Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 28, 2014 | Mar. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MITK | ' | ' |
Entity Registrant Name | 'MITEK SYSTEMS INC | ' | ' |
Entity Central Index Key | '0000807863 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 30,654,705 | ' |
Entity Public Float | ' | ' | $106,493,534 |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $7,766,590 | $23,294,456 |
Short-term investments | 16,269,170 | 5,730,872 |
Accounts receivable, net | 2,955,350 | 1,494,627 |
Other current assets | 704,409 | 661,706 |
Total current assets | 27,695,519 | 31,181,661 |
Long-term investments | 2,072,018 | ' |
Property and equipment, net | 1,293,270 | 1,629,664 |
Other non-current assets | 42,049 | 42,049 |
Total assets | 31,102,856 | 32,853,374 |
Current liabilities: | ' | ' |
Accounts payable | 1,792,267 | 1,875,909 |
Accrued payroll and related taxes | 1,434,913 | 1,455,487 |
Deferred revenue, current portion | 2,826,670 | 2,335,532 |
Other current liabilities | 157,649 | 151,536 |
Total current liabilities | 6,211,499 | 5,818,464 |
Deferred revenue, non-current portion | 311,225 | 511,125 |
Other non-current liabilities | 638,099 | 795,043 |
Total liabilities | 7,160,823 | 7,124,632 |
Stockholders' equity | ' | ' |
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $0.001 par value, 60,000,000 and 40,000,000 shares authorized, respectively; 30,521,080 and 30,361,442 issued and outstanding, respectively | 30,521 | 30,361 |
Additional paid-in capital | 59,946,288 | 56,431,640 |
Accumulated other comprehensive (loss) income | -7,810 | 1,838 |
Accumulated deficit | -36,026,966 | -30,735,097 |
Total stockholders' equity | 23,942,033 | 25,728,742 |
Total liabilities and stockholders' equity | $31,102,856 | $32,853,374 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 60,000,000 | 40,000,000 |
Common stock, shares issued | 30,521,080 | 30,361,442 |
Common stock, shares outstanding | 30,521,080 | 30,361,442 |
Statements_of_Operations_and_O
Statements of Operations and Other Comprehensive Loss (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue | ' | ' | ' |
Software | $13,312,529 | $10,716,505 | $6,386,361 |
Maintenance and professional services | 5,837,816 | 4,086,680 | 2,706,322 |
Total revenue | 19,150,345 | 14,803,185 | 9,092,683 |
Operating costs and expenses | ' | ' | ' |
Cost of revenue-software | 1,001,455 | 744,842 | 540,321 |
Cost of revenue-maintenance and professional services | 1,146,470 | 858,757 | 723,599 |
Selling and marketing | 6,836,292 | 5,852,448 | 3,450,054 |
Research and development | 6,019,573 | 6,793,412 | 6,664,030 |
General and administrative | 9,554,381 | 7,853,264 | 5,595,843 |
Total costs and expenses | 24,558,171 | 22,102,723 | 16,973,847 |
Operating loss | -5,407,826 | -7,299,538 | -7,881,164 |
Other income (expense), net | ' | ' | ' |
Interest and other income | 124,628 | 31,770 | 44,384 |
Interest and other expense | -6,445 | -6,862 | -7,224 |
Total other income (expense), net | 118,183 | 24,908 | 37,160 |
Loss before income taxes | -5,289,643 | -7,274,630 | -7,844,004 |
Income tax provision (benefit) | 2,226 | 1,076 | -4,008 |
Net loss | -5,291,869 | -7,275,706 | -7,839,996 |
Net loss per share-basic and diluted | ($0.17) | ($0.26) | ($0.31) |
Shares used in calculating net loss per share-basic and diluted | 30,466,063 | 27,492,670 | 25,124,179 |
Other comprehensive loss: | ' | ' | ' |
Net loss | -5,291,869 | -7,275,706 | -7,839,996 |
Unrealized gain (loss) on investments | -9,648 | 2,454 | 9,239 |
Other comprehensive loss | ($5,301,517) | ($7,273,252) | ($7,830,757) |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning Balance at Sep. 30, 2011 | $18,055,291 | $24,144 | $33,660,397 | ($15,619,395) | ($9,855) |
Beginning Balance, shares at Sep. 30, 2011 | ' | 24,144,366 | ' | ' | ' |
Exercise of stock options | 732,287 | 1,740 | 730,547 | ' | ' |
Exercise of stock options, shares | 1,812,215 | 1,739,924 | ' | ' | ' |
Exercise of warrants | ' | 111 | -111 | ' | ' |
Exercise of warrants, shares | ' | 110,926 | ' | ' | ' |
Stock-based compensation expense | 2,599,858 | ' | 2,599,858 | ' | ' |
Components of comprehensive income: | ' | ' | ' | ' | ' |
Net loss | -7,839,996 | ' | ' | -7,839,996 | ' |
Change in unrealized gain (loss) on investments | 9,239 | ' | ' | ' | 9,239 |
Total comprehensive loss | -7,830,757 | ' | ' | ' | ' |
Ending Balance at Sep. 30, 2012 | 13,556,679 | 25,995 | 36,990,691 | -23,459,391 | -616 |
Ending Balance, shares at Sep. 30, 2012 | ' | 25,995,216 | ' | ' | ' |
Issuance of common stock, net of issuance costs | 16,004,797 | 3,286 | 16,001,511 | ' | ' |
Issuance of common stock, shares | ' | 3,285,713 | ' | ' | ' |
Exercise of stock options | 714,469 | 1,043 | 713,426 | ' | ' |
Exercise of stock options, shares | 1,103,582 | 1,042,872 | ' | ' | ' |
Settlement of restricted stock units | -65,813 | 37 | -65,850 | ' | ' |
Settlement of restricted stock units, shares | ' | 37,641 | ' | ' | ' |
Stock-based compensation expense | 2,791,862 | ' | 2,791,862 | ' | ' |
Components of comprehensive income: | ' | ' | ' | ' | ' |
Net loss | -7,275,706 | ' | ' | -7,275,706 | ' |
Change in unrealized gain (loss) on investments | 2,454 | ' | ' | ' | 2,454 |
Total comprehensive loss | -7,273,252 | ' | ' | ' | ' |
Ending Balance at Sep. 30, 2013 | 25,728,742 | 30,361 | 56,431,640 | -30,735,097 | 1,838 |
Ending Balance, shares at Sep. 30, 2013 | 30,361,442 | 30,361,442 | ' | ' | ' |
Exercise of stock options | 118,754 | 105 | 118,649 | ' | ' |
Exercise of stock options, shares | 108,135 | 105,280 | ' | ' | ' |
Settlement of restricted stock units | -48,426 | 55 | -48,481 | ' | ' |
Settlement of restricted stock units, shares | ' | 54,358 | ' | ' | ' |
Stock-based compensation expense | 3,444,480 | ' | 3,444,480 | ' | ' |
Components of comprehensive income: | ' | ' | ' | ' | ' |
Net loss | -5,291,869 | ' | ' | -5,291,869 | ' |
Change in unrealized gain (loss) on investments | -9,648 | ' | ' | ' | -9,648 |
Total comprehensive loss | -5,301,517 | ' | ' | ' | ' |
Ending Balance at Sep. 30, 2014 | $23,942,033 | $30,521 | $59,946,288 | ($36,026,966) | ($7,810) |
Ending Balance, shares at Sep. 30, 2014 | 30,521,080 | 30,521,080 | ' | ' | ' |
Statements_of_Stockholders_Equ1
Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Issuance of common stock, issuance costs | $0 | $1,245,196 | $0 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
OPERATING ACTIVITIES | ' | ' | ' |
Net loss | ($5,291,869) | ($7,275,706) | ($7,839,996) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Stock-based compensation expense | 3,444,480 | 2,791,862 | 2,599,858 |
Depreciation and amortization | 470,697 | 323,383 | 231,981 |
Accretion and amortization on debt securities | 401,319 | 182,162 | 261,398 |
Provision for bad debt | -5,900 | -5,773 | -3,571 |
Loss (gain) on sale of property and equipment | 349 | -1,097 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -1,454,823 | -391,543 | 1,862,555 |
Other assets | -88,007 | -213,653 | -180,367 |
Accounts payable | -83,642 | 1,163,959 | 353,043 |
Accrued payroll and related taxes | -20,574 | 728,522 | 230,956 |
Deferred revenue | 291,238 | 1,214,572 | 758,855 |
Other liabilities | -131,939 | 868,251 | -53,476 |
Net cash used in operating activities | -2,468,671 | -615,061 | -1,778,764 |
INVESTING ACTIVITIES | ' | ' | ' |
Purchases of investments | -24,642,603 | -4,058,975 | -12,187,523 |
Sales and maturities of investments | 11,666,624 | 6,090,734 | 14,635,005 |
Purchases of property and equipment | -135,452 | -1,497,492 | -339,715 |
Sale of property and equipment | 800 | 36,621 | ' |
Net cash (used in) provided by investing activities | -13,110,631 | 570,888 | 2,107,767 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from the issuance of common stock, net of issuance costs of $0, $1,245,196 and $0, respectively | ' | 16,004,797 | ' |
Proceeds from exercise of warrants and stock options, net | 70,328 | 648,656 | 732,287 |
Principal payments on capital lease obligations | -18,892 | -16,914 | -14,916 |
Net cash provided by financing activities | 51,436 | 16,636,539 | 717,371 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -15,527,866 | 16,592,366 | 1,046,374 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 23,294,456 | 6,702,090 | 5,655,716 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 7,766,590 | 23,294,456 | 6,702,090 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' | ' |
Cash paid for interest | 6,115 | 8,093 | 10,397 |
Cash paid for income taxes | 2,226 | 1,076 | 800 |
NON-CASH FINANCING AND INVESTING ACTIVITIES | ' | ' | ' |
Unrealized holding gain (loss) on available for sale investments | -9,648 | 2,454 | 9,239 |
Cashless exercise of option and warrants | 3 | 125 | 410 |
Capital lease obligations | ' | ' | 95,388 |
Common Stock [Member] | ' | ' | ' |
NON-CASH FINANCING AND INVESTING ACTIVITIES | ' | ' | ' |
Cashless settlement of restricted stock units | $15 | $32 | ' |
Statements_of_Cash_Flows_Paren
Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Issuance of common stock, issuance costs | $0 | $1,245,196 | $0 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | ' | ||||||||||||
1 | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Nature of Operations | |||||||||||||
Mitek Systems, Inc. (the “Company”) is a mobile solutions provider engaged in the development, sale and service of its proprietary software solutions. | |||||||||||||
The Company applies its patented technology in image capture, correction and intelligent data extraction in the mobile financial and business services markets. The Company’s technology allows users to remotely deposit checks, pay bills, transfer credit card balances, open accounts and get insurance quotes by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. The Company’s products use advanced algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions through users’ financial institutions. As of November 28, 2014, the Company’s has been granted 20 patents and it has an additional 23 patent applications pending. | |||||||||||||
The Company’s Mobile Deposit® product is software that allows users to remotely deposit a check using their camera-equipped smartphone or tablet. As of September 30, 2014, 3,026 financial institutions have signed agreements to deploy Mobile Deposit®, and 2,521 of these financial institutions have deployed Mobile Deposit® to their customers, including all of the top ten nearly all of the top 50 U.S. retail banks, as ranked by SNL Financial for the second quarter of calendar 2014. The Company’s Mobile Photo Account Opening™ product enables users to open a checking, savings or credit card account by capturing an image of the front and back of their driver’s license with their camera-equipped smartphone or tablet. Other mobile imaging software solutions the Company offers include Mobile Photo Payments, a product that enables users to pay bills by taking a photo of their bill followed by a photo of the check or credit/debit card being used to pay the bill, Mobile Photo Bill Pay®, a mobile bill payment product that allows users to pay their bills using their camera-equipped smartphone or tablet and Mobile Balance Transfer™, a product that allows credit card issuers to provide balance transfer offers and enables users to transfer an existing credit card balance and establish a new credit card account by capturing an image of the user’s current credit card statement. The Company’s mobile imaging software solutions are available for iOS and Android operating systems. | |||||||||||||
The Company markets and sells its mobile imaging software solutions through channel partners or directly to enterprise customers that typically purchase licenses based on of the number of transactions or subscribers that use our mobile software. The Company’s mobile imaging software solutions are often embedded in other mobile banking or enterprise applications developed by banks, insurance companies or their partners, and marketed under their own proprietary brands. | |||||||||||||
Basis of Presentation | |||||||||||||
The financial statements are prepared under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 105-10, Generally Accepted Accounting Principles, in accordance with accounting principles generally accepted in the U.S. (“GAAP”). | |||||||||||||
Reclassifications | |||||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications do not impact the reported net loss and do not have a material impact on the presentation of the overall financial statements. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards and income taxes. | |||||||||||||
Net Loss Per Share | |||||||||||||
The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings Per Share. Basic net income (loss) per share is based on the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share also gives effect to all potentially dilutive securities outstanding during the period, such as options, warrants and restricted stock units (“RSUs”), if dilutive. In a period with a net loss position, potentially dilutive securities are not included in the computation of diluted net loss because to do so would be antidilutive, and the number of shares used to calculate basic and diluted net loss is the same. | |||||||||||||
At September 30, 2014, 2013 and 2012, the following potentially dilutive common shares were excluded from the net loss per share calculation, as they would have been antidilutive: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock options | 2,334,326 | 2,824,964 | 3,512,286 | ||||||||||
Warrants | 6,667 | 6,667 | 6,667 | ||||||||||
Restricted stock units | 1,101,303 | 692,504 | 515,834 | ||||||||||
Total potentially dilutive common shares outstanding | 3,442,296 | 3,524,135 | 4,034,787 | ||||||||||
The computation of basic and diluted net loss per share for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net loss | $ | (5,291,869 | ) | $ | (7,275,706 | ) | $ | (7,839,996 | ) | ||||
Weighted-average common shares and share equivalents outstanding—basic | 30,446,063 | 27,492,670 | 25,124,179 | ||||||||||
Effect of dilutive stock options | — | — | — | ||||||||||
Weighted-average common shares and share equivalents outstanding—diluted | 30,446,063 | 27,492,670 | 25,124,179 | ||||||||||
Net loss per share: | |||||||||||||
Basic | $ | (0.17 | ) | $ | (0.26 | ) | $ | (0.31 | ) | ||||
Diluted | $ | (0.17 | ) | $ | (0.26 | ) | $ | (0.31 | ) | ||||
Revenue Recognition | |||||||||||||
Revenue from sales of software licenses sold through direct and indirect channels is recognized upon shipment of the related product, if the requirements of FASB ASC Topic 985-605, Software Revenue Recognition (“ASC 985-605”) are met, including evidence of an arrangement, delivery, fixed or determinable fee, collectability and vendor specific objective evidence (“VSOE”) of the fair value of the undelivered element. If the requirements of ASC 985-605 are not met at the date of shipment, revenue is not recognized until such elements are known or resolved. Revenue from customer support services, or maintenance revenue, includes post-contract support and the rights to unspecified upgrades and enhancements. VSOE of fair value for customer support services is determined by reference to the price the customer pays for such element when sold separately; that is, the renewal rate offered to customers. In those instances when objective and reliable evidence of fair value exists for the undelivered items but not for the delivered items, the residual method is used to allocate the arrangement consideration. Under the residual method, the amount of arrangement consideration allocated to the delivered items equals the total arrangement consideration less the aggregate fair value of the undelivered items. Revenue from post-contract customer support is recognized ratably over the term of the contract. Certain customers have agreements that provide for usage fees above fixed minimums. Fixed minimum transaction fees are recognized as revenue ratably over the term of the arrangement. Usage fees above fixed minimums are recognized as revenue when such amounts are reasonably estimable and billable. Revenue from professional services is recognized when such services are delivered. When a software sales arrangement requires professional services related to significant production, modification or customization of software, or when a customer considers professional services essential to the functionality of the software product, revenue is recognized based on predetermined milestone objectives required to complete the project, as those milestone objectives are deemed to be substantive in relation to the work performed. Any expected losses on contracts in progress are recorded in the period in which the losses become probable and reasonably estimable. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents are defined as highly liquid financial instruments with original maturities of three months or less. A substantial portion of the Company’s cash is deposited with one financial institution. The Company monitors the financial condition of this financial institution and does not believe that funds on deposit are subject to a significant degree of risk. | |||||||||||||
Investments | |||||||||||||
Investments consist of corporate notes and bonds, and commercial paper. The Company classifies investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net in the Statements of Operations. No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2014, 2013 and 2012. | |||||||||||||
All investments whose maturity or sale is expected within one year are classified as “current” on the balance sheet. All other securities are classified as “long-term” on the balance sheet. | |||||||||||||
Fair Value Measurements | |||||||||||||
The carrying amounts of cash equivalents, investments, accounts receivable, accounts payable and other accrued liabilities are considered representative of their respective fair values because of the short-term nature of those instruments. | |||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||
Accounts receivable, net, is as follows (in thousands): | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Accounts receivable | $ | 2,961,450 | $ | 1,506,627 | |||||||||
Less: Allowance for doubtful accounts | (6,100 | ) | (12,000 | ) | |||||||||
Accounts receivable, net | $ | 2,955,350 | $ | 1,494,627 | |||||||||
Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. Allowances for doubtful accounts are established based on various factors including credit profiles of the Company’s customers, contractual terms and conditions, historical payments, and current economic trends. The Company reviews its allowances by assessing individual accounts receivable over a specific aging and amount. Accounts receivable are written off on a case-by-case basis, net of any amounts that may be collected. The Company had no write-offs of the allowance for doubtful accounts for the years ended September 30, 2014 and 2013, respectively. | |||||||||||||
Deferred Maintenance Fees | |||||||||||||
Deferred maintenance fees consist of capitalized costs associated with software maintenance fees paid to vendors who supply licenses and maintenance for software embedded in the Company’s products that it sells to customers. These software maintenance fees, which are included in other current assets on the balance sheet, are typically billed annually to the Company and are amortized to cost of revenue-maintenance and professional services in the Statements of Operations over the maintenance period, which is typically one year. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are carried at cost. The following is a summary of property and equipment as of September 30, 2014 and 2013: | |||||||||||||
2014 | 2013 | ||||||||||||
Property and equipment—at cost: | |||||||||||||
Equipment | $ | 1,177,364 | $ | 1,054,868 | |||||||||
Furniture and fixtures | 227,189 | 227,189 | |||||||||||
Leasehold improvements | 980,837 | 975,838 | |||||||||||
2,385,390 | 2,257,895 | ||||||||||||
Less: accumulated depreciation and amortization | (1,092,120 | ) | (628,231 | ) | |||||||||
Total property and equipment, net | $ | 1,293,270 | $ | 1,629,664 | |||||||||
Depreciation and amortization of property and equipment are provided using the straight-line method over estimated useful lives ranging from three to five years. Leasehold improvements are amortized over the lease term. Depreciation and amortization of property and equipment totaled $470,697, $323,383 and $140,146 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Included in property and equipment as of September 30, 2014 and 2013 in the table above is equipment of $95,388 purchased under a capital lease. Depreciation expense related to the equipment purchased under the capital lease was $19,078, $19,078 and $17,488 in the fiscal years ended September 30, 2014, 2013 and 2012, respectively, and accumulated depreciation was $55,644 and $36,566 at September 30, 2014 and 2013, respectively. Expenditures for repairs and maintenance are charged to operations. Total repairs and maintenance expenses were $115,792, $97,532 and $57,815 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. | |||||||||||||
Long-Lived Assets | |||||||||||||
The Company evaluates the carrying value of long-lived assets, including license agreements and other intangible assets, when events and circumstances indicate that these assets may be impaired or in order to determine whether any revision to the related amortization periods should be made. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each product or asset. If management’s evaluation indicates that the carrying values of these intangible assets were impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company did not record any impairment for the fiscal years ended September 30, 2014, 2013 and 2012. | |||||||||||||
Capitalized Software Development Costs | |||||||||||||
Costs incurred for the development of software that will be sold, leased, or otherwise marketed are capitalized when technological feasibility has been established. Software development costs consist primarily of compensation of development personnel and related overhead incurred to develop new products and upgrade and enhance the Company’s current products, as well as fees paid to outside consultants. Capitalization of software development costs ceases and amortization of capitalized software development costs commences when the products are available for general release. For the fiscal years ended September 30, 2014 and 2013, no software development costs were capitalized because the time period and cost incurred between technological feasibility and general release for all software product releases were not material. | |||||||||||||
The Company evaluates its capitalized software development costs at each balance sheet date to determine if the unamortized balance related to any given product exceeds the estimated net realizable value of that product. Any such excess is written off through accelerated amortization in the quarter in which it is identified. Determining net realizable value, as defined by FASB ASC Topic 985-20, Accounting for the Costs of Software to Be Sold, Leased or Otherwise Marketed, requires making estimates and judgments in quantifying the appropriate amount to write off, if any. Actual amounts realized from the software products could differ from those estimates. Also, any future changes to the Company’s product portfolio could result in significant increases to its cost of license revenue as a result of the write-off of capitalized software development costs. | |||||||||||||
The Company recorded no amortization of software development costs for the fiscal years ended September 30, 2014 and 2013. The Company recorded amortization of software development costs of $91,438 for the fiscal year ended September 30, 2012. The Company records amortization of software development costs as cost of revenue-software in the Statements of Operations. | |||||||||||||
Deferred Revenue | |||||||||||||
Deferred revenues represent advance payments or billings for software licenses, professional services and maintenance billed in advance of the time we recognize the related revenues. Deferred maintenance revenue represents customer billings, paid up front, generally annually at the beginning of each maintenance period, with revenue recognized ratably over such period. For certain other licensing arrangements, revenue attributable to undelivered elements, including post-contract customer support which typically includes telephone support and the right to receive unspecified upgrades and enhancements of software on a when-and-if-available basis, is based upon the sales price of those elements when sold separately and is recognized ratably on a straight-line basis over the term of the arrangement. | |||||||||||||
Guarantees | |||||||||||||
In the ordinary course of business, the Company is not subject to potential obligations under guarantees that fall within the scope of FASB ASC Topic 460, Guarantees (“ASC 460”), except for standard indemnification and warranty provisions that are contained within many of the Company’s customer license and service agreements and certain supplier agreements, and give rise only to the disclosure requirements prescribed by ASC 460. Indemnification and warranty provisions contained within the Company’s customer license and service agreements and certain supplier agreements are generally consistent with those prevalent in the Company’s industry. The Company has not historically incurred significant obligations under customer indemnification or warranty provisions and does not expect to incur significant obligations in the future. Accordingly, the Company does not maintain accruals for potential customer indemnification or warranty-related obligations. | |||||||||||||
Loss Contingencies | |||||||||||||
The Company records its best estimates of a loss contingency when it is considered probable and the amount can be reasonably estimated. When a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending loss contingency and revises its estimates. The Company discloses contingencies if there is at least a reasonable possibility that a loss or an additional loss may have been incurred. The Company’s legal costs are expensed as incurred. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. | |||||||||||||
Management evaluates the available evidence about future taxable income and other possible sources of realization of deferred tax assets. The valuation allowance reduces deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred tax assets that more likely than not will be realized. See Note 5 for additional details. | |||||||||||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. See Note 5 for additional details. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). The Company estimates the fair value of stock options using the Black-Scholes option pricing model. The fair value of stock options granted is recognized as an expense over the requisite service period. Stock-based compensation expense for all share-based payment awards is recognized using the straight-line single-option method. | |||||||||||||
The Black-Scholes option pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected life of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. | |||||||||||||
Advertising Expense | |||||||||||||
Advertising costs are expensed as incurred and totaled $99,670, $123,905 and $72,053 during the fiscal years ended September 30, 2014, 2013 and 2012, respectively. | |||||||||||||
Research and Development | |||||||||||||
Research and development costs are expensed in the period incurred. | |||||||||||||
Leases | |||||||||||||
Leases are reviewed and classified as capital or operating at their inception. For leases that contain rent escalations, the Company records the total rent payable on a straight-line basis over the term of the lease. The difference between rent payments and straight-line rent expense is recorded as deferred rent. | |||||||||||||
Segment Reporting | |||||||||||||
FASB ASC Topic 280, Segment Reporting, requires the use of a management approach in identifying segments of an enterprise. During the fiscal year ended September 30, 2014, management determined that the Company has only one operating segment: the development, sale and service of proprietary software solutions related to mobile imaging. | |||||||||||||
Comprehensive Loss | |||||||||||||
Comprehensive loss consists of net loss and unrealized gains and losses on available-for-sale securities. The following table summarizes the components of comprehensive loss for the fiscal years ended September 30, 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net loss | $ | (5,291,869 | ) | $ | (7,275,706 | ) | $ | (7,839,996 | ) | ||||
Other comprehensive loss: | |||||||||||||
Change in unrealized gains (losses) on marketable securities | (9,648 | ) | 2,454 | 9,239 | |||||||||
Total comprehensive loss | $ | (5,301,517 | ) | $ | (7,273,252 | ) | $ | (7,830,757 | ) | ||||
Included on the balance sheet at September 30, 2014 is an accumulated other comprehensive loss of $7,810, compared to an accumulated other comprehensive gain of $1,838 at September 30, 2013, related to the Company’s available-for-sale-securities. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers (“ASC 606”), which amends the guidance in former ASC 605, Revenue Recognition. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018. The Company is currently evaluating the impact of the provisions of ASC 606. |
Investments
Investments | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
2 | INVESTMENTS | ||||||||||||||||
The Company determines the appropriate designation of investments at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s investments are designated as available-for-sale debt securities. As of September 30, 2014 and 2013, the Company’s short-term investments have maturity dates of greater than 90 days and less than one year from the balance sheet date. The Company’s long-term investments have maturity dates of greater than one year from the balance sheet date. | |||||||||||||||||
Available-for-sale marketable securities are carried at fair value as determined by quoted market prices for identical or similar assets, with unrealized gains and losses, net of tax, and reported as a separate component of stockholders’ equity. Management reviews the fair value of the portfolio at least monthly, and evaluates individual securities with fair value below amortized cost at the balance sheet date. For debt securities, in order to determine whether impairment is other-than-temporary, management must conclude whether the Company intends to sell the impaired security and whether it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. If management intends to sell an impaired debt security or it is more likely than not the Company will be required to sell the security prior to recovering its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of an other-than-temporary impairment related to a credit loss, or securities that management intends to sell before recovery, is recognized in earnings. The amount of an other-than-temporary impairment on debt securities related to other factors is recorded consistent with changes in the fair value of all other available-for-sale securities as a component of stockholders’ equity in other comprehensive income. No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2014, 2013 and 2012. | |||||||||||||||||
The cost of securities sold is based on the specific identification method. Amortization of premiums, accretion of discounts, interest, dividend income, and realized gains and losses are included in investment income. | |||||||||||||||||
The following table summarizes investments by security type as of September 30, 2014 and 2013: | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Cost | Gross | Gross | Fair Market | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Corporate debt securities, short-term | $ | 16,273,996 | $ | 1,472 | $ | (6,298 | ) | $ | 16,269,170 | ||||||||
Corporate debt securities, long-term | 2,075,002 | — | (2,984 | ) | 2,072,018 | ||||||||||||
Total | $ | 18,348,998 | $ | 1,472 | $ | (9,282 | ) | $ | 18,341,188 | ||||||||
September 30, 2013 | |||||||||||||||||
Cost | Gross | Gross | Fair Market | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Corporate debt securities, short-term | $ | 5,729,034 | $ | 2,378 | $ | (540 | ) | $ | 5,730,872 | ||||||||
Corporate debt securities, long-term | — | — | — | — | |||||||||||||
Total | $ | 5,729,034 | $ | 2,378 | $ | (540 | ) | $ | 5,730,872 | ||||||||
Fair Value Measurements and Disclosures | |||||||||||||||||
FASB ASC Topic 820, Fair Value Measurements (“ASC 820”) defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which consists of the following: | |||||||||||||||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
• | Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | ||||||||||||||||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
Based on the fair value hierarchy, all of the Company’s investments were classified as Level 2 at September 30, 2014 and 2013, as represented in the following table: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate debt securities | |||||||||||||||||
Financial | $ | 9,334,140 | $ | 3,411,661 | |||||||||||||
Industrial | 3,980,772 | 1,517,327 | |||||||||||||||
Utility | 756,215 | 401,984 | |||||||||||||||
Commercial paper | |||||||||||||||||
Industrial | — | 399,900 | |||||||||||||||
Financial | 2,198,043 | — | |||||||||||||||
Total short-term investments | $ | 16,269,170 | $ | 5,730,872 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate debt securities | |||||||||||||||||
Financial | $ | 1,564,505 | $ | — | |||||||||||||
Utility | 507,513 | — | |||||||||||||||
Total long-term investments | $ | 2,072,018 | $ | — | |||||||||||||
Debt
Debt | 12 Months Ended | |
Sep. 30, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Debt | ' | |
3 | DEBT | |
Credit Facility | ||
In January 2011, the Company entered into a loan and security agreement with its primary operating bank (the “Loan Agreement”). The Loan Agreement permitted the Company to borrow, repay and re-borrow up to $400,000 from time to time until January 31, 2013, subject to the terms and conditions of the Loan Agreement. The Loan Agreement expired on January 31, 2013, at which time there were no borrowings outstanding. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||
4 | STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||
In June 2013, the Company sold 2,857,142 shares of its common stock at a price of $5.25 per share in an underwritten public offering (the “Offering”) and received $13,877,447 in net proceeds, after deducting underwriting discounts and commissions and other offering expenses of $1,122,549. Under the terms of the underwriting agreement for the Offering, the Company granted the underwriter a 30-day option to purchase an additional 428,571 shares of its common stock to cover overallotments. The underwriter exercised its overallotment option during June 2013 and the closing of the sale of shares of the Company’s common stock pursuant to such option occurred during July 2013, resulting in $2,127,350 in additional net proceeds to the Company, after deducting other offering expenses of $122,647. | |||||||||||||||||||||||||
Warrants | |||||||||||||||||||||||||
Historically, the Company has granted warrants to purchase its common stock to service providers and investors. As of September 30, 2014, there were warrants to purchase 6,667 shares of the Company’s common stock outstanding with an exercise price of $0.91 per share, subject to adjustment for stock splits, stock dividends and the like. These warrants expire in December 2014. | |||||||||||||||||||||||||
In connection with the issuance of convertible debentures in December 2009, the Company issued warrants to purchase an aggregate of 337,501 shares of the Company’s common stock with an exercise price of $0.91 per share. As of September 30, 2014, warrants to purchase 330,834 shares of the Company’s common stock have been exercised and warrants to purchase 6,667 shares of common stock remain outstanding. These warrants expire in December 2014. | |||||||||||||||||||||||||
Stock-based Compensation | |||||||||||||||||||||||||
The Company applies the fair value recognition provisions of ASC 718. | |||||||||||||||||||||||||
The fair value of stock options granted to employees and directors is calculated using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected life of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. | |||||||||||||||||||||||||
The value of stock-based compensation is based on the single option valuation approach under ASC 718. It is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards is amortized using the straight-line method over the vesting period of the option. | |||||||||||||||||||||||||
ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the fiscal year ended September 30, 2014 of 13.4% for all stock option grants was based on historical forfeiture experience. | |||||||||||||||||||||||||
ASC 718 requires the cash flows from tax benefits resulting from tax deductions in excess of the compensation cost recognized for options to be classified as financing cash flows. Due to the Company’s valuation allowance from losses in the previous years, there were no such tax benefits during the fiscal years ended September 30, 2014, 2013 and 2012. | |||||||||||||||||||||||||
No stock options were granted to employees during the fiscal year ended September 30, 2014. The fair value calculations for stock-based compensation awards to employees for the fiscal years ended September 30, 2013 and 2012 were based on the following assumptions: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Risk-free interest rate | 0.18% - 1.20% | 0.35% - 1.06% | |||||||||||||||||||||||
Expected life (years) | 5.3 | 5 | |||||||||||||||||||||||
Expected volatility | 175% | 110% | |||||||||||||||||||||||
Expected dividends | None | None | |||||||||||||||||||||||
The following table summarizes stock-based compensation expense related to stock options and RSUs under ASC 718 for the fiscal years ended September 30, 2014, 2013 and 2012, which were allocated as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Sales and marketing | $ | 823,876 | $ | 433,130 | $ | 471,716 | |||||||||||||||||||
Research and development | 675,033 | 617,377 | 592,249 | ||||||||||||||||||||||
General and administrative | 1,945,571 | 1,741,355 | 1,535,893 | ||||||||||||||||||||||
Stock-based compensation expense related to employee stock options included in operating expenses | $ | 3,444,480 | $ | 2,791,862 | $ | 2,599,858 | |||||||||||||||||||
The following table summarizes vested and unvested options, weighted average exercise price per share, weighted average remaining term and aggregate intrinsic value at September 30, 2014: | |||||||||||||||||||||||||
Number of Shares | Weighted Average | Weighted Average | Aggregate Intrinsic | ||||||||||||||||||||||
Exercise Price Per | Remaining | Value | |||||||||||||||||||||||
Share | Contractual Life | ||||||||||||||||||||||||
(in Years) | |||||||||||||||||||||||||
Vested | 1,878,695 | $ | 3.94 | 5 | $ | 1,090,096 | |||||||||||||||||||
Unvested | 455,631 | $ | 4.8 | 7.33 | 8,084 | ||||||||||||||||||||
Total | 2,334,326 | $ | 4.11 | 5.46 | $ | 1,098,180 | |||||||||||||||||||
The Company recognized $2,151,689, $2,023,023 and $2,070,786 in stock-based compensation expense related to outstanding stock options in the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014, the Company had $1,659,197 of unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted average period of approximately 1.58 years. | |||||||||||||||||||||||||
The following table summarizes stock option activity under the Company’s stock option plans during the fiscal years ended September 30, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||||||||||||||
Shares | Exercise Price Per | Remaining | |||||||||||||||||||||||
Share | Contractual Term | ||||||||||||||||||||||||
(in Years) | |||||||||||||||||||||||||
Outstanding, September 30, 2011 | 4,553,904 | $ | 1.34 | 6.15 | |||||||||||||||||||||
Granted | 1,095,750 | $ | 8.54 | ||||||||||||||||||||||
Exercised | (1,812,215 | ) | $ | 0.81 | |||||||||||||||||||||
Cancelled | (325,153 | ) | $ | 6.41 | |||||||||||||||||||||
Outstanding, September 30, 2012 | 3,512,286 | $ | 3.39 | 6.46 | |||||||||||||||||||||
Granted | 651,563 | $ | 3.63 | ||||||||||||||||||||||
Exercised | (1,103,582 | ) | $ | 0.9 | |||||||||||||||||||||
Cancelled | (235,303 | ) | $ | 7.26 | |||||||||||||||||||||
Outstanding, September 30, 2013 | 2,824,964 | $ | 4.09 | 7.29 | |||||||||||||||||||||
Granted | — | $ | — | ||||||||||||||||||||||
Exercised | (108,135 | ) | $ | 1.27 | |||||||||||||||||||||
Cancelled | (382,503 | ) | $ | 4.77 | |||||||||||||||||||||
Outstanding, September 30, 2014 | 2,334,326 | $ | 4.11 | 5.46 | |||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2014: | |||||||||||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | Number of | |||||||||||||||||||
Exercise Prices | Options | Average | Average | Exercisable | Average | Unvested | |||||||||||||||||||
Outstanding | Remaining | Exercise Price | Options | Exercise Price of | Options | ||||||||||||||||||||
Contractual Life | Exercisable | ||||||||||||||||||||||||
(in Years) | Options | ||||||||||||||||||||||||
$0.09 to $0.79 | 336,762 | 5.24 | $ | 0.73 | 336,762 | $ | 0.73 | — | |||||||||||||||||
$0.80 to $1.10 | 350,000 | 1.39 | $ | 0.93 | 350,000 | $ | 0.93 | — | |||||||||||||||||
$2.34 to $2.60 | 726,421 | 6.6 | $ | 2.52 | 491,671 | $ | 2.54 | 234,750 | |||||||||||||||||
$3.33 to $9.97 | 635,000 | 5.74 | $ | 6.33 | 501,023 | $ | 6.74 | 133,977 | |||||||||||||||||
$11.05 to $11.68 | 286,143 | 7.15 | $ | 11.08 | 199,239 | $ | 11.08 | 86,904 | |||||||||||||||||
2,334,326 | 5.46 | $ | 4.11 | 1,878,695 | $ | 3.94 | 455,631 | ||||||||||||||||||
The total intrinsic value of options exercised during the fiscal years ended September 30, 2014, 2013 and 2012 was $472,327, $3,832,374 and $14,215,750, respectively. The per-share weighted average fair value of options granted during the fiscal years ended September 30, 2013 and 2012 was $3.57 and $5.97, respectively. No stock options were granted to employees during the fiscal year ended September 30, 2014. | |||||||||||||||||||||||||
2012 Incentive Plan | |||||||||||||||||||||||||
In January 2012, the Company’s board of directors adopted the Mitek Systems, Inc. 2012 Incentive Plan (the “2012 Plan”), upon the recommendation of the compensation committee of the board of directors. The 2012 Plan was approved by the Company’s stockholders on February 22, 2012. On February 19, 2014, the Company’s stockholders approved an amendment to the 2012 Plan that increased the total number of shares of the Company’s common stock reserved for issuance thereunder from 2,000,000 shares to 4,000,000 shares, plus that number of shares of the Company’s common stock that would otherwise return to the available pool of unissued shares reserved for awards under the Company’s 1999 Stock Option Plan, 2000 Stock Option Plan, 2002 Stock Option Plan, 2006 Stock Option Plan and 2010 Stock Option Plan (collectively, the “Prior Plans”). There were no awards granted under the Prior Plans after the approval of the 2012 Plan by the Company’s stockholders on February 22, 2012. Stock options granted under the Prior Plans that were outstanding at such date remain in effect until such options are exercised or expire. | |||||||||||||||||||||||||
The 2012 Plan authorizes the grant of stock options, stock appreciation rights, restricted stock, RSUs and cash awards. Stock options granted under the 2012 Plan may be either options intended to constitute incentive stock options or nonqualified stock options, in each case as determined by the compensation committee of the board of directors in accordance with the terms of the 2012 Plan. As of September 30, 2014, stock options to purchase 843,743 shares of the Company’s common stock and 536,303 RSUs were outstanding under the 2012 Plan, and 2,776,678 shares of the Company’s common stock were reserved for future grants. | |||||||||||||||||||||||||
The following table summarizes the number of stock options outstanding under the Prior Plans as of September 30, 2014: | |||||||||||||||||||||||||
2000 Stock Option Plan | 206,262 | ||||||||||||||||||||||||
2002 Stock Option Plan | 191,000 | ||||||||||||||||||||||||
2006 Stock Option Plan | 43,000 | ||||||||||||||||||||||||
2010 Stock Option Plan | 1,050,321 | ||||||||||||||||||||||||
Total stock options outstanding under the Prior Plans | 1,490,583 | ||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||
In January 2011, the Company’s board of directors adopted, subject to stockholder approval, the Mitek Systems, Inc. Director Restricted Stock Unit Plan, as amended and restated (the “Director Plan”), reserving up to 1,000,000 shares of the Company’s common stock for the issuance of RSUs to both employee and non-employee members of the board of directors of the Company. On February 23, 2011, the Director Plan was approved by the Company’s stockholders at its annual meeting. | |||||||||||||||||||||||||
In addition, the Company has awarded RSUs to certain of its employees under the 2012 Plan. The RSUs vest in equal annual installments over four years. | |||||||||||||||||||||||||
The following table summarizes RSU activity in the fiscal years ended September 30, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Number of | Weighted-average | ||||||||||||||||||||||||
shares | fair value per share | ||||||||||||||||||||||||
Outstanding at September 30, 2011 | 300,000 | $ | 5.12 | ||||||||||||||||||||||
Granted | 255,835 | $ | 8.44 | ||||||||||||||||||||||
Settled | — | — | |||||||||||||||||||||||
Cancelled | (40,001 | ) | 11.05 | ||||||||||||||||||||||
Outstanding at September 30, 2012 | 515,834 | $ | 6.3 | ||||||||||||||||||||||
Granted | 255,000 | $ | 3.15 | ||||||||||||||||||||||
Settled | (50,829 | ) | 7.76 | ||||||||||||||||||||||
Cancelled | (27,501 | ) | $ | 11.05 | |||||||||||||||||||||
Outstanding at September 30, 2013 | 692,504 | $ | 4.85 | ||||||||||||||||||||||
Granted | 625,139 | $ | 4.83 | ||||||||||||||||||||||
Settled | (63,334 | ) | $ | 4.66 | |||||||||||||||||||||
Cancelled | (153,006 | ) | $ | 5.03 | |||||||||||||||||||||
Outstanding at September 30, 2014 | 1,101,303 | $ | 4.71 | ||||||||||||||||||||||
The cost of a RSU is determined using the fair value of the Company’s common stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $1,292,791, $768,839 and $529,072 in stock-based compensation expense related to outstanding RSUs in the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014, the Company had approximately $3,219,521 of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 2.93 years. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
5 | INCOME TAXES | ||||||||||||
For the fiscal years ended September 30, 2014, 2013 and 2012 the income tax provision (benefit) was as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal—current | $ | — | $ | — | $ | (4,808 | ) | ||||||
State—current | 2,226 | 1,076 | 800 | ||||||||||
Total | $ | 2,226 | $ | 1,076 | $ | (4,008 | ) | ||||||
Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2014 and 2013 are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Net operating loss carryforwards | $ | 11,401,483 | $ | 10,473,905 | |||||||||
Capitalized research and development costs | — | 134,550 | |||||||||||
Stock based compensation | 1,228,082 | 408,588 | |||||||||||
AMT credit carryforwards | 66,320 | 66,320 | |||||||||||
Other | 250,999 | 186,212 | |||||||||||
Research credit carryforwards | 43,802 | 43,802 | |||||||||||
Total deferred assets | 12,990,686 | 11,313,377 | |||||||||||
Valuation allowance for net deferred tax assets | (12,990,686 | ) | (11,313,377 | ) | |||||||||
Total | $ | — | $ | — | |||||||||
The Company has provided a valuation allowance against deferred tax assets recorded as of September 30, 2014 and 2013 due to uncertainties regarding the realization of such assets. | |||||||||||||
The net change in the total valuation allowance for the fiscal years ended September 30, 2014 and 2013 was an increase of $1,677,309 and $1,968,988, respectively. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. The Company considers projected future taxable income and planning strategies in making this assessment. Based on the level of historical operating results and projections for future taxable income, the Company has determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero. There can be no assurance that the Company will ever be able to realize the benefit of some or all of the federal and state loss carryforwards or the credit carryforwards, either due to ongoing operating losses or due to ownership changes, which limit the usefulness of the loss carryforwards. | |||||||||||||
As of September 30, 2014, the Company has available net operating loss carryforwards of $47,885,589 for federal income tax purposes, which will start to expire in 2018. The net operating loss carryforwards for state purposes are $37,399,784 and will begin to expire in 2014. Included in these amounts are federal and state net operating losses of $17,654,877 attributable to stock option deductions of which the tax benefit will be credited to equity when realized. As of September 30, 2014, the Company has available federal research and development credit carryforwards of $29,306 and alternative minimum tax credit carryforwards of $66,320. The research and development credits will start to expire in 2023. As of September 30, 2014, the Company has available California research and development credit carryforwards of $21,963 which do not expire. | |||||||||||||
The Company’s ability to use its net operating loss and research and development credit carryforwards may be substantially limited due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”), as well as similar state provisions. The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company became a “loss corporation” as defined in Section 382. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations or financial position of the Company. | |||||||||||||
The difference between the income tax provision (benefit) and income taxes computed using the U.S. federal income tax rate was as follows for the years ended September 30, 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amount computed using statutory rate | $ | (1,798,479 | ) | $ | (2,473,374 | ) | $ | (2,666,961 | ) | ||||
Net change in valuation allowance for net deferred tax assets | 1,677,309 | 1,968,987 | 2,247,615 | ||||||||||
Non-deductible items | 411,473 | 548,839 | 807,533 | ||||||||||
State income tax | (288,077 | ) | (43,376 | ) | (392,195 | ) | |||||||
Income tax provision (benefit) | $ | 2,226 | $ | 1,076 | $ | (4,008 | ) | ||||||
The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Because the Company is carrying forward federal and state net operating losses from 1997 and 2002, respectively, the Company is subject to U.S. federal and state income tax examinations by tax authorities for all years since 1997 and 2002, as the case may be. The Company does not have any uncertain tax positions. As of September 30, 2014, no accrued interest or penalties are recorded in the financial statements. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
6 | COMMITMENTS AND CONTINGENCIES | ||||
Legal Matters | |||||
USAA | |||||
On March 29, 2012, United Services Automobile Association (“USAA”) filed a complaint in the U.S. District Court for the Western District of Texas San Antonio Division against the Company seeking, among other things, a declaratory judgment that USAA does not infringe certain of the Company’s patents relating to Mobile Deposit®, and that such patents are not enforceable against USAA. In addition, USAA alleged that it disclosed confidential information to the Company and that the Company used such information in its patents and Mobile Deposit® product in an unspecified manner. USAA sought damages and injunctive relief. USAA subsequently amended its pleadings to assert a claim for false advertising and reverse palming off under the Lanham Act, and to seek reimbursement under the parties’ license agreement. | |||||
On April 12, 2012, the Company filed a lawsuit against USAA in the U.S. District Court for the District of Delaware, alleging that USAA infringed five of the Company’s patents relating to image capture on mobile devices, breached the parties’ license agreement by using the Company’s products beyond the scope of the agreed-upon license terms and breached the parties’ license agreement by disclosing confidential pricing and other confidential information for the Company’s legacy product installation in the lawsuit USAA filed in Texas. | |||||
The courts consolidated the foregoing cases in the U.S. District Court for the Western District of Texas, and on November 19, 2012, the Company answered USAA’s various claims and counterclaims, moved to dismiss USAA’s Lanham Act cause of action and filed a counterclaim against USAA for violation of the Lanham Act. On February 15, 2013, the Court granted the Company’s motion and dismissed USAA’s Lanham Act claim and on July 29, 2014, the Court dismissed the Company’s infringement claims against USAA. On September 3, 2014, the Company and USAA agreed to settle all pending claims as follows: (i) USAA moved to dismiss all of its remaining claims, including its claims for misappropriation of trade secrets, breach of contract, fraud, inequitable conduct, and invalidity of the Company’s patents; (ii) the Company moved to dismiss all remaining claims, including the Company’s claims for trade defamation and violations of the Lanham Act. The Company agreed not to sue USAA for patent infringement for products currently sold, marketed, or advertised by USAA, including its Deposit@Mobile application. Neither the Company nor USAA admitted any liability on any claim, nor did either party make any payment to the other. USAA has retained its license to use the Company’s Quick Strokes, Quick FX Pro, and Image Score software products. | |||||
Top Image Systems Ltd. | |||||
On September 26, 2012, the Company filed a lawsuit against Israeli-based Top Image Systems Ltd. and TIS America Inc. (collectively, “TISA”) in the U.S. District Court for the District of Delaware, alleging that TISA infringes five of the Company’s patents relating to image capture on mobile devices. The Company is seeking damages against TISA and injunctive relief to prevent them from selling their mobile imaging products. | |||||
On January 7, 2013, TISA answered the Company’s complaint by denying the allegations and raising several affirmative defenses. On January 11, 2013, the Company amended its complaint to add its sixth patent, which had recently been issued and also relates to image capture on mobile devices. On January 28, 2013, TISA responded to the Company’s amended complaint by again denying the allegations and raising the same affirmative defenses that they raised in their answer to the Company’s initial complaint. | |||||
On September 8, 2014, the Company agreed to settle all pending litigation with TISA, because the cost of litigating the case would have been higher than any potential benefit to the Company. Pursuant to the settlement, the Company dismissed all claims against TISA and retained the right to pursue legal action in the future. | |||||
Rothschild Mobile Imaging Innovations, Inc. | |||||
On May 16, 2014, Rothschild Mobile Imaging Innovations, Inc. (“RMII”) filed a complaint against the Company in the U.S. District Court for the District of Delaware alleging that certain of the Company’s mobile imaging products infringe four RMII-owned patents related to mobile imaging technology. On June 1, 2014, RMII amended its complaint to add JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. (together, “Chase”), one of the Company’s customers, as a defendant in the lawsuit (as amended, the “Initial Lawsuit”). On September 8, 2014, RMII filed three additional complaints (the “Subsequent Lawsuits” and together with the Initial Lawsuit, the “RMII Lawsuits”) against the Company in the U.S. District Court for the District of Delaware. The Subsequent Lawsuits contain allegations substantially similar to the Initial Lawsuit regarding infringement by the Company’s mobile imaging products of the four RMII-owned patents related to mobile imaging technology, but name as co-defendants Citibank, N.A., Citigroup Inc., Wells Fargo & Company, Wells Fargo Bank, N.A., Bank of America Corporation and Bank of America, N.A., respectively (together with Chase, the “Bank Defendants”), each of whom offers the Company’s mobile imaging technology as part of its mobile banking applications. | |||||
The Company has filed motions to dismiss RMII’s willful infringement claims against the Company in the Initial Lawsuit and motions to dismiss claims against the Company in the Subsequent Lawsuits. On November 10, 2014, the Company filed a motion to sever and stay the claims against Chase in the Initial Lawsuit pending resolution of RMII’s claims against the Company and to transfer the claims against the Company to the Southern District of California. On November 19, 2014, the Company filed joinders to the motion to stay with respect to the Subsequent Lawsuits. All motions are still pending before the Court. | |||||
Based on the Company’s current understanding of the claims, the Company has agreed to accept the demands for indemnity and defense tendered by three of the Bank Defendants in connection with their respective RMII Lawsuits. The Company is currently controlling the defense of such claims and has taken actions to defend the RMII Lawsuits, as more fully described above. The Company believes that RMII’s claims are without merit and intends to vigorously defend against those claims. The Company does not believe that the results of the RMII Lawsuits will have a material adverse effect on its financial condition or results of operations. | |||||
Other Legal Matters | |||||
In addition to the foregoing, the Company is subject to various claims and legal proceedings arising in the ordinary course of its business. While any legal proceeding has an element of uncertainty, the Company believes that the disposition of such matters, in the aggregate, will not have a material effect on the Company’s financial condition or results of operations. | |||||
Employee 401(k) Plan | |||||
The Company has a 401(k) plan that allows participating employees to contribute a percentage of their salary, subject to Internal Revenue Service annual limits. During the fiscal years ended September 30, 2014, 2013 and 2012, the Company did not match contributions to the plan. | |||||
Facility Lease | |||||
The Company’s principal executive offices, as well as its research and development facility, are located in approximately 22,523 square feet of office space in San Diego, California. The term of the lease for the Company’s offices continues through June 30, 2019. The annual base rent under the lease is approximately $471,000 per year and is subject to annual increases of approximately 3% per year. In connection with the lease, the Company received tenant improvement allowances totaling $675,690. These lease incentives are being amortized as a reduction of rent expense over the term of the lease. As of September 30, 2014, the unamortized balance of the lease incentives was $498,297, of which $104,905 has been included in other current liabilities and $393,392 has been included in other non-current liabilities. Under the terms of the lease, the Company issued a standby letter of credit to the landlord that allows for one or more draws of up to $210,000 over the term of the lease. The Company believes its existing properties are in good condition and are sufficient and suitable for the conduct of its business. | |||||
Future annual minimum rental payments payable under the lease are as follows: | |||||
Years ending September 30: | |||||
2015 | $ | 495,981 | |||
2016 | 510,861 | ||||
2017 | 526,187 | ||||
2018 | 541,972 | ||||
2019 | 416,959 | ||||
Thereafter | — | ||||
Total | $ | 2,491,960 | |||
Rent expense for the Company’s operating lease for its facility for the years ended September 30, 2014, 2013 and 2012 totaled $368,385, $379,529 and $335,946, respectively. |
Revenue_and_Vendor_Concentrati
Revenue and Vendor Concentrations | 12 Months Ended | |
Sep. 30, 2014 | ||
Risks and Uncertainties [Abstract] | ' | |
Revenue and Vendor Concentrations | ' | |
7 | REVENUE AND VENDOR CONCENTRATIONS | |
Revenue Concentration | ||
For the fiscal year ended September 30, 2014, the Company derived revenue of $5,668,973, or 30% of the Company’s total revenue, from one customer, compared to revenue of $3,607,417, or 24% of the Company’s total revenue, from one customer for the fiscal year ended September 30, 2013. For the fiscal year ended September 30, 2012, the Company derived revenue of $3,787,730 from three customers, with such customers accounting for 15%, 15% and 12%, respectively, of the Company’s total revenue. The corresponding accounts receivable balances of customers from which revenues were in excess of 10% of total revenue were $1,431,163, $588,475 and $675,074 at September 30, 2014, 2013 and 2012, respectively. | ||
The Company’s revenue is derived primarily from the sale by the Company to channel partners, including systems integrators and resellers, and end-users of licenses to sell products covered by the Company’s patented technologies. In most cases, the channel partners purchase the license from the Company after they receive an order from an end-user. The channel partners receive orders from various individual end-users; therefore, the sale of a license to a channel partner may represent sales to multiple end-users. End-users can purchase the Company’s products through more than one channel partner. | ||
Revenues can fluctuate based on the timing of license renewals by channel partners. When a channel partner purchases or renews a license, the Company receives a license fee in consideration for the grant of a license to sell the Company’s products and there are no future payment obligations related to such agreement; therefore, the license fee the Company receives with respect to a particular license renewal in one period does not have a correlation with revenue in future periods. During the last few years, sales of licenses to one or more channel partners have comprised a significant part of the Company’s revenue. This is attributable to the timing of renewals or purchases of licenses and does not represent a dependence on any single channel partner. The Company believes that it is not dependent upon any single channel partner, even those from which revenues were in excess of 10% of the Company’s total revenue in a specific reporting period, and that the loss or termination of the Company’s relationship with any such channel partner would not have a material adverse effect on the Company’s future operations because either the Company or another channel partner could sell the Company’s products to the end-user that had purchased from the channel partner the Company lost. | ||
International sales accounted for approximately 4%, 3% and 5% of the Company’s total revenue for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. The Company sells its products in U.S. currency only. | ||
Vendor Concentration | ||
The Company purchases its integrated software components from multiple third-party software providers at competitive prices. For the fiscal years ended September 30, 2014, 2013 and 2012, the Company did not make purchases from any one vendor comprising 10% or more of the Company’s total purchases. The Company has entered into contractual relationships with some of its vendors; however, the Company does not believe it is substantially dependent upon nor exposed to any significant concentration risk related to purchases from any of its vendors, given the availability of alternative sources for its necessary integrated software components. |
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Sep. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Nature of Operations | ' | |||
Nature of Operations | ||||
Mitek Systems, Inc. (the “Company”) is a mobile solutions provider engaged in the development, sale and service of its proprietary software solutions. | ||||
The Company applies its patented technology in image capture, correction and intelligent data extraction in the mobile financial and business services markets. The Company’s technology allows users to remotely deposit checks, pay bills, transfer credit card balances, open accounts and get insurance quotes by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. The Company’s products use advanced algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions through users’ financial institutions. As of November 28, 2014, the Company’s has been granted 20 patents and it has an additional 23 patent applications pending. | ||||
The Company’s Mobile Deposit® product is software that allows users to remotely deposit a check using their camera-equipped smartphone or tablet. As of September 30, 2014, 3,026 financial institutions have signed agreements to deploy Mobile Deposit®, and 2,521 of these financial institutions have deployed Mobile Deposit® to their customers, including all of the top ten nearly all of the top 50 U.S. retail banks, as ranked by SNL Financial for the second quarter of calendar 2014. The Company’s Mobile Photo Account Opening™ product enables users to open a checking, savings or credit card account by capturing an image of the front and back of their driver’s license with their camera-equipped smartphone or tablet. Other mobile imaging software solutions the Company offers include Mobile Photo Payments, a product that enables users to pay bills by taking a photo of their bill followed by a photo of the check or credit/debit card being used to pay the bill, Mobile Photo Bill Pay®, a mobile bill payment product that allows users to pay their bills using their camera-equipped smartphone or tablet and Mobile Balance Transfer™, a product that allows credit card issuers to provide balance transfer offers and enables users to transfer an existing credit card balance and establish a new credit card account by capturing an image of the user’s current credit card statement. The Company’s mobile imaging software solutions are available for iOS and Android operating systems. | ||||
The Company markets and sells its mobile imaging software solutions through channel partners or directly to enterprise customers that typically purchase licenses based on of the number of transactions or subscribers that use our mobile software. The Company’s mobile imaging software solutions are often embedded in other mobile banking or enterprise applications developed by banks, insurance companies or their partners, and marketed under their own proprietary brands. | ||||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
The financial statements are prepared under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 105-10, Generally Accepted Accounting Principles, in accordance with accounting principles generally accepted in the U.S. (“GAAP”). | ||||
Reclassifications | ' | |||
Reclassifications | ||||
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications do not impact the reported net loss and do not have a material impact on the presentation of the overall financial statements. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards and income taxes. | ||||
Net Loss Per Share | ' | |||
Net Loss Per Share | ||||
The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings Per Share. Basic net income (loss) per share is based on the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share also gives effect to all potentially dilutive securities outstanding during the period, such as options, warrants and restricted stock units (“RSUs”), if dilutive. In a period with a net loss position, potentially dilutive securities are not included in the computation of diluted net loss because to do so would be antidilutive, and the number of shares used to calculate basic and diluted net loss is the same. | ||||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
Revenue from sales of software licenses sold through direct and indirect channels is recognized upon shipment of the related product, if the requirements of FASB ASC Topic 985-605, Software Revenue Recognition (“ASC 985-605”) are met, including evidence of an arrangement, delivery, fixed or determinable fee, collectability and vendor specific objective evidence (“VSOE”) of the fair value of the undelivered element. If the requirements of ASC 985-605 are not met at the date of shipment, revenue is not recognized until such elements are known or resolved. Revenue from customer support services, or maintenance revenue, includes post-contract support and the rights to unspecified upgrades and enhancements. VSOE of fair value for customer support services is determined by reference to the price the customer pays for such element when sold separately; that is, the renewal rate offered to customers. In those instances when objective and reliable evidence of fair value exists for the undelivered items but not for the delivered items, the residual method is used to allocate the arrangement consideration. Under the residual method, the amount of arrangement consideration allocated to the delivered items equals the total arrangement consideration less the aggregate fair value of the undelivered items. Revenue from post-contract customer support is recognized ratably over the term of the contract. Certain customers have agreements that provide for usage fees above fixed minimums. Fixed minimum transaction fees are recognized as revenue ratably over the term of the arrangement. Usage fees above fixed minimums are recognized as revenue when such amounts are reasonably estimable and billable. Revenue from professional services is recognized when such services are delivered. When a software sales arrangement requires professional services related to significant production, modification or customization of software, or when a customer considers professional services essential to the functionality of the software product, revenue is recognized based on predetermined milestone objectives required to complete the project, as those milestone objectives are deemed to be substantive in relation to the work performed. Any expected losses on contracts in progress are recorded in the period in which the losses become probable and reasonably estimable. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
Cash and cash equivalents are defined as highly liquid financial instruments with original maturities of three months or less. A substantial portion of the Company’s cash is deposited with one financial institution. The Company monitors the financial condition of this financial institution and does not believe that funds on deposit are subject to a significant degree of risk. | ||||
Investments | ' | |||
Investments | ||||
Investments consist of corporate notes and bonds, and commercial paper. The Company classifies investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net in the Statements of Operations. No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2014, 2013 and 2012. | ||||
All investments whose maturity or sale is expected within one year are classified as “current” on the balance sheet. All other securities are classified as “long-term” on the balance sheet. | ||||
Fair Value Measurements | ' | |||
Fair Value Measurements | ||||
The carrying amounts of cash equivalents, investments, accounts receivable, accounts payable and other accrued liabilities are considered representative of their respective fair values because of the short-term nature of those instruments. | ||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | |||
Accounts Receivable and Allowance for Doubtful Accounts | ||||
Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. Allowances for doubtful accounts are established based on various factors including credit profiles of the Company’s customers, contractual terms and conditions, historical payments, and current economic trends. The Company reviews its allowances by assessing individual accounts receivable over a specific aging and amount. Accounts receivable are written off on a case-by-case basis, net of any amounts that may be collected. The Company had no write-offs of the allowance for doubtful accounts for the years ended September 30, 2014 and 2013, respectively. | ||||
Deferred Maintenance Fees | ' | |||
Deferred Maintenance Fees | ||||
Deferred maintenance fees consist of capitalized costs associated with software maintenance fees paid to vendors who supply licenses and maintenance for software embedded in the Company’s products that it sells to customers. These software maintenance fees, which are included in other current assets on the balance sheet, are typically billed annually to the Company and are amortized to cost of revenue-maintenance and professional services in the Statements of Operations over the maintenance period, which is typically one year. | ||||
Property and Equipment | ' | |||
Property and Equipment | ||||
Depreciation and amortization of property and equipment are provided using the straight-line method over estimated useful lives ranging from three to five years. Leasehold improvements are amortized over the lease term. Depreciation and amortization of property and equipment totaled $470,697, $323,383 and $140,146 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Included in property and equipment as of September 30, 2014 and 2013 in the table above is equipment of $95,388 purchased under a capital lease. Depreciation expense related to the equipment purchased under the capital lease was $19,078, $19,078 and $17,488 in the fiscal years ended September 30, 2014, 2013 and 2012, respectively, and accumulated depreciation was $55,644 and $36,566 at September 30, 2014 and 2013, respectively. Expenditures for repairs and maintenance are charged to operations. Total repairs and maintenance expenses were $115,792, $97,532 and $57,815 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. | ||||
Long-Lived Assets | ' | |||
Long-Lived Assets | ||||
The Company evaluates the carrying value of long-lived assets, including license agreements and other intangible assets, when events and circumstances indicate that these assets may be impaired or in order to determine whether any revision to the related amortization periods should be made. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each product or asset. If management’s evaluation indicates that the carrying values of these intangible assets were impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company did not record any impairment for the fiscal years ended September 30, 2014, 2013 and 2012. | ||||
Capitalized Software Development Costs | ' | |||
Capitalized Software Development Costs | ||||
Costs incurred for the development of software that will be sold, leased, or otherwise marketed are capitalized when technological feasibility has been established. Software development costs consist primarily of compensation of development personnel and related overhead incurred to develop new products and upgrade and enhance the Company’s current products, as well as fees paid to outside consultants. Capitalization of software development costs ceases and amortization of capitalized software development costs commences when the products are available for general release. For the fiscal years ended September 30, 2014 and 2013, no software development costs were capitalized because the time period and cost incurred between technological feasibility and general release for all software product releases were not material. | ||||
The Company evaluates its capitalized software development costs at each balance sheet date to determine if the unamortized balance related to any given product exceeds the estimated net realizable value of that product. Any such excess is written off through accelerated amortization in the quarter in which it is identified. Determining net realizable value, as defined by FASB ASC Topic 985-20, Accounting for the Costs of Software to Be Sold, Leased or Otherwise Marketed, requires making estimates and judgments in quantifying the appropriate amount to write off, if any. Actual amounts realized from the software products could differ from those estimates. Also, any future changes to the Company’s product portfolio could result in significant increases to its cost of license revenue as a result of the write-off of capitalized software development costs. | ||||
The Company recorded no amortization of software development costs for the fiscal years ended September 30, 2014 and 2013. The Company recorded amortization of software development costs of $91,438 for the fiscal year ended September 30, 2012. The Company records amortization of software development costs as cost of revenue-software in the Statements of Operations. | ||||
Deferred Revenue | ' | |||
Deferred Revenue | ||||
Deferred revenues represent advance payments or billings for software licenses, professional services and maintenance billed in advance of the time we recognize the related revenues. Deferred maintenance revenue represents customer billings, paid up front, generally annually at the beginning of each maintenance period, with revenue recognized ratably over such period. For certain other licensing arrangements, revenue attributable to undelivered elements, including post-contract customer support which typically includes telephone support and the right to receive unspecified upgrades and enhancements of software on a when-and-if-available basis, is based upon the sales price of those elements when sold separately and is recognized ratably on a straight-line basis over the term of the arrangement. | ||||
Guarantees | ' | |||
Guarantees | ||||
In the ordinary course of business, the Company is not subject to potential obligations under guarantees that fall within the scope of FASB ASC Topic 460, Guarantees (“ASC 460”), except for standard indemnification and warranty provisions that are contained within many of the Company’s customer license and service agreements and certain supplier agreements, and give rise only to the disclosure requirements prescribed by ASC 460. Indemnification and warranty provisions contained within the Company’s customer license and service agreements and certain supplier agreements are generally consistent with those prevalent in the Company’s industry. The Company has not historically incurred significant obligations under customer indemnification or warranty provisions and does not expect to incur significant obligations in the future. Accordingly, the Company does not maintain accruals for potential customer indemnification or warranty-related obligations. | ||||
Loss Contingencies | ' | |||
Loss Contingencies | ||||
The Company records its best estimates of a loss contingency when it is considered probable and the amount can be reasonably estimated. When a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending loss contingency and revises its estimates. The Company discloses contingencies if there is at least a reasonable possibility that a loss or an additional loss may have been incurred. The Company’s legal costs are expensed as incurred. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. | ||||
Management evaluates the available evidence about future taxable income and other possible sources of realization of deferred tax assets. The valuation allowance reduces deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred tax assets that more likely than not will be realized. See Note 5 for additional details. | ||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. See Note 5 for additional details. | ||||
Stock-Based Compensation | ' | |||
Stock-Based Compensation | ||||
The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). The Company estimates the fair value of stock options using the Black-Scholes option pricing model. The fair value of stock options granted is recognized as an expense over the requisite service period. Stock-based compensation expense for all share-based payment awards is recognized using the straight-line single-option method. | ||||
The Black-Scholes option pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected life of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. | ||||
Advertising Expense | ' | |||
Advertising Expense | ||||
Advertising costs are expensed as incurred and totaled $99,670, $123,905 and $72,053 during the fiscal years ended September 30, 2014, 2013 and 2012, respectively. | ||||
Research and Development | ' | |||
Research and Development | ||||
Research and development costs are expensed in the period incurred. | ||||
Leases | ' | |||
Leases | ||||
Leases are reviewed and classified as capital or operating at their inception. For leases that contain rent escalations, the Company records the total rent payable on a straight-line basis over the term of the lease. The difference between rent payments and straight-line rent expense is recorded as deferred rent. | ||||
Segment Reporting | ' | |||
Segment Reporting | ||||
FASB ASC Topic 280, Segment Reporting, requires the use of a management approach in identifying segments of an enterprise. During the fiscal year ended September 30, 2014, management determined that the Company has only one operating segment: the development, sale and service of proprietary software solutions related to mobile imaging. | ||||
Comprehensive Loss | ' | |||
Comprehensive Loss | ||||
Comprehensive loss consists of net loss and unrealized gains and losses on available-for-sale securities. | ||||
Recent Accounting Pronouncements | ' | |||
Recent Accounting Pronouncements | ||||
In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers (“ASC 606”), which amends the guidance in former ASC 605, Revenue Recognition. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018. The Company is currently evaluating the impact of the provisions of ASC 606. | ||||
Fair Value Measurements and Disclosures | ' | |||
Fair Value Measurements and Disclosures | ||||
FASB ASC Topic 820, Fair Value Measurements (“ASC 820”) defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which consists of the following: | ||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities; | |||
• | Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Potentially Dilutive Common Shares | ' | ||||||||||||
At September 30, 2014, 2013 and 2012, the following potentially dilutive common shares were excluded from the net loss per share calculation, as they would have been antidilutive: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock options | 2,334,326 | 2,824,964 | 3,512,286 | ||||||||||
Warrants | 6,667 | 6,667 | 6,667 | ||||||||||
Restricted stock units | 1,101,303 | 692,504 | 515,834 | ||||||||||
Total potentially dilutive common shares outstanding | 3,442,296 | 3,524,135 | 4,034,787 | ||||||||||
Computation of Basic and Diluted Net Loss Per Share | ' | ||||||||||||
The computation of basic and diluted net loss per share for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net loss | $ | (5,291,869 | ) | $ | (7,275,706 | ) | $ | (7,839,996 | ) | ||||
Weighted-average common shares and share equivalents outstanding—basic | 30,446,063 | 27,492,670 | 25,124,179 | ||||||||||
Effect of dilutive stock options | — | — | — | ||||||||||
Weighted-average common shares and share equivalents outstanding—diluted | 30,446,063 | 27,492,670 | 25,124,179 | ||||||||||
Net loss per share: | |||||||||||||
Basic | $ | (0.17 | ) | $ | (0.26 | ) | $ | (0.31 | ) | ||||
Diluted | $ | (0.17 | ) | $ | (0.26 | ) | $ | (0.31 | ) | ||||
Summary of Accounts Receivable, Net | ' | ||||||||||||
Accounts receivable, net, is as follows (in thousands): | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Accounts receivable | $ | 2,961,450 | $ | 1,506,627 | |||||||||
Less: Allowance for doubtful accounts | (6,100 | ) | (12,000 | ) | |||||||||
Accounts receivable, net | $ | 2,955,350 | $ | 1,494,627 | |||||||||
Summary of Property and Equipment | ' | ||||||||||||
The following is a summary of property and equipment as of September 30, 2014 and 2013: | |||||||||||||
2014 | 2013 | ||||||||||||
Property and equipment—at cost: | |||||||||||||
Equipment | $ | 1,177,364 | $ | 1,054,868 | |||||||||
Furniture and fixtures | 227,189 | 227,189 | |||||||||||
Leasehold improvements | 980,837 | 975,838 | |||||||||||
2,385,390 | 2,257,895 | ||||||||||||
Less: accumulated depreciation and amortization | (1,092,120 | ) | (628,231 | ) | |||||||||
Total property and equipment, net | $ | 1,293,270 | $ | 1,629,664 | |||||||||
Components of Comprehensive Loss | ' | ||||||||||||
The following table summarizes the components of comprehensive loss for the fiscal years ended September 30, 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net loss | $ | (5,291,869 | ) | $ | (7,275,706 | ) | $ | (7,839,996 | ) | ||||
Other comprehensive loss: | |||||||||||||
Change in unrealized gains (losses) on marketable securities | (9,648 | ) | 2,454 | 9,239 | |||||||||
Total comprehensive loss | $ | (5,301,517 | ) | $ | (7,273,252 | ) | $ | (7,830,757 | ) | ||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Summary of Investments by Type of Security | ' | ||||||||||||||||
The following table summarizes investments by security type as of September 30, 2014 and 2013: | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Cost | Gross | Gross | Fair Market | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Corporate debt securities, short-term | $ | 16,273,996 | $ | 1,472 | $ | (6,298 | ) | $ | 16,269,170 | ||||||||
Corporate debt securities, long-term | 2,075,002 | — | (2,984 | ) | 2,072,018 | ||||||||||||
Total | $ | 18,348,998 | $ | 1,472 | $ | (9,282 | ) | $ | 18,341,188 | ||||||||
September 30, 2013 | |||||||||||||||||
Cost | Gross | Gross | Fair Market | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Corporate debt securities, short-term | $ | 5,729,034 | $ | 2,378 | $ | (540 | ) | $ | 5,730,872 | ||||||||
Corporate debt securities, long-term | — | — | — | — | |||||||||||||
Total | $ | 5,729,034 | $ | 2,378 | $ | (540 | ) | $ | 5,730,872 | ||||||||
Summary of Fair Value of Investments Measured on Recurring Basis | ' | ||||||||||||||||
Based on the fair value hierarchy, all of the Company’s investments were classified as Level 2 at September 30, 2014 and 2013, as represented in the following table: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Short-term investments: | |||||||||||||||||
Corporate debt securities | |||||||||||||||||
Financial | $ | 9,334,140 | $ | 3,411,661 | |||||||||||||
Industrial | 3,980,772 | 1,517,327 | |||||||||||||||
Utility | 756,215 | 401,984 | |||||||||||||||
Commercial paper | |||||||||||||||||
Industrial | — | 399,900 | |||||||||||||||
Financial | 2,198,043 | — | |||||||||||||||
Total short-term investments | $ | 16,269,170 | $ | 5,730,872 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate debt securities | |||||||||||||||||
Financial | $ | 1,564,505 | $ | — | |||||||||||||
Utility | 507,513 | — | |||||||||||||||
Total long-term investments | $ | 2,072,018 | $ | — | |||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Calculations for Stock-Based Compensation Awards | ' | ||||||||||||||||||||||||
The fair value calculations for stock-based compensation awards to employees for the fiscal years ended September 30, 2013 and 2012 were based on the following assumptions: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Risk-free interest rate | 0.18% - 1.20% | 0.35% - 1.06% | |||||||||||||||||||||||
Expected life (years) | 5.3 | 5 | |||||||||||||||||||||||
Expected volatility | 175% | 110% | |||||||||||||||||||||||
Expected dividends | None | None | |||||||||||||||||||||||
Stock-Based Compensation Expense Related to Stock Options and RSUs | ' | ||||||||||||||||||||||||
The following table summarizes stock-based compensation expense related to stock options and RSUs under ASC 718 for the fiscal years ended September 30, 2014, 2013 and 2012, which were allocated as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Sales and marketing | $ | 823,876 | $ | 433,130 | $ | 471,716 | |||||||||||||||||||
Research and development | 675,033 | 617,377 | 592,249 | ||||||||||||||||||||||
General and administrative | 1,945,571 | 1,741,355 | 1,535,893 | ||||||||||||||||||||||
Stock-based compensation expense related to employee stock options included in operating expenses | $ | 3,444,480 | $ | 2,791,862 | $ | 2,599,858 | |||||||||||||||||||
Summary of Vested and Unvested Options, Weighted Average Exercise Price per Share, Weighted Average Remaining Term and Aggregate Intrinsic Value | ' | ||||||||||||||||||||||||
The following table summarizes vested and unvested options, weighted average exercise price per share, weighted average remaining term and aggregate intrinsic value at September 30, 2014: | |||||||||||||||||||||||||
Number of Shares | Weighted Average | Weighted Average | Aggregate Intrinsic | ||||||||||||||||||||||
Exercise Price Per | Remaining | Value | |||||||||||||||||||||||
Share | Contractual Life | ||||||||||||||||||||||||
(in Years) | |||||||||||||||||||||||||
Vested | 1,878,695 | $ | 3.94 | 5 | $ | 1,090,096 | |||||||||||||||||||
Unvested | 455,631 | $ | 4.8 | 7.33 | 8,084 | ||||||||||||||||||||
Total | 2,334,326 | $ | 4.11 | 5.46 | $ | 1,098,180 | |||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||||||
The following table summarizes stock option activity under the Company’s stock option plans during the fiscal years ended September 30, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||||||||||||||
Shares | Exercise Price Per | Remaining | |||||||||||||||||||||||
Share | Contractual Term | ||||||||||||||||||||||||
(in Years) | |||||||||||||||||||||||||
Outstanding, September 30, 2011 | 4,553,904 | $ | 1.34 | 6.15 | |||||||||||||||||||||
Granted | 1,095,750 | $ | 8.54 | ||||||||||||||||||||||
Exercised | (1,812,215 | ) | $ | 0.81 | |||||||||||||||||||||
Cancelled | (325,153 | ) | $ | 6.41 | |||||||||||||||||||||
Outstanding, September 30, 2012 | 3,512,286 | $ | 3.39 | 6.46 | |||||||||||||||||||||
Granted | 651,563 | $ | 3.63 | ||||||||||||||||||||||
Exercised | (1,103,582 | ) | $ | 0.9 | |||||||||||||||||||||
Cancelled | (235,303 | ) | $ | 7.26 | |||||||||||||||||||||
Outstanding, September 30, 2013 | 2,824,964 | $ | 4.09 | 7.29 | |||||||||||||||||||||
Granted | — | $ | — | ||||||||||||||||||||||
Exercised | (108,135 | ) | $ | 1.27 | |||||||||||||||||||||
Cancelled | (382,503 | ) | $ | 4.77 | |||||||||||||||||||||
Outstanding, September 30, 2014 | 2,334,326 | $ | 4.11 | 5.46 | |||||||||||||||||||||
Significant Ranges of Outstanding and Exercisable Options | ' | ||||||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2014: | |||||||||||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | Number of | |||||||||||||||||||
Exercise Prices | Options | Average | Average | Exercisable | Average | Unvested | |||||||||||||||||||
Outstanding | Remaining | Exercise Price | Options | Exercise Price of | Options | ||||||||||||||||||||
Contractual Life | Exercisable | ||||||||||||||||||||||||
(in Years) | Options | ||||||||||||||||||||||||
$0.09 to $0.79 | 336,762 | 5.24 | $ | 0.73 | 336,762 | $ | 0.73 | — | |||||||||||||||||
$0.80 to $1.10 | 350,000 | 1.39 | $ | 0.93 | 350,000 | $ | 0.93 | — | |||||||||||||||||
$2.34 to $2.60 | 726,421 | 6.6 | $ | 2.52 | 491,671 | $ | 2.54 | 234,750 | |||||||||||||||||
$3.33 to $9.97 | 635,000 | 5.74 | $ | 6.33 | 501,023 | $ | 6.74 | 133,977 | |||||||||||||||||
$11.05 to $11.68 | 286,143 | 7.15 | $ | 11.08 | 199,239 | $ | 11.08 | 86,904 | |||||||||||||||||
2,334,326 | 5.46 | $ | 4.11 | 1,878,695 | $ | 3.94 | 455,631 | ||||||||||||||||||
Number of Stock Options Outstanding under Prior Plans | ' | ||||||||||||||||||||||||
The following table summarizes the number of stock options outstanding under the Prior Plans as of September 30, 2014: | |||||||||||||||||||||||||
2000 Stock Option Plan | 206,262 | ||||||||||||||||||||||||
2002 Stock Option Plan | 191,000 | ||||||||||||||||||||||||
2006 Stock Option Plan | 43,000 | ||||||||||||||||||||||||
2010 Stock Option Plan | 1,050,321 | ||||||||||||||||||||||||
Total stock options outstanding under the Prior Plans | 1,490,583 | ||||||||||||||||||||||||
RSU Activity | ' | ||||||||||||||||||||||||
The following table summarizes RSU activity in the fiscal years ended September 30, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Number of | Weighted-average | ||||||||||||||||||||||||
shares | fair value per share | ||||||||||||||||||||||||
Outstanding at September 30, 2011 | 300,000 | $ | 5.12 | ||||||||||||||||||||||
Granted | 255,835 | $ | 8.44 | ||||||||||||||||||||||
Settled | — | — | |||||||||||||||||||||||
Cancelled | (40,001 | ) | 11.05 | ||||||||||||||||||||||
Outstanding at September 30, 2012 | 515,834 | $ | 6.3 | ||||||||||||||||||||||
Granted | 255,000 | $ | 3.15 | ||||||||||||||||||||||
Settled | (50,829 | ) | 7.76 | ||||||||||||||||||||||
Cancelled | (27,501 | ) | $ | 11.05 | |||||||||||||||||||||
Outstanding at September 30, 2013 | 692,504 | $ | 4.85 | ||||||||||||||||||||||
Granted | 625,139 | $ | 4.83 | ||||||||||||||||||||||
Settled | (63,334 | ) | $ | 4.66 | |||||||||||||||||||||
Cancelled | (153,006 | ) | $ | 5.03 | |||||||||||||||||||||
Outstanding at September 30, 2014 | 1,101,303 | $ | 4.71 | ||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Provision (Benefit) | ' | ||||||||||||
For the fiscal years ended September 30, 2014, 2013 and 2012 the income tax provision (benefit) was as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal—current | $ | — | $ | — | $ | (4,808 | ) | ||||||
State—current | 2,226 | 1,076 | 800 | ||||||||||
Total | $ | 2,226 | $ | 1,076 | $ | (4,008 | ) | ||||||
Company's Net Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2014 and 2013 are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Net operating loss carryforwards | $ | 11,401,483 | $ | 10,473,905 | |||||||||
Capitalized research and development costs | — | 134,550 | |||||||||||
Stock based compensation | 1,228,082 | 408,588 | |||||||||||
AMT credit carryforwards | 66,320 | 66,320 | |||||||||||
Other | 250,999 | 186,212 | |||||||||||
Research credit carryforwards | 43,802 | 43,802 | |||||||||||
Total deferred assets | 12,990,686 | 11,313,377 | |||||||||||
Valuation allowance for net deferred tax assets | (12,990,686 | ) | (11,313,377 | ) | |||||||||
Total | $ | — | $ | — | |||||||||
Income Taxes Computed Using Federal Income Tax Rate | ' | ||||||||||||
The difference between the income tax provision (benefit) and income taxes computed using the U.S. federal income tax rate was as follows for the years ended September 30, 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amount computed using statutory rate | $ | (1,798,479 | ) | $ | (2,473,374 | ) | $ | (2,666,961 | ) | ||||
Net change in valuation allowance for net deferred tax assets | 1,677,309 | 1,968,987 | 2,247,615 | ||||||||||
Non-deductible items | 411,473 | 548,839 | 807,533 | ||||||||||
State income tax | (288,077 | ) | (43,376 | ) | (392,195 | ) | |||||||
Income tax provision (benefit) | $ | 2,226 | $ | 1,076 | $ | (4,008 | ) | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Future Annual Minimum Rental Payments Payable | ' | ||||
Future annual minimum rental payments payable under the lease are as follows: | |||||
Years ending September 30: | |||||
2015 | $ | 495,981 | |||
2016 | 510,861 | ||||
2017 | 526,187 | ||||
2018 | 541,972 | ||||
2019 | 416,959 | ||||
Thereafter | — | ||||
Total | $ | 2,491,960 | |||
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | |
Institution | Subsequent Event [Member] | Assets acquired under capital leases [Member] | Assets acquired under capital leases [Member] | Assets acquired under capital leases [Member] | Software and Software Development Costs [Member] | Software and Software Development Costs [Member] | Software and Software Development Costs [Member] | Maximum [Member] | Minimum [Member] | |||
Patents | ||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents granted | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patent applications pending | ' | ' | ' | 23 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of financial institutions signed agreements to deploy Mobile Deposit | 3,026 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of companies deployed Mobile Deposit | 2,521 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of U.S. retail banks and payment processing companies | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short term investments maturity period | 'Three months or less | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments maturity or sale is expected | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred software maintenance fees amortization period | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, estimated useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 | '3 |
Depreciation and amortization of property and equipment total | 470,697 | 323,383 | 140,146 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed assets acquired under capital leases | 2,385,390 | 2,257,895 | ' | ' | 95,388 | 95,388 | ' | ' | ' | ' | ' | ' |
Depreciation expense under capital lease | ' | ' | ' | ' | 19,078 | 19,078 | 17,488 | ' | ' | ' | ' | ' |
Accumulated depreciation | 1,092,120 | 628,231 | ' | ' | 55,644 | 36,566 | ' | ' | ' | ' | ' | ' |
Total repairs and maintenance expenses | 115,792 | 97,532 | 57,815 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Software development costs capitalized | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of software development costs | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 91,438 | ' | ' |
Tax benefit is measured based on the largest benefit | 'Greater than 50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | 99,670 | 123,905 | 72,053 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive gain (loss) | ($7,810) | $1,838 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nature_of_Operations_and_Summa4
Nature of Operations and Summary of Significant Accounting Policies - Potentially Dilutive Common Shares (Detail) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Total potentially dilutive common shares outstanding | 3,442,296 | 3,524,135 | 4,034,787 |
Warrants [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Total potentially dilutive common shares outstanding | 6,667 | 6,667 | 6,667 |
Restricted stock units [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Total potentially dilutive common shares outstanding | 1,101,303 | 692,504 | 515,834 |
Stock options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Total potentially dilutive common shares outstanding | 2,334,326 | 2,824,964 | 3,512,286 |
Nature_of_Operations_and_Summa5
Nature of Operations and Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Loss Per Share (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share, Basic and Diluted [Abstract] | ' | ' | ' |
Net loss | ($5,291,869) | ($7,275,706) | ($7,839,996) |
Weighted-average common shares and share equivalents outstanding-basic | 30,446,063 | 27,492,670 | 25,124,179 |
Effect of dilutive stock options | 0 | 0 | 0 |
Weighted-average common shares and share equivalents outstanding-diluted | 30,446,063 | 27,492,670 | 25,124,179 |
Net loss per share - Basic | ($0.17) | ($0.26) | ($0.31) |
Net loss per share - Diluted | ($0.17) | ($0.26) | ($0.31) |
Nature_of_Operations_and_Summa6
Nature of Operations and Summary of Significant Accounting Policies - Summary of Accounts Receivable (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Receivables [Abstract] | ' | ' |
Accounts receivable | $2,961,450 | $1,506,627 |
Less: Allowance for doubtful accounts | -6,100 | -12,000 |
Accounts receivable, net | $2,955,350 | $1,494,627 |
Nature_of_Operations_and_Summa7
Nature of Operations and Summary of Significant Accounting Policies - Summary of Property and Equipment (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $2,385,390 | $2,257,895 |
Less: accumulated depreciation and amortization | -1,092,120 | -628,231 |
Total property and equipment, net | 1,293,270 | 1,629,664 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 1,177,364 | 1,054,868 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 227,189 | 227,189 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $980,837 | $975,838 |
Nature_of_Operations_and_Summa8
Nature of Operations and Summary of Significant Accounting Policies - Components of Comprehensive Loss (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ' | ' |
Net loss | ($5,291,869) | ($7,275,706) | ($7,839,996) |
Other comprehensive loss: | ' | ' | ' |
Change in unrealized gains (losses) on marketable securities | -9,648 | 2,454 | 9,239 |
Total comprehensive loss | ($5,301,517) | ($7,273,252) | ($7,830,757) |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Maturity of short-term investments | 'Greater than 90 days and less than one year | 'Greater than 90 days and less than one year | ' |
Maturity of long-term investments | 'Greater than one year | 'Greater than one year | ' |
Other-than-temporary impairment charges recognized | $0 | $0 | $0 |
Investments_Summary_of_Investm
Investments - Summary of Investments by Type of Security (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $18,348,998 | $5,729,034 |
Gross Unrealized Gains | 1,472 | 2,378 |
Gross Unrealized Losses | -9,282 | -540 |
Fair Market Value | 18,341,188 | 5,730,872 |
Corporate debt securities [Member] | Short-term [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 16,273,996 | 5,729,034 |
Gross Unrealized Gains | 1,472 | 2,378 |
Gross Unrealized Losses | -6,298 | -540 |
Fair Market Value | 16,269,170 | 5,730,872 |
Corporate debt securities [Member] | Long-term [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 2,075,002 | ' |
Gross Unrealized Losses | -2,984 | ' |
Fair Market Value | $2,072,018 | ' |
Investments_Summary_of_Fair_Va
Investments - Summary of Fair Value of Investments Measured on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | $18,341,188 | $5,730,872 |
Short-term Investments [Member] | Recurring [Member] | Level-2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | 16,269,170 | 5,730,872 |
Short-term Investments [Member] | Recurring [Member] | Level-2 [Member] | Commercial paper [Member] | Financial [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | 2,198,043 | ' |
Short-term Investments [Member] | Recurring [Member] | Level-2 [Member] | Commercial paper [Member] | Industrial [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | ' | 399,900 |
Short-term Investments [Member] | Recurring [Member] | Level-2 [Member] | Corporate debt securities [Member] | Financial [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | 9,334,140 | 3,411,661 |
Short-term Investments [Member] | Recurring [Member] | Level-2 [Member] | Corporate debt securities [Member] | Industrial [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | 3,980,772 | 1,517,327 |
Short-term Investments [Member] | Recurring [Member] | Level-2 [Member] | Corporate debt securities [Member] | Utility [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | 756,215 | 401,984 |
Long-term Investments [Member] | Recurring [Member] | Level-2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | 2,072,018 | ' |
Long-term Investments [Member] | Recurring [Member] | Level-2 [Member] | Financial [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | 1,564,505 | ' |
Long-term Investments [Member] | Recurring [Member] | Level-2 [Member] | Utility [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis, total | $507,513 | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (Credit Facility [Member], USD $) | 12 Months Ended | |
Sep. 30, 2014 | Jan. 31, 2013 | |
Credit Facility [Member] | ' | ' |
Debt [Line Items] | ' | ' |
Maximum borrowing capacity | ' | $400,000 |
Loan agreement expiration date | 31-Jan-13 | ' |
Outstanding credit facility | ' | $0 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2009 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2009 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 19, 2014 | Feb. 19, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
William Blair & Company, L.L.C [Member] | William Blair & Company, L.L.C [Member] | William Blair & Company, L.L.C [Member] | Warrants [Member] | Warrants [Member] | Convertible debentures [Member] | 2012 Plan [Member] | Minimum [Member] | Maximum [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted stock units [Member] | Restricted stock units [Member] | Restricted stock units [Member] | Outstanding Restricted Stock [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | ||||||
Warrants [Member] | 2012 Plan [Member] | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares sold | 30,521,080 | 30,361,442 | ' | ' | ' | ' | ' | 2,857,142 | ' | 337,501 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, price per share | ' | ' | ' | ' | ' | ' | ' | $5.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common stock | ' | $16,004,797 | ' | ' | ' | $13,877,447 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriting discounts and commissions and other offering expenses | ' | ' | ' | ' | ' | ' | ' | 1,122,549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares of common stock to cover over allotments | ' | ' | ' | ' | ' | 428,571 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriter option exercised | ' | ' | ' | ' | ' | ' | 2,127,350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other offering expenses | 0 | 1,245,196 | 0 | ' | ' | ' | 122,647 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock outstanding | 30,521,080 | 30,361,442 | ' | ' | ' | ' | ' | ' | 6,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued exercise price | ' | ' | ' | ' | $0.91 | ' | ' | ' | $0.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants expire date | ' | ' | ' | ' | ' | ' | ' | ' | '2014-12 | ' | '2014-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,834 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated average forfeiture rate | 13.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefits received related to stock option exercises | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized compensation expense | 3,444,480 | 2,791,862 | 2,599,858 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,151,689 | 2,023,023 | 2,070,786 |
Unrecognized compensation expense | 1,659,197 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,219,521 | ' | ' | ' | ' | ' | ' |
Weighted average period for unrecognized compensation expense expected to be recognized | '1 year 6 months 29 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 11 months 5 days | ' | ' | ' |
Total intrinsic value of options exercised | 472,327 | 3,832,374 | 14,215,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average exercise price, outstanding shares | $4.11 | $4.09 | $3.39 | $1.34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.71 | $4.85 | $6.30 | $5.12 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options granted to employees | 0 | 651,563 | 1,095,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 625,139 | 255,000 | 255,835 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for issuance under stock holders incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 843,743 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding | 2,334,326 | 2,824,964 | 3,512,286 | 4,553,904 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,101,303 | 692,504 | 515,834 | 300,000 | 536,303 | ' | ' | ' | ' | ' | ' | ' |
Number of common stock reserved for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,776,678 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for issuance of restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Restricted stock units vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Recognized stock-based compensation expense related to the outstanding RSUs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,292,791 | $768,839 | $529,072 | ' | ' | ' | ' |
Stockholders_Equity_Fair_Value
Stockholders' Equity - Fair Value Calculations for Stock-Based Compensation Awards (Detail) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Equity [Abstract] | ' | ' |
Risk-free interest rate, Minimum | 0.18% | 0.35% |
Risk-free interest rate, Maximum | 1.20% | 1.06% |
Expected life (years) | '5 years 3 months 18 days | '5 years |
Expected volatility | 175.00% | 110.00% |
Expected dividends | 0.00% | 0.00% |
Stockholders_Equity_StockBased
Stockholders' Equity - Stock-Based Compensation Expense Related to Stock Options and RSUs (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense related to employee stock options included in operating expenses | $3,444,480 | $2,791,862 | $2,599,858 |
Sales and marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense related to employee stock options included in operating expenses | 823,876 | 433,130 | 471,716 |
Research and development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense related to employee stock options included in operating expenses | 675,033 | 617,377 | 592,249 |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense related to employee stock options included in operating expenses | $1,945,571 | $1,741,355 | $1,535,893 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Vested and Unvested Options, Weighted Average Exercise Price per Share, Weighted Average Remaining Term and Aggregate Intrinsic Value (Detail) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Number of Shares, Vested | 1,878,695 |
Number of Shares, Unvested | 455,631 |
Number of Shares, Total | 2,334,326 |
Weighted Average Exercise Price Per Share, Vested | $3.94 |
Weighted Average Exercise Price Per Share, Unvested | $4.80 |
Weighted Average Exercise Price Per Share, Total | $4.11 |
Weighted Average Remaining Contractual Life, Vested | '5 years |
Weighted Average Remaining Contractual Life, Unvested | '7 years 3 months 29 days |
Weighted Average Remaining Contractual Life, Total | '5 years 5 months 16 days |
Aggregate Intrinsic Value, Vested | $1,090,096 |
Aggregate Intrinsic Value, Unvested | 8,084 |
Aggregate Intrinsic Value, Total | $1,098,180 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity - Stock Option Activity (Detail) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Number of Shares, Beginning balance | 2,824,964 | 3,512,286 | 4,553,904 | ' |
Number of Shares, Granted | 0 | 651,563 | 1,095,750 | ' |
Number of Shares, Exercised | -108,135 | -1,103,582 | -1,812,215 | ' |
Number of Shares, Cancelled | -382,503 | -235,303 | -325,153 | ' |
Number of Shares, Ending balance | 2,334,326 | 2,824,964 | 3,512,286 | 4,553,904 |
Weighted Average Exercise Price Per Share, Beginning balance | $4.09 | $3.39 | $1.34 | ' |
Weighted Average Exercise Price Per Share, Granted | ' | $3.63 | $8.54 | ' |
Weighted Average Exercise Price Per Share, Exercised | $1.27 | $0.90 | $0.81 | ' |
Weighted Average Exercise Price Per Share, Cancelled | $4.77 | $7.26 | $6.41 | ' |
Weighted Average Exercise Price Per Share, Ending balance | $4.11 | $4.09 | $3.39 | $1.34 |
Weighted Average Remaining Contractual Term, Beginning balance | '5 years 5 months 16 days | '7 years 3 months 15 days | '6 years 5 months 16 days | '6 years 1 month 24 days |
Stockholders_Equity_Significan
Stockholders' Equity - Significant Ranges of Outstanding and Exercisable Options (Detail) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Options Outstanding | 2,334,326 |
Weighted Average Remaining Contractual Life (in Years) | '5 years 5 months 16 days |
Weighted Average Exercise Price | $4.11 |
Number of Exercisable Options | 1,878,695 |
Weighted Average Exercise Price of Exercisable Options | $3.94 |
Number of Unvested Options | 455,631 |
$ 0.09 to $0.79 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $0.09 |
Range of Exercise Prices, Upper Range | $0.79 |
Number of Options Outstanding | 336,762 |
Weighted Average Remaining Contractual Life (in Years) | '5 years 2 months 27 days |
Weighted Average Exercise Price | $0.73 |
Number of Exercisable Options | 336,762 |
Weighted Average Exercise Price of Exercisable Options | $0.73 |
$ 0.80 to $1.10 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $0.80 |
Range of Exercise Prices, Upper Range | $1.10 |
Number of Options Outstanding | 350,000 |
Weighted Average Remaining Contractual Life (in Years) | '1 year 4 months 21 days |
Weighted Average Exercise Price | $0.93 |
Number of Exercisable Options | 350,000 |
Weighted Average Exercise Price of Exercisable Options | $0.93 |
$ 2.34 to $2.60 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $2.34 |
Range of Exercise Prices, Upper Range | $2.60 |
Number of Options Outstanding | 726,421 |
Weighted Average Remaining Contractual Life (in Years) | '6 years 7 months 6 days |
Weighted Average Exercise Price | $2.52 |
Number of Exercisable Options | 491,671 |
Weighted Average Exercise Price of Exercisable Options | $2.54 |
Number of Unvested Options | 234,750 |
$ 3.33 to $9.97 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $3.33 |
Range of Exercise Prices, Upper Range | $9.97 |
Number of Options Outstanding | 635,000 |
Weighted Average Remaining Contractual Life (in Years) | '5 years 8 months 27 days |
Weighted Average Exercise Price | $6.33 |
Number of Exercisable Options | 501,023 |
Weighted Average Exercise Price of Exercisable Options | $6.74 |
Number of Unvested Options | 133,977 |
$11.05 to $11.68 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $11.05 |
Range of Exercise Prices, Upper Range | $11.68 |
Number of Options Outstanding | 286,143 |
Weighted Average Remaining Contractual Life (in Years) | '7 years 1 month 24 days |
Weighted Average Exercise Price | $11.08 |
Number of Exercisable Options | 199,239 |
Weighted Average Exercise Price of Exercisable Options | $11.08 |
Number of Unvested Options | 86,904 |
Stockholders_Equity_Number_of_
Stockholders' Equity - Number of Stock Options Outstanding under Prior Plans (Detail) | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding | 1,490,583 |
2000 Stock Option Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding | 206,262 |
2002 Stock Option Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding | 191,000 |
2006 Stock Option Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding | 43,000 |
2010 Stock Option Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding | 1,050,321 |
Stockholders_Equity_RSU_Activi
Stockholders' Equity - RSU Activity (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Beginning balance | 2,824,964 | 3,512,286 | 4,553,904 |
Number of Shares, Granted | 0 | 651,563 | 1,095,750 |
Number of Shares, Settled | -108,135 | -1,103,582 | -1,812,215 |
Number of Shares, Cancelled | -382,503 | -235,303 | -325,153 |
Number of Shares, Ending balance | 2,334,326 | 2,824,964 | 3,512,286 |
Weighted Average Exercise Price Per Share, Beginning balance | $4.09 | $3.39 | $1.34 |
Weighted Average Exercise Price Per Share, Granted | ' | $3.63 | $8.54 |
Weighted Average Exercise Price Per Share, Settled | $1.27 | $0.90 | $0.81 |
Weighted Average Exercise Price Per Share, Cancelled | $4.77 | $7.26 | $6.41 |
Weighted Average Exercise Price Per Share, Ending balance | $4.11 | $4.09 | $3.39 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Beginning balance | 692,504 | 515,834 | 300,000 |
Number of Shares, Granted | 625,139 | 255,000 | 255,835 |
Number of Shares, Settled | -63,334 | -50,829 | ' |
Number of Shares, Cancelled | -153,006 | -27,501 | -40,001 |
Number of Shares, Ending balance | 1,101,303 | 692,504 | 515,834 |
Weighted Average Exercise Price Per Share, Beginning balance | $4.85 | $6.30 | $5.12 |
Weighted Average Exercise Price Per Share, Granted | $4.83 | $3.15 | $8.44 |
Weighted Average Exercise Price Per Share, Settled | $4.66 | $7.76 | ' |
Weighted Average Exercise Price Per Share, Cancelled | $5.03 | $11.05 | $11.05 |
Weighted Average Exercise Price Per Share, Ending balance | $4.71 | $4.85 | $6.30 |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal-current | ' | ' | ($4,808) |
State-current | 2,226 | 1,076 | 800 |
Total | $2,226 | $1,076 | ($4,008) |
Income_Taxes_Companys_Net_Defe
Income Taxes - Company's Net Deferred Tax Assets and Liabilities (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Deferred tax assets (liabilities): | ' | ' |
Net operating loss carryforwards | $11,401,483 | $10,473,905 |
Capitalized research and development costs | ' | 134,550 |
Stock based compensation | 1,228,082 | 408,588 |
AMT credit carryforwards | 66,320 | 66,320 |
Other | 250,999 | 186,212 |
Research credit carryforwards | 43,802 | 43,802 |
Total deferred assets | 12,990,686 | 11,313,377 |
Valuation allowance for net deferred tax assets | -12,990,686 | -11,313,377 |
Total | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Line Items] | ' | ' |
Net change in total valuation allowance | $1,677,309 | $1,968,988 |
Operating loss carryforwards, expiration start year | '2018 | ' |
Net operating loss carryforwards will begin to expire | '2014 | ' |
Research and development credits expiry period beginning year | '2023 | ' |
Net operating loss carryforwards for state purposes | 37,399,784 | ' |
Accrued interest | 0 | ' |
Domestic [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Net operating loss carryforwards for state purposes | 66,320 | ' |
Research and development credit carryforwards | 21,963 | ' |
Stock Option [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Federal and state net operating losses | 47,885,589 | ' |
Research and development credit [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Investment credit carryforwards | 17,654,877 | ' |
Manufacturers' investment credit [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Investment credit carryforwards | $29,306 | ' |
Income_Taxes_Income_Taxes_Comp
Income Taxes - Income Taxes Computed Using Federal Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Amount computed using statutory rate | ($1,798,479) | ($2,473,374) | ($2,666,961) |
Net change in valuation allowance for net deferred tax assets | 1,677,309 | 1,968,987 | 2,247,615 |
Non-deductible items | 411,473 | 548,839 | 807,533 |
State income tax | -288,077 | -43,376 | -392,195 |
Income tax provision (benefit) | $2,226 | $1,076 | ($4,008) |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 12, 2012 | Jan. 11, 2013 | Sep. 26, 2012 | |
sqft | Other current liabilities [Member] | Other non-current liabilities [Member] | Standby letter of credit [Member] | USAA [Member] | Top Image Systems Ltd. [Member] | Top Image Systems Ltd. [Member] | |||
Patents | Patents | Patents | |||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents allegedly infringed | ' | ' | ' | ' | ' | ' | 5 | 6 | 5 |
Amended office space subject to the lease | 22,523 | ' | ' | ' | ' | ' | ' | ' | ' |
Increased amount of Company's annual base rent | $471,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Increased percentage of Company's annual base rent | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Tenant improvement allowances | 675,690 | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized lease incentives | 498,297 | ' | ' | 104,905 | 393,392 | ' | ' | ' | ' |
Standby letter of credit to the landlord | ' | ' | ' | ' | ' | 210,000 | ' | ' | ' |
Rent expense for the Company's operating lease | $368,385 | $379,529 | $335,946 | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Annual Minimum Rental Payments Payable (Detail) (USD $) | Sep. 30, 2014 |
Leases [Abstract] | ' |
2015 | $495,981 |
2016 | 510,861 |
2017 | 526,187 |
2018 | 541,972 |
2019 | 416,959 |
Thereafter | 0 |
Total | $2,491,960 |
Revenue_and_Vendor_Concentrati1
Revenue and Vendor Concentrations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue earned | $19,150,345 | $14,803,185 | $9,092,683 |
Accounts receivable balances | 1,431,163 | 588,475 | 675,074 |
One Customer [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue earned | 5,668,973 | 3,607,417 | ' |
Three customers [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue earned | ' | ' | $3,787,730 |
Sales Revenue Net [Member] | Customer [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue, percentage | 10.00% | 10.00% | 10.00% |
Sales Revenue Net [Member] | Customer One [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue, percentage | 30.00% | 24.00% | 15.00% |
Sales Revenue Net [Member] | Customer Two [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue, percentage | ' | ' | 15.00% |
Sales Revenue Net [Member] | Customer Three [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue, percentage | ' | ' | 12.00% |
Sales Revenue Net [Member] | Channel partner [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue, percentage | 10.00% | ' | ' |
Sales Revenue Net [Member] | International sales [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Total revenue, percentage | 4.00% | 3.00% | 5.00% |