Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jun. 30, 2014 | Aug. 11, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'BASi | ' |
Entity Registrant Name | 'BIOANALYTICAL SYSTEMS INC | ' |
Entity Central Index Key | '0000720154 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 8,072,738 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $736 | $1,304 |
Accounts receivable | ' | ' |
Trade, net of allowance $88 at June 30, 2014 and $87 at September 30, 2013, respectively | 2,646 | 3,621 |
Unbilled revenues and other | 1,303 | 691 |
Inventories | 1,535 | 1,379 |
Refundable income taxes | 11 | ' |
Prepaid expenses | 892 | 238 |
Total current assets | 7,123 | 7,233 |
Property and equipment, net | 16,180 | 16,913 |
Goodwill | 1,383 | 1,383 |
Debt issue costs, net | 129 | 21 |
Other assets | 41 | 47 |
Total assets | 24,856 | 25,597 |
Current liabilities: | ' | ' |
Accounts payable | 3,369 | 3,584 |
Accrued expenses | 1,332 | 1,689 |
Customer advances | 3,322 | 2,815 |
Income tax accruals | 16 | 30 |
Revolving line of credit | ' | 1,415 |
Fair value of warrant liability | 852 | 612 |
Current portion of capital lease obligations | 288 | 268 |
Current portion of long-term debt | 786 | 613 |
Total current liabilities | 9,965 | 11,026 |
Fair value of interest rate swap | 41 | ' |
Capital lease obligations, less current portion | 363 | 471 |
Long-term debt, less current portion | 4,649 | 4,641 |
Total liabilities | 15,018 | 16,138 |
Stockholders' equity: | ' | ' |
Preferred shares, authorized 1,000,000 shares, no par value: 1,185 Series A shares at $1,000 stated value issued and outstanding at June 30, 2014 and 1,335 at September 30, 2013 | 1,185 | 1,335 |
Common shares, no par value: Authorized 19,000,000 shares; 8,072,738 shares issued and outstanding at June 30, 2014 and 7,703,891 shares at September 30, 2013 | 1,980 | 1,887 |
Additional paid-in capital | 21,133 | 19,925 |
Accumulated deficit | -14,386 | -13,720 |
Accumulated other comprehensive income (loss) | -74 | 32 |
Total shareholders' equity | 9,838 | 9,459 |
Total liabilities and shareholders' equity | 24,856 | 25,597 |
Series A Preferred Stock [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred shares, authorized 1,000,000 shares, no par value: 1,185 Series A shares at $1,000 stated value issued and outstanding at June 30, 2014 and 1,335 at September 30, 2013 | $1,185 | $1,335 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $88 | $87 |
Common stock, no par value | ' | ' |
Common stock, shares authorized | 19,000,000 | 19,000,000 |
Common stock, shares issued | 8,072,738 | 7,703,891 |
Common stock, shares outstanding | 8,072,738 | 7,703,891 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, no par value | ' | ' |
Preferred stock, shares issued | 1,185 | 1,335 |
Preferred stock, shares outstanding | 1,185 | 1,335 |
Preferred stock, stated value per share | $1,000 | $1,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ' | ' | ' |
Service revenue | $4,754 | $4,156 | $14,196 | $12,493 |
Product revenue | 1,278 | 1,444 | 3,968 | 4,067 |
Total revenue | 6,032 | 5,600 | 18,164 | 16,560 |
Cost of service revenue | 3,368 | 2,897 | 10,021 | 9,509 |
Cost of product revenue | 680 | 671 | 2,002 | 1,905 |
Total cost of revenue | 4,048 | 3,568 | 12,023 | 11,414 |
Gross profit | 1,984 | 2,032 | 6,141 | 5,146 |
Operating expenses: | ' | ' | ' | ' |
Selling | 399 | 317 | 1,315 | 979 |
Research and development | 167 | 124 | 480 | 332 |
General and administrative | 1,162 | 1,153 | 3,523 | 3,103 |
Total operating expenses | 1,728 | 1,594 | 5,318 | 4,414 |
Operating income | 256 | 438 | 823 | 732 |
Interest expense | -123 | -163 | -408 | -492 |
Change in fair value of warrant liability - decrease (increase) | 66 | 318 | -1,095 | 293 |
Other income | 1 | 1 | 6 | 6 |
Net Income (loss) before income taxes | 200 | 594 | -674 | 539 |
Income tax (benefit) expense | -15 | 18 | -8 | 18 |
Net Income (loss) | 215 | 576 | -666 | 521 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Fair value adjustment of interest rate swap | -41 | ' | -41 | ' |
Foreign currency translation adjustment | -31 | 11 | -65 | 66 |
Comprehensive income (loss) | $143 | $587 | ($772) | $587 |
Basic net income (loss) per share | $0.03 | $0.08 | ($0.08) | $0.07 |
Diluted net income (loss) per share | $0.02 | $0.07 | ($0.08) | $0.06 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic | 8,068 | 7,673 | 7,922 | 7,656 |
Diluted | 9,625 | 8,400 | 7,922 | 8,353 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net income (loss) | ($666) | $521 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,195 | 1,313 |
Change in fair value of warrant liability - increase (decrease) | 1,095 | -293 |
Employee stock compensation expense | 65 | 187 |
Provision for doubtful accounts | 2 | 9 |
Loss (Gain) on sale of property and equipment | 1 | -13 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 361 | 942 |
Inventories | -156 | 177 |
Income taxes | -25 | 15 |
Prepaid expenses and other assets | -641 | 36 |
Accounts payable | -166 | -19 |
Accrued expenses | -357 | -822 |
Customer advances | 507 | -635 |
Net cash provided by operating activities | 1,215 | 1,418 |
Investing activities: | ' | ' |
Capital expenditures | -343 | -15 |
Proceeds from sale of equipment | ' | 20 |
Net cash (used) provided by investing activities | -343 | 5 |
Financing activities: | ' | ' |
Payments of long-term debt | -5,319 | -439 |
Borrowings on long-term debt | 5,500 | ' |
Payments of debt issuance costs | -121 | -75 |
Proceeds from exercise of stock options | 1 | ' |
Payments on revolving line of credit | -9,543 | -16,770 |
Borrowings on revolving line of credit | 8,128 | 15,658 |
Proceeds from Class A warrant exercises | 183 | ' |
Payments on capital lease obligations | -203 | -265 |
Net cash used by financing activities | -1,374 | -1,891 |
Effect of exchange rate changes | -66 | 60 |
Net decrease in cash and cash equivalents | -568 | -408 |
Cash and cash equivalents at beginning of period | 1,304 | 721 |
Cash and cash equivalents at end of period | 736 | 313 |
Supplemental disclosure of non-cash financing activities: | ' | ' |
Preferred stock dividends paid in common shares | 44 | 60 |
Fair value of warrants exercised | 854 | ' |
Conversion of preferred shares to common shares | $150 | ' |
DESCRIPTION_OF_THE_BUSINESS_AN
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended | |
Jun. 30, 2014 | ||
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION [Abstract] | ' | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | ' | |
1 | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
Bioanalytical Systems, Inc. and its subsidiaries ("We," the "Company" or "BASi") engage in contract laboratory research services and other services related to pharmaceutical development. We also manufacture scientific instruments for life sciences research, which we sell with related software for use in industrial, governmental and academic laboratories. Our customers are located throughout the world. | ||
We have prepared the accompanying unaudited interim condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles ("GAAP"), and therefore should be read in conjunction with our audited consolidated financial statements, and the notes thereto, included in the Company's annual report on Form 10-K for the year ended September 30, 2013. In the opinion of management, the condensed consolidated financial statements for the three and nine months ended June 30, 2014 and 2013 include all adjustments which are necessary for a fair presentation of the results of the interim periods and of our financial position at June 30, 2014. The results of operations for the three and nine months ended June 30, 2014 are not necessarily indicative of the results for the year ending September 30, 2014. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended | ||
Jun. 30, 2014 | |||
NEW ACCOUNTING PRONOUNCEMENTS [Abstract] | ' | ||
NEW ACCOUNTING PRONOUNCEMENTS | ' | ||
2 | NEW ACCOUNTING PRONOUNCEMENTS | ||
Effective January 1, 2017, the Company will be required to adopt the new guidance of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), which will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company will be required to adopt Topic 606 either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application. If the Company elects the modified retrospective approach, it will be required to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes. The Company has not yet assessed the impact of the new guidance on its consolidated financial statements. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||
STOCK-BASED COMPENSATON | ' | ||||||||||||
3 | STOCK-BASED COMPENSATION | ||||||||||||
The 2008 Stock Option Plan ("the Plan") is used to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees and aligning their interests with those of our shareholders. The Plan is described more fully in Note 9 in the Notes to the Consolidated Financial Statements in our Form 10-K for the year ended September 30, 2013. All options granted under the Plan had an exercise price equal to the market value of the underlying common shares on the date of grant. We expense the estimated fair value of stock options over the vesting periods of the grants. We recognize expense for awards subject to graded vesting using the straight-line attribution method, reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment is recognized at that time. The assumptions used to compute the fair value of options granted are detailed in Note 9 to the Consolidated Financial Statements in our Form 10-K for the year ended September 30, 2013 as well as in the second table below for current fiscal year grants. The Compensation Committee may also issue non-qualified stock option grants with vesting periods different from the Plan. As of June 30, 2014, there are 155 shares issuable upon the exercise of outstanding options that were granted outside of the Plan.. Stock based compensation expense for the three and nine months ended June 30, 2014 was $19 and $65, respectively. Stock based compensation expense for the three and nine months ended June 30, 2013 was $52 and $187, respectively. | |||||||||||||
A summary of our stock option activity for the nine months ended June 30, 2014 is as follows (in thousands except for share prices): | |||||||||||||
Options | Weighted- | Weighted- | |||||||||||
(shares) | Average | Average | |||||||||||
Exercise Price | Grant Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding - October 1, 2013 | 479 | $ | 1.77 | $ | 1.35 | ||||||||
Exercised | (9 | ) | 1.17 | 0.97 | |||||||||
Granted | 30 | 2.81 | 2.35 | ||||||||||
Terminated | (77 | ) | 2.05 | 1.54 | |||||||||
Outstanding - June 30, 2014 | 423 | $ | 1.8 | $ | 1.39 | ||||||||
During the nine months ended June 30, 2014, we granted options for 30 common shares under the Plan. The fair value of the option grants are estimated on the date of the grant. The weighted-average assumptions used to compute the fair value of these options were as follows: | |||||||||||||
Risk-free interest rate | 2.26% - 2.45% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Expected volatility | 94.62% - 94.65% | ||||||||||||
Expected life of the options (years) | 8 | ||||||||||||
Forfeitures | 3.00% |
INCOME_LOSS_PER_SHARE
INCOME (LOSS) PER SHARE | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
INCOME (LOSS) PER SHARE [Abstract] | ' | ||||||||||||||||
INCOME (LOSS) PER SHARE | ' | ||||||||||||||||
4 | INCOME (LOSS) PER SHARE | ||||||||||||||||
We compute basic income (loss) per share using the weighted average number of common shares outstanding. | |||||||||||||||||
The Company has three categories of dilutive potential common shares: the Series A preferred shares issued in May 2011 in connection with the registered direct offering, the Warrants issued in connection with the same offering in May 2011, and shares issuable upon exercise of options. We compute diluted income (loss) per share using the if-converted method for preferred stock and warrants and the treasury stock method for stock options. Shares issuable upon exercise of options were not considered in computing diluted income (loss) per share for the nine months ended June 30, 2014, because they were anti-dilutive. Warrants for 799 common shares and 592 common shares issuable upon conversion of preferred shares were not considered in computing diluted income (loss) per share for the nine months ended June 30, 2014, because they were also anti-dilutive. Warrants for 1,377 common shares were not considered in computing diluted income (loss) per share for the three and nine months ended June 30, 2013, respectively, because they were anti-dilutive. | |||||||||||||||||
The following table reconciles our computation of basic income (loss) per share to diluted income (loss) per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic net income (loss) per share: | |||||||||||||||||
Net Income (loss) applicable to common shareholders | $ | 215 | $ | 576 | $ | (666 | ) | $ | 521 | ||||||||
Weighted average common shares outstanding | 8,068 | 7,673 | 7,922 | 7,656 | |||||||||||||
Basic net income (loss) per share | $ | 0.03 | $ | 0.08 | $ | (0.08 | ) | $ | 0.07 | ||||||||
Diluted net income (loss) per share: | |||||||||||||||||
Net Income (loss) applicable to common shareholders | $ | 215 | $ | 576 | $ | (666 | ) | $ | 521 | ||||||||
Change in Fair Value of Warrant Liability | (66 | ) | - | - | - | ||||||||||||
Diluted net income (loss) applicable to common shareholders | $ | 149 | $ | 576 | $ | (666 | ) | $ | 521 | ||||||||
Weighted average common shares outstanding | 8,068 | 7,673 | 7,922 | 7,656 | |||||||||||||
Series A preferred shares | 592 | 696 | - | 696 | |||||||||||||
Class A warrants | 810 | - | - | - | |||||||||||||
Dilutive stock options/shares | 155 | 31 | - | 1 | |||||||||||||
Diluted weighted average common shares outstanding | 9,625 | 8,400 | 7,922 | 8,353 | |||||||||||||
Diluted net income (loss) per share: | $ | 0.02 | $ | 0.07 | $ | (0.08 | ) | $ | 0.06 |
INVENTORIES
INVENTORIES | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
5 | INVENTORIES | ||||||||
Inventories consisted of the following: | |||||||||
June 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,200 | $ | 1,157 | |||||
Work in progress | 300 | 322 | |||||||
Finished goods | 384 | 259 | |||||||
$ | 1,884 | $ | 1,738 | ||||||
Obsolescence reserve | (349 | ) | (359 | ) | |||||
$ | 1,535 | $ | 1,379 |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||
6 | SEGMENT INFORMATION | ||||||||||||||||
We operate in two principal segments - research services and research products. Our Services segment provides research and development support on a contract basis directly to pharmaceutical companies. Our Products segment provides liquid chromatography, electrochemical and physiological monitoring products to pharmaceutical companies, universities, government research centers and medical research institutions. Our accounting policies in these segments are the same as those described in the summary of significant accounting policies found in Note 2 to Consolidated Financial Statements in our annual report on Form 10-K for the year ended September 30, 2013. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue: | |||||||||||||||||
Service | $ | 4,754 | $ | 4,156 | $ | 14,196 | $ | 12,493 | |||||||||
Product | 1,278 | 1,444 | 3,968 | 4,067 | |||||||||||||
$ | 6,032 | $ | 5,600 | $ | 18,164 | $ | 16,560 | ||||||||||
Operating income (loss): | |||||||||||||||||
Service | $ | 293 | $ | 222 | $ | 669 | $ | 71 | |||||||||
Product | (37 | ) | 216 | 154 | 661 | ||||||||||||
$ | 256 | $ | 438 | $ | 823 | $ | 732 | ||||||||||
Interest expense | (123 | ) | (163 | ) | (408 | ) | (492 | ) | |||||||||
Change in fair value of warrant liability - decrease (increase) | 66 | 318 | (1,095 | ) | 293 | ||||||||||||
Other income | 1 | 1 | 6 | 6 | |||||||||||||
Income (loss) before income taxes | $ | 200 | $ | 594 | $ | (674 | ) | $ | 539 |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | ||
Jun. 30, 2014 | |||
INCOME TAXES [Abstract] | ' | ||
INCOME TAXES | ' | ||
7 | INCOME TAXES | ||
We use the asset and liability method of accounting for income taxes. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect on deferred tax assets and liabilities of a change in tax rates in income in the period that includes the enactment date. We record valuation allowances based on a determination of the expected realization of tax assets. | |||
We recognize the tax benefit from an uncertain tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. We measure the amount of the accrual for which an exposure exists as the largest amount of benefit determined on a cumulative probability basis that we believe is more likely than not to be realized upon ultimate settlement of the position. | |||
At June 30, 2014 and September 30, 2013, we had a $16 liability for uncertain income tax positions. The difference between the federal statutory rate of 34% and our effective rate of (1.2%) is due to changes in our valuation allowance on our net deferred tax assets. | |||
We record interest and penalties accrued in relation to uncertain income tax positions as a component of income tax expense. Any changes in the liability for uncertain tax positions would impact our effective tax rate. We do not expect the total amount of unrecognized tax benefits to significantly change in the next twelve months. | |||
We file income tax returns in the U.S., several U.S. States, and the United Kingdom. We remain subject to examination by taxing authorities in the jurisdictions in which we have filed returns for years after 2008. |
DEBT
DEBT | 9 Months Ended | |
Jun. 30, 2014 | ||
DEBT [Abstract] | ' | |
DEBT | ' | |
8 | DEBT | |
Mortgages and note payable | ||
We had a term loan from Regions Bank ("Regions"), which was secured by mortgages on our facilities in West Lafayette and Evansville, Indiana. | ||
On November 9, 2012, we executed a sixth amendment with Regions which we further modified on December 21, 2012. In the sixth amendment, Regions agreed to extend the term loan and mortgage loan maturity dates to October 31, 2013. The unpaid principal on the notes was incorporated into a replacement note payable for $5,786 bearing interest at LIBOR plus 400 basis points (minimum of 6.0%) with monthly principal payments of approximately $47 plus interest. The replacement note payable was secured by real estate at our West Lafayette and Evansville, Indiana locations. At September 30, 2013, the replacement note payable had a balance of $5,254. | ||
On October 31, 2013, we executed a seventh amendment with Regions to extend the note payable maturity date to October 31, 2014. | ||
Regions required us to maintain a fixed charge coverage ratio of not less than 1.25 to 1.00 and a total liabilities to tangible net worth ratio of not greater than 2.10 to 1.00. Failure to comply with those covenants would have been a default under the Regions loans, requiring us to negotiate with Regions regarding loan modifications or waivers. If we were unable to obtain such modifications or waivers, Regions could have accelerated the maturity of the loans and caused a cross default with our other lender. | ||
The Regions loan agreements both contained cross-default provisions with each other and with the revolving line of credit with Entrepreneur Growth Capital LLC ("EGC") described below. | ||
Revolving Line of Credit | ||
On January 31, 2014, we paid off the remaining balance on our $3,000 revolving line of credit agreement ("Credit Agreement") with EGC and terminated the related Credit Agreement. Pursuant to the terms of the Credit Agreement, the line of credit would have automatically renewed on January 31, 2014 unless either party gave a 60-day notice of intent to terminate or withdraw. On October 30, 2013, we informed EGC of our intent not to renew the line of credit on January 31, 2014. | ||
During the first four months of fiscal 2014, borrowings under the Credit Agreement bore interest at an annual rate equal to Citibank's Prime Rate plus five percent (5%) with minimum monthly interest of $15. Interest was paid monthly. The line of credit also carried an annual facilities fee of 2% and a 0.2% collateral monitoring fee. Borrowings under the Credit Agreement were secured by a blanket lien on our personal property, including certain eligible accounts receivable, inventory, and intellectual property assets, a second mortgage on our West Lafayette and Evansville real estate and all common stock of our U.S. subsidiaries and 65% of the common stock of our non-United States subsidiary. Borrowings were calculated based on 75% of eligible accounts receivable. Under the Credit Agreement, as amended, the Company had agreed to restrict advances to subsidiaries, limit additional indebtedness and capital expenditures and maintain a minimum tangible net worth of at least $8,000. The Credit Agreement also contained cross-default provisions with the Regions loan and any future EGC loans. At September 30, 2013, we had $1,415 outstanding on this line. | ||
New Credit Facility | ||
On May 14, 2014, we entered into a Credit Agreement ("Agreement") with The Huntington National Bank ("Huntington"). The Agreement includes both a term loan and a revolving loan and is secured by mortgages on our facilities and personal property in West Lafayette and Evansville, Indiana. | ||
The term loan for $5,500 bears interest at LIBOR plus 325 basis points with monthly principal payments of approximately $65 plus interest. The term loan matures in May 2019. On May 15, 2014, we used the proceeds from the term loan to pay off the Regions replacement note payable. The balance on the term loan at June 30, 2014 was $5,435. | ||
The revolving loan for $2,000 matures in May 2016 and bears interest at LIBOR plus 300 basis points with interest paid monthly. The revolving loan also carries a facility fee of .25%, paid quarterly, for the unused portion of the revolving loan. Pursuant to the Agreement, the revolving loan also carries an annual clean-up provision that requires the Company to maintain a balance of not more than 20% of the maximum loan of $2,000 for a period of 30 days in any 12 month period while the revolving loan is outstanding. The balance on the revolving loan at June 30, 2014 was $0. | ||
The Agreement requires us to maintain a fixed charge coverage ratio of not less than 1.10 to 1.00 and a maximum total leverage ratio of not greater than 3.00 to 1.00 from the date of the Agreement through September 30, 2015 and 2.50 to 1.00 commencing after October 1, 2015 until maturity. The Agreement also contains various other covenants, including restrictions on the incurrence of certain indebtedness, liens, investments, acquisitions, and asset sales | ||
We entered into an interest rate swap agreement with respect to the above loans to fix the interest rate with respect to 60% of the value of the term loan at approximately 5.0%. We entered into this derivative transaction to hedge interest rate risk of the related debt obligation and not to speculate on interest rates. The changes in the fair value of the interest rate swap are recorded in Accumulated Other Comprehensive Income (AOCI) to the extent effective. We assess on an ongoing basis whether the derivative that is used in the hedging transaction is highly effective in offsetting changes in cash flows of the hedged debt. The terms of the interest rate swaps match the terms of the underlying debt resulting in no ineffectiveness. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
RESTRUCTURING [Abstract] | ' | ||||||||||||||||||||
RESTRUCTURING | ' | ||||||||||||||||||||
9 | RESTRUCTURING | ||||||||||||||||||||
In March 2012, we announced a plan to restructure our bioanalytical laboratory operations. We consolidated our laboratory in McMinnville, Oregon into our 120,000 square foot headquarters facility in West Lafayette, Indiana. This plan was implemented to reduce operating costs and strengthen our ability to meet clients' needs by improving laboratory utilization. In the fourth fiscal quarter of 2012, we decided to initiate closure of our facility and bioanalytical laboratory in Warwickshire, United Kingdom after careful evaluation of its financial performance and analysis of our strategic alternatives. We continue to sell our products globally while further consolidating delivery of our CRO services into our Indiana locations. As part of the overall evaluation of our business, personnel reductions in the Selling, R&D and General and Administrative functions were also implemented at both of our Indiana locations during the second half of fiscal 2012. In total, 74 employees were terminated as part of the restructuring activities in fiscal 2012. | |||||||||||||||||||||
We reserved for lease payments at the cease use date for our UK facility and have considered free rent, sublease rentals and the number of days it would take to restore the space to its original condition prior to our improvements. In the first quarter of fiscal 2013, we began amortizing into general and administrative expense, equally through the cease use date, the estimated rent income of $200 when the reserve was originally established. We have been unsuccessful at subleasing the facility. Based on these factors, we have $941 reserved for UK lease related costs in accounts payable on the condensed consolidated balance sheets. | |||||||||||||||||||||
The following table sets forth the rollforward of the restructuring activity for the nine months ended June 30, 2014. | |||||||||||||||||||||
Balance, | Total | Cash | Other | Balance, | |||||||||||||||||
September 30, | Charges | Payments | June 30, | ||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||
One-time termination benefits | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Lease related costs | 877 | - | - | 64 | 941 | ||||||||||||||||
Equipment moving costs and method transfers | - | - | - | - | - | ||||||||||||||||
Travel and relocation costs | - | - | - | - | - | ||||||||||||||||
Loss on sale of equipment | (16 | ) | - | - | 16 | - | |||||||||||||||
Other costs | 117 | - | - | - | 117 | ||||||||||||||||
Total | $ | 978 | $ | - | $ | - | $ | 80 | $ | 1,058 | |||||||||||
Other costs include legal and professional fees and other costs incurred in connection with transitioning services from sites being closed as well as costs incurred to remove improvements previously made to the UK facility. Other activity in the reserve rollforward primarily reflects a receivable for settlement of the capital lease in the UK. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' | ||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||
10 | FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||
The provisions of the Fair Value Measurements and Disclosure Topic defines fair value, establishes a consistent framework for measuring fair value and provides the disclosure requirements about fair value measurements. This Topic also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's judgment about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: | |||||||||||
• | Level 1 - Valuations based on quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. | ||||||||||
• | Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||
• | Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||
In May 2011, we issued Class A and B Warrants that are measured at fair value on a recurring basis. We recorded these warrants as a liability determining the fair value at inception on May 11, 2011. Subsequent quarterly fair value measurements, using the Black Scholes model which is considered a level 2 measurement, are calculated with fair value changes charged to the statement of operations and comprehensive income (loss). Class B Warrants expired in May 2012 and the liability was reduced to zero. The assumptions used to compute the fair value of the warrants at June 30, 2014 and September 30, 2013 are as follows: | |||||||||||
30-Jun-14 | 30-Sep-13 | ||||||||||
Warrant A | Warrant A | ||||||||||
Risk-free interest rate | 0.42 | % | 0.51 | % | |||||||
Dividend yield | 0 | % | 0 | % | |||||||
Volatility of the Company's common stock | 64.48 | % | 71.15 | % | |||||||
Expected life of the options (years) | 1.87 | 2.6 | |||||||||
Fair value per unit | $ | 1.067 | $ | 0.444 | |||||||
The carrying amounts for cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other assets, accounts payable and other accruals approximate their fair values because of their nature and respective duration. The fair value of the revolving credit facility and certain long-term debt is equal to their carrying values due to the variable nature of their interest rates. Our long-term fixed rate debt was initiated in February 2011 and renewed on October 31, 2013. | |||||||||||
We use an interest rate swap, designated as a hedge, to fix the interest rate on 60% of the debt from our new Huntington credit facility. We did not enter into this derivative transaction to speculate on interest rates, but to hedge interest rate risk. The swap is recognized on the balance sheet at its fair value. The fair value is determined utilizing a cash flow model that takes into consideration interest rates and other inputs observable in the market from similar types of instruments, and is therefore considered a level 2 measurement. The following table presents the fair value outstanding at June 30: | |||||||||||
Fair Value at: | |||||||||||
Balance Sheet Classification | 30-Jun-14 | 30-Jun-13 | |||||||||
Interest rate swap agreement | Other long-term liabilities | $ | 41 | $ | - |
MANAGEMENTS_PLAN
MANAGEMENT'S PLAN | 9 Months Ended | |
Jun. 30, 2014 | ||
MANAGEMENT'S PLAN [Abstract] | ' | |
MANAGEMENT'S PLAN | ' | |
11 | MANAGEMENT'S PLAN | |
Our long-term strategic objective is to maximize the Company's intrinsic value per share. While we remain focused on reducing our costs through productivity and better processes and a continued emphasis on generating free cash flow, we are dedicated to the strategies that drive our top-line growth. We are intensifying our efforts to improve our processes, embrace change, and wisely employ our stronger liquidity position. We will continue to take actions to make BASi a stronger company. | ||
During the first nine months of fiscal 2014, revenues improved 9.6%, gross margin improved by 19.3% and operating income improved by 12.4% from the comparable period in fiscal 2013. We also generated $1,094 in cash from operations, maintained strict controls on expenditures and paid down our line of credit $1.4 million, while meeting all of our other obligations. | ||
In May 2014, we entered into a new Credit Agreement with Huntington for both a term loan of $5,500 and a revolving loan of $2,000 and used a portion of the proceeds from those loans to pay off the Regions replacement note payable, as more fully described in Note 8. | ||
For the remainder of fiscal 2014, we will focus on growing our revenues and continue initiatives to control costs and improve productivity to further reduce our break-even point and achieve our financial objectives. We expect to see improvement in the volume of new bookings in fiscal 2014 along with maintaining improved gross profit margins. We have debt service and lease obligations of approximately $0.9 million in fiscal 2014. | ||
Based on our expected revenue, the impact of the cost reductions implemented and restructuring activities during fiscal 2012, the payoff of the prior note payable as well the ability to draw from the new revolving loan, we project that we will have the liquidity required to meet our fiscal 2014 operations and debt obligations. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||
A summary of our stock option activity for the nine months ended June 30, 2014 is as follows (in thousands except for share prices): | |||||||||||||
Options | Weighted- | Weighted- | |||||||||||
(shares) | Average | Average | |||||||||||
Exercise Price | Grant Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding - October 1, 2013 | 479 | $ | 1.77 | $ | 1.35 | ||||||||
Exercised | (9 | ) | 1.17 | 0.97 | |||||||||
Granted | 30 | 2.81 | 2.35 | ||||||||||
Terminated | (77 | ) | 2.05 | 1.54 | |||||||||
Outstanding - June 30, 2014 | 423 | $ | 1.8 | $ | 1.39 | ||||||||
Fair Value Assumptions | ' | ||||||||||||
During the nine months ended June 30, 2014, we granted options for 30 common shares under the Plan. The fair value of the option grants are estimated on the date of the grant. The weighted-average assumptions used to compute the fair value of these options were as follows: | |||||||||||||
Risk-free interest rate | 2.26% - 2.45% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Expected volatility | 94.62% - 94.65% | ||||||||||||
Expected life of the options (years) | 8 | ||||||||||||
Forfeitures | 3.00% |
INCOME_LOSS_PER_SHARE_Tables
INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
INCOME (LOSS) PER SHARE [Abstract] | ' | ||||||||||||||||
Reconciliation of Computation of Basic Loss Per Share to Diluted Net Loss Per Share | ' | ||||||||||||||||
The following table reconciles our computation of basic income (loss) per share to diluted income (loss) per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic net income (loss) per share: | |||||||||||||||||
Net Income (loss) applicable to common shareholders | $ | 215 | $ | 576 | $ | (666 | ) | $ | 521 | ||||||||
Weighted average common shares outstanding | 8,068 | 7,673 | 7,922 | 7,656 | |||||||||||||
Basic net income (loss) per share | $ | 0.03 | $ | 0.08 | $ | (0.08 | ) | $ | 0.07 | ||||||||
Diluted net income (loss) per share: | |||||||||||||||||
Net Income (loss) applicable to common shareholders | $ | 215 | $ | 576 | $ | (666 | ) | $ | 521 | ||||||||
Change in Fair Value of Warrant Liability | (66 | ) | - | - | - | ||||||||||||
Diluted net income (loss) applicable to common shareholders | $ | 149 | $ | 576 | $ | (666 | ) | $ | 521 | ||||||||
Weighted average common shares outstanding | 8,068 | 7,673 | 7,922 | 7,656 | |||||||||||||
Series A preferred shares | 592 | 696 | - | 696 | |||||||||||||
Class A warrants | 810 | - | - | - | |||||||||||||
Dilutive stock options/shares | 155 | 31 | - | 1 | |||||||||||||
Diluted weighted average common shares outstanding | 9,625 | 8,400 | 7,922 | 8,353 | |||||||||||||
Diluted net income (loss) per share: | $ | 0.02 | $ | 0.07 | $ | (0.08 | ) | $ | 0.06 |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories consisted of the following: | |||||||||
June 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,200 | $ | 1,157 | |||||
Work in progress | 300 | 322 | |||||||
Finished goods | 384 | 259 | |||||||
$ | 1,884 | $ | 1,738 | ||||||
Obsolescence reserve | (349 | ) | (359 | ) | |||||
$ | 1,535 | $ | 1,379 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||
Operating Segments | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue: | |||||||||||||||||
Service | $ | 4,754 | $ | 4,156 | $ | 14,196 | $ | 12,493 | |||||||||
Product | 1,278 | 1,444 | 3,968 | 4,067 | |||||||||||||
$ | 6,032 | $ | 5,600 | $ | 18,164 | $ | 16,560 | ||||||||||
Operating income (loss): | |||||||||||||||||
Service | $ | 293 | $ | 222 | $ | 669 | $ | 71 | |||||||||
Product | (37 | ) | 216 | 154 | 661 | ||||||||||||
$ | 256 | $ | 438 | $ | 823 | $ | 732 | ||||||||||
Interest expense | (123 | ) | (163 | ) | (408 | ) | (492 | ) | |||||||||
Change in fair value of warrant liability - decrease (increase) | 66 | 318 | (1,095 | ) | 293 | ||||||||||||
Other income | 1 | 1 | 6 | 6 | |||||||||||||
Income (loss) before income taxes | $ | 200 | $ | 594 | $ | (674 | ) | $ | 539 |
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 9 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
RESTRUCTURING [Abstract] | ' | ||||||||||||||||||||
Summary of Restructuring Activity | ' | ||||||||||||||||||||
The following table sets forth the rollforward of the restructuring activity for the nine months ended June 30, 2014. | |||||||||||||||||||||
Balance, | Total | Cash | Other | Balance, | |||||||||||||||||
September 30, | Charges | Payments | June 30, | ||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||
One-time termination benefits | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Lease related costs | 877 | - | - | 64 | 941 | ||||||||||||||||
Equipment moving costs and method transfers | - | - | - | - | - | ||||||||||||||||
Travel and relocation costs | - | - | - | - | - | ||||||||||||||||
Loss on sale of equipment | (16 | ) | - | - | 16 | - | |||||||||||||||
Other costs | 117 | - | - | - | 117 | ||||||||||||||||
Total | $ | 978 | $ | - | $ | - | $ | 80 | $ | 1,058 |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' | ||||||||||
Summary of Assumptions Used to Compute Fair Value of Warrants | ' | ||||||||||
The assumptions used to compute the fair value of the warrants at June 30, 2014 and September 30, 2013 are as follows: | |||||||||||
30-Jun-14 | 30-Sep-13 | ||||||||||
Warrant A | Warrant A | ||||||||||
Risk-free interest rate | 0.42 | % | 0.51 | % | |||||||
Dividend yield | 0 | % | 0 | % | |||||||
Volatility of the Company's common stock | 64.48 | % | 71.15 | % | |||||||
Expected life of the options (years) | 1.87 | 2.6 | |||||||||
Fair value per unit | $ | 1.067 | $ | 0.444 | |||||||
Schedule of Fair Value of Derivatives | ' | ||||||||||
The following table presents the fair value outstanding at June 30: | |||||||||||
Fair Value at: | |||||||||||
Balance Sheet Classification | 30-Jun-14 | 30-Jun-13 | |||||||||
Interest rate swap agreement | Other long-term liabilities | $ | 41 | $ | - |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options outstanding that were granted outside of the plan | 155 | ' | 155 | ' |
Employee Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $19 | $52 | $65 | $187 |
STOCKBASED_COMPENSATION_Summar
STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) (Employee Stock Option [Member], USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Employee Stock Option [Member] | ' |
Options (shares) | ' |
Outstanding - October 1, 2013 | 479 |
Exercised | -9 |
Granted | 30 |
Terminated | -77 |
Outstanding - June 30, 2014 | 423 |
Weighted-Average Exercise Price | ' |
Outstanding - October 1, 2013 | $1.77 |
Exercised | $1.17 |
Granted | $2.81 |
Terminated | $2.05 |
Outstanding - June 30, 2014 | $1.80 |
Weighted-Average Grant Date Fair Value | ' |
Outstanding - October 1, 2013 | $1.35 |
Exercised | $0.97 |
Granted | $2.35 |
Terminated | $1.54 |
Outstanding - June 30, 2014 | $1.39 |
STOCKBASED_COMPENSATION_Fair_V
STOCK-BASED COMPENSATION (Fair Value Assumptions) (Details) (Stock Options [Member]) | 9 Months Ended |
Jun. 30, 2014 | |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate, minimum | 2.26% |
Risk-free interest rate, maximum | 2.45% |
Dividend yield | 0.00% |
Expected volatility, minimum | 94.62% |
Expected volatility , maximum | 94.65% |
Expected life of the options (years) | '8 years |
Forfeitures | 3.00% |
INCOME_LOSS_PER_SHARE_Narrativ
INCOME (LOSS) PER SHARE (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Warrant [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive shares not considered in computing diluted earnings per share | 1,377 | 799 | 1,377 |
Series A Preferred Stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive shares not considered in computing diluted earnings per share | ' | 592 | ' |
INCOME_LOSS_PER_SHARE_Reconcil
INCOME (LOSS) PER SHARE (Reconciliation of Computation of Basic Income or Loss Per Share to Diluted Income or Loss Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Basic net income (loss) per share: | ' | ' | ' | ' |
Net Income (loss) applicable to common shareholders | $215 | $576 | ($666) | $521 |
Weighted average common shares outstanding | 8,068 | 7,673 | 7,922 | 7,656 |
Basic net income (loss) per share | $0.03 | $0.08 | ($0.08) | $0.07 |
Diluted net income (loss) per share: | ' | ' | ' | ' |
Net Income (loss) applicable to common shareholders | 215 | 576 | -666 | 521 |
Change in Fair Value of Warrant Liability | -66 | ' | ' | ' |
Diluted net income (loss) applicable to common shareholders | $149 | $576 | ($666) | $521 |
Weighted average common shares outstanding | 8,068 | 7,673 | 7,922 | 7,656 |
Plus: Incremental shares from assumed conversions | ' | ' | ' | ' |
Series A preferred shares | 592 | 696 | ' | 696 |
Class A warrants | 810 | ' | ' | ' |
Dilutive stock options/shares | 155 | 31 | ' | 1 |
Diluted weighted average common shares outstanding | 9,625 | 8,400 | 7,922 | 8,353 |
Diluted net income (loss) per share | $0.02 | $0.07 | ($0.08) | $0.06 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES [Abstract] | ' | ' |
Raw materials | $1,200 | $1,157 |
Work in process | 300 | 322 |
Finished goods | 384 | 259 |
Gross inventories | 1,884 | 1,738 |
Obsolescence reserve | -349 | -359 |
Inventories | $1,535 | $1,379 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
segments | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of segments | ' | ' | 2 | ' |
Revenue: | $6,032 | $5,600 | $18,164 | $16,560 |
Operating income (loss): | 256 | 438 | 823 | 732 |
Interest expense | -123 | -163 | -408 | -492 |
Change in fair value of warrant liability - decrease (increase) | 66 | 318 | -1,095 | 293 |
Other income | 1 | 1 | 6 | 6 |
Net Income (loss) before income taxes | 200 | 594 | -674 | 539 |
Service [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue: | 4,754 | 4,156 | 14,196 | 12,493 |
Operating income (loss): | 293 | 222 | 669 | 71 |
Product [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue: | 1,278 | 1,444 | 3,968 | 4,067 |
Operating income (loss): | ($37) | $216 | $154 | $661 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 |
INCOME TAXES [Abstract] | ' | ' |
Liability for other uncertain income tax positions | $16 | $16 |
Statutory federal income tax rate | 34.00% | ' |
Effective income tax rate | -1.20% | ' |
DEBT_Note_Payable_Details
DEBT (Note Payable) (Details) (Second Replacement Note Payable [Member], USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 |
Second Replacement Note Payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | ' | $5,254 |
Debt instrument, maturity date | 31-Oct-14 | ' |
Debt instrument, frequency of periodic payments | 'monthly | ' |
Debt instrument, principal payment | 47 | ' |
Debt instrument, face amount | $5,786 | ' |
Debt instrument, variable interest reference rate | 'LIBOR | ' |
Debt instrument, basis spread on variable rate | 4.00% | ' |
Debt instrument, minimum interest rate | 6.00% | ' |
Fixed charge coverage ratio | 1.25 | ' |
Total liabilities to tangible net worth ratio | 2.1 | ' |
DEBT_Revolving_Line_of_Credit_
DEBT (Revolving Line of Credit) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 01, 2015 | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Swap [Member] | New Credit Facility Term Loan [Member] | New Credit Facility Revolving Loan [Member] | New Credit Facility Revolving Loan [Member] | Revolving Line of Credit [Member] | Revolving Line of Credit [Member] |
Scenario, Forecast [Member] | Former Line of Credit [Member] | Former Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | ' | ' | $2,000 | ' | $3,000 | ' |
Debt instrument, face amount | ' | 5,500 | ' | ' | ' | ' |
Debt instrument, maturity date | ' | 31-May-19 | 31-May-16 | ' | ' | ' |
Debt instrument, principal payment | ' | 65 | ' | ' | ' | ' |
Debt instrument, carrying amount | ' | 5,435 | ' | ' | ' | ' |
Line of credit, frequency of periodic payments | ' | 'monthly | 'monthly | ' | 'monthly | ' |
Line of credit, periodic interest payments | ' | ' | ' | ' | 15 | ' |
Debt instrument, basis spread on variable rate | ' | 3.25% | 3.00% | ' | 5.00% | ' |
Line of credit, frequency of facilities fee payments | ' | ' | 'quarterly | ' | 'annual | ' |
Line of credit, facilities fee, percentage | ' | ' | 0.25% | ' | 2.00% | ' |
Line of credit, collateral monitoring fee, percentage | ' | ' | ' | ' | 0.20% | ' |
Line of credit, collateral | ' | ' | ' | ' | 'Borrowings under the Credit Agreement were secured by a blanket lien on our personal property, including certain eligible accounts receivable, inventory, and intellectual property assets, a second mortgage on our West Lafayette and Evansville real estate and all common stock of our U.S. subsidiaries and 65% of the common stock of our non-United States subsidiary. Borrowings were calculated based on 75% of eligible accounts receivable. | ' |
Line of credit, borrowings, based on eligible accounts receivable, percentage | ' | ' | ' | ' | 75.00% | ' |
Minimum net worth covenant requirement | ' | ' | ' | ' | 8,000 | ' |
Line of credit, amount outstanding | ' | ' | $0 | ' | ' | $1,415 |
Covenant terms | ' | ' | 'Pursuant to the Agreement, the revolving loan also carries an annual clean-up provision that requires the Company to maintain a balance of not more than 20% of the maximum loan of $2,000 for a period of 30 days in any 12 month period while the revolving loan is outstanding. | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | 1.1 | ' | ' | ' |
Leverage ratio | ' | ' | 3 | 2.5 | ' | ' |
Percentage of debt covered by swap | 60.00% | ' | ' | ' | ' | ' |
Fixed interest rate | 5.00% | ' | ' | ' | ' | ' |
RESTRUCTURING_Narrative_Detail
RESTRUCTURING (Narrative) (Details) (USD $) | 12 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
employees | sqft | Scenario, Forecast [Member] | Lease Related Costs [Member] | Lease Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Area of headquarters facility | ' | 120,000 | ' | ' | ' | ' |
Number of employees terminated | 74 | ' | ' | ' | ' | ' |
Rent income | ' | ' | ' | $200 | ' | ' |
Restructuring reserve | ' | $1,058 | $978 | ' | $941 | $877 |
RESTRUCTURING_Summary_of_Restr
RESTRUCTURING (Summary of Restructuring Activity) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Balance | $978 |
Total Charges | ' |
Cash Payments | ' |
Other | 80 |
Balance | 1,058 |
One-time Termination Benefits [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Balance | ' |
Total Charges | ' |
Cash Payments | ' |
Other | ' |
Balance | ' |
Lease Related Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Balance | 877 |
Total Charges | ' |
Cash Payments | ' |
Other | 64 |
Balance | 941 |
Equipment Moving Costs And Method Transfers [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Balance | ' |
Total Charges | ' |
Cash Payments | ' |
Other | ' |
Balance | ' |
Travel and Relocation Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Balance | ' |
Total Charges | ' |
Cash Payments | ' |
Other | ' |
Balance | ' |
Loss on Sale of Equipment [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Balance | -16 |
Total Charges | ' |
Cash Payments | ' |
Other | 16 |
Balance | ' |
Other Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Balance | 117 |
Total Charges | ' |
Cash Payments | ' |
Other | ' |
Balance | $117 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 12-May-12 | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | Swap [Member] | Swap [Member] | Class B Warrant [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Class A Warrant [Member] | Class A Warrant [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | 0.42% | 0.51% |
Dividend yield | ' | ' | ' | ' | ' | 0.00% | 0.00% |
Volatility of the Company's common stock | ' | ' | ' | ' | ' | 64.48% | 71.15% |
Expected life of the options | ' | ' | ' | ' | ' | '1 year 10 months 13 days | '2 years 7 months 6 days |
Fair value per unit | ' | ' | ' | ' | ' | $1.07 | $0.44 |
Fair value of warrant liability | $852 | $612 | ' | ' | $0 | ' | ' |
Percentage of debt covered by swap | ' | ' | 60.00% | ' | ' | ' | ' |
Interest rate swap agreement | ' | ' | $41 | ' | ' | ' | ' |
MANAGEMENTS_PLAN_Details
MANAGEMENT'S PLAN (Details) (USD $) | 9 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
MANAGEMENT'S PLAN [Abstract] | ' | ' |
Revenue growth (decline), percent | 9.60% | ' |
Gross margin growth (decline), percent | 19.30% | ' |
Operating income growth (decline), percent | 12.40% | ' |
Cash generated from operations | $1,215,000 | $1,418,000 |
Net paydown on line of credit | -1,400,000 | ' |
Debt and lease obligations, current | 900,000 | ' |
New Credit Facility Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, face amount | 5,500,000 | ' |
New Credit Facility Revolving Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of credit, maximum borrowing capacity | $2,000,000 | ' |