument, Term | '120 days |
Minimum | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Debt Instrument, Term | '30 days |
DISCONTINUED_OPERATIONS_Summar
DISCONTINUED OPERATIONS - Summary of operating results of discontinued operations (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Net sales | $0 | $655,658 |
Gross (loss) profit | -9,700 | 181,039 |
Operating expenses | -316,404 | -406,297 |
Other income | 70 | 6,935 |
Loss from discontinued operations, net of tax benefit of $0 and $(6,002), respectively | ($326,034) | ($212,321) |
DISCONTINUED_OPERATIONS_Summar1
DISCONTINUED OPERATIONS - Summary of operating results of discontinued operations (Parentheticals) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Discontinued Operations [Line Items] | ' | ' |
Tax effect on loss from discontinued operations (in dollars) | $0 | ($6,002) |
DISCONTINUED_OPERATIONS_Summar2
DISCONTINUED OPERATIONS - Summary of assets and liabilities of discontinued operations (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Liabilities Of Discontinued Operations [Line Items] | ' | ' |
Accounts receivable | $0 | $280,034 |
Prepaid assets and other current assets | 39 | 59,348 |
Total assets of discontinued operations | 39 | 339,382 |
Accounts payable | 3,396 | 25,438 |
Total liabilities of discontinued operations | $3,396 | $25,438 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Detail Textuals) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 12, 2014 |
G Form LLC | |||
Subsequent event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Assets of disposal group, including discontinued operation, expected settlement, amount | ' | ' | $331,282 |
Accounts Receivable, Net, Current, Total | $6,124,871 | $4,382,406 | ' |
MARKETABLE_SECURITIES_Summary_
MARKETABLE SECURITIES - Summary of marketable securities (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Trading: | ' | ' |
Cost | $1,320,816 | $954,053 |
Unrealized gains | 48,560 | 174,940 |
Unrealized Losses | -318,146 | -48,246 |
Total Fair Value | $1,051,230 | $1,080,747 |
MARKETABLE_SECURITIES_Marketab
MARKETABLE SECURITIES - Marketable securities measured at fair value on recurring basis (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | $1,051,230 | $1,080,747 |
Level 1 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | 1,051,230 | 1,080,747 |
Level 2 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | 0 | 0 |
Level 3 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | 0 | 0 |
Equity securities | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | 1,051,230 | 1,080,747 |
Equity securities | Level 1 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | 1,051,230 | 1,080,747 |
Equity securities | Level 2 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | 0 | 0 |
Equity securities | Level 3 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Total assets at fair value | $0 | $0 |
MARKETABLE_SECURITIES_Detail_T
MARKETABLE SECURITIES (Detail Textuals) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of marketable securities disclosure [Line Items] | ' | ' |
Available-for-sale Securities, Transfers to Trading, Gross Losses | ' | $23,744 |
Marketable Securities, Realized Gain | 606,000 | 3,146,000 |
Marketable Securities, Realized Loss | ($583,000) | ($3,868,000) |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | $535,974 | $502,489 |
Less: accumulated depreciation and amortization | -436,984 | -372,502 |
Property and equipment, net | 98,990 | 129,987 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | 436,120 | 404,871 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, cost | $99,854 | $97,618 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Accounts Payable And Accrued Liabilities [Line Items] | ' | ' |
Warrants, net of unamortized transaction cost of $29,452 | $0 | $463,671 |
Personnel cost | 277,430 | 372,766 |
Taxes | 0 | 44,128 |
Professional fees | 32,762 | 11,000 |
Accrued legal settlement | 150,000 | 139,500 |
Other | 88,323 | 164,495 |
Accrued expenses and other current liabilities | $548,515 | $1,195,560 |
ACCRUED_EXPENSES_AND_OTHER_CUR3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Detail Textuals) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Accounts Payable And Accrued Liabilities [Line Items] | ' |
Unamortized Warrant Transaction Cost | $29,452 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Risk free interest rate | 2.70% | 2.60% |
Expected term (years) | '9 years 9 months 18 days | '10 years 3 months 18 days |
Expected volatility | 32.90% | 30.00% |
Expected dividends | 0.00% | 0.00% |
SHAREHOLDERS_EQUITY_Details_1
SHAREHOLDERS' EQUITY (Details 1) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance at the end of the period | ' | $493,123 |
Warrant [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance at the beginning of the period | 493,123 | 0 |
Issuance of convertible preferred stock warrant | ' | 542,741 |
Change in fair value | 136,258 | -49,618 |
Reclassification of warrants to equity | -629,381 | ' |
Balance at the end of the period | $0 | $493,123 |
SHAREHOLDERS_EQUITY_Details_2
SHAREHOLDERS' EQUITY (Details 2) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | $493,123 | ' |
Warrant [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 0 | 493,123 | 0 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | Warrant [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | Warrant [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | 493,123 | ' |
Fair Value, Inputs, Level 3 [Member] | Warrant [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | $493,123 | ' |
SHAREHOLDERS_EQUITY_Details_Te
SHAREHOLDERS' EQUITY (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Aug. 07, 2013 | Jun. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Aug. 07, 2013 | Aug. 14, 2013 | Jun. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 26, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 14, 2013 | Aug. 07, 2013 | Jun. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 07, 2013 | Aug. 14, 2013 | Jun. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 26, 2013 | Sep. 30, 2002 | |
Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Series A Participating Preferred Stock [Member] | Series A Participating Preferred Stock [Member] | Preferred Stock [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | ||||||||||||||||||||||
Temporary Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Private Placement Purchase Of Securities Aggregate Shares Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114,502 | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | 100,000 | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | 216,282 | 50,890 | 381,674 | 648,846 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity, Par or Stated Value Per Share | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 692,919 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Private Placement Aggregate Purchase Price Per Share | ' | $1.97 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.97 | $1.97 | ' | $1.97 | ' | ' | ' |
Class Of Warrant Or Right Fair Value Of Warrants Or Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.86 | 0.82 | ' | ' | ' | ' | ' | ' | ' |
Class Of Warrant Or Righst Period From Which Warrants Or Rights Terminate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity Conversion Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | $1.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement | $1,275,000 | $1,275,000 | ' | ' | ' | ' | ' | ' | $693,000 | ' | ' | ' | ' | ' | ' | $513,000 | ' | ' | ' | ' | ' | ' | ' | $1,275,000 | ' | $1,275,000 | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.15 | $1.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4 | ' | $1.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Stock Issuance Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000 | ' | ' | ' |
Dividends Preferred Stock Including Accretion | ' | ' | 193,000 | 547,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity Amount Paid To Holders As Percentage Of Original Issue Price Upon Change Of Control Minimum | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Issued In Private Placement | ' | ' | ' | ' | ' | ' | ' | ' | 648,846 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Issued To Purchase Of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 648,846 | 50,890 | 216,282 | 381,674 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity Minimum Percentage Of Consent Of Holders Required For Automatic Conversion Of Stock In Common Stock At Applicable Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity Prior Written Notice Period To Holders Required For Redemption Minimum | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Warrant Liability | ' | ' | ' | 464,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity, Par Value | ' | ' | ' | ' | ' | ' | ' | ' | 833,365 | 716,664 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity, Accretion of Dividends | ' | ' | ' | ' | ' | ' | ' | ' | 117,000 | 24,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends, Preferred Stock | ' | ' | ' | 508,000 | ' | ' | ' | ' | 76,000 | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Not Settleable in Cash, Fair Value Disclosure | ' | ' | ' | ' | 599,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 486,200 |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,671 | ' | ' |
Stock Repurchased and Retired During Period, Value | ' | ' | 47,178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 407 | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 213,274 | ' | ' |
Stock Repurchased During Period, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $473,000 | ' | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk free interest rate | 1.86% | ' |
Expected term (years) | '6 years | '5 years |
Expected volatility | 63.20% | ' |
Expected dividends | 0.00% | 0.00% |
Estimated annual forfeiture rate | 10.00% | ' |
Maximum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk free interest rate | ' | 0.70% |
Expected volatility | ' | 70.40% |
Estimated annual forfeiture rate | ' | 10.00% |
Minimum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk free interest rate | ' | 0.06% |
Expected volatility | ' | 70.00% |
Estimated annual forfeiture rate | ' | 0.00% |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details 1) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Shares, Granted | 32,500 | 120,000 |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Shares, Outstanding at Begining | 897,000 | 1,142,000 |
Shares, Granted | 32,500 | 120,000 |
Shares, Exercised | 0 | 0 |
Shares, Forfeited | -151,000 | -365,000 |
Shares, Outstanding at Ending | 778,500 | 897,000 |
Shares, Exercisable | 642,582 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' |
Weighted average exercise price, Outstanding at Begining | 3.24 | 3.31 |
Weighted average exercise price, Granted | 1.59 | 3.14 |
Weighted average exercise price, Exercised | 0 | 0 |
Weighted average exercise price, Forfeited | 3.5 | 3.43 |
Weighted average exercise price, Outstanding at Ending | 2.7 | 3.24 |
Weighted average exercise price, Exercisable | 2.96 | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term [Roll Forward] | ' | ' |
Weighted average remaining contractual term (Years), Outstanding | '5 years 4 months 24 days | ' |
Weighted average remaining contractual term (Years), Exercisable | '4 years 6 months | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | ' | ' |
Aggregate intrinsic value, Outstanding | 12,000 | ' |
Aggregate intrinsic value, Exercisable | 6,000 | ' |
SHARE_BASED_COMPENSATION_Detai
SHARE BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Outstanding Number of Options | 778,500 |
Options Exercisable, Exercisable Number of Options | 642,582 |
Exercise Price One [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Outstanding Number of Options | 105,000 |
Options Exercisable, Weighted Average Remaining Life In Years | '7 years 1 month 6 days |
Options Exercisable, Exercisable Number of Options | 80,000 |
Exercise Price One [Member] | Minimum [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 1.23 |
Exercise Price One [Member] | Maximum [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 1.8 |
Exercise Price Two [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Outstanding Number of Options | 271,000 |
Options Exercisable, Weighted Average Remaining Life In Years | '2 years |
Options Exercisable, Exercisable Number of Options | 268,000 |
Exercise Price Two [Member] | Minimum [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 2.02 |
Exercise Price Two [Member] | Maximum [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 2.85 |
Exercise Price Three [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Outstanding Number of Options | 322,500 |
Options Exercisable, Weighted Average Remaining Life In Years | '6 years 6 months |
Options Exercisable, Exercisable Number of Options | 264,582 |
Exercise Price Three [Member] | Minimum [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 3 |
Exercise Price Three [Member] | Maximum [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 3.79 |
Exercise Price Four [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 5.31 |
Options Outstanding, Outstanding Number of Options | 50,000 |
Options Exercisable, Weighted Average Remaining Life In Years | '0 years |
Options Exercisable, Exercisable Number of Options | 0 |
Exercise Price Five [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 6.02 |
Options Outstanding, Outstanding Number of Options | 20,000 |
Options Exercisable, Weighted Average Remaining Life In Years | '1 year 7 months 6 days |
Options Exercisable, Exercisable Number of Options | 20,000 |
Exercise Price Six [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Options Outstanding, Exercise Price | 15.91 |
Options Outstanding, Outstanding Number of Options | 10,000 |
Options Exercisable, Weighted Average Remaining Life In Years | '7 months 6 days |
Options Exercisable, Exercisable Number of Options | 10,000 |
SHAREBASED_COMPENSATION_Detail2
SHARE-BASED COMPENSATION (Details 3) (Restricted Stock, USD $) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | |
Restricted Stock | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' | ' | ' |
Shares, Non-vested balance | ' | ' | ' | 371,375 | 7,500 |
Shares granted | ' | ' | ' | 95,000 | 371,375 |
Shares vested | ' | ' | ' | -123,794 | -7,500 |
Shares forfeited | ' | ' | ' | -85,000 | 0 |
Shares, Non-vested balance | ' | ' | ' | 257,581 | 371,375 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' |
Weighted average grant date fair value, Non-vested balance | ' | ' | ' | $1.16 | $2.02 |
Weighted average grant date fair value, granted | ' | ' | ' | $1.59 | $1.16 |
Weighted average grant date fair value, vested | ' | ' | ' | $1.16 | $2.02 |
Weighted average grant date fair value, forfeited | ' | ' | ' | $1.16 | $0 |
Weighted average grant date fair value, Non-vested balance | ' | ' | ' | $1.32 | $1.16 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Total Grant Date Fair Value [Roll Forward] [Abstract] | ' | ' | ' | ' | ' |
Total grant date fair value, Non-vested balance | ' | ' | ' | $430,795 | $15,150 |
Total grant date fair value, granted | 8,350 | 143,100 | 430,795 | 151,450 | 430,795 |
Total grant date fair value, vested | ' | ' | ' | -143,601 | -15,150 |
Total grant date fair value, forfeited | ' | ' | ' | -98,600 | 0 |
Total grant date fair value, Non-vested balance | ' | ' | ' | $340,044 | $430,795 |
SHAREBASED_COMPENSATION_Detail3
SHARE-BASED COMPENSATION (Detail Textuals) | Sep. 30, 2014 | Mar. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock available for grants of equity awards | 185,647 | 850,000 |
SHAREBASED_COMPENSATION_Detail4
SHARE-BASED COMPENSATION (Detail Textuals 1) | Sep. 30, 2014 | Mar. 31, 2011 | Feb. 28, 2010 | Sep. 30, 2014 |
2007 Equity Incentive Plan | 2007 Equity Incentive Plan | |||
Restricted common stock and stock options | Restricted common stock and stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock authorized for grants | ' | ' | 800,000 | ' |
Common stock available for grants of equity awards | 185,647 | 850,000 | ' | 130,015 |
SHAREBASED_COMPENSATION_Detail5
SHARE-BASED COMPENSATION (Detail Textuals 2) (1996 Stock Incentive Plan) | Sep. 30, 2014 |
1996 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Fully Vested Common Stock Options Outstanding And Unexercised Under The Plan | 30,000 |
SHAREBASED_COMPENSATION_Detail6
SHARE-BASED COMPENSATION (Detail Textuals 3) (USD $) | 12 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | |
2011 Long Term Incentive Plan and 2007 Equity Incentive Plan [Member] | 2011 Long Term Incentive Plan and 2007 Equity Incentive Plan [Member] | Ten-year incentive stock option [Member] | Ten-year incentive stock option [Member] | Ten-year incentive stock option [Member] | Ten-year incentive stock option [Member] | Ten-year incentive stock option [Member] | Ten-year incentive stock option [Member] | Ten-year non-qualified stock options [Member] | |||
2007 Plan [Member] | 2011 Plan [Member] | Maximum [Member] | Minimum [Member] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Granted | 32,500 | 120,000 | ' | ' | 32,500 | 60,000 | 25,000 | 7,500 | ' | ' | 60,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | ' | ' | $1.59 | ' | ' | ' | $5.31 | $3.77 | $1.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | ' | ' | $29,250 | $30,000 | ' | ' | ' | ' | $42,600 |
Weighted average grant date fair values (in dollars per share) | $0.90 | $0.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | 43,000 | 220,000 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | $50,574 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '1 year 29 days | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail7
SHARE-BASED COMPENSATION (Detail Textuals 4) (USD $) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Total Unrecognized Compensation Cost Related To Unvested Stock Option Awards Granted Under The 2007 And 2011 Plans ExpectedTo Be Recognized | ' | ' | ' | $112,000 | ' |
Company Recognized Approximately An Expense Of Compensation In Continuing Operations For Stock Option Awards | ' | ' | ' | 189,000 | 217,000 |
Shares Granted | ' | ' | ' | 32,500 | 120,000 |
Restricted Stock | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Shares Granted | 5,000 | 90,000 | 371,375 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | '6 months 4 days | ' |
Share based Compensation Arrangement By Share based Payment Award Options Granted In Period Fair Value | $8,350 | $143,100 | $430,795 | $151,450 | $430,795 |
2007 Plan [Member] | Restricted Stock | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Shares Granted | ' | ' | 141,375 | ' | ' |
2011 Plan [Member] | Restricted Stock | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Shares Granted | ' | ' | 230,000 | ' | ' |
SHAREBASED_COMPENSATION_Detail8
SHARE-BASED COMPENSATION (Detail Textuals 5) (Warrant, USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Warrant | ' |
Class of Warrant or Right [Line Items] | ' |
Warrants to purchase shares of common stock | 75,000 |
Period of warrants expiration | '90 days |
Exercise price of warrants | $1.75 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Current: | ' | ' |
Federal | $0 | $0 |
State | 0 | 75 |
Foreign | 0 | -5,570 |
Deferred: | ' | ' |
Federal | -364,106 | 89,832 |
State | -21,418 | -107,296 |
Foreign | 11,669 | -5,598 |
Deferred Income Tax Expense (Benefit) | -373,855 | -28,557 |
Change in valuation allowance | 373,855 | 23,062 |
Income tax provision (benefit) | $0 | ($5,495) |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Deferred tax assets: | ' | ' |
Net operating losses | $3,338,494 | $3,213,001 |
Realized losses on securities | 321,557 | 304,586 |
Unrealized losses on securities | 105,139 | 0 |
Share-based compensation | 361,337 | 303,164 |
Alternative minimum tax credit | 99,757 | 99,757 |
Excess tax over book basis in inventory | 64,682 | 87,381 |
Allowance for accounts receivable | 34,437 | 2,369 |
Deferred Tax Assets, Gross | 4,325,403 | 4,010,258 |
Valuation allowance | -4,214,813 | -3,840,958 |
Net deferred tax assets | 110,590 | 169,300 |
Deferred tax liabilities: | ' | ' |
Prepaid insurance | -89,721 | -92,602 |
Unrealized gains on securities | 0 | -44,950 |
Excess book over tax basis in fixed assets | -20,869 | -31,748 |
Deferred Tax Liabilities, Net | -110,590 | -169,300 |
Total | $0 | $0 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Line Items] | ' | ' |
US federal statutory rate | 34.00% | 34.00% |
State tax rate, net of federal benefit | 5.00% | 1.90% |
Permanent differences: | ' | ' |
- Share-based compensation | -0.40% | -20.00% |
- Other | -7.40% | -2.80% |
Foreign rate differential | 5.00% | -5.60% |
Other | 10.50% | -2.00% |
Change in valuation allowance | -46.70% | -8.10% |
Income tax provision (benefit) | 0.00% | -2.60% |
INCOME_TAXES_Detail_Textuals
INCOME TAXES (Detail Textuals) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Loss Carryforwards [Line Items] | ' | ' |
Income taxes expense from discontinued operations | $0 | ($6,002) |
Deferred tax assets | 3,338,494 | 3,213,001 |
Total net deferred tax assets, before valuation allowances | 4,325,403 | 4,010,258 |
Deferred Tax Assets, Valuation Allowance | 4,214,813 | 3,840,958 |
U.S. Federal | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 7,809,000 | ' |
Deferred tax assets | 2,655,000 | ' |
State income tax | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 5,009,000 | ' |
Deferred tax assets | 262,000 | ' |
Foreign income tax | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 4,796,000 | ' |
Deferred tax assets | $422,000 | ' |
LOSS_PER_SHARE_Details
LOSS PER SHARE (Details) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,452,846 | 2,685,140 |
Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 257,581 | 371,375 |
Convertible Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 692,919 | 692,919 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 778,500 | 897,000 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 723,846 | 723,846 |
LOSS_PER_SHARE_Details_1
LOSS PER SHARE (Details 1) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | |||
Numerator: | ' | ' | ||
Net loss | ($799,906) | ($206,886) | ||
Preferred stock dividends, accretion and beneficial conversion feature | -193,200 | -546,888 | ||
Net loss applicable to common equity | ($993,106) | ($753,774) | ||
Denominator: | ' | ' | ||
Weighted average basic common shares | 8,186,926 | 8,111,226 | ||
Effect of dilutive securities | 0 | [1] | 0 | [1] |
Weighted average diluted common shares | 8,186,926 | 8,111,226 | ||
Basic loss per share | ($0.12) | ($0.09) | ||
Diluted loss per share | ($0.12) | [1] | ($0.09) | [1] |
[1] | Due to the net loss to common shareholders in each of the years presented above, diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been antidilutive. Potentially dilutive instruments include stock options, warrants, convertible preferred stock and non-vested restricted stock. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2014 |
Future Minimum Rental Payments For Operating Leases [Line Items] | ' |
2015 | $268,000 |
2016 | 267,000 |
2017 | 85,000 |
2018 | 87,000 |
2019 | 90,000 |
Thereafter | 93,000 |
Total lease commitments | $890,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Detail Textuals 1) | 12 Months Ended |
Sep. 30, 2014 | |
Compensation Arrangement With Individual Excluding Share Based Payments and Postretirement Benefits [Line Items] | ' |
Employment agreement term | '1 year |
Employment agreement maximum terms of renewal | '90 days |
Severance payment term | '12 months |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Detail Textuals 3) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
USD ($) | USD ($) | EUR (€) | |
Commitments Contingencies And Guarantees [Line Items] | ' | ' | ' |
Amount of guarantee agreement with Swiss bank | $95,000 | ' | € 75,000 |
Extended notice of termination | '60 days | ' | ' |
Amount of security interest | 1,741,000 | ' | ' |
Total Rent Expense Included In Continuing Operations | 179,000 | 252,000 | ' |
Rental Income From A Sub Lease | 185,000 | 46,000 | ' |
Future Minimum Sublease Rental Receipts Due Under Non Cancelable Subleases | $397,000 | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Detail Textuals 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Due to Related Parties | $1,406,000 | $1,292,000 |
RELATED_PARTY_TRANSACTIONS_Det1
RELATED PARTY TRANSACTIONS (Detail Textuals 2) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Payments to Acquire Marketable Securities, Total | $5,783,928 | $88,634,554 |
Proceeds from Sale and Maturity of Marketable Securities, Total | 5,566,758 | 87,275,809 |
Marketable Securities, Realized Gain (Loss), Total | 246,687 | 722,347 |
Investment Management Agreement [Member] | La Grange Capital Administration Llc [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Asset Based Fee Percentage Of Average Account Net Asset Value | 1.00% | ' |
Performance Fee In Percentage Of Increase In Annual Account Net Asset Value | 20.00% | ' |
Period Of Prior Written Notice For Cash Withdrawals | '45 days | ' |
Noninterest Expense Investment Advisory Fees | 12,000 | 13,000 |
Extended Term Of Agreement | '1 year | ' |
Investments | $0 | $1,200,000 |
Investment Management Agreement [Member] | La Grange Capital Administration Llc [Member] | Minimum [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Notice Period For Termination Of Agreement | '60 days | ' |
RELATED_PARTY_TRANSACTIONS_Det2
RELATED PARTY TRANSACTIONS (Detail Textuals 3) (La Grange Capital Administration Llc [Member], USD $) | 0 Months Ended | 12 Months Ended | |
Feb. 02, 2014 | Apr. 02, 2014 | Sep. 30, 2014 | |
Chief Executive Officer [Member] | New York office | New York office | |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating Leases, Rent Expense, Net | ' | $2,500 | $81,000 |
Operating Leases, Rent Expense, Contingent Rentals | ' | 12,700 | ' |
Revenue from Related Parties | $2,500 | ' | ' |
401K_PLAN_Detail_Textuals
401(K) PLAN (Detail Textuals) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Defined Benefit Plan, Contributions by Employer | $69,000 |
OPERATING_SEGMENT_INFORMATION_1
OPERATING SEGMENT INFORMATION (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | $33,359,918 | $30,910,506 |
Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 33,360,000 | 30,911,000 |
Americas | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 9,849,000 | 10,962,000 |
Americas | Operating Segments | UNITED STATES | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 9,382,000 | 9,424,000 |
Americas | Operating Segments | Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 467,000 | 1,538,000 |
APAC Region | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 11,651,000 | 10,764,000 |
APAC Region | Operating Segments | HONG KONG | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 8,608,000 | 7,491,000 |
APAC Region | Operating Segments | Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 3,043,000 | 3,273,000 |
EMEA Region | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 11,860,000 | 9,185,000 |
EMEA Region | Operating Segments | GERMANY | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 7,238,000 | 5,097,000 |
EMEA Region | Operating Segments | POLAND | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | 3,955,000 | 3,525,000 |
EMEA Region | Operating Segments | Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total net sales | $667,000 | $563,000 |
OPERATING_SEGMENT_INFORMATION_2
OPERATING SEGMENT INFORMATION (Details 1) (Cost of Goods, Segment [Member]) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 95.00% | 92.00% |
Supplier A [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 66.00% | 0.00% |
Supplier B [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 20.00% | 50.00% |
Supplier C [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 5.00% | 19.00% |
Supplier D [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 3.00% | 14.00% |
Supplier E [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 1.00% | 9.00% |
OPERATING_SEGMENT_INFORMATION_3
OPERATING SEGMENT INFORMATION (Details 2) (Sales Revenue, Net [Member]) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Customer A [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 27.00% | 24.00% |
Customer A [Member] | Americas | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 0.00% | 0.00% |
Customer A [Member] | APAC Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 87.00% | 70.00% |
Customer A [Member] | EMEA Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 4.00% | 1.00% |
Customer B [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 14.00% | 13.00% |
Customer B [Member] | Americas | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 24.00% | 21.00% |
Customer B [Member] | APAC Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 3.00% | 3.00% |
Customer B [Member] | EMEA Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 19.00% | 15.00% |
Customer C [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 24.00% | 24.00% |
Customer C [Member] | Americas | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 24.00% | 24.00% |
Customer C [Member] | APAC Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 0.00% | 0.00% |
Customer C [Member] | EMEA Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 58.00% | 51.00% |
Customer D [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 11.00% | 14.00% |
Customer D [Member] | Americas | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 14.00% | 18.00% |
Customer D [Member] | APAC Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 2.00% | 2.00% |
Customer D [Member] | EMEA Region | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Concentration Risk, Percentage | 22.00% | 24.00% |
OPERATING_SEGMENT_INFORMATION_4
OPERATING SEGMENT INFORMATION (Detail Textuals) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cost of Goods, Total [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Concentration Risk, Percentage | 94.00% | 90.00% |
Accounts Receivable [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Concentration Risk, Percentage | 77.00% | 73.00% |
SUBSEQUENT_EVENTS_Detail_Textu
SUBSEQUENT EVENTS (Detail Textuals) (Subsequent event, USD $) | 0 Months Ended | 2 Months Ended | 1 Months Ended | |
Dec. 05, 2014 | Nov. 30, 2014 | Dec. 05, 2014 | Nov. 30, 2014 | |
Director [Member] | Director [Member] | Restricted Stock [Member] | ||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | 10,340 |
Stock Repurchased During Period, Value | ' | ' | ' | $12,000 |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | ' | 30,000 | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | 30,000 | ' |
Treasury Stock, Shares, Retired | 706,410 | ' | ' | ' |