Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MITK | |
Entity Registrant Name | MITEK SYSTEMS INC | |
Entity Central Index Key | 807,863 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 2,730,826 | $ 7,766,590 |
Short-term investments | 21,222,669 | 16,269,170 |
Accounts receivable, net | 3,807,947 | 2,955,350 |
Other current assets | 832,341 | 704,409 |
Total current assets | 28,593,783 | 27,695,519 |
Long-term investments | 763,005 | 2,072,018 |
Property and equipment, net | 1,065,633 | 1,293,270 |
Intangible assets, net | 3,546,343 | |
Goodwill | 2,882,959 | 0 |
Other non-current assets | 92,049 | 42,049 |
Total assets | 36,943,772 | 31,102,856 |
Current liabilities: | ||
Accounts payable | 2,341,468 | 1,792,267 |
Accrued payroll and related taxes | 1,460,841 | 1,434,913 |
Deferred revenue, current portion | 3,674,946 | 2,826,670 |
Other current liabilities | 295,375 | 157,649 |
Total current liabilities | 7,772,630 | 6,211,499 |
Deferred revenue, non-current portion | 255,750 | 311,225 |
Other non-current liabilities | 751,955 | 638,099 |
Total liabilities | $ 8,780,335 | $ 7,160,823 |
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 shares authorized, 30,855,511 and 30,521,080 issued and outstanding, respectively | $ 30,856 | $ 30,521 |
Additional paid-in capital | 62,603,445 | 59,946,288 |
Accumulated other comprehensive gain (loss) | (14,689) | (7,810) |
Accumulated deficit | (34,456,175) | (36,026,966) |
Total stockholders’ equity | 28,163,437 | 23,942,033 |
Total liabilities and stockholders’ equity | $ 36,943,772 | $ 31,102,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Sep. 30, 2014 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 30,855,511 | 30,521,080 |
Common stock, shares outstanding | 30,855,511 | 30,521,080 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue | ||||
Software | $ 4,675,096 | $ 3,176,686 | $ 12,414,627 | $ 9,468,663 |
Services | 1,764,899 | 1,483,038 | 5,087,017 | 4,137,723 |
Total revenue | 6,439,995 | 4,659,724 | 17,501,644 | 13,606,386 |
Operating costs and expenses | ||||
Cost of revenue-software | 265,511 | 293,877 | 704,667 | 787,544 |
Cost of revenue-services | 325,819 | 313,709 | 941,718 | 839,953 |
Selling and marketing | 1,645,770 | 1,810,084 | 4,512,479 | 5,607,559 |
Research and development | 1,353,285 | 1,589,521 | 3,896,255 | 4,745,723 |
General and administrative | 1,804,025 | 2,302,973 | 5,700,453 | 6,968,419 |
Acquisition-related costs and expenses | 736,172 | 816,291 | ||
Total operating costs and expenses | 6,130,582 | 6,310,164 | 16,571,863 | 18,949,198 |
Operating income (loss) | 309,413 | (1,650,440) | 929,781 | (5,342,812) |
Other income (expense), net | ||||
Interest and other expense | (342) | (1,545) | (2,511) | (4,821) |
Interest and other income | 30,101 | 19,479 | 68,629 | 55,940 |
Total other income (expense), net | 29,759 | 17,934 | 66,118 | 51,119 |
Income (loss) before income taxes | 339,172 | (1,632,506) | 995,899 | (5,291,693) |
Income tax benefit (provision) | 577,789 | (95) | 574,892 | (2,226) |
Net income (loss) | $ 916,961 | $ (1,632,601) | $ 1,570,791 | $ (5,293,919) |
Net income (loss) per share – basic | $ 0.03 | $ (0.05) | $ 0.05 | $ (0.17) |
Net income (loss) per share – diluted | $ 0.03 | $ (0.05) | $ 0.05 | $ (0.17) |
Shares used in calculating net income (loss) per share – basic | 30,764,694 | 30,481,168 | 30,704,250 | 30,451,058 |
Shares used in calculating net income (loss) per share – diluted | 31,645,696 | 30,481,168 | 31,389,569 | 30,451,058 |
Other comprehensive income (loss): | ||||
Net income (loss) | $ 916,961 | $ (1,632,601) | $ 1,570,791 | $ (5,293,919) |
Foreign currency translation adjustment | (608) | (608) | ||
Unrealized gain (loss) on investments | (416) | (4,948) | (6,271) | 897 |
Other comprehensive income (loss) | $ 915,937 | $ (1,637,549) | $ 1,563,912 | $ (5,293,022) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income (loss) | $ 1,570,791 | $ (5,293,919) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 2,545,324 | 2,667,969 |
Amortization of intangible assets | 23,657 | |
Depreciation and amortization | 322,147 | 355,320 |
Accretion and amortization on debt securities | 314,425 | 300,724 |
Provision (recoveries) for bad debt | 8,500 | (3,200) |
Changes in assets and liabilities: | ||
Accounts receivable | (432,899) | (1,021,778) |
Other assets | (444,422) | (169,498) |
Accounts payable | 351,897 | (281,531) |
Accrued payroll and related taxes | (118,740) | 131,238 |
Deferred revenue | 670,729 | 1,116,999 |
Deferred taxes | (634,930) | |
Other liabilities | 13,922 | (110,206) |
Net cash provided by (used in) operating activities | 4,190,401 | (2,307,882) |
Investing activities: | ||
Purchases of investments | (21,804,733) | (20,691,725) |
Sales and maturities of investments | 17,956,088 | 8,933,624 |
Acquisition, net of cash acquired | (5,433,235) | |
Purchases of property and equipment | (52,318) | (132,199) |
Net cash used in investing activities | (9,334,198) | (11,890,300) |
Financing activities: | ||
Proceeds from exercise of stock options | 124,626 | 58,834 |
Principal payments on capital lease obligations | (15,612) | (13,982) |
Net cash provided by financing activities | 109,014 | 44,852 |
Foreign currency effect on cash and cash equivalents | (981) | |
Net decrease in cash and cash equivalents | (5,035,764) | (14,153,330) |
Cash and cash equivalents at beginning of period | 7,766,590 | 23,294,456 |
Cash and cash equivalents at end of period | 2,730,826 | 9,141,126 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 3,144 | 4,773 |
Cash paid for income taxes | 2,897 | 2,226 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Settlement of note receivable as consideration for business acquisition | 250,000 | |
Unrealized holding (loss) gain on available-for-sale investments | $ (6,271) | 897 |
Cashless settlement of restricted stock units | 15 | |
Cashless exercise of stock options | $ 3 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2015 | |
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 engaged in the development, sale and service of its proprietary software solutions related to mobile capture and identity authentication. 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 June 30, 2015, the Company has been granted 21 patents and has an additional 21 patent applications pending. The Company’s products enable deposits, confirm identity and accelerate payments for mobile transactions. Each product utilizes the Company’s proprietary MiSnap ™ Deposit The Company’s Mobile Deposit ® ™ ® ® ™ ® Identity The Company’s identity offerings are designed to optimize the mobile channel for customer acquisition safely and securely. Photo Fill ™ ™ Payment The Company’s mobile photo payment solutions enable mobile bill payment for financial institutions and organizations that bill consumers directly. Mobile Photo Bill Pay ® ™ Mobile Photo Balance Transfer ™ Developer Program The Mitek Developers program extends use of the Company’s mobile capture SDK and Mobile Imaging Platform ™ Distribution Model The Company delivers its mobile capture software solutions on-premise as well as in the cloud and markets and sells these solutions through channel partners or directly to enterprise customers. The Company’s mobile capture software solutions are often embedded in mobile banking or enterprise applications developed by banks, insurance companies or their partners, and marketed under their own proprietary brands. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company as of June 30, 2015 have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all information and footnote disclosures required by accounting principles generally accepted in the U.S. (“GAAP”). The results of IDchecker’s operations from June 17, 2015 through June 30, 2015 are included in the Company’s consolidated financial statements. Results for the three and nine months ended June 30, 2015 are not necessarily indicative of results for any other interim period or for a full year. P rinciples of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Foreign Currency The Company has foreign subsidiaries that operate and sell its products and services in various countries and jurisdictions around the world. As a result, the Company is exposed to foreign currency exchange risks. For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollars equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive income in the consolidated balance sheet. The Company recorded net losses resulting from foreign exchange translation of $608 for the three months and nine months ended June 30, 2015. There were no foreign exchange translation gains or losses recorded in fiscal 2014. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications do not impact the reported net loss for such periods 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 and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual future 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, fair value of assets and liabilities acquired, impairment of goodwill, useful lives of intangible assets and income taxes. Goodwill and Intangible Assets The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during the fourth quarter or more often if and when circumstances indicate that goodwill may not be recoverable. Intangible assets are amortized over their useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. The carrying amounts of these assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. The carrying amount of such assets is reduced to fair value if the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets. Net Income (Loss) Per Share The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share For the three and nine months ended June 30, 2015 and 2014, the following potentially dilutive common shares were excluded from the calculation of net income (loss) per share, as they would have been antidilutive: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Stock options 2,288,077 2,616,121 2,316,232 2,616,121 Restricted stock units 330,684 1,212,292 408,869 1,212,292 Warrants - 6,667 - 6,667 Total potentially dilutive common shares outstanding 2,618,761 3,835,080 2,725,101 3,835,080 The calculation of basic and diluted net income (loss) per share is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Net income (loss) $ 916,961 $ (1,632,601 ) $ 1,570,791 $ (5,293,919 ) Weighted-average common shares outstanding: Basic 30,764,694 30,481,168 30,704,250 30,451,058 Diluted 31,645,696 30,481,168 31,389,569 30,451,058 Net income (loss) per share: Basic 0.03 (0.05 ) 0.05 (0.17 ) Diluted 0.03 (0.05 ) 0.05 (0.17 ) 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 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. 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 maintained an allowance for doubtful accounts of $14,600 and $6,100 as of June 30, 2015 and September 30, 2014, respectively. 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 three and nine months ended June 30, 2015 and 2014, no software development costs were capitalized because the time period and costs incurred between technological feasibility and general release for all software product releases were not material or were not realizable. 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 Contingencies Fair Value of Equity Instruments The fair value of equity instruments involves significant estimates based on underlying assumptions made by management. The fair value for purchase rights under the Company’s equity plans is measured at the grant date using a Black-Scholes valuation model, which involves estimates of stock volatility, expected life of the instruments and other assumptions, and using the closing price of the Company’s common stock on the grant date for RSUs. The fair value of stock-based awards is recognized as an expense over the respective terms of the awards. Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the tax basis of such assets and liabilities. The Company maintains a valuation allowance against its deferred tax assets due to the uncertainty regarding the future realization of such assets, which is based on historical taxable income, projected future taxable income and the expected timing of the reversals of existing temporary differences. Until such time as the Company can demonstrate that it will no longer incur losses, or if the Company is unable to generate sufficient future taxable income, it could be required to maintain the valuation allowance against its deferred tax assets. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss), unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. Included on the balance sheet at June 30, 2015 is an accumulated other comprehensive loss of $14,689, compared to an accumulated other comprehensive loss of $7,810 at September 30, 2014, related to the Company’s available-for-sale securities and foreign currency translation adjustments. Recent Accounting Pronouncements In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers Revenue Recognition |
Business Combination
Business Combination | 9 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination | 2. BUSINESS COMBINATION On June 17, 2015, the Company completed the acquisition (the “Acquisition”) of IDC NL, a company incorporated under the laws of the Netherlands, and IDC, Inc., a California corporation and wholly owned subsidiary of IDC NL, pursuant to a Share Purchase Agreement (the “Share Purchase Agreement”) by and among the Company, IDC NL, ID Checker Holding B.V. (“Parent”), Stichting Administratiekantoor OPID (together with Parent, the “Sellers”), and the other individuals specified therein. IDchecker is a provider of cloud-based identification document verification services. As a result of the Acquisition, IDC NL and IDC, Inc. each became wholly owned subsidiaries of the Company and the transaction has been accounted for as an acquisition of a business. Pursuant to the terms of the Share Purchase Agreement, the Company acquired all of the issued and outstanding shares of IDC NL and IDC Inc. At the closing of the Acquisition, the Company paid a purchase price of $5,855,000, which consists of (i) a cash payment to the Sellers of $5,600,000, subject to adjustments for transaction expenses, indebtedness, and working capital adjustments (the “Cash Payment”) and (ii) the forgiveness of the outstanding balance of approximately $255,000 on a promissory note issued by the Company to Parent. In addition, approximately $2,745,000 in shares of the Company’s common stock (the “Closing Shares”), par value $0.001 per share (“Common Stock”), or 712,790 shares, were issued to the Sellers, and subject to the achievement of certain revenue and net income targets by IDchecker for the nine-month period ending on September 30, 2015, and the twelve-month period ending on September 30, 2016 (each, an “Earnout Period”), the Company will issue to the Sellers up to an aggregate of $2,000,000 in shares of Common Stock (the “Earnout Shares”). If the revenue or net income achieved by IDchecker during an Earnout Period is less than the applicable target but equal to or greater than 80% of such target, the Sellers will receive a prorated amount of Earnout Shares. Vesting of both the Closing Shares and Earnout Shares (if any) is subject to the continued employment of the founders of IDchecker and such shares are being accounted for as compensation for future services in accordance with ASC 718 Compensation – Stock Compensation. For additional information regarding the Closing Shares and Earnout Shares, see Note 5 to these consolidated financial statements. Upon the closing of the Acquisition, the Company deposited $1,820,000 of the Cash Payment and 20% of the Closing Shares into an escrow fund to serve as collateral and partial security for working capital adjustments and certain indemnification rights. To the extent any Earnout Shares are issued to the Sellers, 20% of such Earnout Shares will be placed in the escrow fund. The escrow fund will be maintained for up to 24 months following the last issuance of Earnout Shares or until such earlier time as the escrow fund is exhausted. The purchase price is subject to a post-closing adjustment in net working capital as provided in the Stock Purchase Agreement. The results of IDchecker’s operations from June 17, 2015 through June 30, 2015 are included in the Company’s consolidated financial statements. For the period from June 17, 2015 to June 30, 2015, IDchecker contributed revenue and earnings of $120,765 and $35,093, respectively. The Company recorded $736,172 and $816,291 of transaction-related costs and expenses in operating expenses in the consolidated statements of operations for the three and nine months ended June 30, 2015, respectively. The following unaudited pro forma financial information is presented as if the Acquisition had taken place at the beginning of each of the periods presented and should not be taken as representative of the Company’s future consolidated results of operations. The following unaudited pro forma information includes adjustments for stock based compensation expense related to the Closing Shares and Earnout Shares and amortization expense for identified intangibles. Acquisition-related costs and expenses of $736,172 and $816,291 have been excluded from the unaudited pro forma financial information for the three and nine months ended June 30, 2015. Acquisition-related costs and expenses consist primarily of legal expenses and fees paid to outside consultants in connection with the Acquisition. The following table shows the Company’s unaudited pro forma financial information for the three and nine month periods ended June 30, 2015 and June 30, 2014: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Revenue $ 7,052,954 $ 5,359,969 $ 19,367,883 $ 15,320,520 Net income (loss) 1,017,398 (2,381,279 ) 433,371 (8,057,729 ) Income (loss) per common share Basic $ 0.03 $ 0.08 $ 0.01 $ (0.26 ) Diluted $ 0.03 $ 0.08 $ 0.01 $ (0.26 ) The following table summarizes the estimated fair values of the assets acquired and liabilities assumed on the date the Acquisition was completed. The Company is in the process of finalizing certain customary post-closing adjustments which could have an effect on the third-party valuations of certain tangible assets; thus the provisional measurements of net assets are subject to change. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as part of the Acquisition as of June 17, 2015: June 17, 2015 Current assets $ 604,019 Property, plant and equipment 42,173 Intangible assets 3,570,000 Assets acquired $ 4,216,192 Current liabilities $ (475,752 ) Other liabilities (804,106 ) Liabilities assumed $ (1,279,858 ) Fair value of net assets acquired $ 2,936,334 Total consideration paid 5,819,293 Goodwill $ 2,882,959 The Company estimated the fair value of identifiable acquisition-related intangible assets primarily based on discounted cash flow projections that will arise from these assets. The Company exercised significant judgment with regard to assumptions used in the determination of fair value such as discount rates and the determination of the estimated useful lives of the intangible assets, see Note 4. |
Investments
Investments | 9 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 3. INVESTMENTS The following table summarizes investments by type of security as of June 30, 2015: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Available-for-sale securities: Corporate debt securities, short-term $ 21,236,636 $ 1,095 $ (15,062 ) $ 21,222,669 Corporate debt securities, long-term 763,119 — (114 ) 763,005 Total $ 21,999,755 $ 1,095 $ (15,176 ) $ 21,985,674 The following table summarizes investments by type of security as of September 30, 2014: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value 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 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 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 June 30, 2015 and September 30, 2014, the Company’s short-term investments have maturity dates of less than one year from the balance sheet date and 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 that 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 on debt securities 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 three and nine months ended June 30, 2015 and 2014. Fair Value Measurements and Disclosures FASB ASC Topic 820, Fair Value Measurements 1. 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 are classified as Level 2, as represented in the following table: June 30, 2015 September 30, 2014 Short-term investments: Corporate debt securities Financial $ 10,232,435 $ 9,334,140 Industrial 6,328,166 3,980,772 Utility 2,512,835 756,215 Commercial paper Financial 1,399,911 — Industrial 749,322 2,198,043 Total short-term investments $ 21,222,669 $ 16,269,170 Long-term investments: Corporate debt securities Financial $ 763,005 $ 1,564,505 Utility — 507,513 Total long-term investments $ 763,005 $ 2,072,018 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. GOODWILL AND INTANGIBLE ASSETS Goodwill The Company has goodwill balances of $2,882,959 and $0 at June 30, 2015 and September 30, 2014, respectively associated with the acquisition of IDchecker which occurred during 2015. For information regarding the acquisition of IDchecker, see Note 2. Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other Intangible assets Intangible assets include the value assigned to completed technology, customer relationships, and trade names. The estimated useful lives for all of these intangible assets, range from five to six years. Intangible assets are summarized as follows: Weighted Average Amortization Period Cost Accumulated Amortization Net Completed technologies 6 years $ 2,370,000 $ 12,509 $ 2,357,491 Customer relationships 6 years 970,000 9,657 960,343 Tradenames 5 years 230,000 1,491 228,509 Total intangible assets $ 3,570,000 $ 23,657 $ 3,546,343 Amortization expense related to acquired intangible assets was $23,657 for each of the three and nine months ended June 30, 2015. There was no amortization expense related to intangibles assets during fiscal 2014. The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows: Estimated Future Amortization Expense 2015 (remaining three months) $ 148,772 2016 602,667 2017 602,667 2018 602,667 2019 602,667 Thereafter 986,903 $ 3,546,343 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 5. STOCKHOLDERS’ EQUITY Stock-Based Compensation Expense The following table summarizes stock-based compensation expense related to stock options and RSUs, which was allocated as follows: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Cost of goods sold $ 613 $ - $ 613 $ - Sales and marketing 176,148 221,323 543,228 657,014 Research and development 130,098 201,690 427,068 579,517 General and administrative 502,493 499,835 1,523,624 1,431,438 Stock-based compensation expense included in operating expenses $ 809,352 $ 922,848 $ 2,494,533 $ 2,667,969 No stock options were granted to employees during the nine months ended June 30, 2014. The fair value calculations for stock-based compensation awards to employees for the nine months ended June 30, 2015 were based on the following assumptions: Nine June 30, 2015 Risk-free interest rate 1.29 – 1.66% Expected life (years) 5.25 Expected volatility 98% Expected dividends None The expected life of options granted is derived using assumed exercise rates based on historical exercise patterns and vesting terms, and represents the period of time that options granted are expected to be outstanding. Expected stock price volatility is based upon implied volatility and other factors, including historical volatility. After assessing all available information on either historical volatility, implied volatility, or both, the Company concluded that a combination of both historical and implied volatility provides the best estimate of expected volatility. As of June 30, 2015, the Company had $5,813,640 of unrecognized compensation expense related to outstanding stock options and RSUs expected to be recognized over a weighted-average period of approximately 2.9 years. 2012 Incentive Plan In January 2012, the Company’s board of directors (the “Board”) adopted the Mitek Systems, Inc. 2012 Incentive Plan (the “2012 Plan”), upon the recommendation of the compensation committee of the Board. On February 19, 2014, the Company’s stockholders approved an amendment to the 2012 Plan that increased the total number of shares of Common Stock reserved for issuance thereunder from 2,000,000 shares to 4,000,000 shares plus that number of shares of Common Stock that would otherwise return to the available pool of unissued shares reserved for awards under its 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”). As of June 30, 2015, (i) stock options to purchase 2,386,352 shares of Common Stock and 462,341 RSUs were outstanding under the 2012 Plan, and 1,167,867 shares of Common Stock were reserved for future grants under the 2012 Plan and (ii) stock options to purchase an aggregate of 1,391,641 shares of Common Stock were outstanding under the Prior Plans. Director Restricted Stock Unit Plan In January 2011, the Board adopted the Mitek Systems, Inc. Director Restricted Stock Unit Plan, as amended and restated (the “Director Plan”), reserving up to 1,000,000 shares of Common Stock for the issuance of RSUs that may be granted to both employee and non-employee members of the Board. As of June 30, 2015, (i) 384,998 RSUs were outstanding under the Director Plan and (ii) 510,171 shares of Common Stock were reserved for future grants under the Director Plan. Stock Options The following table summarizes stock option activity under the Company’s equity plans during the nine months ended June 30, 2015: Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Outstanding, September 30, 2014 2,334,326 $ 4.11 5.46 Granted 1,917,500 $ 2.91 Exercised (110,769 ) $ 3.78 Cancelled (363,064 ) $ 3.88 Outstanding, June 30, 2015 3,777,993 $ 3.61 7.16 The Company recognized $525,475 and $1,568,317 in stock-based compensation expense related to outstanding stock options in the three and nine months ended June 30, 2015, respectively. The Company recognized $542,929 and $1,662,245 in stock-based compensation expense related to outstanding stock options in the three and nine months ended June 30, 2014, respectively. As of June 30, 2015, the Company had $3,717,040 of unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted-average period of approximately 2.8 years. As of June 30, 2014, the Company had $3,265,815 of unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted average period of approximately 2.0 years. Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the fiscal period in excess of the weighted-average exercise price, multiplied by the number of options outstanding and exercisable. The total intrinsic value of options exercised during the nine months ended June 30, 2015 and 2014 was $286,323 and $468,489, respectively. The per-share weighted average fair value of options granted during the nine months ended June 30, 2015 was $2.91. No stock options were granted to employees during the nine months ended June 30, 2014. As of June 30, 2015, there were 3,777,993 options outstanding with a weighted-average remaining contractual term, weighted-average exercise price and aggregate intrinsic value of 7.2 years, $3.61 and $4,198,091, respectively. As of June 30, 2014, there were 2,616,121 options outstanding with a weighted average remaining contractual term, weighted average exercise price and aggregate intrinsic value of 6.3 years, $4.19 and $2,331,604, respectively. Restricted Stock Units The following table summarizes RSU activity under the Company’s equity plans during the nine months ended June 30, 2015: Number of Shares Weighted-Average Fair Per Share Outstanding, September 30, 2014 1,101,303 $ 4.71 Granted 104,000 $ 2.29 Settled (233,166 ) $ 2.94 Cancelled (124,796 ) $ 3.87 Outstanding, June 30, 2015 847,341 $ 4.42 The cost of RSUs is determined using the fair value of Common Stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $284,113 and $926,453 in stock-based compensation expense related to outstanding RSUs in the three and nine months ended June 30, 2015, respectively. The Company recognized $379,919 and $1,005,724 in stock-based compensation expense related to outstanding RSUs in the three and nine months ended June 30, 2014, respectively. As of June 30, 2015, the Company had $2,096,599 of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 2.4 years. As of June 30, 2014, the Company had $3,945,911 of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 3.1 years. Closing Shares In conncection with the Acquisition, the Company issued to the Sellers 712,790 shares of Common Stock. Vesting of these shares is subject to the continued employment of the founders of IDchecker and occurs over a period of 27 months from the date of issuance. The cost of the Closing Shares is determined using the fair value of Common Stock on the award date, and the stock based compensation is recognized ratably over the vesting period. The Company recognized $44,043 in stock based compensation expense related to the Closing Shares for the three and nine months period ended June 30, 2015. As of June 30, 2015, the Company had $2,700,198 of unrecognized compensation expense related to Closing Shares expected to be recognized over the remaining service period. Earnout Shares In addition to the cash payments made to the Sellers and the issuance of Closing Shares, in each case at the closing of the Acquisition, and subject to the achievement of certain revenue and net income targets for IDchecker for the nine-month period ending on September 30, 2015, and the twelve-month period ending on September 30, 2016, the Company will issue to the Sellers up to an aggregate of $2,000,000 in shares of Common Stock (referred to elsewhere herein as the “Earnout Shares”) as follows (i) for the nine month period ending September 30, 2015, a maximum of $1,000,000 in Common Stock if certain revenue and net income targets (as set forth in the Share Purchase Agreement) are met; and (ii) for the twelve month period ending September 30, 2016, a maximum of $1,000,000 in Common Stock if certain revenue and net income targets (as set forth in the Share Purchase Agreement) are met. Within 75 days after the last date of the respective earnout period (the “Earnout Determination Date”), the Company shall deliver to the Sellers a written statement of the calculation of the revenue and net income for the applicable earnout period. The number of shares issuable upon achievement of the revenue targets and net income targets, as applicable, will be calculated based on the volume weighted average closing price of the Common Stock over the 10 trading-day period ending on and including the applicable Earnout Determination Date. Earnout Shares issued, if any, shall vest and be eligible for resale such that 12.5% of the Earnout Shares shall vest and be released for resale on the six-month anniversary of the Earnout Determination Date applicable to such Earnout Shares and thereafter, the remaining 87.5% of the applicable Earnout Shares shall vest and be released for resale in equal quarterly installments. Vesting of the Earnout Shares is subject to the continued employment of the founders of IDC NL and occurs over a period of 27 months from the applicable Earnout Determination Date. As of the closing date of the Acquisition, the Company calculated the fair value of the Earnout Shares using the Monte-Carlo simulation (using the Company’s valuation date stock price, the annual risk-free interest rate, expected volatility, the probability of reaching the performance targets and a 10 trading day average stock price). This model will be updated and the respective fair value adjusted each reporting period based on the relevant facts and conditions at the reporting date. The Company recognized $12,459 in stock based compensation expense related to the Earnout Shares for the three and nine month periods ended June 30, 2015. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. INCOME TAXES The Company’s deferred tax assets are primarily comprised of federal and state net operating loss carryforwards. Such federal and state net operating loss carryforwards begin to expire in the fiscal years ending September 30, 2018 and September 30, 2015, respectively. The Company carries a deferred tax valuation allowance equal to 100% of the net deferred tax assets. In recording this allowance, management has considered a number of factors, particularly the Company’s recent history of sustained operating losses. Management has concluded that a valuation allowance is required for 100% of the net deferred tax assets as it is more likely than not that the deferred tax assets will not be realized. There can be no assurance that the Company will ever realize the benefit of any or all of the federal and state net operating loss carryforwards or the credit carryforwards, either due to ongoing operating losses or due to ownership changes, which may limit the usefulness of the net operating loss carryforwards. Due to the 100% valuation allowance on the net deferred tax assets, the Company does not anticipate that future changes in the Company’s unrecognized tax benefits will impact its effective tax rate. The Company recognized a deferred tax benefit of $567,535 for the quarter ended June 30, 2015. Included in the benefit is a discrete tax benefit of $634,930 which arises from the recognition of a deferred tax liability related to identifiable intangibles recorded through purchase accounting in connection with the Company’s acquisition of ID Checker. The recognition of the deferred tax liability results in the release of a corresponding valuation allowance on the existing deferred tax assets. The Company’s policy is to classify interest and penalties related to income tax matters as income tax expense. The Company had no accrual for interest or penalties as of June 30, 2015 or June 30, 2014, and has not recognized interest and/or penalties in the consolidated statements of operations for the three and nine months ended June 30, 2015 or June 30, 2014. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. COMMITMENTS AND CONTINGENCIES Legal Matters 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. (together with Chase, the “Bank Defendants”), each of whom offers the Company’s mobile imaging technology as part of its mobile banking applications. On July 8, 2015, RMII amended the Subsequent Lawsuits to name as additional defendants Fiserv, Inc. and NCR Corporation (the “Distributor Defendants”) each of whom Mitek alleges distribute the Company’s mobile imaging technology to the Bank Defendants. The trial has been scheduled for April 3, 2017. The Company filed successful motions to dismiss RMII’s willful infringement claims against the Company in the Initial Lawsuit and against the Company and the Bank Defendants 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, which motion was granted on August 3, 2015. On November 19, 2014, the Company filed joinders to the motion to stay with respect to the Subsequent Lawsuits, which joinders were also granted on August 3, 2015. Additionally, the Patent and Trademark Office has instituted the Company’s petitions for Inter Partes Based on the Company’s current understanding of the claims, the Company has agreed to accept the demands for indemnity and defense tendered by each of the Bank Defendants and Distributor 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. The Company accrues for such liabilities when it is both (i) probable that a loss has occurred and (ii) the amount of the loss can be reasonably estimated in accordance with ASC 450, Contingencies 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 June 30, 2015, the unamortized balance of the lease incentives was $419,619, of which $104,905 has been included in other current liabilities and $314,714 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. |
Revenue and Vendor Concentratio
Revenue and Vendor Concentrations | 9 Months Ended |
Jun. 30, 2015 | |
Risks And Uncertainties [Abstract] | |
Revenue and Vendor Concentrations | 8. REVENUE AND VENDOR CONCENTRATIONS Revenue Concentration For the three months ended June 30, 2015, the Company derived revenue of $3,584,253 from three customers, with such customers accounting for 24%, 20% and 12%, respectively, of the Company’s total revenue. For the three months ended June 30, 2014, the Company derived revenue of $2,140,009 from three customers, with such customers accounting for 19%, 16% & 11%, respectively, of the Company’s total revenue. For the nine months ended June 30, 2015, the Company derived revenue of $6,638,085 from two customers, with such customers accounting for 27% and 11%, respectively, of the Company’s total revenue. For the nine months ended June 30, 2014, the Company derived revenue of $3,999,442 from one customer, with such customer accounting for 29% 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 $2,024,277 and $1,413,670 at June 30, 2015 and 2014, 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. These contractual arrangements do not obligate the Company’s channel partners to order, purchase or distribute any fixed or minimum quantities of the Company’s products. 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 several quarters, 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 3% and 1% of the Company’s total revenue for each of the three and nine months ended June 30, 2015. International sales accounted for approximately 1% and 5% of the Company’s total revenue for the three and nine months ended June 30, 2014, respectively. Vendor Concentration The Company purchases its integrated software components from multiple third-party software providers at competitive prices. For the three and nine months ended June 30, 2015 and 2014, 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 Summ14
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Mitek Systems, Inc. (the “Company”) is engaged in the development, sale and service of its proprietary software solutions related to mobile capture and identity authentication. 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 June 30, 2015, the Company has been granted 21 patents and has an additional 21 patent applications pending. The Company’s products enable deposits, confirm identity and accelerate payments for mobile transactions. Each product utilizes the Company’s proprietary MiSnap ™ Deposit The Company’s Mobile Deposit ® ™ ® ® ™ ® Identity The Company’s identity offerings are designed to optimize the mobile channel for customer acquisition safely and securely. Photo Fill ™ ™ Payment The Company’s mobile photo payment solutions enable mobile bill payment for financial institutions and organizations that bill consumers directly. Mobile Photo Bill Pay ® ™ Mobile Photo Balance Transfer ™ Developer Program The Mitek Developers program extends use of the Company’s mobile capture SDK and Mobile Imaging Platform ™ Distribution Model The Company delivers its mobile capture software solutions on-premise as well as in the cloud and markets and sells these solutions through channel partners or directly to enterprise customers. The Company’s mobile capture software solutions are often embedded in 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 accompanying unaudited consolidated financial statements of the Company as of June 30, 2015 have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all information and footnote disclosures required by accounting principles generally accepted in the U.S. (“GAAP”). The results of IDchecker’s operations from June 17, 2015 through June 30, 2015 are included in the Company’s consolidated financial statements. Results for the three and nine months ended June 30, 2015 are not necessarily indicative of results for any other interim period or for a full year. |
Principles of Consolidation | P rinciples of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Foreign Currency | Foreign Currency The Company has foreign subsidiaries that operate and sell its products and services in various countries and jurisdictions around the world. As a result, the Company is exposed to foreign currency exchange risks. For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollars equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive income in the consolidated balance sheet. The Company recorded net losses resulting from foreign exchange translation of $608 for the three months and nine months ended June 30, 2015. There were no foreign exchange translation gains or losses recorded in fiscal 2014. |
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 for such periods 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 and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual future 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, fair value of assets and liabilities acquired, impairment of goodwill, useful lives of intangible assets and income taxes. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during the fourth quarter or more often if and when circumstances indicate that goodwill may not be recoverable. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share For the three and nine months ended June 30, 2015 and 2014, the following potentially dilutive common shares were excluded from the calculation of net income (loss) per share, as they would have been antidilutive: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Stock options 2,288,077 2,616,121 2,316,232 2,616,121 Restricted stock units 330,684 1,212,292 408,869 1,212,292 Warrants - 6,667 - 6,667 Total potentially dilutive common shares outstanding 2,618,761 3,835,080 2,725,101 3,835,080 The calculation of basic and diluted net income (loss) per share is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Net income (loss) $ 916,961 $ (1,632,601 ) $ 1,570,791 $ (5,293,919 ) Weighted-average common shares outstanding: Basic 30,764,694 30,481,168 30,704,250 30,451,058 Diluted 31,645,696 30,481,168 31,389,569 30,451,058 Net income (loss) per share: Basic 0.03 (0.05 ) 0.05 (0.17 ) Diluted 0.03 (0.05 ) 0.05 (0.17 ) |
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 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. |
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 maintained an allowance for doubtful accounts of $14,600 and $6,100 as of June 30, 2015 and September 30, 2014, respectively. |
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 three and nine months ended June 30, 2015 and 2014, no software development costs were capitalized because the time period and costs incurred between technological feasibility and general release for all software product releases were not material or were not realizable. |
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 Contingencies |
Fair Value of Equity Instruments | Fair Value of Equity Instruments The fair value of equity instruments involves significant estimates based on underlying assumptions made by management. The fair value for purchase rights under the Company’s equity plans is measured at the grant date using a Black-Scholes valuation model, which involves estimates of stock volatility, expected life of the instruments and other assumptions, and using the closing price of the Company’s common stock on the grant date for RSUs. The fair value of stock-based awards is recognized as an expense over the respective terms of the awards. |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the tax basis of such assets and liabilities. The Company maintains a valuation allowance against its deferred tax assets due to the uncertainty regarding the future realization of such assets, which is based on historical taxable income, projected future taxable income and the expected timing of the reversals of existing temporary differences. Until such time as the Company can demonstrate that it will no longer incur losses, or if the Company is unable to generate sufficient future taxable income, it could be required to maintain the valuation allowance against its deferred tax assets. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss), unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. Included on the balance sheet at June 30, 2015 is an accumulated other comprehensive loss of $14,689, compared to an accumulated other comprehensive loss of $7,810 at September 30, 2014, related to the Company’s available-for-sale securities and foreign currency translation adjustments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers Revenue Recognition |
Nature of Operations and Summ15
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Potentially Dilutive Common Shares | For the three and nine months ended June 30, 2015 and 2014, the following potentially dilutive common shares were excluded from the calculation of net income (loss) per share, as they would have been antidilutive: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Stock options 2,288,077 2,616,121 2,316,232 2,616,121 Restricted stock units 330,684 1,212,292 408,869 1,212,292 Warrants - 6,667 - 6,667 Total potentially dilutive common shares outstanding 2,618,761 3,835,080 2,725,101 3,835,080 |
Calculation of Basic and Diluted Net Income (Loss) Per Share | The calculation of basic and diluted net income (loss) per share is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Net income (loss) $ 916,961 $ (1,632,601 ) $ 1,570,791 $ (5,293,919 ) Weighted-average common shares outstanding: Basic 30,764,694 30,481,168 30,704,250 30,451,058 Diluted 31,645,696 30,481,168 31,389,569 30,451,058 Net income (loss) per share: Basic 0.03 (0.05 ) 0.05 (0.17 ) Diluted 0.03 (0.05 ) 0.05 (0.17 ) |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Financial Information | The following table shows the Company’s unaudited pro forma financial information for the three and nine month periods ended June 30, 2015 and June 30, 2014: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Revenue $ 7,052,954 $ 5,359,969 $ 19,367,883 $ 15,320,520 Net income (loss) 1,017,398 (2,381,279 ) 433,371 (8,057,729 ) Income (loss) per common share Basic $ 0.03 $ 0.08 $ 0.01 $ (0.26 ) Diluted $ 0.03 $ 0.08 $ 0.01 $ (0.26 ) |
ID Checker [Member] | |
Business Acquisition [Line Items] | |
Schedule of Estimated Fair Values of Assets acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as part of the Acquisition as of June 17, 2015: June 17, 2015 Current assets $ 604,019 Property, plant and equipment 42,173 Intangible assets 3,570,000 Assets acquired $ 4,216,192 Current liabilities $ (475,752 ) Other liabilities (804,106 ) Liabilities assumed $ (1,279,858 ) Fair value of net assets acquired $ 2,936,334 Total consideration paid 5,819,293 Goodwill $ 2,882,959 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments by Type of Security | The following table summarizes investments by type of security as of June 30, 2015: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Available-for-sale securities: Corporate debt securities, short-term $ 21,236,636 $ 1,095 $ (15,062 ) $ 21,222,669 Corporate debt securities, long-term 763,119 — (114 ) 763,005 Total $ 21,999,755 $ 1,095 $ (15,176 ) $ 21,985,674 The following table summarizes investments by type of security as of September 30, 2014: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value 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 |
Summary of Fair Value of Investments Measured on Recurring Basis | Based on the fair value hierarchy, all of the Company’s investments are classified as Level 2, as represented in the following table: June 30, 2015 September 30, 2014 Short-term investments: Corporate debt securities Financial $ 10,232,435 $ 9,334,140 Industrial 6,328,166 3,980,772 Utility 2,512,835 756,215 Commercial paper Financial 1,399,911 — Industrial 749,322 2,198,043 Total short-term investments $ 21,222,669 $ 16,269,170 Long-term investments: Corporate debt securities Financial $ 763,005 $ 1,564,505 Utility — 507,513 Total long-term investments $ 763,005 $ 2,072,018 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets include the value assigned to completed technology, customer relationships, and trade names. The estimated useful lives for all of these intangible assets, range from five to six years. Intangible assets are summarized as follows: Weighted Average Amortization Period Cost Accumulated Amortization Net Completed technologies 6 years $ 2,370,000 $ 12,509 $ 2,357,491 Customer relationships 6 years 970,000 9,657 960,343 Tradenames 5 years 230,000 1,491 228,509 Total intangible assets $ 3,570,000 $ 23,657 $ 3,546,343 |
Schedule of Estimated Future Amortization Expense | The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows: Estimated Future Amortization Expense 2015 (remaining three months) $ 148,772 2016 602,667 2017 602,667 2018 602,667 2019 602,667 Thereafter 986,903 $ 3,546,343 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stock-Based Compensation Expense Related to Stock Options and RSUs | The following table summarizes stock-based compensation expense related to stock options and RSUs, which was allocated as follows: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Cost of goods sold $ 613 $ - $ 613 $ - Sales and marketing 176,148 221,323 543,228 657,014 Research and development 130,098 201,690 427,068 579,517 General and administrative 502,493 499,835 1,523,624 1,431,438 Stock-based compensation expense included in operating expenses $ 809,352 $ 922,848 $ 2,494,533 $ 2,667,969 |
Fair Value Calculations for Stock-Based Compensation Awards | The fair value calculations for stock-based compensation awards to employees for the nine months ended June 30, 2015 were based on the following assumptions: Nine June 30, 2015 Risk-free interest rate 1.29 – 1.66% Expected life (years) 5.25 Expected volatility 98% Expected dividends None |
Stock Option Activity | The following table summarizes stock option activity under the Company’s equity plans during the nine months ended June 30, 2015: Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Outstanding, September 30, 2014 2,334,326 $ 4.11 5.46 Granted 1,917,500 $ 2.91 Exercised (110,769 ) $ 3.78 Cancelled (363,064 ) $ 3.88 Outstanding, June 30, 2015 3,777,993 $ 3.61 7.16 |
RSU Activity | The following table summarizes RSU activity under the Company’s equity plans during the nine months ended June 30, 2015: Number of Shares Weighted-Average Fair Per Share Outstanding, September 30, 2014 1,101,303 $ 4.71 Granted 104,000 $ 2.29 Settled (233,166 ) $ 2.94 Cancelled (124,796 ) $ 3.87 Outstanding, June 30, 2015 847,341 $ 4.42 |
Nature of Operations and Summ20
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($)PatentsInstitution | Jun. 30, 2015USD ($)PatentsInstitution | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | |
Accounting Policies [Abstract] | ||||
Number of patents granted | Patents | 21 | 21 | ||
Number of patent applications pending | Patents | 21 | 21 | ||
Number of financial institutions signed agreements to deploy mobile deposit | Institution | 4,105 | 4,105 | ||
Number of financial institutions deployed mobile deposit | Institution | 3,587 | 3,587 | ||
Number of U.S. retail banks and payment processing companies | Institution | 50 | 50 | ||
Foreign currency translation adjustment | $ (608) | $ (608) | $ 0 | |
Impairment of goodwill and intangibles | 0 | |||
Allowance for doubtful accounts receivable | 14,600 | 14,600 | 6,100 | |
Software development costs capitalized | 0 | 0 | $ 0 | |
Accumulated other comprehensive gain (loss) | $ (14,689) | $ (14,689) | $ (7,810) |
Nature of Operations and Summ21
Nature of Operations and Summary of Significant Accounting Policies - Potentially Dilutive Common Shares (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common shares outstanding | 2,618,761 | 3,835,080 | 2,725,101 | 3,835,080 |
Restricted stock units [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common shares outstanding | 330,684 | 1,212,292 | 408,869 | 1,212,292 |
Warrants [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common shares outstanding | 6,667 | 6,667 | ||
Stock options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common shares outstanding | 2,288,077 | 2,616,121 | 2,316,232 | 2,616,121 |
Nature of Operations and Summ22
Nature of Operations and Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share Basic And Diluted [Abstract] | ||||
Net income (loss) | $ 916,961 | $ (1,632,601) | $ 1,570,791 | $ (5,293,919) |
Weighted-average common shares outstanding - basic | 30,764,694 | 30,481,168 | 30,704,250 | 30,451,058 |
Weighted-average common shares outstanding - diluted | 31,645,696 | 30,481,168 | 31,389,569 | 30,451,058 |
Net income (loss) per share - Basic | $ 0.03 | $ (0.05) | $ 0.05 | $ (0.17) |
Net income (loss) per share - Diluted | $ 0.03 | $ (0.05) | $ 0.05 | $ (0.17) |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) | Jun. 30, 2015 | Jun. 17, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Revenue | $ 6,439,995 | $ 4,659,724 | $ 17,501,644 | $ 13,606,386 | |||
Operating earnings | 309,413 | $ (1,650,440) | 929,781 | $ (5,342,812) | |||
Acquisition-related costs and expenses | 736,172 | 816,291 | |||||
Goodwill | $ 2,882,959 | $ 2,882,959 | 2,882,959 | $ 0 | |||
Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, escrow fund period | 24 months | ||||||
ID Checker [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Jun. 17, 2015 | ||||||
Total consideration paid | $ 5,855,000 | ||||||
Payments to acquire businesses, gross | 5,600,000 | ||||||
Common stock issued during acquisition, value | $ 2,745,000 | ||||||
Common stock, par value | $ 0.001 | ||||||
Business combination consideration transfer, promissory notes | $ 255,000 | ||||||
Cash payment to escrow fund related to business acquisition | $ 1,820,000 | ||||||
Business combination, percentage of closing shares in escrow fund | 20.00% | ||||||
Revenue | 120,765 | ||||||
Operating earnings | $ 35,093 | ||||||
Goodwill | $ 2,882,959 | ||||||
ID Checker [Member] | Closing Shares [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Common stock issued during acquisition, share | 712,790 | ||||||
ID Checker [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, earnout shares | $ 2,000,000 | $ 2,000,000 |
Business Combination - Schedule
Business Combination - Schedule of Unaudited Pro Forma Financial Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Combinations [Abstract] | ||||
Revenue | $ 7,052,954 | $ 5,359,969 | $ 19,367,883 | $ 15,320,520 |
Net income (loss) | $ 1,017,398 | $ (2,381,279) | $ 433,371 | $ (8,057,729) |
Income (loss) per common share Basic | $ 0.03 | $ 0.08 | $ 0.01 | $ (0.26) |
Income (loss) per common share Diluted | $ 0.03 | $ 0.08 | $ 0.01 | $ (0.26) |
Business Combination - Schedu25
Business Combination - Schedule of Estimated Fair Values of Assets acquired and Liabilities Assumed (Detail) - USD ($) | Jun. 30, 2015 | Jun. 17, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,882,959 | $ 0 | |
ID Checker [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | $ 604,019 | ||
Property, plant and equipment | 42,173 | ||
Intangible assets | 3,570,000 | ||
Assets acquired | 4,216,192 | ||
Current liabilities | (475,752) | ||
Other liabilities | (804,106) | ||
Liabilities assumed | (1,279,858) | ||
Fair value of net assets acquired | 2,936,334 | ||
Total consideration paid | 5,819,293 | ||
Goodwill | $ 2,882,959 |
Investments - Summary of Invest
Investments - Summary of Investments by Type of Security (Detail) - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | $ 21,999,755 | $ 18,348,998 |
Gross Unrealized Gains | 1,095 | 1,472 |
Gross Unrealized Losses | (15,176) | (9,282) |
Fair Market Value | 21,985,674 | 18,341,188 |
Corporate debt securities [Member] | Short-term [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 21,236,636 | 16,273,996 |
Gross Unrealized Gains | 1,095 | 1,472 |
Gross Unrealized Losses | (15,062) | (6,298) |
Fair Market Value | 21,222,669 | 16,269,170 |
Corporate debt securities [Member] | Long-term [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 763,119 | 2,075,002 |
Gross Unrealized Losses | (114) | (2,984) |
Fair Market Value | $ 763,005 | $ 2,072,018 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments Debt And Equity Securities [Abstract] | ||||
Other-than-temporary impairment charges recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Investments - Summary of Fair V
Investments - Summary of Fair Value of Investments Measured on Recurring Basis (Detail) - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis, total | $ 21,985,674 | $ 18,341,188 |
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 | 21,222,669 | 16,269,170 |
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 | 1,399,911 | |
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 | 749,322 | 2,198,043 |
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 | 10,232,435 | 9,334,140 |
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 | 6,328,166 | 3,980,772 |
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 | 2,512,835 | 756,215 |
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 | 763,005 | 2,072,018 |
Long-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 | $ 763,005 | 1,564,505 |
Long-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 | $ 507,513 |
Goodwill and Intangible Asset29
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | |
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items] | |||
Goodwill | $ 2,882,959 | $ 2,882,959 | $ 0 |
Amortization expense | $ 23,657 | $ 23,657 | $ 0 |
Minimum [Member] | |||
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items] | |||
Estimated useful lives of intangible assets | 5 years | ||
Maximum [Member] | |||
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items] | |||
Estimated useful lives of intangible assets | 6 years |
Goodwill and Intangible Asset30
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - Jun. 30, 2015 - USD ($) | Total |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Cost | $ 3,570,000 |
Accumulated Amortization | 23,657 |
Net | $ 3,546,343 |
Completed technologies [Member] | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Weighted Average Amortization Period | 6 years |
Cost | $ 2,370,000 |
Accumulated Amortization | 12,509 |
Net | $ 2,357,491 |
Customer relationships [Member] | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Weighted Average Amortization Period | 6 years |
Cost | $ 970,000 |
Accumulated Amortization | 9,657 |
Net | $ 960,343 |
Tradenames [Member] | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Weighted Average Amortization Period | 5 years |
Cost | $ 230,000 |
Accumulated Amortization | 1,491 |
Net | $ 228,509 |
Goodwill and Intangible Asset31
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Detail) | Jun. 30, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2015 (remaining three months) | $ 148,772 |
2,016 | 602,667 |
2,017 | 602,667 |
2,018 | 602,667 |
2,019 | 602,667 |
Thereafter | 986,903 |
Net | $ 3,546,343 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Related to Stock Options and RSUs (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense included in operating expenses | $ 809,352 | $ 922,848 | $ 2,494,533 | $ 2,667,969 |
Cost of goods sold [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense included in operating expenses | 613 | 613 | ||
Sales and marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense included in operating expenses | 176,148 | 221,323 | 543,228 | 657,014 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense included in operating expenses | 130,098 | 201,690 | 427,068 | 579,517 |
General and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense included in operating expenses | $ 502,493 | $ 499,835 | $ 1,523,624 | $ 1,431,438 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Jun. 17, 2015 | Feb. 19, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options granted to employees | 1,917,500 | 0 | ||||||
Unrecognized compensation expense | $ 5,813,640 | $ 5,813,640 | ||||||
Weighted average period for unrecognized compensation expense expected to be recognized | 2 years 10 months 24 days | |||||||
Options outstanding | 3,777,993 | 2,616,121 | 3,777,993 | 2,616,121 | 2,334,326 | |||
Recognized compensation expense | $ 809,352 | $ 922,848 | $ 2,494,533 | $ 2,667,969 | ||||
Total intrinsic value of options exercised | $ 286,323 | $ 468,489 | ||||||
Weighted average fair value of options granted | $ 2.91 | |||||||
Weighted-average remaining contractual term | 7 years 2 months 12 days | 6 years 3 months 18 days | ||||||
Weighted-average exercise price, outstanding shares | $ 3.61 | $ 4.19 | $ 3.61 | $ 4.19 | $ 4.11 | |||
Aggregate intrinsic value, outstanding shares | $ 4,198,091 | $ 2,331,604 | $ 4,198,091 | $ 2,331,604 | ||||
Recognized stock-based compensation expense related to the outstanding RSUs | 284,113 | 379,919 | $ 926,453 | 1,005,724 | ||||
Percentage of earnout shares vest and eligible for resale | 12.50% | |||||||
Percentage of remaining earnout shares vest and eligible for resale | 87.50% | |||||||
Closing Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | 2,700,198 | $ 2,700,198 | ||||||
Recognized compensation expense | 44,043 | 44,043 | ||||||
Vesting period of shares received | 27 months | |||||||
Earnout Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expense | $ 12,459 | $ 12,459 | ||||||
Vesting period of shares received | 27 months | |||||||
Common stock trading period | 10 days | |||||||
ID Checker [Member] | Closing Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock issued during acquisition, share | 712,790 | |||||||
2012 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Purchase of common stock | 2,386,352 | 2,386,352 | ||||||
Number of common stock reserved for future grants | 1,167,867 | 1,167,867 | ||||||
2010 Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding | 1,391,641 | 1,391,641 | ||||||
Director Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of common stock reserved for future grants | 510,171 | 510,171 | ||||||
Restricted stock units [Member] | 2012 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding | 462,341 | 462,341 | ||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | $ 2,096,599 | $ 2,096,599 | ||||||
Weighted average period for unrecognized compensation expense expected to be recognized | 2 years 4 months 24 days | |||||||
Restricted Stock Units (RSUs) [Member] | Director Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding | 384,998 | 384,998 | ||||||
Stock options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | $ 3,717,040 | 3,265,815 | $ 3,717,040 | $ 3,265,815 | ||||
Weighted average period for unrecognized compensation expense expected to be recognized | 2 years 9 months 18 days | 2 years | ||||||
Recognized compensation expense | $ 525,475 | 542,929 | $ 1,568,317 | $ 1,662,245 | ||||
Outstanding Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | $ 3,945,911 | $ 3,945,911 | ||||||
Weighted average period for unrecognized compensation expense expected to be recognized | 3 years 1 month 6 days | |||||||
Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance under stock holders incentive plan | 2,000,000 | |||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance under stock holders incentive plan | 4,000,000 | |||||||
Maximum [Member] | Earnout Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Delivery period of written statement of calculation of revenue and net income for earnout period | 75 days | |||||||
Maximum [Member] | ID Checker [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business combination, value of earnout shares | $ 2,000,000 | $ 2,000,000 | ||||||
Maximum [Member] | ID Checker [Member] | 1/1/15-9/30/15 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business combination, value of earnout shares | 1,000,000 | |||||||
Maximum [Member] | ID Checker [Member] | 10/1/15-9/30/16 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business combination, value of earnout shares | $ 1,000,000 | |||||||
Maximum [Member] | Director Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares of common stock reserved for issuance | 1,000,000 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value Calculations for Stock-Based Compensation Awards (Detail) - 9 months ended Jun. 30, 2015 | Total |
Equity [Abstract] | |
Risk-free interest rate, Minimum | 1.29% |
Risk-free interest rate, Maximum | 1.66% |
Expected life (years) | 5 years 3 months |
Expected volatility | 98.00% |
Expected dividends | 0.00% |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity (Detail) - $ / shares | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares, Beginning balance | 2,334,326 | ||
Number of Shares, Granted | 1,917,500 | 0 | |
Number of Shares, Exercised | (110,769) | ||
Number of Shares, Cancelled | (363,064) | ||
Number of Shares, Ending balance | 3,777,993 | 2,616,121 | 2,334,326 |
Weighted Average Exercise Price Per Share, Beginning balance | $ 4.11 | ||
Weighted Average Exercise Price Per Share, Granted | 2.91 | ||
Weighted Average Exercise Price Per Share, Exercised | 3.78 | ||
Weighted Average Exercise Price Per Share, Cancelled | 3.88 | ||
Weighted Average Exercise Price Per Share, Ending balance | $ 3.61 | $ 4.19 | $ 4.11 |
Weighted Average Remaining Contractual Term (in Years) | 7 years 1 month 28 days | 5 years 5 months 16 days |
Stockholders' Equity - RSU Acti
Stockholders' Equity - RSU Activity (Detail) - 9 months ended Jun. 30, 2015 - Restricted Stock Units (RSUs) [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Beginning balance | 1,101,303 |
Number of Shares, Granted | 104,000 |
Number of Shares, Settled | (233,166) |
Number of Shares, Cancelled | (124,796) |
Number of Shares, Ending balance | 847,341 |
Weighted Average Exercise Price Per Share, Beginning balance | $ 4.71 |
Weighted Average Exercise Price Per Share, Granted | 2.29 |
Weighted Average Exercise Price Per Share, Settled | 2.94 |
Weighted Average Exercise Price Per Share, Cancelled | 3.87 |
Weighted Average Exercise Price Per Share, Ending balance | $ 4.42 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax valuation allowance, percentage | 100.00% | 100.00% | ||
Accrued interest | $ 0 | $ 0 | $ 0 | $ 0 |
Recognized income tax interest and/or penalties | 0 | $ 0 | $ 0 | $ 0 |
Deferred Tax Benefit | 567,535 | |||
ID Checker [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Benefit | $ 634,930 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards will begin to expire | Sep. 30, 2018 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards will begin to expire | Sep. 30, 2015 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Jun. 30, 2015 | USD ($)ft² |
Loss Contingencies [Line Items] | |
Annual base rent | $ 471,000 |
Increased percentage of Company's annual base rent | 3.00% |
Tenant improvement allowances | $ 675,690 |
Unamortized lease incentives | $ 419,619 |
Building [Member] | |
Loss Contingencies [Line Items] | |
Amended office space subject to the lease | ft² | 22,523 |
Other current liabilities [Member] | |
Loss Contingencies [Line Items] | |
Unamortized lease incentives | $ 104,905 |
Other non-current liabilities [Member] | |
Loss Contingencies [Line Items] | |
Unamortized lease incentives | 314,714 |
Standby letter of credit [Member] | |
Loss Contingencies [Line Items] | |
Standby letter of credit to the landlord | $ 210,000 |
Revenue and Vendor Concentrat39
Revenue and Vendor Concentrations - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Revenue, Major Customer [Line Items] | |||||
Revenue | $ 6,439,995 | $ 4,659,724 | $ 17,501,644 | $ 13,606,386 | |
Accounts receivable, net | 3,807,947 | 3,807,947 | $ 2,955,350 | ||
Customer Concentration Risk [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | 3,584,253 | 2,140,009 | 6,638,085 | 3,999,442 | |
Accounts receivable, net | $ 2,024,277 | $ 1,413,670 | $ 2,024,277 | $ 1,413,670 | |
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total revenue, percentage | 10.00% | 10.00% | |||
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total revenue, percentage | 3.00% | 1.00% | 1.00% | 5.00% | |
Customer One [Member] | Customer Concentration Risk [Member] | Sales Revenue Net [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total revenue, percentage | 24.00% | 19.00% | 27.00% | 29.00% | |
Customer Two | Customer Concentration Risk [Member] | Sales Revenue Net [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total revenue, percentage | 20.00% | 16.00% | 11.00% | ||
Customer Three | Customer Concentration Risk [Member] | Sales Revenue Net [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total revenue, percentage | 12.00% | 11.00% | |||
Channel Partners [Member] | Supplier Concentration Risk [Member] | Sales Revenue Net [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total revenue, percentage | 10.00% |