Inotiv (NOTV) 10-Q 14 Aug 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Aug. 09, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
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		10,245,277

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 1,458	$ 434
Accounts receivable
Trade, net of allowance of $1,984 at June 30, 2018 and $2,404 at September 30, 2017	3,206	2,530
Unbilled revenues and other	447	615
Inventories, net	964	913
Prepaid expenses	503	814
Total current assets	6,578	5,306
Property and equipment, net	14,745	14,965
Lease rent receivable	108	87
Deferred tax asset	67	0
Goodwill	38	38
Other assets	17	21
Total assets	21,553	20,417
Current liabilities:
Accounts payable	2,087	2,052
Restructuring liability	1,117	1,117
Accrued expenses	1,065	1,202
Customer advances	4,386	2,980
Income taxes payable	0	20
Current portion of capital lease obligation	102	128
Current portion of long-term debt	230	224
Total current liabilities	8,987	7,723
Capital lease obligation, less current portion	0	69
Long-term debt, less current portion, net of debt issuance costs	3,995	4,158
Total liabilities	12,982	11,950
Shareholders' equity:
Preferred shares, authorized 1,000,000 shares, no par value: 35 Series A shares at $1,000 stated value issued and outstanding at June 30, 2018 and 1,035 at September 30, 2017	35	1,035
Common shares, no par value: Authorized 19,000,000 shares; 8,745,277 issued and outstanding at June 30, 2018 and 8,243,896 at September 30, 2017	2,148	2,023
Additional paid-in capital	22,425	21,446
Accumulated deficit	(16,037)	(16,037)
Total shareholders' equity	8,571	8,467
Total liabilities and shareholders' equity	$ 21,553	$ 20,417

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Allowance for Doubtful Accounts Receivable, Current	$ 1,984	$ 2,404
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	19,000,000	19,000,000
Common Stock, Shares, Issued	8,745,277	8,243,896
Common Stock, Shares, Outstanding	8,745,277	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	35	1,035
Preferred Stock, Shares Outstanding	35	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 - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Total revenue	$ 6,039	$ 5,836	$ 17,360	$ 18,369
Total cost of revenue	4,414	3,905	12,414	12,536
Gross profit	1,625	1,931	4,946	5,833
Operating expenses:
Selling	320	229	917	808
Research and development	142	127	430	340
General and administrative	1,195	1,238	3,510	3,699
Total operating expenses	1,657	1,594	4,857	4,847
Operating income (loss)	(32)	337	89	986
Interest expense	(49)	(112)	(149)	(322)
Other income	1	2	5	4
Net income (loss) before income taxes	(80)	227	(55)	668
Income taxes (benefit) expense	(5)	6	(61)	13
Net income (loss)	(75)	221	6	655
Other comprehensive income:	0	6	0	35
Comprehensive income (loss)	$ (75)	$ 227	$ 6	$ 690
Basic net income (loss) per share	$ (0.01)	$ 0.03	$ 0	$ 0.08
Diluted net income (loss) per share	$ (0.01)	$ 0.03	$ 0	$ 0.08
Weighted common shares outstanding:
Basic	8,273	8,216	8,274	8,157
Diluted	8,273	8,748	8,652	8,720
Service [Member]
Total revenue	$ 4,866	$ 4,954	$ 14,421	$ 15,180
Total cost of revenue	3,684	3,308	10,619	10,604
Product [Member]
Total revenue	1,173	882	2,939	3,189
Total cost of revenue	$ 730	$ 597	$ 1,795	$ 1,932

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	$ 6	$ 655
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,160	1,303
Employee stock compensation expense	102	13
Provision for doubtful accounts	(6)	0
Gain on disposal of property and equipment	(1)	(9)
Changes in operating assets and liabilities:
Accounts receivable	(523)	(256)
Inventories	(51)	389
Income tax accruals	(92)	10
Prepaid expenses and other assets	311	201
Accounts payable	35	(1,309)
Accrued expenses	(137)	102
Customer advances	1,406	151
Net cash provided by operating activities	2,210	1,250
Investing activities:
Capital expenditures	(926)	(213)
Proceeds from sale of equipment	2	8
Net cash used by investing activities	(924)	(205)
Financing activities:
Payments of long-term debt	(167)	(3,666)
Net Borrowings on Long-term Debt	0	4,500
Payment of Debt Issue Costs	0	(214)
Proceeds from exercise of stock options	1	66
Borrowings on revolving line of credit	7,545	10,064
Payments on revolving line of credit	(7,545)	(11,166)
Payments on capital lease obligations	(96)	(96)
Net cash used by financing activities	(262)	(512)
Net increase in cash and cash equivalents	1,024	533
Cash and cash equivalents at beginning of period	434	386
Cash and cash equivalents at end of period	1,458	919
Supplemental disclosure of non-cash financing activities:
Cash paid for interest	139	180
Conversion of preferred shares to common shares	$ 1,000	$ 150

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2018
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 and nine months ended June 30, 2018 and 2017 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, 2018. The results of operations for the three and nine months ended June 30, 2018 may not be indicative of the results for the year ending September 30, 2018.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Jun. 30, 2018
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 and nine months ended June 30, 2018 was $33 and $102, respectively. Stock based compensation expense for the three and nine months ended June 30, 2017 was $6 and $13, respectively. In March 2018, our shareholders approved the amendment and restatement of the Plan in the form of the Amended and Restated 2018 Equity Incentive Plan (the “Equity Plan”) and future equity awards will be granted from the Equity Plan. The purpose of the Equity Plan is to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees. The maximum number of common shares that may be granted under the Equity Plan is 700 shares. A summary of our stock option activity for the nine months ended June 30, 2018 is as follows (in thousands except for share prices): Options Weighted- Weighted- Outstanding - October 1, 2017 140 $ 1.91 $ 1.45 Exercised (3 ) $ 1.40 $ 1.36 Granted 198 $ 1.94 $ 1.52 Forfeited (15 ) $ 3.97 Outstanding - June 30, 2018 320 $ 1.83 $ 1.45 The weighted-average assumptions used to compute the fair value of the options granted in the nine months ended June 30, 2018 were as follows: Risk-free interest rate 2.31 % Dividend yield 0.00 % Volatility of the expected market price of the Company's common shares 83.70 % Expected life of the options (years) 8.0 As of June 30, 2018, our total unrecognized compensation cost related to non-vested stock options was $215 and is expected to be recognized over a weighted-average service period of 1.4 years.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	3. NET INCOME (LOSS) PER SHARE We compute basic net 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. The following table reconciles our computation of basic net income per share to diluted net income per share: Three Months Ended ‎ June 30, Nine Months Ended ‎ June 30, 2018 2017 2018 2017 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ (75 ) $ 221 $ 6 $ 655 Weighted average common shares outstanding 8,273 8,216 8,274 8,157 Basic net income (loss) per share $ (0.01 ) $ 0.03 $ 0.00 $ 0.08 Diluted net income (loss) per share: Diluted net income (loss) applicable to common shareholders $ (75 ) $ 221 $ 6 $ 655 Weighted average common shares outstanding 8,273 8,216 8,274 8,157 Plus: Incremental shares from assumed conversions: Series A preferred shares — 518 351 555 Dilutive stock options/shares — 14 27 8 Diluted weighted average common shares outstanding 8,273 8,748 8,652 8,720 Diluted net income (loss) per share $ (0.01 ) $ 0.03 $ 0.00 $ 0.08

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
INVENTORIES	4. INVENTORIES Inventories consisted of the following: June 30, ‎ 2018 September 30, ‎ 2017 Raw materials $ 797 $ 761 Work in progress 125 135 Finished goods 247 228 $ 1,169 $ 1,124 Obsolescence reserve (205 ) (211 ) $ 964 $ 913

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Jun. 30, 2018
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 the Consolidated Financial Statements in our annual report on Form 10-K for the fiscal year ended September 30, 2017. Three Months Ended ‎ June 30, Nine Months Ended ‎ June 30, 2018 2017 2018 2017 Revenue: Service $ 4,866 $ 4,954 $ 14,421 $ 15,180 Product 1,173 882 2,939 3,189 $ 6,039 $ 5,836 $ 17,360 $ 18,369 Operating Income Service $ 126 $ 512 $ 554 $ 1,253 Product (158 ) (175 ) (465 ) (267 ) $ (32 ) $ 337 $ 89 $ 986 Interest expense (49 ) (112 ) (149 ) (332 ) Other income 1 2 5 4 Income (loss) before income taxes $ (80 ) $ 227 $ (55 ) $ 668

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jun. 30, 2018
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 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 for the three and nine months ended June 30, 2018 reflects the current year impacts of the Tax Act on the estimated annual effective tax rate. The impact from the permanent reduction to the U.S. federal corporate income tax rate from 35% to 21% is effective January 1, 2018. When a U.S. federal tax rate change occurs during a fiscal year, taxpayers are required to compute a weighted daily average rate for the fiscal year of enactment and as a result the Company calculated a U.S. federal statutory income tax rate of 24.5% for the current fiscal year ending September 30, 2018. The difference between the newly enacted federal statutory rate of 24.5% and our effective rate of 95.92.% is due to changes in our valuation allowance on our net deferred tax assets along with realizing the deferred tax asset associated with the AMT credit carry-forward. The impact of the newly enacted federal statutory rate as a result of the Tax Act to the net deferred tax assets is a provisional amount of approximately a $1,200 decrease with any offsetting decrease to the valuation allowance. The amount is provisional because the final number cannot be calculated until the underlying timing differences are known rather than estimated. 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, 2018 and September 30, 2017, we had a $0 and $16 liability, respectively, for uncertain income tax positions. 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	9 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
DEBT	7. DEBT See Footnote 10 – Subsequent Events for disclosure relating to an amendment to the below described Credit Agreement entered into on July 2, 2018. Credit Facility On June 23, 2017, we entered into a 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 bears interest at a fixed rate of 3.99%, with monthly principal and interest payments of approximately $33. The term loan matures in June 2022. The balance on the term loan at June 30, 2018 was $4,279. The revolving line of credit for up to $2,000 matures in June 2019 and bears interest at the Prime Rate (generally defined as the highest rate identified as the “Prime Rate” in The Wall Street Journal “Money Rates” column on the date the interest rate is to be determined, or if that date is not a publication date, on the publication date immediately preceding) less Twenty-five (25) Basis Points (0.25%). The balance on the revolving line of credit at June 30, 2018 and September 30, 2017, was $0. We must pay accrued and unpaid interest on the outstanding balance under the credit line on a monthly basis. 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 1.25 to 1.0 and (ii) 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 of costs in June 2017 related to the Credit Agreement that was partially amortized in the second half of fiscal 2017 and the first, second and third quarters of fiscal 2018 with the remainder to be amortized through June 2022. For the three and nine months ended June 30, 2018, we amortized $4 and $11, respectively, into interest expense on the condensed consolidated statements of operations and comprehensive income. For the three and nine months ended June 30, 2017, we amortized $54 and $157, respectively, into interest expense on the condensed consolidated statements of operations and comprehensive income. These noncash charges are included in depreciation and amortization on the consolidated statements of cash flows. As of June 30, 2018 and September 30, 2017, the unamortized portion of debt issuance costs related to our credit facility was $54 and $64, respectively, and was included in Long-term Debt, less current portion on the condensed consolidated balance sheets. 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 of which was paid at the execution of the last forbearance agreement and an additional $100 was paid in June 2017. We incurred a total of $56 of costs related to certain of our forbearance arrangements that was amortized in the first, second and third quarters of fiscal 2017. 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% of the value of the term loan at approximately 5.0%. We entered into this interest rate swap agreement to hedge interest rate risk of the related debt obligation and not to speculate on interest rates. The changes in the fair value of the interest rate swap were recorded in Accumulated Other Comprehensive Income to the extent effective. The interest rate swap was terminated as of June 23, 2017 in connection with the satisfaction of our indebtedness to Huntington Bank and the balance was reduced to zero.

ACCRUED EXPENSES

ACCRUED EXPENSES	9 Months Ended
	Jun. 30, 2018
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 reserve for lease related costs. Additionally, we accrued $117 for legal and professional fees and other costs to remove improvements previously made to the facility. At June 30, 2018 and September 30, 2017, respectively, we had $1,117 reserved for the liability. The reserve is classified as a current liability on the Consolidated Balance Sheets.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Jun. 30, 2018
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 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 2017-01, Business Combinations – Clarifying the definition of a business 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events [Text Block]	10. SUBSEQUENT EVENTS (not in thousands) Acquisition On July 2, 2018, the Company, through its wholly-owned subsidiary Cardinal Laboratories LLC (the “Purchaser”), acquired (the “Acquisition”) substantially all of the assets of Seventh Wave Laboratories LLC (the “Seller”), a consulting-based contract research laboratory located in Maryland Heights, Missouri providing integrated services for discovery and preclinical drug development, under the terms and conditions of an Asset Purchase Agreement, dated July 2, 2018, among the Purchaser, the Company, the Seller and certain members of the Seller (the “Purchase Agreement”). The total consideration for the Acquisition consisted of $7,000,000 in cash, subject to certain adjustments and an indemnity escrow of $750,000, and 1,500,000 of the Company’s common shares. The Company funded the cash portion of the purchase price for the Acquisition with cash on hand and the net proceeds from the refinancing of its credit arrangements with FIB, as described below. The Purchase Agreement contains customary representations, warranties, covenants (including non-competition requirements applicable to the selling parties for a four year period) and indemnification provisions. As contemplated by the Purchase Agreement, on July 2, 2018 the Purchaser and the Seller agreed to lease arrangements for certain premises in Maryland Heights, Missouri (the “Lease Arrangements”) owned by SWL Properties LLC, an entity controlled by certain members of the Seller, including John E. Sagartz, President and Chief Strategy Officer of the Seller and, as of July 2, 2108, an officer of the Purchaser and member of the Company’s Board of Directors. Under the Lease Arrangements, the Purchaser agreed to lease the premises for a term of approximately 7 years, with two automatic 7 year extensions unless terminated by the Purchaser with 180 days prior written notice. Annual rent under the Lease Arrangements for the initial term ranges from $390,000 for the first year to $440,987 for the seventh year, provided that the Lease Arrangements provide the Purchaser with the option to purchase the premises prior to the end of the fifth lease year. The Lease Arrangements include customary rights upon a default by landlord or tenant. The Company is currently evaluating the purchase price allocation related to this Acquisition. Amendment to Credit Arrangements In connection with the Acquisition, on July 2, 2018 the Company and FIB entered into an amendment to the Credit Agreement by and between the parties dated June 23, 2017 (as amended, the “ Credit Agreement New Term Loan Amended Facility Credit Agreement, including as may be limited by the amount of the Company’s outstanding eligible receivables. The New Term Loan and the Amended Facility mature July 2, 2023 and June 30, 2019, respectively. Amounts outstanding under the New Term Loan bear interest at a fixed per annum rate of 5.06%, while interest accruing on the principal balance of the Facility remains unchanged, at a floating per annum rate equal to the Prime Rate (generally defined as the highest rate identified as the “Prime Rate” in The Wall Street Journal “Money Rates” column on the date the interest rate is to be determined, or if that date is not a publication date, on the publication date immediately preceding) less Twenty-five (25) Basis Points (0.25%). The New Term Loan requires monthly principal and interest payments equal to $78,091.42. The Company remains obligated to pay accrued and unpaid interest on the outstanding balance under the Amended Facility on a monthly basis. Following its amendment, the Company’s obligations under the Credit Agreement (including with respect to the initial term loan made June 23, 2017) are guaranteed by BAS Evansville, Inc., the Company’s wholly owned subsidiary (“ BASEV Credit Agreement and BASEV’s and the Purchaser’s obligations under their respective Guaranties are secured by first priority security interests in substantially all of the assets of the Company, BASEV, and the Purchaser respectively, as well as mortgages on the Company’s and BASEV’s facilities in West Lafayette, Indiana and Evansville, Indiana, respectively. The various restrictive covenants under the Amended Credit Agreement remain substantially consistent with those under the Credit Agreement, provided that the parties agreed (i) to modify the computation of the minimum debt service coverage ratio (but, not the ratio itself) to appropriately reflect relevant aspects of the Acquisition and (ii) to convert the debt to equity ratio in the Credit Agreement to a cash flow coverage ratio whereby, beginning with the fiscal quarter ended September 30, 2018, the ratio of the Company’s total funded debt (as defined in the Amended Credit Agreement) as of the last day of each fiscal quarter to its EBITDA (as defined in the Amended Credit Agreement) for the 12 months ended on such date may not exceed 4.50 to 1.00.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Jun. 30, 2018
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, 2018 is as follows (in thousands except for share prices): Options ‎ (shares) Weighted- ‎ Average ‎ Exercise ‎ Price Weighted- ‎ Average ‎ Grant Date ‎ Fair Value Outstanding - October 1, 2017 140 $ 1.91 $ 1.45 Exercised (3 ) $ 1.40 $ 1.36 Granted 198 $ 1.94 $ 1.52 Forfeited (15 ) $ 3.97 Outstanding - June 30, 2018 320 $ 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 nine months ended June 30, 2018 were as follows: Risk-free interest rate 2.31 % Dividend yield 0.00 % Volatility of the expected market price of the Company's common shares 83.70 % Expected life of the options (years) 8.0

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles our computation of basic net income per share to diluted net income per share: Three Months Ended ‎ June 30, Nine Months Ended ‎ June 30, 2018 2017 2018 2017 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ (75 ) $ 221 $ 6 $ 655 Weighted average common shares outstanding 8,273 8,216 8,274 8,157 Basic net income (loss) per share $ (0.01 ) $ 0.03 $ 0.00 $ 0.08 Diluted net income (loss) per share: Diluted net income (loss) applicable to common shareholders $ (75 ) $ 221 $ 6 $ 655 Weighted average common shares outstanding 8,273 8,216 8,274 8,157 Plus: Incremental shares from assumed conversions: Series A preferred shares — 518 351 555 Dilutive stock options/shares — 14 27 8 Diluted weighted average common shares outstanding 8,273 8,748 8,652 8,720 Diluted net income (loss) per share $ (0.01 ) $ 0.03 $ 0.00 $ 0.08

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consisted of the following: June 30, ‎ 2018 September 30, ‎ 2017 Raw materials $ 797 $ 761 Work in progress 125 135 Finished goods 247 228 $ 1,169 $ 1,124 Obsolescence reserve (205 ) (211 ) $ 964 $ 913

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of Operating Segments	Three Months Ended ‎ June 30, Nine Months Ended ‎ June 30, 2018 2017 2018 2017 Revenue: Service $ 4,866 $ 4,954 $ 14,421 $ 15,180 Product 1,173 882 2,939 3,189 $ 6,039 $ 5,836 $ 17,360 $ 18,369 Operating Income Service $ 126 $ 512 $ 554 $ 1,253 Product (158 ) (175 ) (465 ) (267 ) $ (32 ) $ 337 $ 89 $ 986 Interest expense (49 ) (112 ) (149 ) (332 ) Other income 1 2 5 4 Income (loss) before income taxes $ (80 ) $ 227 $ (55 ) $ 668

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - Employee Stock Option [Member] shares in Thousands	9 Months Ended
	Jun. 30, 2018$ / sharesshares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Options (shares) Outstanding | shares	140
Options (shares) Exercised | shares	(3)
Options (shares) Granted | shares	198
Options (shares) Forfeited | shares	(15)
Options (shares) Outstanding | shares	320
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	3.97
Weighted-Average Exercise Price Outstanding	1.83
Weighted-Average Grant Date Fair Value Outstanding	1.45
Weighted-Average Grant Date Fair Value Exercised	1.36
Weighted-Average Grant Date Fair Value Granted	1.52
Weighted-Average Grant Date Fair Value Outstanding	$ 1.45

STOCK-BASED COMPENSATION (Det21

STOCK-BASED COMPENSATION (Details 1) - Employee Stock Option [Member]	9 Months Ended
	Jun. 30, 2018
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	83.70%
Expected life of the options (years)	8 years

STOCK-BASED COMPENSATION (Det22

STOCK-BASED COMPENSATION (Details Textual) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
2018 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	700		700
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 215		$ 215
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 4 months 24 days
Allocated Share-based Compensation Expense	$ 33	$ 6	$ 102	$ 13

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic net income (loss) per share:
Net income (loss) applicable to common shareholders	$ (75)	$ 221	$ 6	$ 655
Weighted average common shares outstanding	8,273	8,216	8,274	8,157
Basic net income (loss) per share	$ (0.01)	$ 0.03	$ 0	$ 0.08
Diluted net income (loss) per share:
Diluted net income (loss) applicable to common shareholders	$ (75)	$ 221	$ 6	$ 655
Weighted average common shares outstanding	8,273	8,216	8,274	8,157
Plus: Incremental shares from assumed conversions:
Series A preferred shares	0	518	351	555
Dilutive stock options/shares	0	14	27	8
Diluted weighted average common shares outstanding	8,273	8,748	8,652	8,720
Diluted net income (loss) per share	$ (0.01)	$ 0.03	$ 0	$ 0.08

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Inventory [Line Items]
Raw materials	$ 797	$ 761
Work in progress	125	135
Finished goods	247	228
Gross inventories	1,169	1,124
Obsolescence reserve	(205)	(211)
Inventories	$ 964	$ 913

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenue:	$ 6,039	$ 5,836	$ 17,360	$ 18,369
Operating Income	(32)	337	89	986
Interest expense	(49)	(112)	(149)	(322)
Other income	1	2	5	4
Income (loss) before income taxes	(80)	227	(55)	668
Service Segment [Member]
Segment Reporting Information [Line Items]
Revenue:	4,866	4,954	14,421	15,180
Operating Income	126	512	554	1,253
Product Segment [Member]
Segment Reporting Information [Line Items]
Revenue:	1,173	882	2,939	3,189
Operating Income	$ (158)	$ (175)	$ (465)	$ (267)

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2018	Sep. 30, 2017
Income Taxes [Line Items]
Unrecognized Tax Benefits	$ 0		$ 16
Operating Loss Carryforwards	$ 1,200
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	24.50%		35.00%
Effective Income Tax Rate Reconciliation, Percent	95.92%
Scenario, Plan [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				9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Interest Rate Swap [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	60.00%				60.00%
Huntington Bank [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%				5.00%
Amortization Of Financing Costs		$ 56	$ 56	$ 56
First Internet Bank of Indiana [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment					$ 33
Debt Instrument, Interest Rate, Stated Percentage	3.99%				3.99%
Debt Instrument, Face Amount	$ 4,500				$ 4,500
Long-term Debt, Gross	4,279				$ 4,279
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	0				0		$ 0
Debt Issuance Costs						$ 69
Amortization Of Financing Costs	4	$ 54			11	157
Payments of Forbearance Fee						27
Additional Forbearance Fee, Indebtedness Paid						$ 100
Unamortized Debt Issuance Expense	$ 54				$ 54		$ 64

ACCRUED EXPENSES (Details Textu

ACCRUED EXPENSES (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	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

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($)	Jul. 02, 2018	Jun. 30, 2018
First Internet Bank of Indiana [Member]
Debt Instrument, Face Amount		$ 4,500,000
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000,000
Debt Instrument, Interest Rate, Stated Percentage		3.99%
Debt Instrument, Periodic Payment		$ 33,000
Subsequent Event [Member]
Description of Lessee Leasing Arrangements, Operating Leases	the Purchaser agreed to lease the premises for a term of approximately 7 years, with two automatic 7 year extensions unless terminated by the Purchaser with one hundred and eighty day prior written notice.
Business Combination, Consideration Transferred	$ 9,475,000
Subsequent Event [Member] | Credit Arrangements [Member]
Business Combination, Contingent Consideration Arrangements, Description	The various restrictive covenants under the Amended Credit Agreement remain substantially consistent with those under the Credit Agreement, provided that the parties agreed (i) to modify the computation of the minimum debt service coverage ratio (but, not the ratio itself) to appropriately reflect relevant aspects of the Acquisition and (ii) to convert the debt to equity ratio in the Credit Agreement to a cash flow coverage ratio whereby, beginning with the fiscal quarter ended September 30, 2018, the ratio of the Company’s total funded debt (as defined in the Amended Credit Agreement) as of the last day of each fiscal quarter to its EBITDA (as defined in the Amended Credit Agreement) for the 12 months ended on such date may not exceed 4.50 to 1.00.
Subsequent Event [Member] | First Internet Bank of Indiana [Member]
Debt Instrument, Face Amount	$ 5,500,000,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,500,000,000
Debt Instrument, Maturity Date	Jul. 2, 2023
Line of Credit Facility, Expiration Date	Jun. 30, 2019
Debt Instrument, Interest Rate, Stated Percentage	5.06%
Line of Credit Facility, Interest Rate Description	interest accruing on the principal balance of the Facility remains unchanged, at a floating per annum rate equal to the Prime Rate (generally defined as the highest rate identified as the “Prime Rate” in The Wall Street Journal “Money Rates” column on the date the interest rate is to be determined, or if that date is not a publication date, on the publication date immediately preceding) less Twenty-five (25) Basis Points (0.25%).
Debt Instrument, Periodic Payment	$ 78,091,420
Subsequent Event [Member] | Maximum [Member]
Operating Leases, Future Minimum Payments Due	440,987,000
Subsequent Event [Member] | Minimum [Member]
Operating Leases, Future Minimum Payments Due	390,000,000
Subsequent Event [Member] | Cardinal Laboratories LLC [Member]
Payments to Acquire Businesses, Gross	7,000,000
Business Combination, Consideration Transferred, Other	$ 750,000,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	1,500,000