Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Aug. 10, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | |
Trading Symbol | BASI | |
Entity Common Stock, Shares Outstanding | 8,238,896 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 919 | $ 386 |
Accounts receivable | ||
Trade, net of allowance of $2,293 at June 30, 2017 and $565 at September 30, 2016 | 2,059 | 1,649 |
Unbilled revenues and other | 410 | 591 |
Inventories, net | 1,064 | 1,453 |
Prepaid expenses | 597 | 798 |
Total current assets | 5,049 | 4,877 |
Property and equipment, net | 15,207 | 16,136 |
Lease rent receivable | 78 | 51 |
Goodwill | 38 | 38 |
Other assets | 23 | 27 |
Total assets | 20,395 | 21,129 |
Current liabilities: | ||
Accounts payable | 1,656 | 2,965 |
Restructuring liability | 1,117 | 1,117 |
Accrued expenses | 1,191 | 1,089 |
Customer advances | 3,265 | 3,114 |
Income taxes payable | 23 | 13 |
Revolving line of credit | 256 | 1,358 |
Fair value of interest rate swap | 0 | 35 |
Current portion of capital lease obligation | 127 | 126 |
Current portion of long-term debt | 224 | 3,656 |
Total current liabilities | 7,859 | 13,473 |
Capital lease obligation, less current portion | 101 | 198 |
Long-term debt, less current portion, net of debt issuance costs | 4,208 | 0 |
Total liabilities | 12,168 | 13,671 |
Shareholders’ equity: | ||
Preferred shares, authorized 1,000,000 shares, no par value: 1,035 Series A shares at $1,000 stated value issued and outstanding at June 30, 2017 and 1,185 at September 30, 2016 | 1,035 | 1,185 |
Common shares, no par value: Authorized 19,000,000 shares; 8,238,896 issued and outstanding at June 30, 2017 and 8,107,558 at September 30, 2016 | 2,021 | 1,989 |
Additional paid-in capital | 21,437 | 21,240 |
Accumulated deficit | (16,266) | (16,921) |
Accumulated other comprehensive (loss) income | 0 | (35) |
Total shareholders’ equity | 8,227 | 7,458 |
Total liabilities and shareholders’ equity | $ 20,395 | $ 21,129 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Allowance for Doubtful Accounts Receivable, Current | $ 2,293 | $ 565 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 19,000,000 | 19,000,000 |
Common Stock, Shares, Issued | 8,238,896 | 8,107,558 |
Common Stock, Shares, Outstanding | 8,238,896 | 8,107,558 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Issued | 1,035 | 1,185 |
Preferred Stock, Shares Outstanding | 1,035 | 1,185 |
Preferred Stock, Par or 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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Service revenue | $ 4,954 | $ 3,773 | $ 15,180 | $ 11,881 |
Product revenue | 882 | 1,280 | 3,189 | 3,406 |
Total revenue | 5,836 | 5,053 | 18,369 | 15,287 |
Cost of service revenue | 3,308 | 3,183 | 10,604 | 9,838 |
Cost of product revenue | 597 | 697 | 1,932 | 1,976 |
Total cost of revenue | 3,905 | 3,880 | 12,536 | 11,814 |
Gross profit | 1,931 | 1,173 | 5,833 | 3,473 |
Operating expenses: | ||||
Selling | 229 | 405 | 808 | 1,072 |
Research and development | 127 | 103 | 340 | 392 |
General and administrative | 1,238 | 1,030 | 3,699 | 3,165 |
Total operating expenses | 1,594 | 1,538 | 4,847 | 4,629 |
Operating income (loss) | 337 | (365) | 986 | (1,156) |
Interest expense | (112) | (107) | (322) | (243) |
Decrease in fair value of warrant liability | 0 | 21 | 0 | 189 |
Other income | 2 | 1 | 4 | 2 |
Net income (loss) before income taxes | 227 | (450) | 668 | (1,208) |
Income taxes | 6 | (17) | 13 | (15) |
Net income (loss) | 221 | (433) | 655 | (1,193) |
Other comprehensive income (loss): | 6 | (2) | 35 | (101) |
Comprehensive income (loss) | $ 227 | $ (435) | $ 690 | $ (1,294) |
Other comprehensive (loss) income : | ||||
Basic net income (loss) per share | $ 0.03 | $ (0.05) | $ 0.08 | $ (0.15) |
Diluted net income (loss) per share | $ 0.03 | $ (0.05) | $ 0.08 | $ (0.15) |
Weighted common shares outstanding: | ||||
Basic | 8,216 | 8,108 | 8,157 | 8,107 |
Diluted | 8,748 | 8,108 | 8,720 | 8,107 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net income (loss) | $ 655 | $ (1,193) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,303 | 1,031 |
Decrease in fair value of warrant liability | 0 | (189) |
Employee stock compensation expense | 13 | 34 |
Provision for doubtful accounts | 0 | (19) |
(Gain)/Loss on disposal of property and equipment | (9) | 12 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (256) | 511 |
Inventories | 389 | (10) |
Income tax accruals | 10 | (18) |
Prepaid expenses and other assets | 201 | 14 |
Accounts payable | (1,309) | 990 |
Accrued expenses | 102 | (886) |
Customer advances | 151 | (7) |
Net cash provided by operating activities | 1,250 | 270 |
Investing activities: | ||
Capital expenditures | (213) | (837) |
Proceeds from sale of equipment | 8 | 0 |
Net cash used by investing activities | (205) | (837) |
Financing activities: | ||
Payments of long-term debt | (3,666) | (589) |
New borrowings on long-term debt | 4,500 | 0 |
Payments of debt issuance costs | (214) | (41) |
Proceeds from exercise of stock options | 66 | 3 |
Payments on revolving line of credit | (11,166) | (7,832) |
Borrowings on revolving line of credit | 10,064 | 9,297 |
Payments on capital lease obligations | (96) | (217) |
Net cash (used) provided by financing activities | (512) | 621 |
Net increase in cash and cash equivalents | 533 | 54 |
Cash and cash equivalents at beginning of period | 386 | 438 |
Cash and cash equivalents at end of period | 919 | 492 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 180 | 196 |
Supplemental disclosure of non-cash financing activities: | ||
Conversion of preferred shares to common shares | 150 | 0 |
Equipment financed under capital leases | $ 0 | $ 303 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Bioanalytical Systems, Inc. and its subsidiaries (“We,” the “Company”, “Our” 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, 2016. Certain amounts in the fiscal 2016 consolidated financial statements have been reclassified to conform to the fiscal 2017 presentation without affecting previously reported net income or stockholders’ equity. In the opinion of management, the condensed consolidated financial statements for the three and nine months ended June 30, 2017 and 2016 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, 2017. The results of operations for the three and nine months ended June 30, 2017 may not be indicative of the results for the year ending September 30, 2017. |
ARCHIVE REVENUES
ARCHIVE REVENUES | 9 Months Ended |
Jun. 30, 2017 | |
Archive Revenues [Abstract] | |
ARCHIVE REVENUES | ARCHIVE REVENUES In fiscal 2017, after a thorough review of its service contracts with customers, the Company instituted the practice of uniformly charging archive fees to clients where contracts allow. Historically, the Company’s practice of charging such fees was inconsistent. Archive revenues include fees for: (1) the handling of records (pickup and delivery of records, addition of new records, and retrieval and refiling of records); (2) secure destruction of records; (3) secure shredding of sensitive documents; (4) other services, including the scanning, imaging and document conversion of active and inactive physical and digital records; and (5) the secure storage of records in a designated environmentally monitored, limited-access location. In the first quarter of fiscal 2017, the Company began recognizing archive revenue when the following criteria are met: (1) persuasive evidence of a contractual arrangement exists; (2) the invoice price is fixed or determinable; (3) services have been rendered; and (4) collectability of the resulting receivable is reasonably assured. Amounts related to future archiving or prepaid archiving contracts for customers where archiving fees are billed in advance are accounted for as deferred revenue and recognized ratably over the period the applicable archive service is performed. Archiving revenues for services rendered prior to calendar year 2017 are currently recognized when payments are received. Archive revenue recognized for the three and nine months ended June 30, 2017 was $ 216 453 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 3. STOCK-BASED COMPENSATION The Company’s 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 10 in the Notes to the Consolidated Financial Statements in our Form 10-K for the year ended September 30, 2016. 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 June 30, 2017, there are 15 6 13 5 34 67 17 Weighted- Weighted- Average Average Options Exercise Grant Date (shares) Price Fair Value Outstanding - October 1, 2016 262 $ 1.76 $ 1.39 Exercised (67) $ 1.25 $ 1.03 Granted Terminated (50) $ 2.11 $ 1.75 Outstanding - June 30, 2017 145 $ 1.88 $ 1.43 |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 9 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | INCOME (LOSS) PER SHARE We compute basic income (loss) per share using the weighted average number of common shares outstanding. The Company has two categories of dilutive potential common shares: the Series A preferred shares issued in May 2011 in connection with the registered direct offering 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, respectively. Shares issuable upon exercise of options, warrants for 799 592 150 Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ 221 $ (433) $ 655 $ (1,193) Weighted average common shares outstanding 8,216 8,108 8,157 8,107 Basic net income (loss) per share $ 0.03 $ (0.05) $ 0.08 $ (0.15) Diluted net income (loss) per share: Diluted net income (loss) applicable to common shareholders $ 221 $ (433) $ 655 $ (1,193) Weighted average common shares outstanding 8,216 8,108 8,157 8,107 Plus: Incremental shares from assumed conversions: Series A preferred shares 518 555 Dilutive stock options/shares 14 8 Diluted weighted average common shares outstanding 8,748 8,108 8,720 8,107 Diluted net income (loss) per share $ 0.03 $ (0.05) $ 0.08 $ (0.15) |
INVENTORIES
INVENTORIES | 9 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following: June 30, September 30, 2017 2016 Raw materials $ 836 $ 1,190 Work in progress 221 267 Finished goods 229 284 1,286 1,741 Obsolescence reserve (222) (288) $ 1,064 $ 1,453 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 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, 2016. Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Revenue: Service $ 4,954 $ 3,773 $ 15,180 $ 11,881 Product 882 1,280 3,189 3,406 $ 5,836 $ 5,053 $ 18,369 $ 15,287 Operating income (loss): Service $ 512 $ (364) $ 1,253 $ (962) Product (175) (1) (267) (194) $ 337 $ (365) $ 986 $ (1,156) Interest expense (112) (107) (322) (243) Decrease in fair value of warrant 21 189 Other income 2 1 4 2 Income (loss) before income taxes $ 227 $ (450) $ 668 $ (1,208) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [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 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, 2017 and September 30, 2016, we had a $ 16 34 1.95 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 2011. |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | 8. DEBT Huntington Credit Facility On May 14, 2014, we entered into a Credit Agreement with Huntington Bank, which was subsequently amended on May 14, 2015 (“Agreement”). The Agreement included both a term loan and a revolving loan and was secured by mortgages on our facilities in West Lafayette and Evansville, Indiana and liens on our personal property. As of December 31, 2015, we were not in compliance with certain financial covenants of the Agreement, and during fiscal 2016 and most of the first nine months of fiscal 2017 we operated either in default of, or under forbearance arrangements with respect to, the Agreement. On April 27, 2016, the Company entered into a Forbearance Agreement and Second Amendment to Credit Agreement (“Forbearance Agreement”) with Huntington Bank and on July 1, 2016, the Company entered into a Second Forbearance Agreement and Third Amendment to Credit Agreement (“Second Forbearance Agreement”) with Huntington Bank. As of June 30, 2016, the Company was not in compliance with an additional financial covenant under the Second Forbearance Agreement, resulting in termination of the forbearance period thereunder. On September 30, 2016, the Company entered into a Third Forbearance Agreement and Fourth Amendment to Credit Agreement with Huntington Bank (“Third Forbearance Agreement”), on October 31, 2016, the Company entered into a Fourth Forbearance Agreement and Fifth Amendment to Credit Agreement (“Fourth Forbearance Agreement”) and on January 31, 2017 the Company entered into a Fifth Forbearance Agreement and Sixth Amendment to Credit Agreement (“Fifth Forbearance Agreement”) with Huntington Bank. Subject to the conditions set forth in the Fifth Forbearance Agreement, Huntington Bank agreed to continue to forbear from exercising its rights and remedies under the Agreement and from terminating the Company’s related swap agreement with respect to the Company’s non-compliance with applicable financial covenants under the Agreement and any further non-compliance with such covenants during a forbearance period ending July 31, 2017 and to continue to make advances under the Agreement. In exchange for Huntington Bank’s agreement to continue to forbear from exercising its rights and remedies under the Agreement, the Company agreed to, among other things: (i) amend the maturity dates for the term and revolving loans under the Agreement to July 31, 2017, (ii) take commercially reasonable efforts to obtain funds sufficient to repay the indebtedness in full upon the expiration of the forbearance period, (iii) provide to Huntington Bank certain cash flow forecasts and other financial information, (iv) comply with a minimum cash flow covenant, (v) continue to engage the services of the Company’s financial consultant and cause the financial consultant to provide Huntington Bank such information regarding its efforts as Huntington Bank reasonably requests, and (vi) pay to Huntington Bank a forbearance fee in the amount of $ 227 27 100 200 The Fifth Forbearance Agreement provided for immediate termination of the forbearance period upon the occurrence of, among other events, the failure of the Company to perform, observe or comply with the terms of the Fifth Forbearance Agreement. The available remedies in the event of a default by the Company included among others, the ability to accelerate and immediately demand payment of the outstanding debt under our term loan and revolving loan, to exercise on the security interest, to take possession of or sell the underlying collateral, to refrain from making additional advances under the revolving loan, to increase interest accruing on the debt by five percent ( 5 We incurred $ 10 17 29 Interest Rate Swap We entered into an interest rate swap agreement with respect to the loans with Huntington Bank to fix the interest rate with respect to 60 5.0 New Credit Facility On June 23, 2017, we entered into a new Credit Agreement (the “Credit Agreement”) with First Internet Bank of Indiana (“FIB”). The Credit Agreement includes both a term loan and a revolving line of credit and is secured by mortgages on our facilities and personal property in West Lafayette and Evansville, Indiana. We used the proceeds from the term loan to satisfy our indebtedness with Huntington Bank and terminated the related interest rate swap. The term loan for $ 4,500 3.99 33 4,500 2,000 less Twenty-five (25) Basis Points (0.25%) 256 The Credit Agreement contains various restrictive covenants, including restrictions on the Company's ability to dispose of assets, make acquisitions or investments, incur debt or liens, make distributions to shareholders or repurchase outstanding stock, enter into related party transactions and make capital expenditures, other than upon satisfaction of the conditions set forth in the Credit Agreement. The Credit Agreement also requires us to maintain (i) a minimum debt service coverage ratio of not less than 1.20 to 1.00 for the quarters ending September 30, 2017 and December 31, 2017 and of not less than 1.25 to 1.0 for the quarters thereafter and (ii) beginning with the fourth quarter of fiscal 2017 ending September 30, 2017, a debt to equity ratio of not greater than 2.50 to 1.00 until maturity. Upon an event of default, which includes certain customary events such as, among other things, a failure to make required payments when due, a failure to comply with covenants, certain bankruptcy and insolvency events, and defaults under other material indebtedness, FIB may cease advancing funds, increase the interest rate on outstanding balances, accelerate amounts outstanding, terminate the agreement and foreclose on all collateral. We incurred $ 69 54 48 157 62 68 10 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Accrued Liabilities Disclosure [Text Block] | 9. ACCRUED EXPENSES As part of a fiscal 2012 restructuring, we accrued for lease payments at the cease use date for our United Kingdom 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. Based on these matters, we have a $ 1,000 117 1,117 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | 10. NEW ACCOUNTING PRONOUNCEMENTS Effective October 1, 2018, the Company will be required to adopt the new guidance of ASC Topic 606, Revenue from Contracts with Customers Revenue Recognition In August 2014, the FASB issued new guidance in Accounting Standards Update (ASU) No. 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40).” The update provides guidance regarding management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The Company adopted the guidance in the first quarter of fiscal 2017 and added the required disclosures to the footnotes. In November 2014, the FASB issued new guidance in ASU No. 2014-16, “Derivatives and Hedging (Topic 815) Determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity.” The guidance clarifies how current GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The Company adopted this guidance in the first quarter of fiscal 2017 with no material impact on our condensed consolidated financial statements. In February 2015, the FASB amended guidance in ASU No. 2015-02, “Consolidation Topic 810.” The guidance made certain targeted revisions to various area of the consolidation guidance, including the determination of the primary beneficiary of an entity, among others. The Company adopted the guidance in the first quarter of fiscal 2017 with no material impact on our condensed consolidated financial statements. In April 2015, the FASB amended the existing accounting standards for imputation of interest. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. The Company adopted the guidance in the first quarter of fiscal 2017, presenting the remaining debt issuance costs at June 30, 2017 and September 30, 2016 of $ 68 10 In July 2015, the FASB issued an amendment to the accounting guidance related to the measurement of inventory. The amendment revises inventory to be measured at lower of cost and net realizable value from lower of cost or market. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. This guidance will be effective prospectively for the first quarter of fiscal 2018, with early application permitted. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. In February 2016, the FASB issued updated guidance on leases which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. We are currently evaluating the effects of the adoption and have not yet determined the impact the revised guidance will have on our consolidated financial statements and related disclosures. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of our stock option activity for the nine months ended June 30, 2017 is as follows (in thousands except for share prices): Weighted- Weighted- Average Average Options Exercise Grant Date (shares) Price Fair Value Outstanding - October 1, 2016 262 $ 1.76 $ 1.39 Exercised (67) $ 1.25 $ 1.03 Granted Terminated (50) $ 2.11 $ 1.75 Outstanding - June 30, 2017 145 $ 1.88 $ 1.43 |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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, 2017 2016 2017 2016 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ 221 $ (433) $ 655 $ (1,193) Weighted average common shares outstanding 8,216 8,108 8,157 8,107 Basic net income (loss) per share $ 0.03 $ (0.05) $ 0.08 $ (0.15) Diluted net income (loss) per share: Diluted net income (loss) applicable to common shareholders $ 221 $ (433) $ 655 $ (1,193) Weighted average common shares outstanding 8,216 8,108 8,157 8,107 Plus: Incremental shares from assumed conversions: Series A preferred shares 518 555 Dilutive stock options/shares 14 8 Diluted weighted average common shares outstanding 8,748 8,108 8,720 8,107 Diluted net income (loss) per share $ 0.03 $ (0.05) $ 0.08 $ (0.15) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following: June 30, September 30, 2017 2016 Raw materials $ 836 $ 1,190 Work in progress 221 267 Finished goods 229 284 1,286 1,741 Obsolescence reserve (222) (288) $ 1,064 $ 1,453 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Revenue: Service $ 4,954 $ 3,773 $ 15,180 $ 11,881 Product 882 1,280 3,189 3,406 $ 5,836 $ 5,053 $ 18,369 $ 15,287 Operating income (loss): Service $ 512 $ (364) $ 1,253 $ (962) Product (175) (1) (267) (194) $ 337 $ (365) $ 986 $ (1,156) Interest expense (112) (107) (322) (243) Decrease in fair value of warrant 21 189 Other income 2 1 4 2 Income (loss) before income taxes $ 227 $ (450) $ 668 $ (1,208) |
ARCHIVE REVENUES (Details Textu
ARCHIVE REVENUES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Deferred Revenue, Revenue Recognized | $ 216 | $ 453 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) shares in Thousands | 9 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Options (shares) Exercised | shares | (67) |
Employee Stock Option [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Options (shares) Outstanding | shares | 262 |
Options (shares) Exercised | shares | (67) |
Options (shares) Granted | shares | 0 |
Options (shares) Terminated | shares | (50) |
Options (shares) Outstanding | shares | 145 |
Weighted-Average Exercise Price Outstanding | $ 1.76 |
Weighted-Average Exercise Price Exercised | 1.25 |
Weighted-Average Exercise Price Terminated | 2.11 |
Weighted-Average Exercise Price Outstanding | 1.88 |
Weighted-Average Grant Date Fair Value Outstanding | 1.39 |
Weighted-Average Grant Date Fair Value Exercised | 1.03 |
Weighted-Average Grant Date Fair Value Terminated | 1.75 |
Weighted-Average Grant Date Fair Value Outstanding | $ 1.43 |
STOCK-BASED COMPENSATION (Det22
STOCK-BASED COMPENSATION (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Based Compensation Options Outstanding Issued Outside Of Stock Option Plan | 15 | 15 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 67 | |||
Stock Issued During Period, Stock Options Exercised Cashless | 17 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 67 | |||
Allocated Share-based Compensation Expense | $ 6 | $ 5 | $ 13 | $ 34 |
INCOME (LOSS) PER SHARE (Detail
INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic net income (loss) per share: | ||||
Net income (loss) applicable to common shareholders | $ 221 | $ (433) | $ 655 | $ (1,193) |
Weighted average common shares outstanding | 8,216 | 8,108 | 8,157 | 8,107 |
Basic net income (loss) per share | $ 0.03 | $ (0.05) | $ 0.08 | $ (0.15) |
Diluted net income (loss) per share: | ||||
Diluted net income (loss) applicable to common shareholders | $ 221 | $ (433) | $ 655 | $ (1,193) |
Weighted average common shares outstanding | 8,216 | 8,108 | 8,157 | 8,107 |
Plus: Incremental shares from assumed conversions: | ||||
Series A preferred shares | 518 | 0 | 555 | 0 |
Dilutive stock options/shares | 14 | 0 | 8 | 0 |
Diluted weighted average common shares outstanding | 8,748 | 8,108 | 8,720 | 8,107 |
Diluted net income (loss) per share | $ 0.03 | $ (0.05) | $ 0.08 | $ (0.15) |
INCOME (LOSS) PER SHARE (Deta24
INCOME (LOSS) PER SHARE (Details Textual) - shares | 3 Months Ended | 9 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Conversion of Stock, Shares Converted | 150 | |
Series A Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 592,000 | 592,000 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 799,000 | 799,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 836 | $ 1,190 |
Work in progress | 221 | 267 |
Finished goods | 229 | 284 |
Gross inventories | 1,286 | 1,741 |
Obsolescence reserve | (222) | (288) |
Inventories | $ 1,064 | $ 1,453 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue: | $ 5,836 | $ 5,053 | $ 18,369 | $ 15,287 |
Operating income (loss): | 337 | (365) | 986 | (1,156) |
Interest Expense | (112) | (107) | (322) | (243) |
Decrease in fair value of warrant liability | 0 | 21 | 0 | 189 |
Other income | 2 | 1 | 4 | 2 |
Income (loss) before income taxes | 227 | (450) | 668 | (1,208) |
Service Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue: | 4,954 | 3,773 | 15,180 | 11,881 |
Operating income (loss): | 512 | (364) | 1,253 | (962) |
Product Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue: | 882 | 1,280 | 3,189 | 3,406 |
Operating income (loss): | $ (175) | $ (1) | $ (267) | $ (194) |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Line Items] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 16 | $ 16 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |
Effective Income Tax Rate Reconciliation, Percent, Total | 1.95% |
DEBT (Details Textual)
DEBT (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jul. 14, 2017 | Feb. 28, 2017 | Nov. 01, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 60.00% | 60.00% | ||||||
Scenario, Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 227 | |||||||
Payments of Forbearance Fee | 27 | |||||||
Reduced Forbearance Fee, Indebtness Paid | $ 100 | |||||||
Huntington Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 5.00% | |||||||
Amortization Of Financing Costs | $ 29 | $ 17 | $ 10 | |||||
First Internet Bank of Indiana [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Periodic Payment, Total | $ 33 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | 3.99% | ||||||
Debt Instrument, Face Amount | $ 4,500 | $ 4,500 | ||||||
Long-term Debt, Gross | 4,500 | $ 4,500 | ||||||
Debt Instrument, Description of Variable Rate Basis | less Twenty-five (25) Basis Points (0.25%) | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | $ 2,000 | ||||||
Long-term Line of Credit | 256 | 256 | ||||||
Debt Issuance Costs | 69 | |||||||
Amortization Of Financing Costs | $ 54 | $ 48 | $ 157 | $ 62 | ||||
Term Loan Payable To Bank [Member] | Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||||||
Credit Facility Revolving Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% |
ACCRUED EXPENSES (Details Textu
ACCRUED EXPENSES (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | $ 117 | |
Restructuring Reserve, Current | 1,117 | $ 1,117 |
Lease Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserves | $ 1,000 |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Regulated Entity, Other Assets, Noncurrent [Abstract] | ||
Unamortized Debt Issuance Expense | $ 68 | $ 10 |