Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BASI | |
Entity Registrant Name | BIOANALYTICAL SYSTEMS INC | |
Entity Central Index Key | 720,154 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 8,105,007 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 516 | $ 981 |
Accounts receivable | ||
Trade, net of allowance $54 at June 30, 2015 and September 30, 2014, respectively | 3,227 | 2,557 |
Unbilled revenues and other | 819 | 878 |
Inventories | 1,561 | 1,564 |
Prepaid expenses | 551 | 675 |
Total current assets | 6,674 | 6,655 |
Property and equipment, net | 15,546 | 15,949 |
Goodwill | 1,009 | 1,009 |
Debt issue costs | 101 | 122 |
Other assets | 34 | 39 |
Total assets | 23,364 | 23,774 |
Current liabilities: | ||
Accounts payable | 2,446 | 2,672 |
Accrued expenses | 1,067 | 1,842 |
Customer advances | 3,009 | 2,990 |
Income tax accruals | $ 40 | 20 |
Revolving line of credit | 202 | |
Fair value of warrant liability | $ 323 | 676 |
Current portion of capital lease obligation | 262 | 279 |
Current portion of long-term debt | 786 | 786 |
Total current liabilities | 7,933 | 9,467 |
Fair value of interest rate swap | 35 | 21 |
Capital lease obligation, less current portion | 101 | 298 |
Long-term debt, less current portion | 3,863 | 4,452 |
Total liabilities | 11,932 | 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 June 30, 2015 and September 30, 2014, respectively | 1,185 | 1,185 |
Common shares, no par value: Authorized 19,000,000 shares; 8,104,944 shares and 8,075,335 issued and outstanding at June 30, 2015 and September 30, 2014, respectively | 1,988 | 1,980 |
Additional paid-in capital | 21,214 | 21,154 |
Accumulated deficit | (12,979) | (14,790) |
Accumulated other comprehensive income | 24 | 7 |
Total shareholders' equity | 11,432 | 9,536 |
Total liabilities and shareholders' equity | 23,364 | 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 June 30, 2015 and September 30, 2014, respectively | $ 1,185 | $ 1,185 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
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 | 8,104,944 | 8,075,335 |
Common stock, shares outstanding | 8,104,944 | 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 STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||
Service revenue | $ 5,001 | $ 4,754 | $ 13,929 | $ 14,196 |
Product revenue | 1,149 | 1,278 | 3,792 | 3,968 |
Total revenue | 6,150 | 6,032 | 17,721 | 18,164 |
Cost of service revenue | 3,003 | 3,368 | 9,501 | 10,021 |
Cost of product revenue | 657 | 680 | 2,024 | 2,002 |
Total cost of revenue | 3,660 | 4,048 | 11,525 | 12,023 |
Gross profit | 2,490 | 1,984 | 6,196 | 6,141 |
Operating expenses: | ||||
Selling | 379 | 399 | 1,141 | 1,315 |
Research and development | 160 | 167 | 489 | 480 |
General and administrative | 1,037 | $ 1,162 | 3,468 | $ 3,523 |
Mediation settlement, net | (620) | (606) | ||
Total operating expenses | 956 | $ 1,728 | 4,492 | $ 5,318 |
Operating income | 1,534 | 256 | 1,704 | 823 |
Interest expense | (67) | (123) | (223) | (408) |
Change in fair value of warrant liability - decrease (increase) | $ 34 | 66 | 353 | (1,095) |
Other income | 1 | 1 | 6 | |
Net income (loss) before income taxes | $ 1,501 | 200 | 1,835 | (674) |
Income tax(benefit) expense | 23 | (15) | 25 | (8) |
Net income (loss) | 1,478 | 215 | 1,810 | (666) |
Other comprehensive income (loss): | ||||
Fair value adjustment of interest rate swap | 11 | (41) | (14) | (41) |
Foreign currency translation adjustment | (60) | (31) | 33 | (65) |
Comprehensive income (loss) | $ 1,429 | $ 143 | $ 1,829 | $ (772) |
Basic net income (loss) per share | $ 0.18 | $ 0.03 | $ 0.22 | $ (0.08) |
Diluted net income (loss) per share | $ 0.16 | $ 0.02 | $ 0.16 | $ (0.08) |
Weighted common shares outstanding: | ||||
Basic | 8,080 | 8,068 | 8,077 | 7,922 |
Diluted | 8,810 | 9,015 | 8,845 | 7,922 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income (loss) | $ 1,810 | $ (666) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,069 | 1,195 |
Change in fair value of warrant liability - (decrease) increase | (353) | 1,095 |
Employee stock compensation expense | 67 | 65 |
Provision for doubtful accounts | 1 | 2 |
Loss on sale of property and equipment | 5 | 1 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (611) | 361 |
Inventories | 3 | (156) |
Income tax accruals | 20 | (25) |
Prepaid expenses and other assets | 146 | (641) |
Accounts payable | (226) | (166) |
Accrued expenses | (775) | (357) |
Customer advances | 19 | 507 |
Net cash provided by operating activities | 1,175 | 1,215 |
Investing activities: | ||
Capital expenditures | (666) | (343) |
Net cash used by investing activities | (666) | (343) |
Financing activities: | ||
Payments of long-term debt | $ (589) | (5,319) |
Borrowings on long-term debt | 5,500 | |
Payments of debt issuance costs | (121) | |
Proceeds from exercise of stock options | 1 | |
Payments on revolving line of credit | $ (5,569) | (9,543) |
Borrowings on revolving line of credit | $ 5,367 | 8,128 |
Proceeds from Class A warrant exercises | 183 | |
Payments on capital lease obligations | $ (214) | (203) |
Net cash used by financing activities | (1,005) | (1,374) |
Effect of exchange rate changes | 31 | (66) |
Net decrease in cash and cash equivalents | (465) | (568) |
Cash and cash equivalents at beginning of period | 981 | 1,304 |
Cash and cash equivalents at end of period | $ 516 | 736 |
Supplemental disclosure of non-cash financing activities: | ||
Preferred stock dividends paid in common shares | 44 | |
Fair value of warrants exercised | 854 | |
Conversion of preferred shares to common shares | $ 150 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2015 | |
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 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2015 | |
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 Plan. As of June 30, 2015, there are 30 19 67 19 65 A summary of our stock option activity for the nine months ended June 30, 2015 is as follows (in thousands except for share prices): Options Weighted- Weighted- Outstanding - October 1, 2014 426 $ 1.83 $ 1.41 Exercised (128 ) 1.38 1.12 Granted 35 2.38 1.98 Foreitures (26 ) 4.21 2.91 Outstanding -June 30, 2015 307 $ 1.88 $ 1.48 During the nine months ended June 30, 2015, 128 35 Risk-free interest rate 1.93 2.13 % Dividend yield 0.00 % Expected volatility 88.00 100.06 % Expected life of the options (years) 8.0 Forfeitures 3.00 % |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 9 Months Ended |
Jun. 30, 2015 | |
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 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 earnings per share using the if-converted method for preferred stock and the treasury stock method for stock options and warrants. Shares issuable upon exercise of options, warrants for 799 592 The following table reconciles our computation of basic net income (loss) per share to diluted net loss per share: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ 1,477 $ 215 $ 1,810 $ (666 ) Weighted average common shares outstanding 8,080 8,068 8,077 7,922 Basic net income (loss) per share $ 0.18 $ 0.03 $ 0.22 $ (0.08 ) Diluted net income (loss) per share: Net income (loss) applicable to common shareholders $ 1,477 $ 215 $ 1,810 $ (666 ) Change in fair value of warrant liability (34 ) (66 ) (353 ) - Diluted net income (loss) applicable to common shareholders $ 1,443 $ 149 $ 1,457 $ (666 ) Weighted average common shares outstanding 8,080 8,068 8,077 7,922 Plus: Incremental shares from assumed conversions: Series A preferred shares 592 592 592 - Class A warrants 15 200 48 - Stock options/shares 123 155 128 - Diluted weighted average common shares outstanding 8,810 9,015 8,845 7,922 Diluted net income (loss) per share: $ 0.16 $ 0.02 $ 0.16 $ (0.08 ) |
INVENTORIES
INVENTORIES | 9 Months Ended |
Jun. 30, 2015 | |
INVENTORIES [Abstract] | |
INVENTORIES | 4. INVENTORIES Inventories consisted of the following: June 30, September 30, Raw materials $ 1,081 $ 1,228 Work in progress 327 295 Finished goods 422 340 $ 1,830 $ 1,863 Obsolescence reserve (269 ) (299 ) $ 1,561 $ 1,564 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2015 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 5. SEGMENT INFORMATION We operate in two 2 Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revenue: Service $ 5,001 $ 4,754 $ 13,929 $ 14,196 Product 1,149 1,278 3,792 3,968 $ 6,150 $ 6,032 $ 17,721 $ 18,164 Operating income (loss): Service $ 1,440 $ 293 $ 1,510 $ 669 Product 94 (37 ) 194 154 $ 1,534 $ 256 $ 1,704 $ 823 Interest expense (67 ) (123 ) (223 ) (408 ) Change in fair value of warrant liability decrease (increase) 34 66 353 (1,095 ) Other income 1 1 6 Net income (loss) before income taxes $ 1,501 $ 200 $ 1,835 $ (674 ) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2015 | |
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 carry forwards. 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, 2015 and September 30, 2014, we had a $ 16 34 1.4 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 | 9 Months Ended |
Jun. 30, 2015 | |
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 $ 5,205 400 6.0 47 Regions required us to maintain a fixed charge coverage ratio of not less than 1.25 2.10 Revolving Line of Credit On January 31, 2014, we paid off the remaining balance on our $ 3,000 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 15 2 0.2 65 75 8,000 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 $ 5,500 325 65 4,649 5,238 The revolving loan for $ 2,000 300 25 20 2,000 30 0 202 On May 14, 2015, we executed a first amendment to the Agreement with Huntington Bank. As amended, the Agreement requires us to maintain a fixed charge coverage ratio of not less than 1.05 1.10 1,000 3.00 2.50 We entered into an interest rate swap agreement with respect to the above loans to fix the interest rate with respect to 60 5.0 We incurred $ 134 five 101 122 |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Jun. 30, 2015 | |
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 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 1,019 The following table sets forth the roll forward of the restructuring activity for the nine months ended June 30, 2015. Balance, Total Cash Other Balance, Lease related costs $ 961 $ 58 $ - $ - $ 1,019 Other costs 117 - - - 117 Total $ 1,078 $ 58 $ - $ - $ 1,136 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. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Jun. 30, 2015 | |
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. The Class B Warrants expired in May 2012 and the liability was reduced to zero June 30, 2015 September 30, 2014 Risk-free interest rate 0.23 % 0.41 % Dividend yield 0.00 % 0.00 % Volatility of the Company's common stock 53.98 % 63.58 % Expected life of the warrants (years) .87 1.6 Fair value per unit $ 0.404 $ 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 The following table summarizes fair value measurements by level as of June 30, 2015, for the Company's financial liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 35 $ - Class A warrant liability $ - $ 323 $ - 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 $ - |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Jun. 30, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 10. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Foreign currency translation Balance, beginning of period $ 120 $ (2 ) $ 27 $ 32 Other comprehensive income (loss): Foreign currency translation adjustments (60 ) (31 ) 33 (65 ) Balance, end of period $ 60 $ (33 ) $ 60 $ (33 ) Interest rate swap Balance, beginning of period $ (46 ) $ - $ (21 ) $ - Other comprehensive (income) loss: Fair value adjustment 11 (41 ) (14 ) (41 ) Balance, end of period $ (35 ) $ (41 ) $ (35 ) $ (41 ) Total accumulated other comprehensive income (loss) $ 25 $ (74 ) $ 25 $ (74 ) No amounts have been reclassified from accumulated other comprehensive income (loss) into the condensed consolidated statement of operations. |
MEDIATION
MEDIATION | 9 Months Ended |
Jun. 30, 2015 | |
MEDIATION [Abstract] | |
MEDIATION | 11. MEDIATION In the third quarter of fiscal 2015, the Company received $ 640 20 34 |
MANAGEMENT'S PLAN
MANAGEMENT'S PLAN | 9 Months Ended |
Jun. 30, 2015 | |
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 recognize that our growth depends upon our ability to continually improve and create new client relationships. In the remainder of fiscal 2015 and beyond, we will continue our focus on sales execution, operational excellence and building strategic partnerships with pharmaceutical and biotechnology companies, to differentiate the Company and create value for our clients and shareholders. 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 continue to visit existing and potential clients in addition to our expanded marketing efforts to increase revenue. We have taken several steps to strengthen our leadership team in roles that will be vital to helping drive our top line performance. 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. In January 2015, we entered into a lease agreement with an initial term of approximately ten years for approximately 51,000 50 57 $ 800 300 These efforts, 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 replaced, will enhance our ability to implement our growth plan. We are determined to follow through on the initiatives that support our strategy to strengthen the Company for fiscal 2015 and beyond. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
STOCK-BASED COMPENSATION [Abstract] | |
Summary of Stock Option Activity | Options Weighted- Weighted- Outstanding - October 1, 2014 426 $ 1.83 $ 1.41 Exercised (128 ) 1.38 1.12 Granted 35 2.38 1.98 Foreitures (26 ) 4.21 2.91 Outstanding -June 30, 2015 307 $ 1.88 $ 1.48 |
Schedule of Fair Value Assumptions | Risk-free interest rate 1.93 2.13 % Dividend yield 0.00 % Expected volatility 88.00 100.06 % Expected life of the options (years) 8.0 Forfeitures 3.00 % |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
INCOME (LOSS) PER SHARE [Abstract] | |
Reconciliation of Computation of Basic Loss Per Share to Diluted Net Loss Per Share | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ 1,477 $ 215 $ 1,810 $ (666 ) Weighted average common shares outstanding 8,080 8,068 8,077 7,922 Basic net income (loss) per share $ 0.18 $ 0.03 $ 0.22 $ (0.08 ) Diluted net income (loss) per share: Net income (loss) applicable to common shareholders $ 1,477 $ 215 $ 1,810 $ (666 ) Change in fair value of warrant liability (34 ) (66 ) (353 ) - Diluted net income (loss) applicable to common shareholders $ 1,443 $ 149 $ 1,457 $ (666 ) Weighted average common shares outstanding 8,080 8,068 8,077 7,922 Plus: Incremental shares from assumed conversions: Series A preferred shares 592 592 592 - Class A warrants 15 200 48 - Stock options/shares 123 155 128 - Diluted weighted average common shares outstanding 8,810 9,015 8,845 7,922 Diluted net income (loss) per share: $ 0.16 $ 0.02 $ 0.16 $ (0.08 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
INVENTORIES [Abstract] | |
Summary of Inventories | June 30, September 30, Raw materials $ 1,081 $ 1,228 Work in progress 327 295 Finished goods 422 340 $ 1,830 $ 1,863 Obsolescence reserve (269 ) (299 ) $ 1,561 $ 1,564 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Operating Segments | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revenue: Service $ 5,001 $ 4,754 $ 13,929 $ 14,196 Product 1,149 1,278 3,792 3,968 $ 6,150 $ 6,032 $ 17,721 $ 18,164 Operating income (loss): Service $ 1,440 $ 293 $ 1,510 $ 669 Product 94 (37 ) 194 154 $ 1,534 $ 256 $ 1,704 $ 823 Interest expense (67 ) (123 ) (223 ) (408 ) Change in fair value of warrant liability decrease (increase) 34 66 353 (1,095 ) Other income 1 1 6 Net income (loss) before income taxes $ 1,501 $ 200 $ 1,835 $ (674 ) |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
RESTRUCTURING [Abstract] | |
Summary of Restructuring Activity | Balance, Total Cash Other Balance, Lease related costs $ 961 $ 58 $ - $ - $ 1,019 Other costs 117 - - - 117 Total $ 1,078 $ 58 $ - $ - $ 1,136 |
FAIR VALUE OF FINANCIAL INSTR23
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Summary of Assumptions Used to Compute Fair Value of Warrants | June 30, 2015 September 30, 2014 Risk-free interest rate 0.23 % 0.41 % Dividend yield 0.00 % 0.00 % Volatility of the Company's common stock 53.98 % 63.58 % Expected life of the warrants (years) .87 1.6 Fair value per unit $ 0.404 $ 0.846 |
Schedule of Financial Liabilities Measured at Fair Value | Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 35 $ - Class A warrant liability $ - $ 323 $ - Level 1 Level 2 Level 3 Interest rate swap agreement $ - $ 21 $ - Class A warrant liability $ - $ 676 $ - |
ACCUMULATED OTHER COMPREHENSI24
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Foreign currency translation Balance, beginning of period $ 120 $ (2 ) $ 27 $ 32 Other comprehensive income (loss): Foreign currency translation adjustments (60 ) (31 ) 33 (65 ) Balance, end of period $ 60 $ (33 ) $ 60 $ (33 ) Interest rate swap Balance, beginning of period $ (46 ) $ - $ (21 ) $ - Other comprehensive (income) loss: Fair value adjustment 11 (41 ) (14 ) (41 ) Balance, end of period $ (35 ) $ (41 ) $ (35 ) $ (41 ) Total accumulated other comprehensive income (loss) $ 25 $ (74 ) $ 25 $ (74 ) |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding that were granted outside of the plan | 30 | 30 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 19 | $ 19 | $ 67 | $ 65 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - 9 months ended Jun. 30, 2015 - Employee Stock Option [Member] - $ / shares shares in Thousands | Total |
Options (shares) | |
Outstanding - beginning of period | 426 |
Exercised | (128) |
Granted | 35 |
Forfeitures | (26) |
Outstanding - end of period | 307 |
Weighted-Average Exercise Price | |
Outstanding - beginning of period | $ 1.83 |
Exercised | 1.38 |
Granted | 2.38 |
Forfeitures | 4.21 |
Outstanding - end of period | 1.88 |
Weighted-Average Grant Date Fair Value | |
Outstanding - beginning of period | 1.41 |
Exercised | 1.12 |
Granted | 1.98 |
Forfeitures | 2.91 |
Outstanding - end of period | $ 1.48 |
STOCK-BASED COMPENSATION (Fair
STOCK-BASED COMPENSATION (Fair Value Assumptions) (Details) - 9 months ended Jun. 30, 2015 - Stock Options [Member] | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, minimum | 1.93% |
Risk-free interest rate, maximum | 2.13% |
Dividend yield | 0.00% |
Expected volatility, minimum | 88.00% |
Expected volatility, maximum | 100.06% |
Expected life of the options (years) | 8 years |
Forfeitures | 3.00% |
INCOME (LOSS) PER SHARE (Narrat
INCOME (LOSS) PER SHARE (Narrative) (Details) shares in Thousands | 9 Months Ended |
Jun. 30, 2014shares | |
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 (Reconc
INCOME (LOSS) PER SHARE (Reconciliation of Computation of Basic Income or Loss Per Share to Diluted Income or Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic net income (loss) per share: | ||||
Net income (loss) applicable to common shareholders | $ 1,477 | $ 215 | $ 1,810 | $ (666) |
Weighted average common shares outstanding | 8,080 | 8,068 | 8,077 | 7,922 |
Basic net income (loss) per share | $ 0.18 | $ 0.03 | $ 0.22 | $ (0.08) |
Diluted net income (loss) per share: | ||||
Net income (loss) applicable to common shareholders | $ 1,477 | $ 215 | $ 1,810 | $ (666) |
Change in fair value of warrant liability | (34) | (66) | (353) | |
Diluted net income (loss) applicable to common shareholders | $ 1,443 | $ 149 | $ 1,457 | $ (666) |
Weighted average common shares outstanding | 8,080 | 8,068 | 8,077 | 7,922 |
Plus: Incremental shares from assumed conversions | ||||
Series A preferred shares | 592 | 592 | 592 | |
Class A warrants | 15 | 200 | 48 | |
Stock options/shares | 123 | 155 | 128 | |
Diluted weighted average common shares outstanding | 8,810 | 9,015 | 8,845 | 7,922 |
Diluted net income (loss) per share | $ 0.16 | $ 0.02 | $ 0.16 | $ (0.08) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
INVENTORIES [Abstract] | ||
Raw materials | $ 1,081 | $ 1,228 |
Work in process | 327 | 295 |
Finished goods | 422 | 340 |
Gross inventories | 1,830 | 1,863 |
Obsolescence reserve | (269) | (299) |
Inventories | $ 1,561 | $ 1,564 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segments | Jun. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of segments | segments | 2 | |||
Revenue | $ 6,150 | $ 6,032 | $ 17,721 | $ 18,164 |
Operating income (loss) | 1,534 | 256 | 1,704 | 823 |
Interest expense | (67) | (123) | (223) | (408) |
Change in fair value of warrant liability - decrease (increase) | $ 34 | 66 | 353 | (1,095) |
Other income | 1 | 1 | 6 | |
Net income (loss) before income taxes | $ 1,501 | 200 | 1,835 | (674) |
Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,001 | 4,754 | 13,929 | 14,196 |
Operating income (loss) | 1,440 | 293 | 1,510 | 669 |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,149 | 1,278 | 3,792 | 3,968 |
Operating income (loss) | $ 94 | $ (37) | $ 194 | $ 154 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | 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 | 1.40% |
DEBT (Note Payable) (Details)
DEBT (Note Payable) (Details) - Replacement Note Payable Two [Member] - Scenario, Unspecified [Domain] $ in Thousands | 9 Months Ended | |
Jun. 30, 2015USD ($) | Oct. 31, 2013USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Oct. 31, 2014 | |
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 | 2.10 |
DEBT (Revolving Line of Credit)
DEBT (Revolving Line of Credit) (Details) - Revolving Line of Credit [Member] - EGC [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jan. 31, 2014 | |
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 3,000 | |
Expiration date of credit agreement | Jan. 31, 2014 | |
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) (Det
DEBT (New Credit Facility) (Details) - Credit Facility [Domain] - Range [Domain] $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Oct. 01, 2015 | |
Huntington Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 134 | |||
Facility term | 5 years | |||
Unamortized debt issuance costs | $ 101 | 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 | $ 4,649 | 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 | $ 0 | $ 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 | 1.05 | |||
Leverage ratio | 3 | |||
Amount of capital expenditures excluded from debt covenant | $ 1,000 | |||
New Credit Facility Revolving Loan [Member] | Scenario, Forecast [Member] | Huntington Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed charge coverage ratio | 1.10 | |||
Leverage ratio | 2.50 |
RESTRUCTURING (Narrative) (Deta
RESTRUCTURING (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015USD ($)ft² | Sep. 30, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Area of property | ft² | 120,000 | |
Restructuring reserves | $ 1,136 | $ 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 | $ 1,019 | $ 961 |
RESTRUCTURING (Summary of Restr
RESTRUCTURING (Summary of Restructuring Activity) (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Balance | $ 1,078 |
Total Charges | $ 58 |
Cash Payments | |
Other | |
Balance | $ 1,136 |
Lease Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 961 |
Total Charges | $ 58 |
Cash Payments | |
Other | |
Balance | $ 1,019 |
Other Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | $ 117 |
Total Charges | |
Cash Payments | |
Other | |
Balance | $ 117 |
FAIR VALUE OF FINANCIAL INSTR38
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Derivative, Name [Domain] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | May. 31, 2012 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair value of warrant liability | $ 323 | $ 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 | $ 35 | $ 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 | $ 323 | $ 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 | |||
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 | 0.23% | 0.41% | |
Dividend yield | 0.00% | 0.00% | |
Volatility of the Company's common stock | 53.98% | 63.58% | |
Expected life of the options | 10 months 13 days | 1 year 7 months 6 days | |
Fair value per unit | $ 0.404 | $ 0.846 |
ACCUMULATED OTHER COMPREHENSI39
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 9,536 | |||
Balance | $ 11,432 | 11,432 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 120 | $ (2) | 27 | $ 32 |
Other comprehensive income (loss) | (60) | (31) | 33 | (65) |
Balance | 60 | $ (33) | 60 | $ (33) |
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (46) | (21) | ||
Other comprehensive income (loss) | 11 | $ (41) | (14) | $ (41) |
Balance | (35) | (41) | (35) | (41) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 25 | $ (74) | $ 25 | $ (74) |
MEDIATION (Details)
MEDIATION (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
MEDIATION [Abstract] | ||
Mediation settlement | $ 640 | |
Mediation legal expenses | $ 20 | $ 34 |
MANAGEMENT'S PLAN (Details)
MANAGEMENT'S PLAN (Details) $ in Thousands | 1 Months Ended | |
Jan. 31, 2015USD ($)ft² | Jun. 30, 2015USD ($)ft² | |
Concentration Risk [Line Items] | ||
Area of property | ft² | 120,000 | |
Expected costs | $ 800 | |
Costs incurred to date | $ 300 | |
Property Subject to Operating Lease [Member] | ||
Concentration Risk [Line Items] | ||
Term of lease | 10 years | |
Area of property | ft² | 51,000 | |
Initial base rent | $ 50 | |
Final base rent | $ 57 |