Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2019 | Aug. 10, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | BIOANALYTICAL SYSTEMS INC | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0000720154 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | BASi | |
Entity Common Stock, Shares Outstanding | 10,496,788 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 506 | $ 773 |
Accounts receivable | ||
Trade, net of allowance of $1,783 at June 30, 2019 and $1,948 at September 30, 2018 | 6,261 | 4,128 |
Unbilled revenues and other | 1,639 | 1,012 |
Inventories, net | 1,119 | 1,182 |
Prepaid expenses | 1,293 | 966 |
Total current assets | 10,818 | 8,061 |
Property and equipment, net | 21,056 | 16,610 |
Goodwill | 3,617 | 3,072 |
Other intangible assets, net | 2,967 | 3,318 |
Lease rent receivable | 127 | 115 |
Deferred tax asset | 31 | 62 |
Other assets | 28 | 30 |
Total assets | 38,644 | 31,268 |
Current liabilities: | ||
Accounts payable | 4,488 | 3,192 |
Restructuring liability | 425 | 1,117 |
Accrued expenses | 2,499 | 1,571 |
Customer advances | 6,516 | 4,925 |
Revolving line of credit | 572 | 0 |
Capex line of credit | 460 | 0 |
Current portion of capital lease obligation | 18 | 87 |
Current portion of long-term debt | 1,050 | 909 |
Total current liabilities | 16,028 | 11,801 |
Capital lease obligation, less current portion | 23 | 37 |
Long-term debt, less current portion, net of debt issuance costs | 12,259 | 8,546 |
Total liabilities | 28,310 | 20,384 |
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, 2019 and at September 30, 2018 | 35 | 35 |
Common shares, no par value: Authorized 19,000,000 shares; 10,496,669 issued and outstanding at June 30, 2019 and 10,245,277 at September 30, 2018 | 2,586 | 2,523 |
Additional paid-in capital | 25,100 | 24,557 |
Accumulated deficit | (17,387) | (16,231) |
Total shareholders' equity | 10,334 | 10,884 |
Total liabilities and shareholders' equity | $ 38,644 | $ 31,268 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Allowance for Doubtful Accounts Receivable, Current | $ 1,783 | $ 1,948 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 19,000,000 | 19,000,000 |
Common Stock, Shares, Issued | 10,496,669 | 10,245,277 |
Common Stock, Shares, Outstanding | 10,496,669 | 10,245,277 |
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 | 35 |
Preferred Stock, Shares Outstanding | 35 | 35 |
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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total revenue | $ 10,861 | $ 6,039 | $ 28,830 | $ 17,360 |
Total cost of revenue | 7,732 | 4,414 | 20,720 | 12,414 |
Gross profit | 3,129 | 1,625 | 8,110 | 4,946 |
Operating expenses: | ||||
Selling | 730 | 320 | 2,038 | 917 |
Research and development | 128 | 142 | 397 | 430 |
General and administrative | 2,521 | 1,195 | 6,332 | 3,510 |
Total operating expenses | 3,379 | 1,657 | 8,767 | 4,857 |
Operating loss) income | (250) | (32) | (657) | 89 |
Interest expense | (178) | (49) | (426) | (149) |
Other income | 2 | 1 | 5 | 5 |
Net loss before income taxes | (426) | (80) | (1,078) | (55) |
Income taxes (benefit) expense | (5) | 2 | (61) | |
Net income (loss) | (426) | (75) | (1,080) | 6 |
Comprehensive income (loss) | $ (426) | $ (75) | $ (1,080) | $ 6 |
Basic net income (loss) per share | $ (0.04) | $ (0.01) | $ (0.10) | $ 0 |
Diluted net income (loss) per share | $ (0.04) | $ (0.01) | $ (0.10) | $ 0 |
Weighted common shares outstanding: | ||||
Basic (in shares) | 10,493 | 8,273 | 10,343 | 8,274 |
Diluted (in shares) | 10,493 | 8,273 | 10,343 | 8,652 |
Service [Member] | ||||
Total revenue | $ 9,689 | $ 4,866 | $ 25,555 | $ 14,421 |
Total cost of revenue | 7,004 | 3,684 | 18,552 | 10,619 |
Product [Member] | ||||
Total revenue | 1,172 | 1,173 | 3,275 | 2,939 |
Total cost of revenue | $ 728 | $ 730 | $ 2,168 | $ 1,795 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Shares [Member] | Common Shares [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Total |
Balance at Sep. 30, 2017 | $ 1,035 | $ 2,023 | $ 21,446 | $ (16,037) | $ 8,467 |
Balance (in shares) at Sep. 30, 2017 | 1,035 | 8,243,896 | |||
Comprehensive income (loss): | |||||
Net (loss) income | 26 | 26 | |||
Stock based compensation expense | 34 | 34 | |||
Stock option exercises | 1 | 1 | |||
Stock option exercises (in shares) | 305 | ||||
Balance at Dec. 31, 2017 | $ 1,035 | $ 2,023 | 21,481 | (16,011) | 8,528 |
Balance (in shares) at Dec. 31, 2017 | 1,035 | 8,244,201 | |||
Comprehensive income (loss): | |||||
Net (loss) income | 55 | 55 | |||
Stock based compensation expense | 35 | 35 | |||
Stock option exercises (in shares) | 1,000 | ||||
Balance at Mar. 31, 2018 | $ 1,035 | $ 2,023 | 21,517 | (15,956) | 8,618 |
Balance (in shares) at Mar. 31, 2018 | 1,035 | 8,245,201 | |||
Comprehensive income (loss): | |||||
Net (loss) income | (75) | (75) | |||
Conversion of preferred shares to common shares | $ (1,000) | $ 125 | 875 | ||
Conversion of preferred shares to common shares (in shares) | (1,000) | 500,000 | |||
Stock based compensation expense | 33 | 33 | |||
Stock option exercises (in shares) | 76 | ||||
Balance at Jun. 30, 2018 | $ 35 | $ 2,148 | 22,424 | (16,031) | 8,576 |
Balance (in shares) at Jun. 30, 2018 | 35 | 8,745,277 | |||
Balance at Sep. 30, 2018 | $ 35 | $ 2,523 | 24,557 | (16,231) | 10,884 |
Balance (in shares) at Sep. 30, 2018 | 35 | 10,245,277 | |||
Adoption of accounting standard | (76) | (76) | |||
Comprehensive income (loss): | |||||
Net (loss) income | (85) | (85) | |||
Stock based compensation expense | 25 | 25 | |||
Balance at Dec. 31, 2018 | $ 35 | $ 2,523 | 24,582 | (16,392) | 10,748 |
Balance (in shares) at Dec. 31, 2018 | 35 | 10,245,277 | |||
Balance at Sep. 30, 2018 | $ 35 | $ 2,523 | 24,557 | (16,231) | 10,884 |
Balance (in shares) at Sep. 30, 2018 | 35 | 10,245,277 | |||
Adoption of accounting standard | (76) | ||||
Balance at Jun. 30, 2019 | $ 35 | $ 2,586 | 25,100 | (17,387) | 10,334 |
Balance (in shares) at Jun. 30, 2019 | 35 | 10,496,669 | |||
Balance at Dec. 31, 2018 | $ 35 | $ 2,523 | 24,582 | (16,392) | 10,748 |
Balance (in shares) at Dec. 31, 2018 | 35 | 10,245,277 | |||
Comprehensive income (loss): | |||||
Net (loss) income | (569) | (569) | |||
Stock based compensation expense | $ 11 | 99 | 110 | ||
Stock based compensation (in shares) | 44,615 | ||||
Stock option exercises | 1 | 1 | |||
Stock option exercises (in shares) | 639 | ||||
Balance at Mar. 31, 2019 | $ 35 | $ 2,534 | 24,682 | (16,961) | 10,290 |
Balance (in shares) at Mar. 31, 2019 | 35 | 10,290,531 | |||
Comprehensive income (loss): | |||||
Net (loss) income | (426) | (426) | |||
Stock based compensation expense | 71 | 71 | |||
Stock based compensation (in shares) | 6,138 | ||||
Stock option exercises | $ 2 | 3 | 5 | ||
Smithers Avanza Acquisition | $ 50 | 344 | 394 | ||
Smithers Avanza Acquisition (In shares) | 200,000 | ||||
Balance at Jun. 30, 2019 | $ 35 | $ 2,586 | $ 25,100 | $ (17,387) | $ 10,334 |
Balance (in shares) at Jun. 30, 2019 | 35 | 10,496,669 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net (loss) income | $ (1,080) | $ 6 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities net of effects of business acquisition: | ||
Depreciation and amortization | 2,037 | 1,160 |
Stock based compensation | 196 | 102 |
Provision for doubtful accounts | (166) | (6) |
Gain on disposal of property and equipment | (3) | (1) |
Unrealized foreign currency gains | (147) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,477) | (523) |
Inventories | 63 | (51) |
Income tax accruals | 30 | (92) |
Prepaid expenses and other assets | (181) | 311 |
Accounts payable | 664 | 35 |
Accrued expenses | 719 | (137) |
Customer advances | 912 | 1,406 |
Net cash provided by operating activities | 1,567 | 2,210 |
Investing activities: | ||
Cash paid in acquisition | (1,271) | |
Capital expenditures | (4,530) | (926) |
Proceeds from sale of equipment | 2 | |
Net cash used by investing activities | (5,801) | (924) |
Financing activities: | ||
Payments of long-term debt | (1,089) | (167) |
Payments of debt issuance costs | (92) | |
Payments on revolving line of credit | (19,493) | (7,545) |
Borrowings on revolving line of credit | 20,065 | 7,545 |
Borrowing on construction loan | 2,012 | |
Borrowing on long-term loan | 2,180 | |
Borrowing on capex line of credit | 460 | |
Proceeds from exercise of stock options | 6 | 1 |
Payments on capital lease obligations | (82) | (96) |
Net cash provided by (used in) financing activities | 3,967 | (262) |
Net (decrease) increase in cash and cash equivalents | (267) | 1,024 |
Cash and cash equivalents at beginning of period | 773 | 434 |
Cash and cash equivalents at end of period | 506 | 1,458 |
Supplemental disclosure of non-cash financing activities: | ||
Cash paid for interest | 368 | 139 |
Conversion of preferred shares to common shares | $ 1,000 | |
Smithers Avanza Toxicology Services LLC acquisition: | ||
Assets acquired | 3,384 | |
Liabilities assumed | (1,719) | |
Common shares issued | (394) | |
Cash paid | $ 1,271 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2019 | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | BIOANALYTICAL SYSTEMS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts in thousands except per share data or as otherwise indicated) (Unaudited) 1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Bioanalytical Systems, Inc. and its subsidiaries (“We,” “Our,” “Us,” the “Company” or “BASi”) provide contract research services to pharmaceutical and agrochemical companies, biomedical research organizations and government sponsored research centers. The Company integrates innovative laboratory services into its consultative practice to support clients’ drug discovery and development objectives for improved decision-making in toxicology, metabolism and disposition and regulated bioanalysis. Our manufacture of scientific instruments and related software for life sciences research is another component of creating innovative solutions for clients. 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, 2018. Certain amounts in the fiscal 2018 consolidated financial statements have been reclassified to conform to the fiscal 2019 presentation without affecting previously reported net income (loss) or stockholders’ equity. In the opinion of management, the condensed consolidated financial statements for the three and nine months ended June 30, 2019 and 2018 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, 2019. The results of operations for the three and nine months ended June 30, 2019 may not be indicative of the results for the year ending September 30, 2019. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2019 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 2. STOCK-BASED COMPENSATION The Company’s 2008 Stock Option Plan (“the Plan”) was 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, 2018. 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 the Company currently grants equity awards 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 plus the remaining shares from the 2008 Stock Option Plan. All options granted under the Plan and the Equity Plan had an exercise price equal to the fair 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, 2019 was $71 and $196, respectively. Stock based compensation expense for the three and nine months ended June 30, 2018 was $33 and $102, respectively. The additional expense in the nine months ending June 30, 2019 was due to the grants issued to our new Chief Executive Officer in January 2019, option grants to all employees that were issued as of February 6, 2019 as well as option grants for employees related to the Smithers Avanza acquisition, as described in Note 9. A summary of our stock option activity for the nine months ended June 30, 2019 is as follows (in thousands except for share prices): Weighted- Weighted- Average Average Options Exercise Grant Date (shares) Price Fair Value Outstanding - September 30, 2018 301 $ 1.73 $ 1.38 Exercised (7) $ 1.13 $ 0.94 Granted 483 $ 1.50 $ 1.10 Forfeited (4) $ 1.75 $ 1.39 Outstanding - June 30, 2019 773 $ 1.59 $ 1.21 The weighted-average assumptions used to compute the fair value of the options granted in the nine months ended June 30, 2019 were as follows: Risk-free interest rate 2.51 % Dividend yield 0.00 % Volatility of the expected market price of the Company's common shares 71.1%-72.5 % Expected life of the options (years) 8.0 As of June 30, 2019, our total unrecognized compensation cost related to non-vested stock options was $540 and is expected to be recognized over a weighted-average service period of 1.4 years. During the nine months ended June 30, 2019, we granted a total of 45 shares, of which 10 shares are restricted, to our CEO under the terms of his employment agreement. A summary of our restricted share activity for the nine months ended June 30, 2019 is as follows: Restricted Shares Outstanding – September 30, 2018 — Granted 45 Unrestricted at Grant (35) Forfeited — Outstanding - June 30, 2019 10 As of June 30, 2019, our total unrecognized compensation cost related to non-vested restricted stock was $9 and is expected to be recognized over a weighted-average service period of 1.55 years. The total fair value of the unrestricted shares granted during the three and nine months ended June 30, 2019 was $44. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 9 Months Ended |
Jun. 30, 2019 | |
INCOME (LOSS) PER SHARE | |
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 773 options and 17 common shares issuable upon conversion of preferred shares were not considered in computing diluted income (loss) per share for the three and nine months ended June 30, 2019 because they were anti-dilutive. The following table reconciles our computation of basic income per share to diluted income per share: Three Months Ended Nine Months Ended June 30, June 30, 2019 2018 2019 2018 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ (426) $ (75) $ (1,080) $ 6 Weighted average common shares outstanding 10,493 8,273 10,343 8,274 Basic net income (loss) per share $ (0.04) $ (0.01) $ (0.10) $ 0.00 Diluted net income per share: Diluted net income (loss) applicable to common shareholders $ (426) $ (75) $ (1,080) $ 6 Weighted average common shares outstanding 10,493 8,273 10,343 8,274 Plus: Incremental shares from assumed conversions: Series A preferred shares — — — 351 Dilutive stock options/shares — — — 27 Diluted weighted average common shares outstanding 10,493 8,273 10,343 8,652 Diluted net income (loss) per share $ (0.04) $ (0.01) $ (0.10) $ 0.00 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Jun. 30, 2019 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories consisted of the following: June 30, September 30, 2019 2018 Raw materials $ 789 $ 939 Work in progress 142 89 Finished goods 400 342 $ 1,331 $ 1,370 Obsolescence reserve (212) (188) $ 1,119 $ 1,182 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2019 | |
SEGMENT INFORMATION | |
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 and other clients. 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, 2018. Three Months Ended Nine Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue: Service $ 9,689 $ 4,866 $ 25,555 $ 14,421 Product 1,172 1,173 3,275 2,939 $ 10,861 $ 6,039 $ 28,830 $ 17,360 Operating Income (Loss) Service $ 1,385 $ 582 $ 2,899 $ 2,280 Product 23 125 (27) 210 Corporate (1,659) (739) (3,529) (2,401) $ (250) $ (32) $ (657) $ 89 Interest expense (178) (49) (426) (149) Other income 2 1 5 5 Loss before income taxes $ (426) $ (80) $ (1,078) $ (55) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2019 | |
INCOME TAXES | |
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 carryforwards. 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 allowance based on a determination of the expected realization of tax assets. We recognize the tax benefit from an uncertain tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. We measure the amount of the accrual for which an exposure exists as the largest amount of benefit determined on a cumulative probability basis that we believe is more likely than not to be realized upon settlement of the position. At June 30, 2019 and September 30, 2018, we had no liability 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 2013. |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2019 | |
DEBT | |
DEBT | 7. DEBT Credit Facility On June 23, 2017, we entered into a Credit Agreement with First Internet Bank of Indiana (“FIB”), which Credit Agreement as of June 30, 2019 had been amended on July 2, 2018, September 6, 2018, September 28, 2018 and May 1, 2019 (as amended, the “Credit Agreement”). The Credit Agreement includes three term loans (the “Initial Term Loan”, “Subsequent Term Loan,” and "New Term Loan," respectively), a revolving line of credit (the “Revolving Facility”), a construction draw loan (the “Construction Draw Loan”), an equipment draw loan (the “Equipment Draw Loan”), and a capital expenditure line of credit (the "Capex Line"). The Initial Term Loan for $4,500 bears interest at a fixed rate of 3.99%, with monthly principal and interest payments of approximately $33. The Initial Term Loan matures in June 2022. The balance on the Initial Term Loan at June 30, 2019 was $4,048. We used the proceeds from the Initial Term Loan to satisfy our indebtedness with Huntington Bank and terminated the related interest rate swap. The July 2, 2018 amendment to the Credit Facility provided the Company with the Subsequent Term Loan in the amount of $5,500, the proceeds of which were used to fund a portion of the cash consideration for the acquisition of Seventh Wave Laboratories LLC. Amounts outstanding under the Subsequent Term Loan bear interest at a fixed per annum rate of 5.06%, with monthly principal and interest payments equal to $78. The Subsequent Term Loan matures July 2, 2023 and the balance on the Subsequent Term Loan at June 30, 2019 was $4,887. The Revolving Facility provides a line of credit for up to $3,500 which the Company may borrow from time to time, subject to the terms of the Credit Agreement, including as may be limited by the amount of the Company’s outstanding eligible receivables. The Revolving Credit Facility 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 Facility was $572 and $0 as of June 30, 2019 and September 30, 2018, respectively. We must pay accrued and unpaid interest on the outstanding balance under the Revolving Facility on a monthly basis. The September 28, 2018 amendment provided the Company with the Construction Draw Loan in a principal amount not to exceed $4,445 and the Equipment Draw Loan in a principal amount not to exceed $1,429. The Construction Draw Loan and Equipment Draw Loan each mature on March 28, 2025. As of June 30, 2019, there was a $2,012 balance on the Construction Draw Loan and a $499 balance on the Equipment Draw Loan. Subject to certain conditions precedent, a Construction Draw Loan and an Equipment Draw Loan each permit the Company to obtain advances aggregating up to the maximum principal amount available for such loan through March 28, 2020. Amounts outstanding under these loans bear interest at a fixed per annum rate of 5.20%. The Construction Draw Loan and the Equipment Draw Loan each require monthly payments of accrued interest on amounts outstanding through March 28, 2020, and thereafter monthly payments of principal and interest on amounts then outstanding through maturity. In connection with the Smithers Avanza Acquisition, on May 1, 2019, as described in Note 9, the Company and FIB entered into a fourth amendment (the "Fourth Amendment") to the Credit Agreement to (i) extend the term of the Company's Revolving Facility to June 30, 2020, (ii) provide the Company with an additional term loan (the "New Term Loan") in the amount of $1,271, the proceeds of which were used to fund the cash consideration for the Smithers Avanza Acquisition, and (iii) provide for an additional line of credit in the principal amount of $1,100 (the "Capex Line"), which the Company may borrow from time to time, subject to the terms of the Credit Agreement. The New Term Loan and the Capex Line mature November 1, 2025 and June 30, 2020, respectively. As of June 30, 2019, the balances on the New Term Loan and Capex Line were $1,271 and $460, respectively. Amounts outstanding under the New Term Loan bear interest at a fixed per annum rate of 4.63%, while interest accrues on the principal balance of the Capex Line at a floating per annum rate equal to the sum of the Prime Rate plus Fifty Basis Points (0.5)%, which rate shall change concurrently with the Prime Rate. Commencing June 1, 2019, the New Term Loan requires monthly interest only payments until December 1, 2019, from which time payments of principal and interest in monthly installments of $20 become due, with all accrued but unpaid interest, cost and expenses due and payable at the maturity date. The Company is required to pay accrued but unpaid interest on the Capex Line on a monthly basis commencing on June 1, 2019, until June 30, 2020, at which time the entire balance of the Capex Line, together with accrued but unpaid interest, costs and expenses, shall be due and payable in full. a unsecured promissory note in the initial principal amount of $810 made by the Smithers Avanza Purchaser and guaranteed by the Company. The promissory note bears interest at 6.5%. Following its amendment, the Company's obligations under the Credit Agreement are guaranteed by BAS Evansville, Inc. ("BASEV"), Seventh Wave Laboratories, LLC ("Seventh Wave"), as well as BASi Gaithersburg LLC (“BASi Gaithersburg”), each a wholly owned subsidiary of the Company. The Company's obligations under the Credit Agreement and BASEV's, Seventh Wave's and the BASi Gaithersburg’s obligations under their respective Guaranties are secured by first priority security interests in substantially all of the assets of the Company, BASEV, Seventh Wave and the BASi Gaithersburg respectively, as well as mortgages on the Company's and BASEV's facilities in West Lafayette, Indiana and Evansville, Indiana, respectively, and pledges of the Company's ownership interests in its subsidiaries. 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 for the period ended June 30, 2019 (with ratios ranging from 1.25 to 1.0 to 1.15 to 1.0 for the periods thereafter) and (ii) beginning with the quarter ended March 31, 2020, a cash flow coverage ratio whereby, the ratio of the Company’s total funded debt (as defined in the Credit Agreement) as of the last day of each fiscal quarter to its EBITDA (as defined in the Credit Agreement) for the 12 months ended on such date may not exceed 4.50 to 1.00 (5.0 to 1.0 for the period ended March 31, 2020). 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. The Company was in compliance with these covenants as of June 30, 2019. The Company has also agreed to obtain a life insurance policy in an amount not less than $2,000 for its President and Chief Executive Officer and to provide FIB an assignment of such life insurance policy as collateral. Additionally as part of the Smithers Avanza Acquisition, we have an unsecured promissory note payable to the Smithers Avanza Seller in the initial principal amount of $810 made by BASi Gaithersburg and guaranteed by the Company. The promissory note bears interest at 6.5%. Long term debt is detailed in the table below. As of: June 30, 2019 September 30, 2018 Initial term loan $ 4,048 $ 4,222 Subsequent term loan 4,887 5,392 New term loan 1,271 — Construction and Equipment loans 2,511 — Seller Note 810 — 13,527 9,614 Less: Current portion (1,050) (909) Less: Debt issue costs not amortized (218) (159) Total Long-term debt $ 12,259 $ 8,546 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Jun. 30, 2019 | |
ACCRUED EXPENSES | |
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 had a $1,117 reserve for lease related costs and for legal and professional fees and other costs to remove improvements previously made to the facility. During the first nine months of fiscal 2019, the Company released portions of the reserve for lease related liabilities that were no longer owed due to the statute of limitations. For the three and nine months ended June 30, 2019, general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) were reduced by $78 and $624, respectively for the liability reduction. At June 30, 2019 and September 30, 2018, respectively, we had $425 and $1,117 reserved for the remaining liability. The reserve is classified as a current liability on the Condensed Consolidated Balance Sheets. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Jun. 30, 2019 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 9. BUSINESS COMBINATIONS Seventh Wave Laboratories LLC acquisition Overview On July 2, 2018, the Company, through its wholly-owned subsidiary Seventh Wave Laboratories, LLC (f/k/a Cardinal Laboratories LLC) (the “Seventh Wave Purchaser”), acquired (the “Seventh Wave Acquisition”) substantially all of the assets of SW Chrysalis, LLC (f/k/a Seventh Wave Laboratories LLC) (the “Seventh Wave 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 Seventh Wave Purchaser, the Company, the Seventh Wave Seller and certain members of the Seventh Wave Seller. The total consideration for the Seventh Wave Acquisition was approximately $9,234, which consisted of $6,759 in cash, including an indemnity escrow of $750, and 1,500,000 of the Company’s common shares valued at $2,475, using the closing price of the Company’s common shares on June 29, 2018. The Seventh Wave Purchaser is operated as a wholly-owned subsidiary of the Company. The Company funded the cash portion of the purchase price for the Seventh Wave Acquisition with cash on hand and the net proceeds from the refinancing of its credit arrangements with FIB, as described in Note 7. Smithers Avanza Toxicology Services LLC acquisition Overview On May 1, 2019, the Company, through its wholly-owned subsidiary BASi Gaithersburg LLC (f/k/a Oriole Toxicology Services LLC) (the " Smithers Avanza Purchaser"), acquired (the "Smithers Avanza Acquisition") from Smithers Avanza Toxicology Services LLC (the "Smithers Avanza Seller"), a consulting-based contract research laboratory located in Gaithersburg, Maryland, substantially all of the assets used by the Smithers Avanza Seller in connection with the performance of in-vivo mammalian toxicology CRO services for pharmaceuticals (small molecules and biologics), vaccines, agro and industrial chemicals, under the terms and conditions of an Asset Purchase Agreement, dated May 1, 2019, among the Smithers Avanza Purchaser, the Company, the Smithers Avanza Seller and the member of the Smithers Avanza Seller (the "Smithers Avanza Purchase Agreement"). The total consideration for the Smithers Avanza Acquisition was approximately $2,475, which consisted of $1,271 in cash, subject to certain adjustments and an indemnity escrow of $125, 200 of the Company's common shares valued at $394 using the closing price of the Company's common shares on April 30, 2019 and an unsecured promissory note in the initial principal amount of $810 made by the Smithers Avanza Purchaser and guaranteed by the Company. The promissory note bears interest at 6.5%. The Smithers Avanza Purchaser is operated as a wholly-owned subsidiary of the Company. The Company funded the cash portion of the purchase price for the Smithers Avanza Acquisition with cash on hand and the net proceeds from the refinancing of its credit arrangements with FIB, as described in Note 7. The Smithers Avanza Purchase Agreement contains customary representations, warranties, covenants (including non-competition requirements applicable to the selling parties for a 5-year period) and indemnification provisions. As contemplated by the Smithers Avanza Purchase Agreement, on May 1, 2019 the Smithers Avanza Purchaser assumed amended lease arrangements for certain premises in Gaithersburg, Maryland (the "Lease Arrangements"). Under the Lease Arrangements, the Smithers Avanza Purchaser agreed to lease the premises for a term of 5 years and 8 months, with two 5 year extensions at the Smithers Avanza Purchaser's option. Annual minimum rental payments under the initial term of the Lease Arrangements range from $400 to $600, provided that the Lease Arrangements provide the Smithers Avanza Purchaser with the option to purchase the premises. The Lease Arrangements include customary rights upon a default by landlord or tenant. Accounting for the Transaction The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business Combinations. The guidance requires consideration given, including contingent consideration, assets acquired and liabilities assumed to be valued at their fair market values at the acquisition date. The guidance further provides that: (1) in-process research and development will be recorded at fair value as an indefinite-lived intangible asset; (2) acquisition costs will generally be expensed as incurred, (3) restructuring costs associated with a business combination will generally be expensed subsequent to the acquisition date; and (4) changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. ASC 805 requires that any excess of purchase price over fair value of assets acquired, including identifiable intangibles and liabilities assumed, be recognized as goodwill. Preliminary results are included in the Company’s results from the acquisition date of May 1, 2019. The Company’s preliminary allocation of the $2,475 purchase price to Smithers Avanza’s tangible and identifiable intangible assets acquired and liabilities assumed, based on their estimated fair values as of May 1, 2019, is included in the table below. Goodwill, which is derived from the enhanced scientific expertise, expanded customer base and our ability to provide broader service solutions through a comprehensive portfolio, is recorded based on the amount by which the purchase price exceeds the fair value of the net assets acquired and is deductible for tax purposes. The preliminary purchase price allocation as of June 30, 2019 is as follows: Allocation as of June 30, 2019 Assets acquired and liabilities assumed: Receivables $ 1,128 Property and equipment 1,564 Prepaid expenses 147 Intangible assets 545 Accrued expenses (305) Customer advances (604) $ 2,475 The preliminary allocation of the purchase price is based on valuations performed to determine the fair value of such assets and liabilities as of the acquisition date. Intangible assets, including goodwill, from this transaction ar allocated to the Company’s Services segment. The Company incurred transaction costs of $264 for the nine months ended June 30, 2019 related to the Smithers Avanza Acquisition. These costs were expensed as incurred and were primarily recorded as selling, general, and administrative expenses on the Company’s consolidated statements of operations and comprehensive income (loss). Smithers Avanza recorded revenues of $1,421 and net income of $44 for the period beginning from the acquisition date of May 1, 2019 and ending on June 30, 2019. Pro Forma Results The Company’s unaudited pro forma results of operations for the three and nine months ended June 30, 2018 assuming the Seventh Wave Acquisition and the Smithers Avanza Acquisition had occurred as of October 1, 2017 are presented for comparative purposes below. These amounts are based on available information of the results of operations of the Seventh Wave Seller's operations and the Smithers Avanza Seller’s operations prior to the acquisition date and are not necessarily indicative of what the results of operations would have been had the Seventh Wave Acquisition and the Smithers Avanza Acquisition been completed on October 1, 2017. The unaudited pro forma information is as follows: Three Months Nine Months Ended Ended June 30, 2018 June 30, 2018 Total revenues $ 10,832 $ 32,748 Net loss (652) (1,837) Pro forma basic net income (loss) per share $ (0.07) $ (0.18) Pro forma diluted net income (loss) per share $ (0.07) $ (0.18) |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Jun. 30, 2019 | |
NEW ACCOUNTING PRONOUNCEMENTS | |
NEW ACCOUNTING PRONOUNCEMENTS | 10. NEW ACCOUNTING PRONOUNCEMENTS On October 1, 2018, the Company adopted Accounting Standard Codification, or ASC Topic 606, “ Revenue from Contracts with Customers ,” (Topic 606), using the modified retrospective method for all contracts that were not completed as of October 1, 2018. Comparative prior period information continues to be reported under the accounting standards in effect for the period presented. Topic 606 superseded 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 cumulative effect of initially applying the new revenue standard was $(76) and has been recorded as an adjustment to the opening balance of retained earnings. The cumulative adjustment relates primarily to the recognition of revenue for free archive storage offered to customers. Gross sales and deferred revenue of $(76), respectively, were recorded as part of the cumulative effect adjustment. The comparative information has not been restated and it is reported in accordance with accounting standard Topic 605, which was in effect for those periods. On October 1, 2018 the Company adopted 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. The adoption of this guidance had no material impact on our consolidated financial statements. In February 2016, the FASB issued updated guidance on leases which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. The amendments are to be applied prospectively to business combinations that occur after the effective date. The Company is progressing with its preparation for the adoption and implementation of this new accounting standard and related changes in internal controls and will adopt the standard in the first quarter of fiscal 2020. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Jun. 30, 2019 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 11. REVENUE RECOGNITION In accordance with ASC 606, the Company disaggregates its revenue from customers into two revenue streams, service revenue and product revenue. At contract inception the Company assesses the services promised in the contract with the customers to identify performance obligations in the arrangements. Service revenue The Company enters into contracts with customers to provide drug discovery and development services with payments based on mainly fixed-fee arrangements. The Company also offers free archive storage services on certain contracts. Customers can also enter into separate archive storage contracts after the expiration of the free storage period. The Company’s drug discovery and development services contracts that include a free storage period are considered a single performance obligation because the company provides a highly integrated service. The inclusion of free storage fee in the measurement of progress under the discovery and development service contracts creates a timing difference between the amounts the company is entitled to receive in reimbursement of cost incurred and amount of revenue recognized on such costs, which is recognized as deferred revenue and classified as customer advances on the condensed consolidated balance sheet. The Company’s fixed fee arrangements may involve bioanalytical and pharmaceutical method development and validation, nonclinical research services and the analysis of bioanalytical and pharmaceutical samples. For bioanalytical and pharmaceutical method validation services and nonclinical research services, revenue is recognized over time using the input method based on the ratio of direct costs incurred to total estimated direct costs. For contracts that involve method development or the analysis of bioanalytical and pharmaceutical samples, revenue is recognized over time when samples are analyzed or when services are performed. The Company generally bills for services on a milestone basis. These contracts represent a single performance obligation and due to the Company’s right to payment for work performed, revenue is recognized over time. Research services contract fees received upon acceptance are deferred until earned, and classified within customer advances on the condensed consolidated balance sheet. Unbilled revenues represent revenues earned under contracts in advance of billings. Archive services provide climate controlled archiving for client’s data and samples. The archive revenue is recognized over time, generally when the service is provided. These arrangements typically include only one performance obligation. Amounts related to future archiving or prepaid archiving contracts for customers where archiving fees are billed in advance are accounted for as deferred revenue and recognized ratably over the period the applicable archive service is performed. Product revenue The Company’s products can be sold to multiple customers and have alternative use. Both the transaction sales price and shipping terms are agreed upon in the customer order. For these products, all revenue is recognized at a point in time, generally when title of the product and risk of loss is transferred to the customer based upon shipping terms. These arrangements typically include only one performance obligation. Certain products have maintenance agreements available for customers to purchase. These are typically billed in advance and are accounted for as deferred revenue and recognized ratably over the applicable maintenance period. The impact of adoption of ASC 606 to the Company's condensed consolidated financial statements for the three months ended June 30, 2019 is as follows: Statements of Operations and Comprehensive Income (Loss) Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Service revenue $ 9,689 $ (31) $ 9,720 Product revenue 1,172 1,172 Total revenue 10,861 (31) 10,892 Total cost of revenue 7,732 7,732 Gross profit 3,129 (31) 3,160 Operating loss (250) (31) (219) Net loss before income taxes (426) (31) (395) Income taxes expense Net loss $ (426) $ (31) $ (395) Diluted net loss per share $ (0.04) $ $ (0.04) Balance Sheet Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Current Liabilities: Customer advances $ 6,516 $ (101) $ 6,415 Shareholder’s equity: Accumulated deficit $ (17,387) $ 101 $ (17,286) The impact of adoption of ASC 606 to the Company's condensed consolidated financial statements for the nine months ended June 30, 2019 is as follows: Statements of Operations and Comprehensive Income (Loss) Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Service revenue $ 25,555 $ (25) 25,580 Product revenue 3,275 3,275 Total revenue 28,830 (25) 28,855 Total cost of revenue 20,720 20,720 Gross profit 8,110 (25) 8,135 Operating loss (657) (25) (632) Net loss before income taxes (1,078) (25) (1,053) Income taxes benefit 2 2 Net loss $ (1,080) $ (25) $ (1,055) Diluted net loss per share $ (0.10) $ $ (0.10) Balance Sheet Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Current Liabilities: Customer advances $ 6,516 $ (101) $ 6,415 Shareholder's equity: Accumulated deficit $ (17,387) $ 101 $ (17,286) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
STOCK-BASED COMPENSATION | |
Schedule of stock option activity | A summary of our stock option activity for the nine months ended June 30, 2019 is as follows (in thousands except for share prices): Weighted- Weighted- Average Average Options Exercise Grant Date (shares) Price Fair Value Outstanding - September 30, 2018 301 $ 1.73 $ 1.38 Exercised (7) $ 1.13 $ 0.94 Granted 483 $ 1.50 $ 1.10 Forfeited (4) $ 1.75 $ 1.39 Outstanding - June 30, 2019 773 $ 1.59 $ 1.21 |
Schedule of weighted-average assumptions used to compute the fair value of the options granted | Weighted- Weighted- Average Average Options Exercise Grant Date (shares) Price Fair Value Outstanding - September 30, 2018 301 $ 1.73 $ 1.38 Exercised (7) $ 1.13 $ 0.94 Granted 483 $ 1.50 $ 1.10 Forfeited (4) $ 1.75 $ 1.39 Outstanding - June 30, 2019 773 $ 1.59 $ 1.21 The weighted-average assumptions used to compute the fair value of the options granted in the nine months ended June 30, 2019 were as follows: Risk-free interest rate 2.51 % Dividend yield 0.00 % Volatility of the expected market price of the Company's common shares 71.1%-72.5 % Expected life of the options (years) 8.0 |
Schedule of restricted share activity | During the nine months ended June 30, 2019, we granted a total of 45 shares, of which 10 shares are restricted, to our CEO under the terms of his employment agreement. A summary of our restricted share activity for the nine months ended June 30, 2019 is as follows: Restricted Shares Outstanding – September 30, 2018 — Granted 45 Unrestricted at Grant (35) Forfeited — Outstanding - June 30, 2019 10 |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
INCOME (LOSS) PER SHARE | |
Schedule of computation of basic income per share to diluted income per share | The following table reconciles our computation of basic income per share to diluted income per share: Three Months Ended Nine Months Ended June 30, June 30, 2019 2018 2019 2018 Basic net income (loss) per share: Net income (loss) applicable to common shareholders $ (426) $ (75) $ (1,080) $ 6 Weighted average common shares outstanding 10,493 8,273 10,343 8,274 Basic net income (loss) per share $ (0.04) $ (0.01) $ (0.10) $ 0.00 Diluted net income per share: Diluted net income (loss) applicable to common shareholders $ (426) $ (75) $ (1,080) $ 6 Weighted average common shares outstanding 10,493 8,273 10,343 8,274 Plus: Incremental shares from assumed conversions: Series A preferred shares — — — 351 Dilutive stock options/shares — — — 27 Diluted weighted average common shares outstanding 10,493 8,273 10,343 8,652 Diluted net income (loss) per share $ (0.04) $ (0.01) $ (0.10) $ 0.00 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
INVENTORIES | |
Schedule of inventory | Inventories consisted of the following: June 30, September 30, 2019 2018 Raw materials $ 789 $ 939 Work in progress 142 89 Finished goods 400 342 $ 1,331 $ 1,370 Obsolescence reserve (212) (188) $ 1,119 $ 1,182 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
SEGMENT INFORMATION | |
Schedule of operating segments | Three Months Ended Nine Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue: Service $ 9,689 $ 4,866 $ 25,555 $ 14,421 Product 1,172 1,173 3,275 2,939 $ 10,861 $ 6,039 $ 28,830 $ 17,360 Operating Income (Loss) Service $ 1,385 $ 582 $ 2,899 $ 2,280 Product 23 125 (27) 210 Corporate (1,659) (739) (3,529) (2,401) $ (250) $ (32) $ (657) $ 89 Interest expense (178) (49) (426) (149) Other income 2 1 5 5 Loss before income taxes $ (426) $ (80) $ (1,078) $ (55) |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
DEBT | |
Schedule of Long-term debt | Long term debt is detailed in the table below. As of: June 30, 2019 September 30, 2018 Initial term loan $ 4,048 $ 4,222 Subsequent term loan 4,887 5,392 New term loan 1,271 — Construction and Equipment loans 2,511 — Seller Note 810 — 13,527 9,614 Less: Current portion (1,050) (909) Less: Debt issue costs not amortized (218) (159) Total Long-term debt $ 12,259 $ 8,546 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
BUSINESS COMBINATIONS | |
Schedule of Preliminary purchase price allocation | The preliminary purchase price allocation as of June 30, 2019 is as follows: Allocation as of June 30, 2019 Assets acquired and liabilities assumed: Receivables $ 1,128 Property and equipment 1,564 Prepaid expenses 147 Intangible assets 545 Accrued expenses (305) Customer advances (604) $ 2,475 |
Schedule of Unaudited pro forma information | Three Months Nine Months Ended Ended June 30, 2018 June 30, 2018 Total revenues $ 10,832 $ 32,748 Net loss (652) (1,837) Pro forma basic net income (loss) per share $ (0.07) $ (0.18) Pro forma diluted net income (loss) per share $ (0.07) $ (0.18) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
REVENUE RECOGNITION | |
Schedule of The impact of adoption of ASC 606 to the Company's condensed consolidated financial statements | The impact of adoption of ASC 606 to the Company's condensed consolidated financial statements for the three months ended June 30, 2019 is as follows: Statements of Operations and Comprehensive Income (Loss) Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Service revenue $ 9,689 $ (31) $ 9,720 Product revenue 1,172 1,172 Total revenue 10,861 (31) 10,892 Total cost of revenue 7,732 7,732 Gross profit 3,129 (31) 3,160 Operating loss (250) (31) (219) Net loss before income taxes (426) (31) (395) Income taxes expense Net loss $ (426) $ (31) $ (395) Diluted net loss per share $ (0.04) $ $ (0.04) Balance Sheet Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Current Liabilities: Customer advances $ 6,516 $ (101) $ 6,415 Shareholder’s equity: Accumulated deficit $ (17,387) $ 101 $ (17,286) The impact of adoption of ASC 606 to the Company's condensed consolidated financial statements for the nine months ended June 30, 2019 is as follows: Statements of Operations and Comprehensive Income (Loss) Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Service revenue $ 25,555 $ (25) 25,580 Product revenue 3,275 3,275 Total revenue 28,830 (25) 28,855 Total cost of revenue 20,720 20,720 Gross profit 8,110 (25) 8,135 Operating loss (657) (25) (632) Net loss before income taxes (1,078) (25) (1,053) Income taxes benefit 2 2 Net loss $ (1,080) $ (25) $ (1,055) Diluted net loss per share $ (0.10) $ $ (0.10) Balance Sheet Effect of Amount Without As Change Adoption of Reported Higher/(Lower) ASC 606 Current Liabilities: Customer advances $ 6,516 $ (101) $ 6,415 Shareholder's equity: Accumulated deficit $ (17,387) $ 101 $ (17,286) |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock option activity (Details) - Employee Stock Option [Member] | 9 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Options (shares) Outstanding | shares | 301 |
Options (shares) Exercised | shares | (7) |
Options (shares) Granted | shares | 483 |
Options (shares) Forfeited | shares | (4) |
Options (shares) Outstanding | shares | 773 |
Weighted-Average Exercise Price Outstanding | $ 1.73 |
Weighted-Average Exercise Price Exercised | 1.13 |
Weighted-Average Exercise Price Granted | 1.50 |
Weighted-Average Exercise Price Forfeited | 1.75 |
Weighted-Average Exercise Price Outstanding | 1.59 |
Weighted-Average Grant Date Fair Value Outstanding | 1.38 |
Weighted-Average Grant Date Fair Value Exercised | 0.94 |
Weighted-Average Grant Date Fair Value Granted | 1.10 |
Weighted-Average Grant Date Fair Value Forfeited | 1.39 |
Weighted-Average Grant Date Fair Value Outstanding | $ 1.21 |
STOCK-BASED COMPENSATION - Weig
STOCK-BASED COMPENSATION - Weighted-average fair value (Details) | 9 Months Ended |
Jun. 30, 2019 | |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility of the expected market price of the Company's common shares | 72.50% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility of the expected market price of the Company's common shares | 71.10% |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.51% |
Dividend yield | 0.00% |
Expected life of the options (years) | 8 years |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted share activity (Details) - Restricted Stock [Member] | 9 Months Ended |
Jun. 30, 2019shares | |
Outstanding - September 30, 2018 | 0 |
Granted | 45 |
Unrestricted at Grant | (35) |
Forfeited | 0 |
Outstanding - June 30, 2019 | 10 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 44 | 44 | ||
CEO [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 45 | |||
Two Thousand Eighteen 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, Non-vested Awards, Compensation Not yet Recognized, Stock Options | $ 540 | $ 540 | ||
Employee Service Share-based Compensation, Non-vested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | |||
Allocated Share-based Compensation Expense | 71 | $ 33 | $ 196 | $ 102 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Non-vested Awards, Compensation Not yet Recognized, Stock Options | $ 9 | $ 9 | ||
Employee Service Share-based Compensation, Non-vested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months 18 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 45 | |||
Restricted Stock [Member] | CEO [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 10 |
INCOME (LOSS) PER SHARE (Detail
INCOME (LOSS) PER SHARE (Details) - shares | 3 Months Ended | 9 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17 | 17 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 773 | 773 |
INCOME (LOSS) PER SHARE - Compu
INCOME (LOSS) PER SHARE - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic net income (loss) per share: | ||||
Net income (loss) applicable to common shareholders | $ (426) | $ (75) | $ (1,080) | $ 6 |
Weighted average common shares outstanding | 10,493 | 8,273 | 10,343 | 8,274 |
Basic net income (loss) per share | $ (0.04) | $ (0.01) | $ (0.10) | $ 0 |
Diluted net income per share: | ||||
Diluted net income (loss) applicable to common shareholders | $ (426) | $ (75) | $ (1,080) | $ 6 |
Weighted average common shares outstanding | 10,493 | 8,273 | 10,343 | 8,274 |
Plus: Incremental shares from assumed conversions: | ||||
Series A preferred shares | 0 | 0 | 0 | 351 |
Dilutive stock options/shares | 0 | 0 | 0 | 27 |
Diluted weighted average common shares outstanding | 10,493 | 8,273 | 10,343 | 8,652 |
Diluted net income (loss) per share | $ (0.04) | $ (0.01) | $ (0.10) | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
INVENTORIES | ||
Raw materials | $ 789 | $ 939 |
Work in progress | 142 | 89 |
Finished goods | 400 | 342 |
Gross inventories | 1,331 | 1,370 |
Obsolescence reserve | (212) | (188) |
Inventories | $ 1,119 | $ 1,182 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 1,421 | $ 10,861 | $ 6,039 | $ 28,830 | $ 17,360 |
Operating Income (loss) | (250) | (32) | (657) | 89 | |
Interest expense | (178) | (49) | (426) | (149) | |
Other income | 2 | 1 | 5 | 5 | |
Loss before income taxes | (426) | (80) | (1,078) | (55) | |
Services Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 9,689 | 4,866 | 25,555 | 14,421 | |
Operating Income (loss) | 1,385 | 582 | 2,899 | 2,280 | |
Products Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,172 | 1,173 | 3,275 | 2,939 | |
Operating Income (loss) | 23 | 125 | (27) | 210 | |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income (loss) | $ (1,659) | $ (739) | $ (3,529) | $ (2,401) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
INCOME TAXES | ||
Liability for uncertain tax positions | $ 0 | $ 0 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 13,527 | $ 9,614 |
Less: Current portion | 1,050 | 909 |
Less: Debt issue costs not amortized | (218) | (159) |
Total Long-term debt | 12,259 | 8,546 |
Construction and Equipment loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 2,511 | 0 |
Credit Facility Term Loan One [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 4,048 | 4,222 |
Credit Facility Term Loan Two [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 4,887 | 5,392 |
New Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,271 | 0 |
Seller Note [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 810 | $ 0 |
DEBT - Additional Information (
DEBT - Additional Information (Details) $ in Thousands | Jul. 02, 2018USD ($) | Jun. 30, 2019USD ($) | May 01, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 28, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 13,527 | $ 9,614 | |||
Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis points deducted from prime rate | (0.50%) | ||||
Maximum [Member] | President and Chief Executive Officer [Member] | |||||
Debt Instrument [Line Items] | |||||
Life Insurance, Corporate or Bank Owned, Amount | $ 2,000 | ||||
Credit Arrangements [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum Debt Service Coverage Ratio One | 1.25 | ||||
Minimum Debt Service Coverage Ratio Two | 1.15 | ||||
EBITDA Ratio One | 4.50 | ||||
EBITDA Ratio Two | 5 | ||||
Credit Arrangements [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum Debt Service Coverage Ratio One | 1 | ||||
Minimum Debt Service Coverage Ratio Two | 1 | ||||
EBITDA Ratio One | 1 | ||||
EBITDA Ratio Two | 1 | ||||
First Internet Bank of Indiana [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Periodic Payment | $ 33 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | ||||
Debt Instrument, Face Amount | $ 4,500 | ||||
Long-term Debt, Gross | 4,048 | ||||
First Internet Bank of Indiana [Member] | Equipment Draw Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 499 | ||||
Line of Credit Facility, Additional Borrowing Capacity | $ 1,429 | ||||
First Internet Bank of Indiana [Member] | Construction Draw Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 2,012 | ||||
Line of Credit Facility, Additional Borrowing Capacity | $ 4,445 | ||||
First Internet Bank of Indiana [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Additional Borrowing Capacity | $ 3,500 | ||||
Basis points deducted from prime rate | 0.25% | ||||
Long-term Line of Credit | $ 572 | 0 | |||
Smithers Avanza Toxicology Services LLC Acquisition [Member] | Unsecured promissory note [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||||
Debt Instrument, Face Amount | $ 810 | ||||
Subsequent Term Loan [Member] | First Internet Bank of Indiana [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Periodic Payment | $ 78 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.06% | ||||
Debt Instrument, Face Amount | $ 5,500 | ||||
Long-term Debt | $ 4,887 | ||||
Current Credit Agreement [Member] | First Internet Bank of Indiana [Member] | Equipment Draw Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.20% | ||||
Current Credit Agreement [Member] | First Internet Bank of Indiana [Member] | Construction Draw Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.20% | ||||
New Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Periodic Payment | $ 20 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | ||||
Long-term Debt | $ 1,271 | $ 0 | |||
New Term Loan [Member] | Smithers Avanza Toxicology Services LLC Acquisition [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,271 | ||||
Capex Line [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 460 | ||||
Capex Line [Member] | Capital Expenditure Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Additional Borrowing Capacity | $ 1,100 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Current | $ 425 | $ 425 | $ 1,117 |
General and Administrative Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | 78 | 624 | |
Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserves | $ 1,117 | $ 1,117 |
BUSINESS COMBINATIONS - Prelimi
BUSINESS COMBINATIONS - Preliminary purchase price (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | May 01, 2019 |
Assets acquired and liabilities assumed: | ||
Receivables | $ 1,128 | |
Property and equipment | 1,564 | |
Prepaid expenses | 147 | |
Intangible assets | 545 | $ 2,475 |
Accrued expenses | (305) | |
Customer advances | (604) | |
Total | $ 2,475 |
BUSINESS COMBINATIONS - Unaudit
BUSINESS COMBINATIONS - Unaudited pro forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
BUSINESS COMBINATIONS | ||
Total revenues | $ 10,832 | $ 32,748 |
Net loss | $ (652) | $ (1,837) |
Pro forma basic net income (loss) per share | $ (0.07) | $ (0.18) |
Pro forma diluted net income (loss) per share | $ (0.07) | $ (0.18) |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) $ in Thousands | May 01, 2019USD ($)itemshares | Jul. 02, 2018USD ($)shares | May 01, 2019USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Sep. 30, 2018shares | Jun. 29, 2018USD ($) |
Common Stock, Shares, Issued | shares | 10,496,669 | 10,496,669 | 10,245,277 | ||||||
Business Acquisition, Transaction Costs | $ 264 | $ 264 | |||||||
Payments to Acquire Businesses, Gross | 1,271 | ||||||||
Revenues | $ 1,421 | 10,861 | $ 6,039 | 28,830 | $ 17,360 | ||||
Net (loss) income | 44 | (426) | $ (75) | (1,080) | $ 6 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,475 | $ 2,475 | $ 545 | $ 545 | |||||
Seventh Wave Laboratories LLC acquisition [Member] | |||||||||
Business Combination, Contingent Consideration, Asset | $ 9,234 | ||||||||
Business Combination, Consideration Transferred | 6,759 | ||||||||
Escrow Deposit Disbursements Related to Property Acquisition | $ 750 | ||||||||
Common Stock, Shares, Issued | shares | 1,500,000 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 2,475 | ||||||||
Smithers Avanza Toxicology Services LLC Acquisition [Member] | |||||||||
Business Combination, Consideration Transferred | 2,475 | ||||||||
Escrow Deposit Disbursements Related to Property Acquisition | $ 125 | ||||||||
Common Stock, Shares, Issued | shares | 200 | 200 | |||||||
Payments to Acquire Businesses, Gross | $ 1,271 | ||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 394 | ||||||||
Class of Warrant or Right, Covenants Period | 5 years | ||||||||
Smithers Avanza Toxicology Services LLC Acquisition [Member] | Promissory Note [Member] | |||||||||
Debt Instrument, Face Amount | $ 810 | $ 810 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.50% | 6.50% | |||||||
Lease Arrangements [Member] | Smithers Avanza Toxicology Services LLC Acquisition [Member] | |||||||||
Lessee, Operating Lease, Term of Contract | 5 years 8 months | 5 years 8 months | |||||||
Number of Lease Extension Terms | item | 2 | ||||||||
Lessee, Operating Lease, Renewal Term | 5 years | 5 years | |||||||
Lease Arrangements [Member] | Smithers Avanza Toxicology Services LLC Acquisition [Member] | Minimum [Member] | |||||||||
Operating Lease, Payments | $ 400 | ||||||||
Lease Arrangements [Member] | Smithers Avanza Toxicology Services LLC Acquisition [Member] | Maximum [Member] | |||||||||
Operating Lease, Payments | $ 600 |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2018 | Jun. 30, 2019 | |
NEW ACCOUNTING PRONOUNCEMENTS | ||
Cumulative Effect on Retained Earnings, Net of Tax | $ (76) | $ (76) |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total revenue | $ 1,421 | $ 10,861 | $ 6,039 | $ 28,830 | $ 17,360 |
Total cost of revenue | 7,732 | 4,414 | 20,720 | 12,414 | |
Gross profit | 3,129 | 1,625 | 8,110 | 4,946 | |
Operating income | (250) | (32) | (657) | 89 | |
Net loss before income taxes | (426) | (80) | (1,078) | (55) | |
Income taxes expense | (5) | 2 | (61) | ||
Net loss | $ 44 | $ (426) | $ (75) | $ (1,080) | $ 6 |
Diluted net loss per share | $ (0.04) | $ (0.01) | $ (0.10) | $ 0 | |
Product [Member] | |||||
Total revenue | $ 1,172 | $ 1,173 | $ 3,275 | $ 2,939 | |
Total cost of revenue | 728 | 730 | 2,168 | 1,795 | |
Service [Member] | |||||
Total revenue | 9,689 | 4,866 | 25,555 | 14,421 | |
Total cost of revenue | 7,004 | $ 3,684 | 18,552 | $ 10,619 | |
Previously Reported [Member] | |||||
Total revenue | 10,892 | 28,855 | |||
Total cost of revenue | 7,732 | 20,720 | |||
Gross profit | 3,160 | 8,135 | |||
Operating income | (219) | (632) | |||
Net loss before income taxes | (395) | (1,053) | |||
Income taxes expense | 2 | ||||
Net loss | $ (395) | $ (1,055) | |||
Diluted net loss per share | $ (0.04) | $ (0.10) | |||
Previously Reported [Member] | Product [Member] | |||||
Total revenue | $ 1,172 | $ 3,275 | |||
Previously Reported [Member] | Service [Member] | |||||
Total revenue | 9,720 | 25,580 | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||
Total revenue | (31) | (25) | |||
Gross profit | (31) | (25) | |||
Operating income | (31) | (25) | |||
Net loss before income taxes | (31) | (25) | |||
Net loss | $ (31) | $ (25) | |||
Diluted net loss per share | $ 0 | $ 0 | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Service [Member] | |||||
Total revenue | $ (31) | $ (25) |
REVENUE RECOGNITION - Balance S
REVENUE RECOGNITION - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Current Liabilities: | ||
Customer advances | $ 6,516 | $ 4,925 |
Shareholder's equity: | ||
Accumulated deficit | (17,387) | $ (16,231) |
Previously Reported [Member] | ||
Current Liabilities: | ||
Customer advances | 6,415 | |
Shareholder's equity: | ||
Accumulated deficit | (17,286) | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
Current Liabilities: | ||
Customer advances | (101) | |
Shareholder's equity: | ||
Accumulated deficit | $ 101 |