Inotiv (NOTV) 10-Q 17 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Feb. 12, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Dec-14
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	basi
Entity Registrant Name	BIOANALYTICAL SYSTEMS INC
Entity Central Index Key	720154
Current Fiscal Year End Date	-21
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,076,046

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$747	$981
Accounts receivable
Trade, net of allowance of $54 at December 31, 2014 and September 30, 2014, respectively	2,838	2,557
Unbilled revenues and other	952	878
Inventories	1,662	1,564
Prepaid expenses	693	675
Total current assets	6,892	6,655
Property and equipment, net	15,695	15,949
Goodwill	1,009	1,009
Debt issue costs	115	122
Other assets	38	39
Total assets	23,749	23,774
Current liabilities:
Accounts payable	2,900	2,672
Accrued expenses	1,344	1,842
Customer advances	3,096	2,990
Income tax accruals	17	20
Revolving line of credit	481	202
Fair value of warrant liability	556	676
Current portion of capital lease obligation	271	279
Current portion of long-term debt	786	786
Total current liabilities	9,451	9,467
Fair Value of interest rate swap	31	21
Capital lease obligation, less current portion	232	298
Long-term debt, less current portion	4,256	4,452
Total liabilities	13,970	14,238
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 December 31, 2014 and 1,185 at September 30, 2014	1,185	1,185
Common shares, no par value: Authorized 19,000,000 shares; 8,075,728 issued and outstanding at December 31, 2014 and 8,075,335 at September 30, 2014	1,980	1,980
Additional paid-in capital	21,183	21,154
Accumulated deficit	-14,607	-14,790
Accumulated other comprehensive income	38	7
Total shareholders' equity	9,779	9,536
Total liabilities and shareholders' equity	23,749	23,774
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 December 31, 2014 and 1,185 at September 30, 2014	$1,185	$1,185

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, except Share data, unless otherwise specified
Allowance for doubtful accounts	$54	$54
Common stock, no par value
Common stock, shares authorized	19,000,000	19,000,000
Common stock, shares issued	8,075,728	8,075,335
Common stock, shares outstanding	8,075,728	8,075,335
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	1,185
Preferred stock, shares outstanding	1,185	1,185
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
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) [Abstract]
Service revenue	$4,398	$4,916
Product revenue	1,447	1,304
Total revenue	5,845	6,220
Cost of service revenue	3,256	3,323
Cost of product revenue	685	752
Total cost of revenue	3,941	4,075
Gross profit	1,904	2,145
Operating expenses:
Selling	336	437
Research and development	191	143
General and administrative	1,235	1,103
Total operating expenses	1,762	1,683
Operating income	142	462
Interest expense	-81	-164
Change in fair value of warrant liability - (increase) decrease	120	-961
Other income	2	1
Income (loss) before income taxes	183	-662
Income taxes	1
Net income (loss)	182	-662
Other comprehensive income (loss):
Fair value adjustment of interest rate swap	-10
Foreign currency translation adjustment	42	-26
Comprehensive income (loss)	$214	($688)
Basic net income (loss) per share	$0.02	($0.09)
Diluted net income (loss) per share	$0.01	($0.09)
Weighted common shares outstanding:
Basic	8,076	7,735
Diluted	9,601	7,735

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net income (loss)	$182	($662)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	377	402
Change in fair value of warrant liability - increase (decrease)	-120	961
Employee stock compensation expense	29	47
Changes in operating assets and liabilities:
Accounts receivable	-355	939
Inventories	-98	-72
Income tax accruals	-3	-14
Prepaid expenses and other assets	-9	-145
Accounts payable	228	-345
Accrued expenses	-498	-151
Customer advances	106	76
Net cash (used) provided by operating activities	-161	1,036
Investing activities:
Capital expenditures	-122	-51
Net cash used by investing activities	-122	-51
Financing activities:
Payments of long-term debt	-196	-49
Payments of debt issuance costs		-60
Payments on revolving line of credit	-1,097	-7,619
Borrowings on revolving line of credit	1,375	6,372
Payments on capital lease obligations	-75	-66
Net cash provided (used) by financing activities	7	-1,422
Effect of exchange rate changes	42	-26
Net decrease in cash and cash equivalents	-234	-463
Cash and cash equivalents at beginning of period	981	1,304
Cash and cash equivalents at end of period	747	841
Supplemental disclosure of non-cash financing activities:
Preferred stock dividends paid in common shares		($18)

DESCRIPTION_OF_THE_BUSINESS_AN

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 2014
DESCRIPTION OF THE BUSINESS [Abstract]
DESCRIPTION OF THE BUSINESS		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, 2014. In the opinion of management, the condensed consolidated financial statements for the three months ended December 31, 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 December 31, 2014. The results of operations for the three months ended December 31, 2014 are not necessarily indicative of the results for the year ending September 30, 2015.

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Dec. 31, 2014
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATON		2	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, 2014. 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 Compensation Committee may also issue non-qualified stock option grants with vesting periods different from the 2008 Plan. As of December 31, 2014, there are 155 shares underlying options outstanding that were granted outside of the Plan. The assumptions used are detailed in Note 9 to the Consolidated Financial Statements in our Form 10-K for the year ended September 30, 2014. Stock based compensation expense for the three months ended December 31, 2014 and 2013 was $29 and $47, respectively.
	A summary of our stock option activity for the three months ended December 31, 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, 2014			426		$	1.83	$	1.41
	Exercised			(1	)		1.4		1.15
	Granted			25			2.53		2.11
	Expired			(11	)		5		3.54
	Forfeit			(12	)		4.08		2.71
	Outstanding - December 31, 2014			427		$	1.72	$	1.36
	During the three months ended December 31, 2014, we granted options for 25 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			2.31	%
	Dividend yield			0	%
	Expected volatility			94.39	%
	Expected life of the options (years)			8
	Forfeitures			3	%

INCOME_LOSS_PER_SHARE

INCOME (LOSS) PER SHARE	3 Months Ended
	Dec. 31, 2014
INCOME (LOSS) PER SHARE [Abstract]
INCOME (LOSS) PER SHARE	3	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 a 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 earnings 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 earnings per share for the quarter ended December 31, 2013 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 earnings per share for the quarter ended December 31, 2013 because they were also anti-dilutive.
	The following table reconciles our computation of basic income (loss) per share to diluted income (loss) per share:
			Three Months Ended
			December 31,
			2014			2013
	Basic net income (loss) per share:
	Net income (loss) applicable to common shareholders		$	182		$	(662	)
	Weighted average common shares outstanding			8,076			7,735
	Basic net income (loss) per share		$	0.02			(0.09	)
	Diluted net income (loss) per share:
	Net income (loss) applicable to common shareholders		$	182		$	(662	)
	Change in Fair Value of Warrant Liability			(120	)		—
	Diluted net income (loss) applicable to common shareholders		$	62		$	(662	)
	Weighted average common shares outstanding			8,076			7,735
	Plus: Incremental shares from assumed conversions
	Series A preferred shares			592			—
	Class A warrants			799			—
	Dilutive stock options/shares			134			—
	Diluted weighted average common shares outstanding			9,601			7,735
	Diluted net income (loss) per share		$	0.01		$	(0.09	)

INVENTORIES

INVENTORIES	3 Months Ended
	Dec. 31, 2014
INVENTORIES [Abstract]
INVENTORIES		4	INVENTORIES
	Inventories consisted of the following:
			December 31,			September 30,
			2014			2014
	Raw materials		$	1,303		$	1,228
	Work in progress			307			295
	Finished goods			362			340
			$	1,972		$	1,863
	Obsolescence reserve			(310	)		(299	)
			$	1,662		$	1,564

SEGMENT_INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Dec. 31, 2014
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION		5	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, 2014.
			Three Months Ended December 31,
			2014			2013
	Revenue:
	Service		$	4,398		$	4,916
	Product			1,447			1,304
			$	5,845		$	6,220
	Operating income:
	Service		$	18		$	424
	Product			124			38
			$	142		$	462
	Interest Expense			(81	)		(164	)
	Change in fair value of warrant liability – (increase) decrease			120			(961	)
	Other income			2			1
	Income (loss) before income taxes		$	183		$	(662	)

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Dec. 31, 2014
INCOME TAXES [Abstract]
INCOME TAXES	6	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 December 31, 2014 and September 30, 2014, we had a $16 liability for uncertain income tax positions. The difference between the federal statutory rate of 34% and our effective rate of 0.4% 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. and several U.S. States. We remain subject to examination by taxing authorities in the jurisdictions in which we have filed returns for years after 2009.

DEBT

DEBT	3 Months Ended
	Dec. 31, 2014
DEBT [Abstract]
DEBT	7	DEBT
	Note payable
	Prior to obtaining the new credit facility described below, we had a term loan from Regions Bank (“Regions”), which was secured by mortgages on our facilities in West Lafayette and Evansville, Indiana.
	On October 31, 2013, we executed a seventh amendment with Regions to extend the note payable maturity date to October 31, 2014. The unpaid principal on the note was incorporated into a replacement note payable for $5,205 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.
	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 contained cross-default provisions with each other and formerly with the revolving line of credit with EGC described below that was terminated in January 2014.
	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. 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 and the line of credit terminated on that date.
	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.
	Current Credit Facility
	On May 14, 2014, we entered into a Credit Agreement (“Agreement”) with Huntington Bank. The Agreement includes both a term loan and a revolving loan and is secured by mortgages on our facilities in West Lafayette and Evansville, Indiana and liens on our personal property.
	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 December 31, 2014 and September 30, 2014 was $5,042 and $5,238, respectively.
	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. The revolving loan includes 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 revolving loan balance was $481 and $202 at December 31, 2014 and September 30, 2014, respectively.
	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, asset sales and cash dividends.
	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.
	We incurred $134 of costs in connection with the issuance of the credit facility. These costs were capitalized and are being amortized to interest expense over five years based on the contractual term of the credit facility. As of December 31, 2014 and September 30, 2014, the unamortized portion of debt issuance costs related to the credit facility was $115 and $122, respectively, and was included in Debt issue costs, net on the consolidated balance sheets. We incurred $60 of costs in connection with the seventh amendment with Regions, which were expensed in fiscal 2014.

RESTRUCTURING

RESTRUCTURING	3 Months Ended
	Dec. 31, 2014
RESTRUCTURING [Abstract]
RESTRUCTURING		8	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 and closed our facility and bioanalytical laboratory in Warwickshire, United Kingdom. We continue to sell our products globally while further consolidating delivery of our CRO services into our Indiana locations.
	We reserved for lease payments at the cease use date 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 matters, we have $981 reserved for UK lease related costs.
	The following table sets forth the rollforward of the restructuring activity for the three months ended December 31, 2014.
			Balance,		Total		Cash		Other		Balance,
			September 30,		Charges		Payments				December 31,
			2014								2014
	Lease related costs		$	961	$	20	$	-	$	-	$	981
	Other costs			117		-		-		-		117
	Total		$	1,078	$	20	$	-	$	-	$	1,098
	Other costs of $117 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	3 Months Ended
	Dec. 31, 2014
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS		9	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). The Class B Warrants expired in May 2012 and the liability was reduced to zero. The assumptions used to compute the fair value of the Class A Warrants at December 31, 2014 and September 30, 2014 were as follows:
			31-Dec-14			30-Sep-14
			Warrant A			Warrant A
	Risk-free interest rate			0.4	%		0.41	%
	Dividend yield			0	%		0	%
	Volatility of the Company's common stock			62.84	%		63.58	%
	Expected life of the options (years)			1.36			1.6
	Fair value per unit		$	0.696		$	0.846
	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 carrying value of the note payable approximates fair value due to the variable nature of the interest rates.
	We use an interest rate swap, designated as a hedge, to fix 60% of the debt from our credit facility with Huntington Bank. 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 summarizes fair value measurements by level as of December 31, 2014, for the Company's financial liabilities measured at fair value on a recurring basis:
			Level 1			Level 2			Level 3
	Interest rate swap agreement		$	-		$	31		$	-
	Class A warrant liability		$	-		$	556		$	-
	The following table summarizes fair value measurements by level as of September 30, 2014, for the Company's financial liabilities measured at fair value on a recurring basis:
			Level 1			Level 2			Level 3
	Interest rate swap agreement		$	-		$	21		$	-
	Class A warrant liability		$	-		$	676		$	-

MANAGEMENTS_PLAN

MANAGEMENT'S PLAN	3 Months Ended
	Dec. 31, 2014
MANAGEMENT'S PLAN [Abstract]
MANAGEMENT'S PLAN		10	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.
	Over the past two years, we have focused on targeted initiatives that were designed to stabilize our business, improve our liquidity and lower our break-even point. While we remain dedicated to increasing our productivity and internal processes with the intent to continue to grow free cash flow, we are actively pursuing strategies to drive top-line growth. In the remainder of fiscal 2015, we plan to continue focus on sales execution, operational excellence and building strategic partnerships with pharmaceutical and biotechnology companies, to differentiate our company and create value for our clients and shareholders. By improving revenue growth and managing our costs effectively, combined with the availability of our credit facility with Huntington Bank with substantially more favorable terms than the long-term debt and line of credit it replaces, we enhance our ability to implement our growth plan. We have taken several steps to strengthen our management team in roles that will be vital to helping drive our top line performance.  We are expanding our marketing efforts by building on the Company's inherent strengths in specialty assay and drug discovery, regulatory excellence, and our Culex® automated sampling system.  We recognize that our growth depends upon our ability to continually improve and create new client relationships. In addition, strengthening the overall leadership team represents an important step forward in the Company's continuing program to build a management team with the depth, experience and dedication to position the Company to deliver profitable growth over the long-term. We are determined to follow through on the initiatives that support our strategy to strengthen the Company for fiscal 2015 and beyond.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	3 Months Ended
	Dec. 31, 2014
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT		11	SUBSEQUENT EVENT
	On January 28, 2015, the Company entered into a lease agreement (the “Lease Agreement”) with Cook Biotech, Inc. (“Tenant”), pursuant to which the Company will lease to Tenant approximately 50,730 square feet of office, manufacturing and warehouse space located at the Company's headquarters (the “Building”), 2701 Kent Avenue, West Lafayette, Indiana, 47906. The initial term of the Lease Agreement runs for approximately nine years and 11 months, with Tenant options to extend the initial term for two additional five-year terms at market rent, as agreed to by the parties. The Company will deliver possession of the leased space in phases over a three-month period ending May 1, 2015. Once the leased space is fully occupied, base rent under the Lease Agreement will range from approximately $50 per month during the first year of the initial term to approximately $57 per month during the final year of the initial term.
	The Lease Agreement contains customary events of default and termination provisions. In addition to these customary provisions, Tenant may terminate the lease with applicable notice: (i) if the Company is unable to deliver possession of the leased space in appropriate condition with separately metered utilities by May 31, 2015 and (ii) if an environmental safety assessment to be provided within the first 30 days of the lease term identifies hazardous materials adversely affecting Tenant's use of the leased space. Tenant may also terminate the lease if Tenant determines, based upon regulatory considerations for its products, that the leased space is not fit for its business use, in which case Tenant must give six months' notice of termination and pays an additional six months' rent upon termination.
	The Company is responsible for the repair and maintenance of the exterior structure and common areas of the building and all building systems as well as landscaping, parking and driveway areas except for damage caused by the Tenant. The Company also agreed to repair and relayer some or all of the parking lot serving the building with the tenant reimbursing forty percent of the cost, not to exceed a maximum paid by the Tenant of $60.
	During the term of the Lease Agreement and so long as Tenant is not in default, Tenant has the right to match any third-party offer to purchase the building. The Company is entering into the Lease Agreement to monetize underutilized space at its headquarters, and management does not believe the lease will materially impact the Company's business or service capabilities over the foreseeable future.

STOCKBASED_COMPENSATION_Tables

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Dec. 31, 2014
STOCK-BASED COMPENSATION [Abstract]
Summary of Stock Option Activity		Options			Weighted-		Weighted-
		(shares)			Average		Average
					Exercise Price		Grant Date
							Fair Value
	Outstanding - October 1, 2014		426		$	1.83	$	1.41
	Exercised		(1	)		1.4		1.15
	Granted		25			2.53		2.11
	Expired		(11	)		5		3.54
	Forfeit		(12	)		4.08		2.71
	Outstanding - December 31, 2014		427		$	1.72	$	1.36
Schedule of Fair Value Assumptions	Risk-free interest rate		2.31	%
	Dividend yield		0	%
	Expected volatility		94.39	%
	Expected life of the options (years)		8
	Forfeitures		3	%

INCOME_LOSS_PER_SHARE_Tables

INCOME (LOSS) PER SHARE (Tables)	3 Months Ended
	Dec. 31, 2014
INCOME (LOSS) PER SHARE [Abstract]
Reconciliation of Computation of Basic Loss Per Share to Diluted Net Loss Per Share		Three Months Ended
		December 31,
		2014			2013
	Basic net income (loss) per share:
	Net income (loss) applicable to common shareholders	$	182		$	(662	)
	Weighted average common shares outstanding		8,076			7,735
	Basic net income (loss) per share	$	0.02			(0.09	)
	Diluted net income (loss) per share:
	Net income (loss) applicable to common shareholders	$	182		$	(662	)
	Change in Fair Value of Warrant Liability		(120	)		—
	Diluted net income (loss) applicable to common shareholders	$	62		$	(662	)
	Weighted average common shares outstanding		8,076			7,735
	Plus: Incremental shares from assumed conversions
	Series A preferred shares		592			—
	Class A warrants		799			—
	Dilutive stock options/shares		134			—
	Diluted weighted average common shares outstanding		9,601			7,735
	Diluted net income (loss) per share	$	0.01		$	(0.09	)

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Dec. 31, 2014
INVENTORIES [Abstract]
Summary of Inventories	Inventories consisted of the following:
		December 31,			September 30,
		2014			2014
	Raw materials	$	1,303		$	1,228
	Work in progress		307			295
	Finished goods		362			340
		$	1,972		$	1,863
	Obsolescence reserve		(310	)		(299	)
		$	1,662		$	1,564

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	3 Months Ended
	Dec. 31, 2014
SEGMENT INFORMATION [Abstract]
Schedule of Operating Segments
		Three Months Ended December 31,
		2014			2013
	Revenue:
	Service	$	4,398		$	4,916
	Product		1,447			1,304
		$	5,845		$	6,220
	Operating income:
	Service	$	18		$	424
	Product		124			38
		$	142		$	462
	Interest Expense		(81	)		(164	)
	Change in fair value of warrant liability – (increase) decrease		120			(961	)
	Other income		2			1
	Income (loss) before income taxes	$	183		$	(662	)

RESTRUCTURING_Tables

RESTRUCTURING (Tables)	3 Months Ended
	Dec. 31, 2014
RESTRUCTURING [Abstract]
Summary of Restructuring Activity	The following table sets forth the rollforward of the restructuring activity for the three months ended December 31, 2014.
		Balance,		Total		Cash		Other		Balance,
		September 30,		Charges		Payments				December 31,
		2014								2014
	Lease related costs	$	961	$	20	$	-	$	-	$	981
	Other costs		117		-		-		-		117
	Total	$	1,078	$	20	$	-	$	-	$	1,098

FAIR_VALUE_OF_FINANCIAL_INSTRU1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Dec. 31, 2014
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Summary of Assumptions Used to Compute Fair Value of Warrants		31-Dec-14			30-Sep-14
		Warrant A			Warrant A
	Risk-free interest rate		0.4	%		0.41	%
	Dividend yield		0	%		0	%
	Volatility of the Company's common stock		62.84	%		63.58	%
	Expected life of the options (years)		1.36			1.6
	Fair value per unit	$	0.696		$	0.846
Schedule of Financial Liabilities Measured at Fair Value	The following table summarizes fair value measurements by level as of December 31, 2014, for the Company's financial liabilities measured at fair value on a recurring basis:
		Level 1			Level 2			Level 3
	Interest rate swap agreement	$	-		$	31		$	-
	Class A warrant liability	$	-		$	556		$	-
	The following table summarizes fair value measurements by level as of September 30, 2014, for the Company's financial liabilities measured at fair value on a recurring basis:
		Level 1			Level 2			Level 3
	Interest rate swap agreement	$	-		$	21		$	-
	Class A warrant liability	$	-		$	676		$	-

STOCKBASED_COMPENSATION_Narrat

STOCK-BASED COMPENSATION (Narrative) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding that were granted outside of the plan	155
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$29	$47

STOCKBASED_COMPENSATION_Summar

STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) (Employee Stock Option [Member], USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014
Employee Stock Option [Member]
Options (shares)
Outstanding - October 1, 2014	426
Exercised	-1
Granted	25
Expired	-11
Forfeit	-12
Outstanding - December 31, 2014	427
Weighted-Average Exercise Price
Outstanding - October 1, 2014	$1.83
Exercised	$1.40
Granted	$2.53
Expired	$5
Forfeit	$4.08
Outstanding - December 31, 2014	$1.72
Weighted-Average Grant Date Fair Value
Outstanding - October 1, 2014	$1.41
Exercised	$1.15
Granted	$2.11
Expired	$3.54
Forfeit	$2.71
Outstanding - December 31, 2014	$1.36

STOCKBASED_COMPENSATION_Fair_V

STOCK-BASED COMPENSATION (Fair Value Assumptions) (Details) (Stock Options [Member])	3 Months Ended
	Dec. 31, 2014
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.31%
Dividend yield	0.00%
Expected volatility	94.39%
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
In Thousands, unless otherwise specified	Dec. 31, 2013
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares not considered in computing diluted earnings per share	799
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
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Basic net income (loss) per share:
Net income (loss) applicable to common shareholders	$182	($662)
Weighted average common shares outstanding	8,076	7,735
Basic net income (loss) per share	$0.02	($0.09)
Diluted net income (loss) per share:
Net income (loss) applicable to common shareholders	182	-662
Change in Fair Value of Warrant Liability	-120
Diluted net income (loss) applicable to common shareholders	$62	($662)
Weighted average common shares outstanding	8,076	7,735
Plus: Incremental shares from assumed conversions
Series A preferred shares	592
Class A warrants	799
Dilutive stock options/shares	134
Diluted weighted average common shares outstanding	9,601	7,735
Diluted net income (loss) per share	$0.01	($0.09)

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
INVENTORIES [Abstract]
Raw materials	$1,303	$1,228
Work in process	307	295
Finished goods	362	340
Gross inventories	1,972	1,863
Obsolescence reserve	-310	-299
Inventories	$1,662	$1,564

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
	segments
Segment Reporting Information [Line Items]
Number of segments	2
Revenue	$5,845	$6,220
Operating income	142	462
Interest Expense	-81	-164
Change in fair value of warrant liability - (increase) decrease	120	-961
Other income	2	1
Income (loss) before income taxes	183	-662
Service [Member]
Segment Reporting Information [Line Items]
Revenue	4,398	4,916
Operating income	18	424
Product [Member]
Segment Reporting Information [Line Items]
Revenue	1,447	1,304
Operating income	$124	$38

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
INCOME TAXES [Abstract]
Liability for other uncertain income tax positions	$16	$16
Statutory federal income tax rate	34.00%
Effective income tax rate	0.40%

DEBT_Note_Payable_Details

DEBT (Note Payable) (Details) (Replacement Note Payable Two [Member], USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Oct. 31, 2013
Replacement Note Payable Two [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	31-Oct-14
Debt instrument, principal payment	$47
Debt instrument, face amount			5,205
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 issuance costs		$60

DEBT_Revolving_Line_of_Credit_

DEBT (Revolving Line of Credit) (Details) (Revolving Line of Credit [Member], EGC [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Jan. 31, 2014
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity		$3,000
Expiration date of credit agreement	31-Jan-14
Debt instrument, variable interest reference rate	Citibank's Prime Rate
Debt instrument, basis spread on variable rate	5.00%
Line of credit, frequency of facilities fee payments	annually
Line of credit, facilities fee, percentage	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.
Minimum net worth covenant requirement	8,000
Minimum [Member]
Debt Instrument [Line Items]
Line of credit, frequency of periodic payments	monthly
Line of credit, periodic interest payments	$15

DEBT_New_Credit_Facility_Detai

DEBT (New Credit Facility) (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Oct. 01, 2015
Huntington Bank [Member]
Debt Instrument [Line Items]
Debt issuance costs		$134
Facility term	5 years
Unamortized debt issuance costs	115	122
Swap [Member]
Debt Instrument [Line Items]
Percentage of debt covered by swap	60.00%
Fixed interest rate	5.00%
New Credit Facility Term Loan [Member] | Huntington Bank [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	5,500
Debt instrument, principal payment	65
Debt instrument, carrying amount	5,042	5,238
Debt instrument, variable interest reference rate	LIBOR
Debt instrument, basis spread on variable rate	3.25%
New Credit Facility Revolving Loan [Member] | Huntington Bank [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	2,000
Debt instrument, variable interest reference rate	LIBOR
Debt instrument, basis spread on variable rate	3.00%
Line of credit, facilities fee, percentage	0.25%
Line of credit, amount outstanding	$481	$202
Covenant terms	The revolving loan includes 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
New Credit Facility Revolving Loan [Member] | Scenario, Forecast [Member] | Huntington Bank [Member]
Debt Instrument [Line Items]
Leverage ratio			2.5

RESTRUCTURING_Narrative_Detail

RESTRUCTURING (Narrative) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Restructuring Cost and Reserve [Line Items]
Area of property	120,000
Restructuring reserves	$1,098	$1,078
Scenario, Forecast [Member]
Restructuring Cost and Reserve [Line Items]
Estimated rent income	200
Lease Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserves	$981	$961

RESTRUCTURING_Summary_of_Restr

RESTRUCTURING (Summary of Restructuring Activity) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Balance	$1,078
Total Charges	20
Cash Payments
Other
Balance	1,098
Lease Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Balance	961
Total Charges	20
Cash Payments
Other
Balance	981
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 $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014	31-May-12
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value of warrant liability	$556		$676
Interest Rate Swap [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Percentage of debt covered by swap	60.00%
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivative liability
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivative liability	31		21
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivative liability
Warrant [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivative liability
Warrant [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivative liability	556		676
Warrant [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivative liability
Swap [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Percentage of debt covered by swap	60.00%
Class B Warrant [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value of warrant liability				$0
Derivative Financial Instruments, Liabilities [Member] | Class A Warrant [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	0.40%	0.41%
Dividend yield	0.00%	0.00%
Volatility of the Company's common stock	62.84%	63.58%
Expected life of the options	1 year 4 months 10 days	1 year 7 months 6 days
Fair value per unit	$0.70	$0.85

SUBSEQUENT_EVENT_Details

SUBSEQUENT EVENT (Details) (USD $)	1 Months Ended
In Thousands, unless otherwise specified	Jan. 28, 2015	Dec. 31, 2014
	sqft	sqft
Subsequent Event [Line Items]
Area of property		120,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Area of property	50,730
Term of lease	9 years 11 months
Term of lease renewal	5 years
Initial base rent	$50
Final base rent	57
Percentage of repairs borne by tenant	40.00%
Maximum amount of repairs borne by tenant	$60