Inotiv (NOTV) 10-Q 14 Feb 18 2018 Q1 Quarterly report Financial data

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