Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2017 | Feb. 08, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 8,245,320 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 933 | $ 434 |
Accounts receivable | ||
Trade, net of allowance of $2,019 at December 31, 2017 and $2,404 at September 30, 2017 | 2,267 | 2,530 |
Unbilled revenues and other | 450 | 615 |
Inventories, net | 931 | 913 |
Prepaid expenses | 987 | 814 |
Total current assets | 5,568 | 5,306 |
Property and equipment, net | 14,740 | 14,965 |
Lease rent receivable | 96 | 87 |
Deferred tax asset | 68 | 0 |
Goodwill | 38 | 38 |
Other assets | 20 | 21 |
Total assets | 20,530 | 20,417 |
Current liabilities: | ||
Accounts payable | 1,725 | 2,052 |
Restructuring liability | 1,117 | 1,117 |
Accrued expenses | 1,380 | 1,202 |
Customer advances | 3,263 | 2,980 |
Income taxes payable | 21 | 20 |
Revolving line of credit | 0 | 0 |
Current portion of capital lease obligation | 130 | 128 |
Current portion of long-term debt | 226 | 224 |
Total current liabilities | 7,862 | 7,723 |
Capital lease obligation, less current portion | 36 | 69 |
Long-term debt, less current portion, net of debt issuance costs | 4,104 | 4,158 |
Total liabilities | 12,002 | 11,950 |
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 December 31, 2017 and at September 30, 2017 | 1,035 | 1,035 |
Common shares, no par value: Authorized 19,000,000 shares; 8,244,201 issued and outstanding at December 31, 2017 and 8,243,896 at September 30, 2017 | 2,023 | 2,023 |
Additional paid-in capital | 21,481 | 21,446 |
Accumulated deficit | (16,011) | (16,037) |
Total shareholders’ equity | 8,528 | 8,467 |
Total liabilities and shareholders’ equity | $ 20,530 | $ 20,417 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Allowance for Doubtful Accounts Receivable, Current | $ 2,019 | $ 2,404 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 19,000,000 | 19,000,000 |
Common Stock, Shares, Issued | 8,244,201 | 8,243,896 |
Common Stock, Shares, Outstanding | 8,244,201 | 8,243,896 |
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 | 1,035 |
Preferred Stock, Shares Outstanding | 1,035 | 1,035 |
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 | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Service revenue | $ 4,525 | $ 5,264 |
Product revenue | 852 | 910 |
Total revenue | 5,377 | 6,174 |
Cost of service revenue | 3,273 | 3,750 |
Cost of product revenue | 523 | 565 |
Total cost of revenue | 3,796 | 4,315 |
Gross profit | 1,581 | 1,859 |
Operating expenses: | ||
Selling | 294 | 336 |
Research and development | 139 | 104 |
General and administrative | 1,137 | 1,325 |
Total operating expenses | 1,570 | 1,765 |
Operating income | 11 | 94 |
Interest expense | (52) | (76) |
Other income | 0 | 1 |
Net (loss) income before income taxes | (41) | 19 |
Income taxes (benefit) expense | (67) | 2 |
Net income | 26 | 17 |
Other comprehensive income: | 0 | 21 |
Comprehensive income | $ 26 | $ 38 |
Basic net income per share | $ 0 | $ 0 |
Diluted net income per share | $ 0 | $ 0 |
Weighted common shares outstanding: | ||
Basic | 8,244 | 8,107 |
Diluted | 8,795 | 8,699 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income | $ 26 | $ 17 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 404 | 396 |
Employee stock compensation expense | 34 | 10 |
(Gain)/Loss on disposal of property and equipment | 1 | (5) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 419 | (623) |
Inventories | (18) | 86 |
Income tax accruals | (67) | 1 |
Prepaid expenses and other assets | (173) | 178 |
Accounts payable | (327) | 81 |
Accrued expenses | 178 | 217 |
Customer advances | 283 | 651 |
Net cash provided by operating activities | 760 | 1,009 |
Investing activities: | ||
Capital expenditures | (175) | (105) |
Proceeds from sale of equipment | 0 | 5 |
Net cash used in investing activities | (175) | (100) |
Financing activities: | ||
Payments of long-term debt | (55) | (196) |
Payments of debt issuance costs | 0 | (17) |
Net (payments) borrowings on revolving line of credit | 0 | (761) |
Payments on capital lease obligations | (31) | (34) |
Net cash used in financing activities | (86) | (1,008) |
Net increase (decrease) in cash and cash equivalents | 499 | (99) |
Cash and cash equivalents at beginning of period | 434 | 386 |
Cash and cash equivalents at end of period | 933 | 287 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 48 | $ 57 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Bioanalytical Systems, Inc. and its subsidiaries (“We,” “Our,” “Us,” 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 by pharmaceutical companies, universities, government research centers and medical research institutions. 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, 2017. Certain amounts in the fiscal 2017 consolidated financial statements have been reclassified to conform to the fiscal 2018 presentation without affecting previously reported net income or stockholders’ equity. In the opinion of management, the condensed consolidated financial statements for the three months ended December 31, 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 December 31, 2017. The results of operations for the three months ended December 31, 2017 may not be indicative of the results for the year ending September 30, 2018. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 2. 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 9 in the Notes to the Consolidated Financial Statements in our Form 10-K for the fiscal year ended September 30, 2017. 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. Stock based compensation expense for the three months ended December 31, 2017 and 2016 was $ 34 10 Options Weighted- Weighted- Outstanding - October 1, 2017 140 $ 1.91 $ 1.45 Exercised (1) $ 1.40 $ 1.15 Granted 198 $ 1.94 $ 1.52 Forfeited (11) $ 4.80 Outstanding - December 31, 2017 326 $ 1.83 $ 1.45 Risk-free interest rate 2.31 % Dividend yield 0.00 % Volatility of the expected market price 83.70 %- of the Company's common shares 83.70 % Expected life of the options (years) 8.0 As of December 31, 2017, our total unrecognized compensation cost related to non-vested stock options was $ 284 1.6 |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 3 Months Ended |
Dec. 31, 2017 | |
Earnings 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 two categories of dilutive potential common shares: Series A preferred shares issued in May 2011 in connection with our 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 209 vested options were not considered in computing diluted income per share for the three months ended December 31, 2016 because they were anti-dilutive. The following table reconciles our computation of basic income per share to diluted income per share: Three Months Ended 2017 2016 Basic net income per share: Net income applicable to common shareholders $ 26 $ 17 Weighted average common shares outstanding 8,244 8,107 Basic net income per share $ 0.00 $ 0.00 Diluted net income per share: Diluted net income applicable to common shareholders $ 26 $ 17 Weighted average common shares outstanding 8,244 8,107 Plus: Incremental shares from assumed conversions: Series A preferred shares 518 592 Dilutive stock options/shares 33 Diluted weighted average common shares outstanding 8,795 8,699 Diluted net income per share $ 0.00 $ 0.00 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES December 31, 2017 September 30, 2017 Raw materials $ 764 $ 761 Work in progress 163 135 Finished goods 230 228 1,157 $ 1,124 Obsolescence reserve (226) (211) $ 931 $ 913 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [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 fiscal year ended September 30, 2017. Three Months Ended 2017 2016 Revenue: Service $ 4,525 $ 5,264 Product 852 910 $ 5,377 $ 6,174 Operating income (loss): Service $ 182 $ 273 Product (171) (179) $ 11 $ 94 Interest expense (52) (76) Other income 1 Income (loss) before income taxes $ (41) $ 19 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [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. On December 22, 2017, the United States (“U.S.”) enacted significant changes to the U.S. tax law following the passage and signing of H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Tax Act”) (previously known as “The Tax Cuts and Jobs Act”). The Tax Act included significant changes to existing tax law, including a permanent reduction to the U.S. federal corporate income tax rate from 35% to 21%. Accordingly, the Company’s income tax provision as of December 31, 2017 reflects the current year impacts of the U.S. Tax Act on the estimated annual effective tax rate. The Tax Act reduces the U.S. federal corporate tax rate from 35 21 The difference between the newly enacted federal statutory rate of 24.5 162.19 1,600 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, 2017 and September 30, 2017, we had a $ 16 . 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 2012. |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | 7. DEBT 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 described below and terminated the related interest rate swap. The term loan for $ 4,500 3.99 33 4,391 2,000 less Twenty-five (25) Basis Points (0.25%). 0 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 3 21 61 64 Former 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. Under a series of forbearance arrangements, Huntington Bank agreed during the relevant forbearance periods 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 to continue to make advances under the Agreement. In exchange for Huntington Bank’s agreement 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 (the last such amendment 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 periods, (iii) provide to Huntington Bank certain cash flow forecasts and other financial information, (iv) comply with a minimum cash flow covenant, (v) engage the services of a financial consultant and cause the financial consultant to provide Huntington Bank such information regarding its efforts as reasonably requested, and (vi) pay to Huntington Bank certain fees, including a forbearance fee, $ 27 100 We incurred a total of $ 56 Former 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 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | 8. 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 for legal and professional fees and other costs to remove improvements previously made to the facility. 1,117 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | 9. 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 (Topic 606), which will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition. Topic 606 requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The Company will be required to adopt Topic 606 either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application. If the Company elects the modified retrospective approach, it will be required to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes. With the help of external consultants, the Company is in the process of assessing the impact of the new guidance on its consolidated financial statements. In July 2015, the FASB issued an amendment to the accounting guidance related to the measurement of inventory. The amendment revises inventory calculations so as to be measured at the lower of cost and net realizable value as compared to the lower of cost or market. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. The Company adopted this guidance in the first quarter of fiscal 2018 with no material effect on the condensed 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 adoption and have not yet determined the impact the revised guidance will have on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating Step 2 from the goodwill impairment test. Under the previous guidance an impairment of goodwill exists when the carrying amount of goodwill exceeds its implied fair value, whereas under the new guidance a goodwill impairment loss would be recognized if the carrying amount of the reporting unit exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The ASU is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations Clarifying the definition of a business |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Dec. 31, 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 three months ended December 31, 2017 is as follows (in thousands except for share prices): Options Weighted- Weighted- Outstanding - October 1, 2017 140 $ 1.91 $ 1.45 Exercised (1) $ 1.40 $ 1.15 Granted 198 $ 1.94 $ 1.52 Forfeited (11) $ 4.80 Outstanding - December 31, 2017 326 $ 1.83 $ 1.45 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used to compute the fair value of the options granted in the three months ended December 31, 2017 were as follows: Risk-free interest rate 2.31 % Dividend yield 0.00 % Volatility of the expected market price 83.70 %- of the Company's common shares 83.70 % Expected life of the options (years) 8.0 |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles our computation of basic income per share to diluted income per share: Three Months Ended 2017 2016 Basic net income per share: Net income applicable to common shareholders $ 26 $ 17 Weighted average common shares outstanding 8,244 8,107 Basic net income per share $ 0.00 $ 0.00 Diluted net income per share: Diluted net income applicable to common shareholders $ 26 $ 17 Weighted average common shares outstanding 8,244 8,107 Plus: Incremental shares from assumed conversions: Series A preferred shares 518 592 Dilutive stock options/shares 33 Diluted weighted average common shares outstanding 8,795 8,699 Diluted net income per share $ 0.00 $ 0.00 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following: December 31, 2017 September 30, 2017 Raw materials $ 764 $ 761 Work in progress 163 135 Finished goods 230 228 1,157 $ 1,124 Obsolescence reserve (226) (211) $ 931 $ 913 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | Three Months Ended 2017 2016 Revenue: Service $ 4,525 $ 5,264 Product 852 910 $ 5,377 $ 6,174 Operating income (loss): Service $ 182 $ 273 Product (171) (179) $ 11 $ 94 Interest expense (52) (76) Other income 1 Income (loss) before income taxes $ (41) $ 19 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - Employee Stock Option [Member] | 3 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Options (shares) Outstanding | shares | 140 |
Options (shares) Exercised | shares | (1) |
Options (shares) Granted | shares | 198 |
Options (shares) Forfeited | shares | (11) |
Options (shares) Outstanding | shares | 326 |
Weighted-Average Exercise Price Outstanding | $ 1.91 |
Weighted-Average Exercise Price Exercised | 1.40 |
Weighted-Average Exercise Price Granted | 1.94 |
Weighted-Average Exercise Price Forfeited | 4.80 |
Weighted-Average Exercise Price Outstanding | 1.83 |
Weighted-Average Grant Date Fair Value Outstanding | 1.45 |
Weighted-Average Grant Date Fair Value Exercised | 1.15 |
Weighted-Average Grant Date Fair Value Granted | 1.52 |
Weighted-Average Grant Date Fair Value Outstanding | $ 1.45 |
STOCK-BASED COMPENSATION (Det20
STOCK-BASED COMPENSATION (Details 1) - Employee Stock Option [Member] | 3 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.31% |
Dividend yield | 0.00% |
Volatility of the expected market price of the Company's common shares, minimum | 83.70% |
Volatility of the expected market price of the Company's common shares, maximum | 83.70% |
Expected life of the options (years) | 8 years |
STOCK-BASED COMPENSATION (Det21
STOCK-BASED COMPENSATION (Details Textual) - Employee Stock Option [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 284 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | |
Allocated Share-based Compensation Expense | $ 34 | $ 10 |
INCOME (LOSS) PER SHARE (Detail
INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Basic net income per share: | ||
Net income applicable to common shareholders | $ 26 | $ 17 |
Weighted average common shares outstanding | 8,244 | 8,107 |
Basic net income per share | $ 0 | $ 0 |
Diluted net income per share: | ||
Diluted net income applicable to common shareholders | $ 26 | $ 17 |
Weighted average common shares outstanding | 8,244 | 8,107 |
Plus: Incremental shares from assumed conversions: | ||
Series A preferred shares | 518 | 592 |
Dilutive stock options/shares | 33 | 0 |
Diluted weighted average common shares outstanding | 8,795 | 8,699 |
Diluted net income per share | $ 0 | $ 0 |
INCOME (LOSS) PER SHARE (Deta23
INCOME (LOSS) PER SHARE (Details Textual) shares in Thousands | 3 Months Ended |
Dec. 31, 2016shares | |
Employee Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 209 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 764 | $ 761 |
Work in progress | 163 | 135 |
Finished goods | 230 | 228 |
Gross inventories | 1,157 | 1,124 |
Obsolescence reserve | (226) | (211) |
Inventories | $ 931 | $ 913 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Revenue: | $ 5,377 | $ 6,174 |
Operating income (loss): | 11 | 94 |
Interest expense | (52) | (76) |
Other income | 0 | 1 |
Income (loss) before income taxes | (41) | 19 |
Service Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue: | 4,525 | 5,264 |
Operating income (loss): | 182 | 273 |
Product Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue: | 852 | 910 |
Operating income (loss): | $ (171) | $ (179) |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2017 | |
Income Taxes [Line Items] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 16 | $ 16 |
Operating Loss Carryforwards, Valuation Allowance | $ 1,600 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.50% | |
Effective Income Tax Rate Reconciliation, Percent, Total | 162.19% | |
Maximum [Member] | ||
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Minimum [Member] | ||
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
DEBT (Details Textual)
DEBT (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 60.00% | |||||||
Huntington Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||
Amortization Of Financing Costs | $ 56 | $ 56 | $ 56 | |||||
First Internet Bank of Indiana [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Periodic Payment, Total | $ 33 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | |||||||
Debt Instrument, Face Amount | $ 4,500 | |||||||
Long-term Debt, Gross | $ 4,391 | |||||||
Debt Instrument, Description of Variable Rate Basis | less Twenty-five (25) Basis Points (0.25%). | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000 | |||||||
Long-term Line of Credit | 0 | $ 0 | $ 0 | |||||
Debt Issuance Costs | 69 | $ 69 | ||||||
Amortization Of Financing Costs | $ 3 | $ 21 | $ 61 | $ 64 | ||||
Payments of Forbearance Fee | 27 | |||||||
Additional Forbearance Fee, Indebtedness Paid | $ 100 | |||||||
Term Loan Payable To Bank [Member] | Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
ACCRUED EXPENSES (Details Textu
ACCRUED EXPENSES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2017 | |
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 |