Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 30, 2016 | Mar. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MITK | ||
Entity Registrant Name | MITEK SYSTEMS INC | ||
Entity Central Index Key | 807,863 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,081,039 | ||
Entity Public Float | $ 205,961,297 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 9,010 | $ 2,753 |
Short-term investments | 24,863 | 23,921 |
Accounts receivable, net | 4,949 | 3,937 |
Other current assets | 1,485 | 798 |
Total current assets | 40,307 | 31,409 |
Long-term investments | 1,952 | |
Property and equipment, net | 440 | 975 |
Intangible assets, net | 2,783 | 3,397 |
Goodwill | 2,863 | 2,873 |
Other non-current assets | 40 | 92 |
Total assets | 48,385 | 38,746 |
Current liabilities: | ||
Accounts payable | 1,318 | 1,538 |
Accrued payroll and related taxes | 3,263 | 2,061 |
Deferred revenue, current portion | 3,391 | 3,516 |
Other current liabilities | 355 | 289 |
Total current liabilities | 8,327 | 7,404 |
Deferred revenue, non-current portion | 259 | 222 |
Other non-current liabilities | 314 | 687 |
Total liabilities | 8,900 | 8,313 |
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, 32,781,704 and 31,721,114 issued and outstanding, respectively | 33 | 32 |
Additional paid-in capital | 71,036 | 63,905 |
Accumulated other comprehensive loss | (42) | (3) |
Accumulated deficit | (31,542) | (33,501) |
Total stockholders’ equity | 39,485 | 30,433 |
Total liabilities and stockholders’ equity | $ 48,385 | $ 38,746 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
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 | 32,781,704 | 31,721,114 |
Common stock, shares outstanding | 32,781,704 | 31,721,114 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | |||
Software | $ 22,586,000 | $ 17,870,000 | $ 13,312,000 |
SaaS, maintenance and consulting | 12,115,000 | 7,497,000 | 5,838,000 |
Total revenue | 34,701,000 | 25,367,000 | 19,150,000 |
Operating costs and expenses | |||
Cost of revenue-software | 953,000 | 992,000 | 1,001,000 |
Cost of revenue-SaaS, maintenance and consulting | 2,442,000 | 1,479,000 | 1,147,000 |
Selling and marketing | 10,937,000 | 6,458,000 | 6,836,000 |
Research and development | 7,794,000 | 5,577,000 | 6,020,000 |
General and administrative | 8,575,000 | 7,601,000 | 9,554,000 |
Acquisition-related costs and expenses | 2,176,000 | 1,368,000 | |
Total operating costs and expenses | 32,877,000 | 23,475,000 | 24,558,000 |
Operating income (loss) | 1,824,000 | 1,892,000 | (5,408,000) |
Other income (expense), net | 134,000 | 91,000 | 118,000 |
Income (loss) before income taxes | 1,958,000 | 1,983,000 | (5,290,000) |
Income tax benefit (provision) | 1,000 | 543,000 | (2,000) |
Net income (loss) | $ 1,959,000 | $ 2,526,000 | $ (5,292,000) |
Net income (loss) per share—basic | $ 0.06 | $ 0.08 | $ (0.17) |
Net income (loss) per share—diluted | $ 0.06 | $ 0.08 | $ (0.17) |
Shares used in calculating net income (loss) per share—basic | 31,586,535 | 30,790,258 | 30,466,063 |
Shares used in calculating net income (loss) per share—diluted | 33,818,501 | 31,480,241 | 30,466,063 |
Other comprehensive income (loss): | |||
Net income (loss) | $ 1,959,000 | $ 2,526,000 | $ (5,292,000) |
Foreign currency translation adjustment | (46,000) | 0 | 0 |
Unrealized gain (loss) on investments | 7,000 | 5,000 | (10,000) |
Other comprehensive income (loss) | $ 1,920,000 | $ 2,531,000 | $ (5,302,000) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Common Stock [Member]IDchecker [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Sep. 30, 2013 | $ 25,729,000 | $ 30,000 | $ 56,432,000 | $ (30,735,000) | $ 2,000 | |
Beginning Balance, shares at Sep. 30, 2013 | 30,361,442 | |||||
Exercise of stock options | $ 119,000 | $ 1,000 | 118,000 | |||
Exercise of stock options, shares | 108,135 | 105,280 | ||||
Settlement of restricted stock units | $ (48,000) | (48,000) | ||||
Settlement of restricted stock units, shares | 54,358 | |||||
Stock-based compensation expense | 3,444,000 | 3,444,000 | ||||
Components of other comprehensive income: | ||||||
Net income (loss) | (5,292,000) | (5,292,000) | ||||
Currency translation adjustment | 0 | |||||
Change in unrealized gain (loss) on investments | (10,000) | (10,000) | ||||
Other comprehensive income (loss) | (5,302,000) | |||||
Ending Balance at Sep. 30, 2014 | 23,942,000 | $ 31,000 | 59,946,000 | (36,027,000) | (8,000) | |
Ending Balance, shares at Sep. 30, 2014 | 30,521,080 | |||||
Exercise of stock options | $ 246,000 | 246,000 | ||||
Exercise of stock options, shares | 232,203 | 232,203 | ||||
Settlement of restricted stock units, shares | 255,041 | |||||
Acquisition-related closing shares | $ 347,000 | $ 1,000 | 346,000 | |||
Acquisition-related closing shares, shares | 712,790 | |||||
Stock-based compensation expense | 3,367,000 | 3,367,000 | ||||
Components of other comprehensive income: | ||||||
Net income (loss) | 2,526,000 | 2,526,000 | ||||
Currency translation adjustment | 0 | |||||
Change in unrealized gain (loss) on investments | 5,000 | 5,000 | ||||
Other comprehensive income (loss) | 2,531,000 | |||||
Ending Balance at Sep. 30, 2015 | $ 30,433,000 | $ 32,000 | 63,905,000 | (33,501,000) | (3,000) | |
Ending Balance, shares at Sep. 30, 2015 | 31,721,114 | 31,721,114 | ||||
Exercise of stock options | $ 1,755,000 | $ 1,000 | 1,754,000 | |||
Exercise of stock options, shares | 661,663 | 661,663 | ||||
Settlement of restricted stock units, shares | 261,621 | |||||
Acquisition-related closing shares, shares | 137,306 | |||||
Stock-based compensation expense | $ 4,079,000 | 4,079,000 | ||||
Amortization of closing shares | 1,298,000 | 1,298,000 | ||||
Components of other comprehensive income: | ||||||
Net income (loss) | 1,959,000 | 1,959,000 | ||||
Currency translation adjustment | (46,000) | (46,000) | ||||
Change in unrealized gain (loss) on investments | 7,000 | 7,000 | ||||
Other comprehensive income (loss) | 1,920,000 | |||||
Ending Balance at Sep. 30, 2016 | $ 39,485,000 | $ 33,000 | $ 71,036,000 | $ (31,542,000) | $ (42,000) | |
Ending Balance, shares at Sep. 30, 2016 | 32,781,704 | 32,781,704 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 1,959,000 | $ 2,526,000 | $ (5,292,000) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Stock-based compensation expense | 4,079,000 | 3,367,000 | 3,444,000 |
Amortization of closing and earnout shares | 1,503,000 | 393,000 | |
Amortization of intangible assets | 598,000 | 172,000 | 0 |
Depreciation | 790,000 | 433,000 | 471,000 |
Accretion and amortization on debt securities | 149,000 | 426,000 | 401,000 |
Other | 9,000 | (5,000) | |
Changes in assets and liabilities: | |||
Accounts receivable | (1,002,000) | (566,000) | (1,455,000) |
Other assets | (586,000) | (533,000) | (88,000) |
Accounts payable | (222,000) | (449,000) | (84,000) |
Accrued payroll and related taxes | 1,197,000 | 480,000 | (20,000) |
Deferred revenue | (67,000) | 478,000 | 291,000 |
Deferred taxes | (127,000) | (647,000) | |
Other liabilities | (417,000) | 16,000 | (132,000) |
Net cash provided by (used in) operating activities | 7,854,000 | 6,105,000 | (2,469,000) |
INVESTING ACTIVITIES | |||
Purchases of investments | (33,658,000) | (27,254,000) | (24,643,000) |
Sales and maturities of investments | 30,623,000 | 21,406,000 | 11,667,000 |
Acquisition, net of cash acquired | (5,423,000) | ||
Purchases of property and equipment | (250,000) | (73,000) | (135,000) |
Sale of property and equipment | 1,000 | ||
Net cash used in investing activities | (3,285,000) | (11,344,000) | (13,110,000) |
FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options | 1,755,000 | 246,000 | 70,000 |
Principal payments on capital lease obligations | (22,000) | (20,000) | (19,000) |
Net cash provided by financing activities | 1,733,000 | 226,000 | 51,000 |
Foreign currency effect on cash and cash equivalents | (45,000) | (1,000) | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 6,257,000 | (5,014,000) | (15,528,000) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,753,000 | 7,767,000 | 23,295,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 9,010,000 | 2,753,000 | 7,767,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for interest | 1,000 | 4,000 | 6,000 |
Cash paid for income taxes | 17,000 | 105,000 | 2,000 |
NON-CASH FINANCING AND INVESTING ACTIVITIES | |||
Settlement of note receivable as consideration for business acquisition | 250,000 | ||
Unrealized gain (loss) on investments | $ 7,000 | $ 5,000 | $ (10,000) |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [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”) develops, markets and sells proprietary mobile capture and identity verification software solutions for enterprise customers. 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, open accounts, get insurance quotes, pay bills as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. As of September 30, 2016, the Company’s has been granted 27 patents and it has an additional 16 patent applications pending. The Mobile Verify™ products combine the Mitek MiSnap auto capture experience with a variety of advanced computer vision techniques to provide verification of ID documents. Mobile Verify provides a check of authenticity of U.S state-issued driver’s licenses and includes full global coverage. These products enable banks and other businesses to improve KYC processes. Mobile Fill™ enables the camera to serve as a keyboard. Using Mobile Fill, consumers can quickly pre-fill any form with personal data by simply snapping a picture of their driver license, credit card, or other document. The Company’s Mobile Deposit ® ® The Company markets and sells the Mitek Mobile Identity Suite of mobile capture and identity verification software products directly to enterprise customers or through channel partners. These software solutions are embedded in mobile banking or enterprise applications developed by banks, insurance companies or their partners, and then marketed under their own proprietary brands. Basis of Presentation The financial statements are prepared under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 105-10, Generally Accepted Accounting Principles Principles 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 $46,000 for the fiscal year ended September 30, 2016. There were no foreign exchange translation gains or losses recorded in fiscal 2015 and 2014. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards, fair value of assets and liabilities acquired, impairment of goodwill, useful lives of intangible assets, vendor specific objective evidence (“VSOE”) of fair value related to revenue recognition and income taxes. Goodwill and Purchased Intangible Assets The Company’s goodwill resulted from the acquisition of IDchecker in fiscal year 2015. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually or as circumstances indicate that their value may no longer be recoverable. In accordance with ASC Topic 350, Intangibles—Goodwill and Other The Company’s goodwill is considered to be impaired if management determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds management’s estimate of its fair value. Based on the guidance provided by ASC Topic 350 and ASC Topic 280, Segment Reporting 2016 September 30, 2016 September 30, 2016 Because the Company determines the fair value of its reporting unit based on our market capitalization, the Company’s future reviews of goodwill for impairment may be impacted by changes in the price of its common stock. For example, a significant decline in the price of the Company’s common stock may cause the fair value of its goodwill to fall below its carrying value. Therefore, the Company cannot assure you that when it completes its future reviews of goodwill for impairment a material impairment charge will not be recorded. Net Income (Loss) Per Share The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings per Share At September 30, 2016, 2015 and 2014, the following potentially dilutive common shares were excluded from the net income (loss) per share calculation, as they would have been antidilutive: 2016 2015 2014 Stock options 1,258,844 2,202,844 2,334,326 Warrants — — 6,667 Restricted stock units 623,883 287,147 1,101,303 IDchecker shares 349,239 63,037 — Total potentially dilutive common shares outstanding 2,231,966 2,553,028 3,442,296 The computation of basic and diluted net income (loss) per share for the fiscal years ended September 30, 2016, 2015 and 2014 is as follows (amounts in thousands, except share data): 2016 2015 2014 Net income (loss) $ 1,959 $ 2,526 $ (5,292 ) Weighted-average common shares and share equivalents outstanding—basic 31,586,535 30,790,258 30,466,063 Dilutive potential common stock equivalents 2,231,966 689,983 — Weighted-average common shares and share equivalents outstanding—diluted 33,818,501 31,480,241 30,466,063 Net income (loss) per share: Basic $ 0.06 $ 0.08 $ (0.17 ) Diluted $ 0.06 $ 0.08 $ (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 The Company provides hosting services that give customers access to software that resides on its servers. The Company’s model typically includes an up-front fee and a monthly commitment from the customer that commences upon completion of the implementation through the remainder of the customer life. The up-front fee is the initial setup fee, or the implementation fee. The monthly commitment includes, but is not limited to, a fixed monthly fee or a transactional fee based on system usage that exceeds monthly minimums. The Company does not view the signing of the contract or the provision of initial setup services as discrete earnings events that have stand-alone value. Revenue is typically deferred until the date the customer commences use of services, at which point the up-front fees are recognized ratably over the life of the customer arrangement. Cash and Cash Equivalents Cash and cash equivalents are defined as highly liquid financial instruments with original maturities of three months or less. A substantial portion of the Company’s cash is deposited with one financial institution. The Company monitors the financial condition of this financial institution and does not believe that funds on deposit are subject to a significant degree of risk. Investments Investments consist of corporate notes and bonds, and commercial paper. The Company classifies investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net in the statements of other comprehensive income (loss). No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2016, 2015 and 2014. All investments whose maturity or sale is expected within one year are classified as “current” on the balance sheet. All other securities are classified as “long-term” on the balance sheet. Fair Value Measurements The carrying amounts of cash equivalents, investments, accounts receivable, accounts payable and other accrued liabilities are considered representative of their respective fair values because of the short-term nature of those instruments. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. Allowances for doubtful accounts are established based on various factors including credit profiles of the Company’s customers, contractual terms and conditions, historical payments, and current economic trends. The Company reviews its allowances by assessing individual accounts receivable over a specific aging and amount. Accounts receivable are written off on a case-by-case basis, net of any amounts that may be collected. The Company had no write-offs of the allowance for doubtful accounts for the years ended September 30, 2016 and 2015, respectively. The Company maintained an allowance for doubtful accounts of $35,000 and $13,000 as of September 30, 2016 and September 30, 2015, respectively. Deferred Maintenance Fees Deferred maintenance fees consist of capitalized costs associated with software maintenance fees paid to vendors who supply licenses and maintenance for software embedded in the Company’s products that it sells to customers. These software maintenance fees, which are included in other current assets on the balance sheet, are typically billed annually to the Company and are amortized to cost of revenue-maintenance and professional services in the statements of operations and other comprehensive income (loss) over the maintenance period, which is typically one year. Property and Equipment Property and equipment are carried at cost. The following is a summary of property and equipment as of September 30, 2016 and 2015 (amounts shown in thousands): 2016 2015 Property and equipment—at cost: Equipment $ 1,476 $ 1,281 Furniture and fixtures 249 229 Leasehold improvements 1,018 995 2,743 2,505 Less: accumulated depreciation and amortization (2,303 ) (1,530 ) Total property and equipment, net $ 440 $ 975 Depreciation and amortization of property and equipment are provided using the straight-line method over estimated useful lives ranging from three to five years. Leasehold improvements are amortized over the lease term. Depreciation and amortization of property and equipment totaled $0.8 million, $0.4 million and $0.5 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Included in property and equipment as of September 30, 2016 and 2015 in the table above is equipment of $0.1 million purchased under a capital lease. Depreciation expense related to the equipment purchased under the capital lease was $19,000 in the fiscal years ended September 30, 2016, 2015 and 2014, respectively, and accumulated depreciation was $0.1 million in each of the years ended September 30, 2016 and 2015, respectively. Expenditures for repairs and maintenance are charged to operations. Total repairs and maintenance expenses were $0.2 million, $0.1 million and $0.1 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Long-Lived Assets The Company evaluates the carrying value of long-lived assets, including license agreements and other intangible assets, when events and circumstances indicate that these assets may be impaired or in order to determine whether any revision to the related amortization periods should be made. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each product or asset. If management’s evaluation indicates that the carrying values of these intangible assets were impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company did not record any impairment for the fiscal years ended September 30, 2016, 2015 and 2014. Capitalized Software Development Costs Costs incurred for the development of software that will be sold, leased, or otherwise marketed are capitalized when technological feasibility has been established. Software development costs consist primarily of compensation of development personnel and related overhead incurred to develop new products and upgrade and enhance the Company’s current products, as well as fees paid to outside consultants. Capitalization of software development costs ceases and amortization of capitalized software development costs commences when the products are available for general release. For the fiscal years ended September 30, 2016 and 2015, no software development costs were capitalized because the time period and cost incurred between technological feasibility and general release for all software product releases were not material. Deferred Revenue Deferred revenues represent advance payments or billings for software licenses, professional services and maintenance billed in advance of the time we recognize the related revenues. Deferred maintenance revenue represents customer billings, paid up front, generally annually at the beginning of each maintenance period, with revenue recognized ratably over such period. For certain other licensing arrangements, revenue attributable to undelivered elements, including post-contract customer support which typically includes telephone support and the right to receive unspecified upgrades and enhancements of software on a when-and-if-available basis, is based upon the sales price of those elements when sold separately and is recognized ratably on a straight-line basis over the term of the arrangement. Guarantees In the ordinary course of business, the Company is not subject to potential obligations under guarantees that fall within the scope of FASB ASC Topic 460, Guarantees Loss Contingencies The Company records its best estimates of a loss contingency when it is considered probable and the amount can be reasonably estimated. When a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending loss contingency and revises its estimates. The Company discloses contingencies if there is at least a reasonable possibility that a material loss or a material additional loss may have been incurred. The Company’s legal costs are expensed as incurred. Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes Management evaluates the available evidence about future taxable income and other possible sources of realization of deferred tax assets. The valuation allowance reduces deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred tax assets that more likely than not will be realized. See Note 6 for additional details. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. See Note 6 for additional details. Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation The Black-Scholes option pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected life of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. Advertising Expense Advertising costs are expensed as incurred and totaled $0.2 million, $0.2 million and $0.1 million during the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Research and Development Research and development costs are expensed in the period incurred. Leases Leases are reviewed and classified as capital or operating at their inception. For leases that contain rent escalations, the Company records the total rent payable on a straight-line basis over the term of the lease. The difference between rent payments and straight-line rent expense is recorded as deferred rent. Segment Reporting FASB ASC Topic 280, Segment Reporting Comprehensive Loss Comprehensive loss consists of net loss and unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. The following table summarizes the components of comprehensive loss for the fiscal years ended September 30, 2016, 2015 and 2014 (amounts shown in thousands): 2016 2015 2014 Net income (loss) $ 1,959 $ 2,526 $ (5,292 ) Other comprehensive income (loss): Foreign currency translation adjustment (46 ) — — Change in unrealized gains (losses) on marketable securities 7 5 (10 ) Total comprehensive income (loss) $ 1,920 $ 2,531 $ (5,302 ) Included on the balance sheet at September 30, 2016 is an accumulated other comprehensive loss of $42,000, compared to an accumulated other comprehensive loss of $3,000 at September 30, 2015. Recent Accounting Pronouncements On November 20, 2015, the FASB issued Accounting Standards Update (“ASU”) Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In May 2014, the FASB issued guidance codified in ASC No. 606, Revenue Recognition – Revenue from Contracts with Customers Revenue Recognition In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (Topic 805) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-19”), in its first quarter of fiscal 2018. The Company is currently evaluating the impact of adopting the new stock compensation standard on its consolidated financial statements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Business Combination
Business Combination | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combination | 2. BUSINESS COMBINATION On June 17, 2015, the Company completed the acquisition (the “Acquisition”) of IDchecker NL B.V., a company incorporated under the laws of the Netherlands (“IDC NL”), and ID Checker, Inc., a California corporation and wholly owned subsidiary of IDC NL (“IDC Inc” and together with IDC NL, “IDchecker”), pursuant to a Share Purchase Agreement (the “Share Purchase Agreement”) dated May 26, 2015, 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. Upon completion of the Acquisition, IDC NL and IDC Inc became wholly owned subsidiaries of the Company. IDchecker is a provider of cloud-based identification document verification services. 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 $5.9 million, which consists of (i) a cash payment to the Sellers of $5.6 million, subject to adjustments for transaction expenses, indebtedness, and working capital adjustments (the “Cash Payment”) and (ii) the forgiveness of the outstanding balance of approximately $0.3 million on a promissory note issued by the Company to Parent. In addition, approximately $2.7 million 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, the Company will issue to the Sellers up to an aggregate of $2.0 million in shares of Common Stock (the “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 $1.8 million 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 Share Purchase Agreement. 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 (amounts shown in thousands): June 17, 2015 Current assets $ 620 Property, plant and equipment 42 Intangible assets 3,570 Assets acquired $ 4,232 Current liabilities $ (476 ) Other liabilities (810 ) Liabilities assumed $ (1,286 ) Fair value of net assets acquired $ 2,946 Total consideration paid 5,819 Goodwill before effect in exchange rates $ 2,873 Effect of movements in exchange rates (10 ) Goodwill $ 2,863 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. The excess of the purchase price over the fair value of the assets acquired and liabilities assumed was allocated to goodwill. Goodwill in the amount of $2.9 million was recorded. The goodwill recognized is due to expected synergies and other factors and it is not expected to be deductible for income tax purposes. |
Investments
Investments | 12 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 3. INVESTMENTS The Company determines the appropriate designation of investments at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s investments are designated as available-for-sale debt securities. As of September 30, 2016 and 2015, the Company’s short-term investments have maturity dates of greater than 90 days and less than one year from the balance sheet date. The Company’s long-term investments have maturity dates of greater than one year from the balance sheet date. Available-for-sale marketable securities are carried at fair value as determined by quoted market prices for identical or similar assets, with unrealized gains and losses, net of tax, and reported as a separate component of stockholders’ equity. Management reviews the fair value of the portfolio at least monthly, and evaluates individual securities with fair value below amortized cost at the balance sheet date. For debt securities, in order to determine whether impairment is other-than-temporary, management must conclude whether the Company intends to sell the impaired security and whether it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. If management intends to sell an impaired debt security or it is more likely than not the Company will be required to sell the security prior to recovering its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of an other-than-temporary impairment related to a credit loss, or securities that management intends to sell before recovery, is recognized in earnings. The amount of an other-than-temporary impairment on debt securities related to other factors is recorded consistent with changes in the fair value of all other available-for-sale securities as a component of stockholders’ equity in other comprehensive income. No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2016, 2015 and 2014. The cost of securities sold is based on the specific identification method. Amortization of premiums, accretion of discounts, interest, dividend income, and realized gains and losses are included in investment income. The following table summarizes investments by security type as of September 30, 2016 and 2015 (amounts shown in thousands): September 30, 2016 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: US Treasury $ 12,907 $ 8 $ — $ 12,915 Corporate debt securities, short-term 11,949 2 (3 ) 11,948 Corporate debt securities, long-term 1,954 1 (3 ) 1,952 Total $ 26,810 $ 11 $ (6 ) $ 26,815 September 30, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities, short-term $ 23,924 $ 3 $ (6 ) $ 23,921 Total $ 23,924 $ 3 $ (6 ) $ 23,921 Fair Value Measurements and Disclosures FASB ASC Topic 820, Fair Value Measurements • 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. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Because many fixed income securities do not trade on a daily basis or have market prices from multiple sources, the pricing applications may apply available information as applicable to determine the fair value as of the measurement date. This methodology applies to the Company’s Level 2 investments. Currently, the Company does not hold any Level 3 investments. The Company recorded an acquisition-related liability for contingent consideration representing the amounts payable to former IDchecker shareholders, as outlined under the terms of the Share Purchase Agreement, subject to the achievement of certain revenue and net income targets by IDchecker for the nine-month period ended on September 30, 2015, and the twelve-month period ended September 30, 2016. The fair value of this Level 3 liability is estimated using the Monte-Carlo simulation (using the Company’s 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). Subsequent changes in the fair value of the contingent consideration liability were recorded in the consolidated statement of operations and comprehensive income (loss) and resulted from updates to assumed probability of achievement of the performance targets and adjustments to the inputs discussed previously (amounts shown in thousands). Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2016: Assets: Short-term investments: US Treasury $ 12,915 $ 12,915 $ — $ — Corporate debt securities Financial 3,963 — 3,963 — Industrial 4,445 — 4,445 — Commercial paper Industrial 697 — 697 — Financial 2,843 — 2,843 — Total short-term investments at fair value 24,863 12,915 11,948 — Long-term investments: Corporate debt securities Financial 502 — 502 — Industrial 1,450 — 1,450 — Total assets at fair value $ 26,815 $ 12,915 $ 13,900 $ — Liabilities: Acquisition-related contingent consideration 252 — — 252 Total liabilities at fair value $ 252 $ — $ — $ 252 September 30, 2015: Assets: Short-term investments: Corporate debt securities Financial $ 10,308 $ — $ 10,308 $ — Industrial 9,665 — 9,665 — Utility 1,802 — 1,802 — Commercial paper Industrial 1,448 — 1,448 — Financial 698 — 698 — Total assets at fair value $ 23,921 $ — $ 23,921 $ — Liabilities: Acquisition-related contingent consideration 47 — — 47 Total liabilities at fair value $ 47 $ — $ — $ 47 The following table includes a summary of the Acquisition-related contingent consideration measured at fair value using significant unobservable inputs (Level 3) during the year ended September 30, 2016 (amounts shown in thousands): Balance at September 30, 2015 $ 47 Expenses recorded due to changes in fair value 293 Issuance of common stock (88 ) Balance at September 30, 2016 $ 252 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. GOODWILL AND INTANGIBLE ASSETS Goodwill The Company has goodwill balances of $2.9 million at September 30, 2016 and September 30, 2015, 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 the 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 (amounts shown in thousands, except for years): Weighted Average Amortization Period Cost Accumulated Amortization Net Completed technologies 6 years $ 2,370 $ 516 $ 1,854 Customer relationships 6 years 970 211 759 Tradenames 5 years 230 60 170 Total intangible assets $ 3,570 $ 787 $ 2,783 Amortization expense related to acquired intangible assets was $0.6 million and $0.2 million for fiscal year ended September 30, 2016 and 2015, respectively. 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 (amounts shown in thousands): Estimated Future Amortization Expense 2017 $ 601 2018 601 2019 601 2020 587 2021 393 Thereafter — $ 2,783 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 5. STOCKHOLDERS’ EQUITY Common Stock In June 2013, the Company sold 2,857,142 shares of its common stock at a price of $5.25 per share in an underwritten public offering (the “Offering”) and received $13.9 million in net proceeds, after deducting underwriting discounts and commissions and other offering expenses of $1.1 million. Under the terms of the underwriting agreement for the Offering, the Company granted the underwriter a 30-day option to purchase an additional 428,571 shares of its common stock to cover overallotments. The underwriter exercised its overallotment option during June 2013 and the closing of the sale of shares of the Company’s common stock pursuant to such option occurred during July 2013, resulting in $2.1 million in additional net proceeds to the Company, after deducting other offering expenses of $0.1 million. Warrants Historically, the Company has granted warrants to purchase its common stock to service providers and investors. As of September 30, 2014, there were warrants to purchase 6,667 shares of the Company’s common stock outstanding with an exercise price of $0.91 per share, subject to adjustment for stock splits, stock dividends and the like. These warrants expired in December 2014. Stock-based Compensation The Company applies the fair value recognition provisions of ASC 718. The fair value of stock options granted to employees and directors is calculated using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected life of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. The value of stock-based compensation is based on the single option valuation approach under ASC 718. It is assumed no dividends will be declared. The estimated fair value of stock-based compensation awards is amortized using the straight-line method over the vesting period of the option. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the fiscal year ended September 30, 2016 of 12.1% for all stock option grants was based on historical forfeiture experience. ASC 718 requires the cash flows from tax benefits resulting from tax deductions in excess of the compensation cost recognized for options to be classified as financing cash flows. Due to the Company’s valuation allowance from losses in the previous years, there were no such tax benefits during the fiscal years ended September 30, 2016, 2015 and 2014. No stock options were granted to employees during the fiscal year ended September 30, 2014. The fair value calculations for stock-based compensation awards to employees for the fiscal years ended September 30, 2016 and 2015 were based on the following assumptions: 2016 2015 Risk-free interest rate 1.43% - 1.66% 1.29% - 1.66% Expected life (years) 5.9 5.3 Expected volatility 83% 90% Expected dividends None None The following table summarizes stock-based compensation expense under ASC 718 for the fiscal years ended September 30, 2016, 2015 and 2014, which were allocated as follows (amounts shown in thousands): 2016 2015 2014 Sales and marketing $ 1,122 $ 743 $ 824 Research and development 669 592 675 General and administrative 2,288 2,032 1,945 Acquisition-related costs and expenses 1,503 393 — Stock-based compensation expense related to employee stock options included in operating expenses $ 5,582 $ 3,760 $ 3,444 The following table summarizes vested and unvested options, weighted average exercise price per share, weighted average remaining term and aggregate intrinsic value at September 30, 2016: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Vested 2,107,825 $ 4.31 5.55 $ 9,491,803 Unvested 907,549 $ 3.11 8.33 4,700,241 Total 3,015,374 $ 3.95 6.39 $ 14,192,044 The Company recognized $1.3 million, $2.2 million and $2.2 million in stock-based compensation expense related to outstanding stock options in the fiscal years ended September 30, 2016, 2015 and 2014, respectively. As of September 30, 2016, the Company had $2.0 million of unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted average period of approximately 2.3 years. The following table summarizes stock option activity under the Company’s stock option plans during the fiscal years ended September 30, 2016, 2015 and 2014: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Outstanding, September 30, 2013 2,824,964 $ 4.09 7.29 Granted — $ — Exercised (108,135 ) $ 1.27 Cancelled (382,503 ) $ 4.77 Outstanding, September 30, 2014 2,334,326 $ 4.11 5.46 Granted 1,927,500 $ 2.92 Exercised (232,203 ) $ 1.06 Cancelled (381,918 ) $ 3.85 Outstanding, September 30, 2015 3,647,705 $ 3.70 7.15 Granted 98,500 $ 4.51 Exercised (661,663 ) $ 2.67 Cancelled (69,168 ) $ 4.51 Outstanding, September 30, 2016 3,015,374 $ 3.95 6.39 The total intrinsic value of options exercised during the fiscal years ended September 30, 2016, 2015 and 2014 was $3.3 million, $0.6 million and $0.5 million, respectively. The per-share weighted average fair value of options granted during the fiscal years ended September 30, 2016 and 2015 was $3.29 and $2.83, respectively. No stock options were granted to employees during the fiscal year ended September 30, 2014. 2012 Incentive Plan In January 2012, the Company’s board of directors adopted the Mitek Systems, Inc. 2012 Incentive Plan (the “2012 Plan”), upon the recommendation of the compensation committee of the board of directors. The 2012 Plan was approved by the Company’s stockholders on February 22, 2012. On February 19, 2014, the Company’s stockholders approved an amendment to the 2012 Plan that increased the total number of shares of the Company’s common stock reserved for issuance thereunder from 2,000,000 shares to 4,000,000 shares, plus that number of shares of the Company’s common stock that would otherwise return to the available pool of unissued shares reserved for awards under the Company’s 1999 Stock Option Plan, 2000 Stock Option Plan, 2002 Stock Option Plan, 2006 Stock Option Plan and 2010 Stock Option Plan (collectively, the “Prior Plans”). There were no awards granted under the Prior Plans after the approval of the 2012 Plan by the Company’s stockholders on February 22, 2012. Stock options granted under the Prior Plans that were outstanding at such date remain in effect until such options are exercised or expire. The 2012 Plan authorizes the grant of stock options, stock appreciation rights, restricted stock, RSUs and cash awards. Stock options granted under the 2012 Plan may be either options intended to constitute incentive stock options or nonqualified stock options, in each case as determined by the compensation committee of the board of directors in accordance with the terms of the 2012 Plan. As of September 30, 2016, stock options to purchase 1,916,646 shares of the Company’s common stock and 1,401,169 RSUs were outstanding under the 2012 Plan, and 2,040,378 shares of the Company’s common stock were reserved for future grants. The following table summarizes the number of stock options outstanding under the Prior Plans as of September 30, 2016: 2000 Stock Option Plan 6,262 2002 Stock Option Plan 36,750 2006 Stock Option Plan 43,000 2010 Stock Option Plan 1,012,716 Total stock options outstanding under the Prior Plans 1,098,728 Restricted Stock Units In January 2011, the Company’s board of directors adopted, subject to stockholder approval, the Mitek Systems, Inc. Director Restricted Stock Unit Plan, as amended and restated (the “Director Plan”), reserving up to 1,000,000 shares of the Company’s common stock for the issuance of RSUs to both employee and non-employee members of the board of directors of the Company. On February 23, 2011, the Director Plan was approved by the Company’s stockholders at its annual meeting. In addition, the Company has awarded RSUs to certain of its employees under the 2012 Plan. The RSUs vest in equal annual installments over four years. The following table summarizes RSU activity in the fiscal years ended September 30, 2016, 2015 and 2014: Number of shares Weighted- average fair value per share Outstanding at September 30, 2013 692,504 $ 4.85 Granted 625,139 $ 4.83 Settled (63,334 ) $ 4.66 Cancelled (153,006 ) $ 5.03 Outstanding at September 30, 2014 1,101,303 $ 4.71 Granted 104,000 $ 2.29 Settled (255,041 ) $ 2.96 Cancelled (147,345 ) $ 3.54 Outstanding at September 30, 2015 802,917 $ 4.49 Granted 1,536,000 $ 4.82 Settled (261,621 ) $ 4.77 Cancelled (31,127 ) $ 4.19 Outstanding at September 30, 2016 2,046,169 $ 4.90 The cost of a RSU is determined using the fair value of the Company’s common stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $2.7 million, $1.2 million and $1.3 million in stock-based compensation expense related to outstanding RSUs in the fiscal years ended September 30, 2016, 2015 and 2014, respectively. As of September 30, 2016, the Company had approximately $6.3 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 2.7 years. Closing Shares In connection 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 $1.3 million and $0.3 million in stock based compensation expense related to the Closing Shares for the years ended September 30, 2016 and 2015, respectively. As of September 30, 2016, the Company had $1.2 million 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 ended on September 30, 2015, and the twelve-month period ended 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 IDchecker 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 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 was updated as of September 30, 2016 and 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 $0.3 million and $47,000 in stock based compensation expense related to the Earnout Shares for the fiscal years ended September 30, 2016 and 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. INCOME TAXES For the fiscal years ended September 30, 2016, 2015 and 2014 the income tax (provision) benefit was as follows (amounts shown in thousands): 2016 2015 2014 Federal—current $ (129 ) $ (84 ) $ — Federal—deferred — 621 — State—current (16 ) (10 ) (2 ) State—deferred — 13 — Foreign—current 146 3 — Total $ 1 $ 543 $ (2 ) Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2016 and 2015 are as follows (amounts shown in thousands): 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 7,095 $ 9,825 Foreign net operating losses 327 258 Stock based compensation 2,898 2,333 AMT credit carryforwards 279 149 Other, net 320 305 Research credit carryforwards 44 44 Total deferred assets 10,963 12,914 Deferred tax liabilities: Intangibles (473 ) (603 ) Foreign deferred liabilities (356 ) (415 ) Net deferred tax asset 10,134 11,896 Valuation allowance for net deferred tax assets (10,163 ) (12,053 ) Net deferred tax liability $ (29 ) $ (157 ) The Company has provided a valuation allowance against deferred tax assets recorded as of September 30, 2016 and 2015 due to uncertainties regarding the realization of such assets. The net change in the total valuation allowance for the fiscal years ended September 30, 2016 and 2015 was a decrease in 2016 of $1.9 million and a decrease in 2015 of $0.9 million, respectively. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. The Company considers projected future taxable income and planning strategies in making this assessment. Based on the level of historical operating results and projections for future taxable income, the Company has determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero. There can be no assurance that the Company will ever be able to realize the benefit of some or all of the federal and state loss carryforwards or the credit carryforwards, either due to ongoing operating losses or due to ownership changes, which limit the usefulness of the loss carryforwards. As of September 30, 2016, the Company has available net operating loss carryforwards of $37.4 million for federal income tax purposes, which will start to expire in 2018. The net operating loss carryforwards for state purposes are $31.7 million and will begin to expire in 2017. Included in these amounts are federal and state net operating losses of $18.8 million attributable to stock option deductions of which the tax benefit will be credited to equity when realized. As of September 30, 2016, the Company has available federal research and development credit carryforwards of $29,000 and alternative minimum tax credit carryforwards of $0.3 million. The federal research and development credits will start to expire in 2023. As of September 30, 2016, the Company has available California research and development credit carryforwards of $14,000, which do not expire. The Company’s ability to use its net operating loss and research and development credit carryforwards may be substantially limited due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”), as well as similar state provisions. The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company became a “loss corporation” as defined in Section 382. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations or financial position of the Company. The difference between the income tax (provision) benefit and income taxes computed using the U.S. federal income tax rate was as follows for the years ended September 30, 2016, 2015 and 2014 (amounts shown in thousands): 2016 2015 2014 Amount computed using statutory rate $ (666 ) $ (674 ) $ 1,798 Net change in valuation allowance for net deferred tax assets 1,889 1,619 (1,677 ) AMT and other (148 ) 151 — Foreign rate differential (70 ) (1 ) — Non-deductible items (1,136 ) (182 ) (411 ) State income tax (15 ) (370 ) 288 Foreign net operating loss 147 — — Income tax (provision) benefit $ 1 $ 543 $ (2 ) The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Because the Company is carrying forward federal and state net operating losses from 1997 and 2002, respectively, the Company is subject to U.S. federal and state income tax examinations by tax authorities for all years since 1997 and 2002, as the case may be. The Company does not have any uncertain tax positions. As of September 30, 2016, no accrued interest or penalties are recorded in the consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
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 us in the U.S. District Court for the District of Delaware alleging that certain of our 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 our customers, as a defendant in the lawsuit (as amended, the “Initial Lawsuit”). On September 8, 2014, RMII filed three additional complaints (the “Subsequent Lawsuits”) against us 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 our mobile imaging products of the four RMII-owned patents related to mobile imaging technology, but name as co-defendants Citibank, N.A., Citigroup Inc., Wells Fargo & Company, Wells Fargo Bank, N.A., Bank of America Corporation and Bank of America, N.A., respectively (together with Chase, the “Bank Defendants”). RMII subsequently filed amended complaints (together with the Initial Lawsuit and the Subsequent Lawsuits, the “RMII Lawsuits”) adding as defendants both Fiserv and NCR (the “Distributor Defendants”), each of whom distributes our mobile imaging technology to one or more of the Bank Defendants. Based on our understanding of the claims, we agreed to accept the demands for indemnity and defense tendered by each of the Bank Defendants and Distributor Defendants in connection with the RMII Lawsuits. On November 10, 2014, we filed a motion to sever and stay the claims against Chase in the Initial Lawsuit pending resolution of RMII’s claims against us, which motion was granted on August 3, 2015. On November 19, 2014, we 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 Trial and Appeal Board (“PTAB”) of the Patent and Trademark Office instituted our petitions for Inter Partes On July 20, 2016, the PTAB entered its final decision in the IPR proceedings. The PTAB ruled that all claims asserted in the litigation in all four RMII patents were directed to unpatentable subject matter and thus not patent eligible. On September 16, 2016 , the parties filed a joint status report notifying the Court of the PTAB’s decisions in the IPRs. Through that notice, Mitek requested that the Court enter a judgment of non-infringement, or, in the alternative, dismiss all of RMII’s claims against all defendants with prejudice. On September 16, 2016, RMII filed a motion to dismiss without prejudice. The Company is currently controlling the defense of such claims and have taken actions to defend the RMII Lawsuits, as more fully described above. The Company believes that RMII’s claims are without merit and have vigorously defended against those claims. The Company does not believe that the results of the RMII Lawsuits will have a material adverse effect on the Company’s 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 Employee 401(k) Plan The Company has a 401(k) plan that allows participating employees to contribute a percentage of their salary, subject to Internal Revenue Service annual limits. During the fiscal year ended September 30, 2015, the Company implemented a company match to the plan. As of September 30, 2016 and 2015, the Company had $63,000 and $42,000 accrued for the 401(k) match, respectively. During the fiscal years ended September 30, 2014, the Company did not match contributions to the plan. Facility Lease The Company’s principal executive offices, as well as its research and development facility, are located in approximately 28,354 square feet of office space in San Diego, California. The term of the lease for the Company’s offices commenced on October 1, 2016 and continues through April 30, 2020. The annual base rent under this lease is approximately $0.6 million per year. In connection with this lease, the Company received tenant improvement allowances totaling $0.3 million. These lease incentives are being amortized as a reduction of rent expense over the term of the lease. The Company’s previous facility lease terminated on October 16, 2016 and the unamortized balance of the lease incentives associated with that lease were $49,000 at September 30, 2016. The offices of IDchecker are located in the Netherlands. The term of the lease for the office continues through May 31, 2020. The annual base rent under the lease is approximately €48,000 per year. The Company has a sales office in London, UK. The term of this lease continues through May 31, 2017. The annual base rent under this lease is approximately £65,000 per year. Future annual minimum rental payments payable under the facility leases are as follows (shown in thousands): Years ending September 30: 2017 $ 499 2018 755 2019 776 2020 469 2021 — Thereafter — Total $ 2,499 Rent expense for the Company’s operating leases for its facilities for the years ended September 30, 2016, 2015 and 2014 totaled $0.3 million, $0.4 million and $0.4 million, respectively. |
Revenue and Vendor Concentratio
Revenue and Vendor Concentrations | 12 Months Ended |
Sep. 30, 2016 | |
Risks And Uncertainties [Abstract] | |
Revenue and Vendor Concentrations | 8. REVENUE AND VENDOR CONCENTRATIONS Revenue Concentration For the fiscal year ended September 30, 2016, the Company derived revenue of $6.3 million, or 18% of the Company’s total revenue, from one customer, compared to revenue of $6.3 million, or 25% of the Company’s total revenue, from one customer for the fiscal year ended September 30, 2015. For the fiscal year ended September 30, 2014, the Company derived revenue of $5.7 million or 30% of the Company’s total revenue, from one customer. The corresponding accounts receivable balances of customers from which revenues were in excess of 10% of total revenue were $1.0 million, $1.1 million and $1.4 million at September 30, 2016, 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. In most cases, the channel partners purchase the license from the Company after they receive an order from an end-user. The channel partners receive orders from various individual end-users; therefore, the sale of a license to a channel partner may represent sales to multiple end-users. End-users can purchase the Company’s products through more than one channel partner. Revenues can fluctuate based on the timing of license renewals by channel partners. When a channel partner purchases or renews a license, the Company receives a license fee in consideration for the grant of a license to sell the Company’s products and there are no future payment obligations related to such agreement; therefore, the license fee the Company receives with respect to a particular license renewal in one period does not have a correlation with revenue in future periods. During the last few years, sales of licenses to one or more channel partners have comprised a significant part of the Company’s revenue. This is attributable to the timing of renewals or purchases of licenses and does not represent a dependence on any single channel partner. The Company believes that it is not dependent upon any single channel partner, even those from which revenues were in excess of 10% of the Company’s total revenue in a specific reporting period, and that the loss or termination of the Company’s relationship with any such channel partner would not have a material adverse effect on the Company’s future operations because either the Company or another channel partner could sell the Company’s products to the end-user that had purchased from the channel partner the Company lost. International sales accounted for approximately 15%, 5% and 4% of the Company’s total revenue for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Vendor Concentration The Company purchases its integrated software components from multiple third-party software providers at competitive prices. For the fiscal years ended September 30, 2016, 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. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | 9. QUARTERLY INFORMATION (UNAUDITED) The following table sets forth selected quarterly financial data for 2016, 2015 and 2014 (shown in thousands except share data): 2016 (by quarter) 1 2 3 4 Revenue $ 7,404 $ 8,522 $ 9,105 $ 9,670 Cost of revenue 942 720 793 940 Operating expenses 6,804 7,171 7,618 7,889 Operating income (loss) (342 ) 631 694 841 Other income (expense), net 36 30 45 23 Income tax benefit (provision) (16 ) (79 ) — 96 Net income (loss) (322 ) 582 739 960 Net income (loss) per share: Basic income (loss) per share (0.01 ) 0.02 0.02 0.03 Shares used in calculating net income (loss) per share - basic 31,094,417 31,325,577 31,823,386 32,086,223 Diluted income (loss) per share (0.01 ) 0.02 0.02 0.03 Shares used in calculating net income (loss) per share - diluted 31,094,417 33,133,920 34,531,964 34,859,861 2015 (by quarter) 1 2 3 4 Revenue $ 5,389 $ 5,672 $ 6,440 $ 7,866 Cost of revenue 497 558 591 825 Operating expenses 4,758 4,628 5,539 6,079 Operating income (loss) 134 486 310 962 Other income (expense), net 15 21 30 25 Income tax benefit (provision) (3 ) — 578 (32 ) Net income (loss) 146 507 918 955 Net income (loss) per share: Basic income (loss) per share 0.00 0.02 0.03 0.03 Shares used in calculating net income (loss) per share - basic 30,618,097 30,697,391 30,764,694 30,969,157 Diluted income (loss) per share 0.00 0.02 0.03 0.03 Shares used in calculating net income (loss) per share - diluted 31,173,815 31,321,259 31,645,696 31,664,178 2014 (by quarter) 1 2 3 4 Revenue $ 4,463 $ 4,484 $ 4,660 $ 5,544 Cost of revenue 571 450 608 520 Operating expenses 5,373 6,246 5,702 5,089 Operating income (loss) (1,481 ) (2,212 ) (1,650 ) (65 ) Other income (expense), net 13 19 17 67 Income tax benefit (provision) — — — — Net income (loss) (1,468 ) (2,193 ) (1,633 ) 2 Net income (loss) per share: Basic income (loss) per share (0.05 ) (0.07 ) (0.05 ) 0.00 Shares used in calculating net income (loss) per share - basic 30,402,397 30,453,455 30,481,168 30,510,587 Diluted income (loss) per share (0.05 ) (0.07 ) (0.05 ) 0.00 Shares used in calculating net income (loss) per share - diluted 30,402,397 30,453,455 30,481,168 31,022,148 |
Nature of Operations and Summ16
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Mitek Systems, Inc. (the “Company”) develops, markets and sells proprietary mobile capture and identity verification software solutions for enterprise customers. 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, open accounts, get insurance quotes, pay bills as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. As of September 30, 2016, the Company’s has been granted 27 patents and it has an additional 16 patent applications pending. The Mobile Verify™ products combine the Mitek MiSnap auto capture experience with a variety of advanced computer vision techniques to provide verification of ID documents. Mobile Verify provides a check of authenticity of U.S state-issued driver’s licenses and includes full global coverage. These products enable banks and other businesses to improve KYC processes. Mobile Fill™ enables the camera to serve as a keyboard. Using Mobile Fill, consumers can quickly pre-fill any form with personal data by simply snapping a picture of their driver license, credit card, or other document. The Company’s Mobile Deposit ® ® The Company markets and sells the Mitek Mobile Identity Suite of mobile capture and identity verification software products directly to enterprise customers or through channel partners. These software solutions are embedded in mobile banking or enterprise applications developed by banks, insurance companies or their partners, and then marketed under their own proprietary brands. |
Basis of Presentation | Basis of Presentation The financial statements are prepared under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 105-10, Generally Accepted Accounting Principles |
Principles of Consolidation | Principles 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 $46,000 for the fiscal year ended September 30, 2016. There were no foreign exchange translation gains or losses recorded in fiscal 2015 and 2014. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards, fair value of assets and liabilities acquired, impairment of goodwill, useful lives of intangible assets, vendor specific objective evidence (“VSOE”) of fair value related to revenue recognition and income taxes. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets The Company’s goodwill resulted from the acquisition of IDchecker in fiscal year 2015. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually or as circumstances indicate that their value may no longer be recoverable. In accordance with ASC Topic 350, Intangibles—Goodwill and Other The Company’s goodwill is considered to be impaired if management determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds management’s estimate of its fair value. Based on the guidance provided by ASC Topic 350 and ASC Topic 280, Segment Reporting 2016 September 30, 2016 September 30, 2016 Because the Company determines the fair value of its reporting unit based on our market capitalization, the Company’s future reviews of goodwill for impairment may be impacted by changes in the price of its common stock. For example, a significant decline in the price of the Company’s common stock may cause the fair value of its goodwill to fall below its carrying value. Therefore, the Company cannot assure you that when it completes its future reviews of goodwill for impairment a material impairment charge will not be recorded. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings per Share At September 30, 2016, 2015 and 2014, the following potentially dilutive common shares were excluded from the net income (loss) per share calculation, as they would have been antidilutive: 2016 2015 2014 Stock options 1,258,844 2,202,844 2,334,326 Warrants — — 6,667 Restricted stock units 623,883 287,147 1,101,303 IDchecker shares 349,239 63,037 — Total potentially dilutive common shares outstanding 2,231,966 2,553,028 3,442,296 The computation of basic and diluted net income (loss) per share for the fiscal years ended September 30, 2016, 2015 and 2014 is as follows (amounts in thousands, except share data): 2016 2015 2014 Net income (loss) $ 1,959 $ 2,526 $ (5,292 ) Weighted-average common shares and share equivalents outstanding—basic 31,586,535 30,790,258 30,466,063 Dilutive potential common stock equivalents 2,231,966 689,983 — Weighted-average common shares and share equivalents outstanding—diluted 33,818,501 31,480,241 30,466,063 Net income (loss) per share: Basic $ 0.06 $ 0.08 $ (0.17 ) Diluted $ 0.06 $ 0.08 $ (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 The Company provides hosting services that give customers access to software that resides on its servers. The Company’s model typically includes an up-front fee and a monthly commitment from the customer that commences upon completion of the implementation through the remainder of the customer life. The up-front fee is the initial setup fee, or the implementation fee. The monthly commitment includes, but is not limited to, a fixed monthly fee or a transactional fee based on system usage that exceeds monthly minimums. The Company does not view the signing of the contract or the provision of initial setup services as discrete earnings events that have stand-alone value. Revenue is typically deferred until the date the customer commences use of services, at which point the up-front fees are recognized ratably over the life of the customer arrangement. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are defined as highly liquid financial instruments with original maturities of three months or less. A substantial portion of the Company’s cash is deposited with one financial institution. The Company monitors the financial condition of this financial institution and does not believe that funds on deposit are subject to a significant degree of risk. |
Investments | Investments Investments consist of corporate notes and bonds, and commercial paper. The Company classifies investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net in the statements of other comprehensive income (loss). No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2016, 2015 and 2014. All investments whose maturity or sale is expected within one year are classified as “current” on the balance sheet. All other securities are classified as “long-term” on the balance sheet. |
Fair Value Measurements | Fair Value Measurements The carrying amounts of cash equivalents, investments, accounts receivable, accounts payable and other accrued liabilities are considered representative of their respective fair values because of the short-term nature of those instruments. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. Allowances for doubtful accounts are established based on various factors including credit profiles of the Company’s customers, contractual terms and conditions, historical payments, and current economic trends. The Company reviews its allowances by assessing individual accounts receivable over a specific aging and amount. Accounts receivable are written off on a case-by-case basis, net of any amounts that may be collected. The Company had no write-offs of the allowance for doubtful accounts for the years ended September 30, 2016 and 2015, respectively. The Company maintained an allowance for doubtful accounts of $35,000 and $13,000 as of September 30, 2016 and September 30, 2015, respectively. |
Deferred Maintenance Fees | Deferred Maintenance Fees Deferred maintenance fees consist of capitalized costs associated with software maintenance fees paid to vendors who supply licenses and maintenance for software embedded in the Company’s products that it sells to customers. These software maintenance fees, which are included in other current assets on the balance sheet, are typically billed annually to the Company and are amortized to cost of revenue-maintenance and professional services in the statements of operations and other comprehensive income (loss) over the maintenance period, which is typically one year. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost. The following is a summary of property and equipment as of September 30, 2016 and 2015 (amounts shown in thousands): 2016 2015 Property and equipment—at cost: Equipment $ 1,476 $ 1,281 Furniture and fixtures 249 229 Leasehold improvements 1,018 995 2,743 2,505 Less: accumulated depreciation and amortization (2,303 ) (1,530 ) Total property and equipment, net $ 440 $ 975 Depreciation and amortization of property and equipment are provided using the straight-line method over estimated useful lives ranging from three to five years. Leasehold improvements are amortized over the lease term. Depreciation and amortization of property and equipment totaled $0.8 million, $0.4 million and $0.5 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Included in property and equipment as of September 30, 2016 and 2015 in the table above is equipment of $0.1 million purchased under a capital lease. Depreciation expense related to the equipment purchased under the capital lease was $19,000 in the fiscal years ended September 30, 2016, 2015 and 2014, respectively, and accumulated depreciation was $0.1 million in each of the years ended September 30, 2016 and 2015, respectively. Expenditures for repairs and maintenance are charged to operations. Total repairs and maintenance expenses were $0.2 million, $0.1 million and $0.1 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. |
Long-Lived Assets | Long-Lived Assets The Company evaluates the carrying value of long-lived assets, including license agreements and other intangible assets, when events and circumstances indicate that these assets may be impaired or in order to determine whether any revision to the related amortization periods should be made. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each product or asset. If management’s evaluation indicates that the carrying values of these intangible assets were impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company did not record any impairment for the fiscal years ended September 30, 2016, 2015 and 2014. |
Capitalized Software Development Costs | Capitalized Software Development Costs Costs incurred for the development of software that will be sold, leased, or otherwise marketed are capitalized when technological feasibility has been established. Software development costs consist primarily of compensation of development personnel and related overhead incurred to develop new products and upgrade and enhance the Company’s current products, as well as fees paid to outside consultants. Capitalization of software development costs ceases and amortization of capitalized software development costs commences when the products are available for general release. For the fiscal years ended September 30, 2016 and 2015, no software development costs were capitalized because the time period and cost incurred between technological feasibility and general release for all software product releases were not material. |
Deferred Revenue | Deferred Revenue Deferred revenues represent advance payments or billings for software licenses, professional services and maintenance billed in advance of the time we recognize the related revenues. Deferred maintenance revenue represents customer billings, paid up front, generally annually at the beginning of each maintenance period, with revenue recognized ratably over such period. For certain other licensing arrangements, revenue attributable to undelivered elements, including post-contract customer support which typically includes telephone support and the right to receive unspecified upgrades and enhancements of software on a when-and-if-available basis, is based upon the sales price of those elements when sold separately and is recognized ratably on a straight-line basis over the term of the arrangement. |
Guarantees | Guarantees In the ordinary course of business, the Company is not subject to potential obligations under guarantees that fall within the scope of FASB ASC Topic 460, Guarantees |
Loss Contingencies | Loss Contingencies The Company records its best estimates of a loss contingency when it is considered probable and the amount can be reasonably estimated. When a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending loss contingency and revises its estimates. The Company discloses contingencies if there is at least a reasonable possibility that a material loss or a material additional loss may have been incurred. The Company’s legal costs are expensed as incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes Management evaluates the available evidence about future taxable income and other possible sources of realization of deferred tax assets. The valuation allowance reduces deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred tax assets that more likely than not will be realized. See Note 6 for additional details. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. See Note 6 for additional details. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation The Black-Scholes option pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected life of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred and totaled $0.2 million, $0.2 million and $0.1 million during the fiscal years ended September 30, 2016, 2015 and 2014, respectively. |
Research and Development | Research and Development Research and development costs are expensed in the period incurred. |
Leases | Leases Leases are reviewed and classified as capital or operating at their inception. For leases that contain rent escalations, the Company records the total rent payable on a straight-line basis over the term of the lease. The difference between rent payments and straight-line rent expense is recorded as deferred rent. |
Segment Reporting | Segment Reporting FASB ASC Topic 280, Segment Reporting |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of net loss and unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. The following table summarizes the components of comprehensive loss for the fiscal years ended September 30, 2016, 2015 and 2014 (amounts shown in thousands): 2016 2015 2014 Net income (loss) $ 1,959 $ 2,526 $ (5,292 ) Other comprehensive income (loss): Foreign currency translation adjustment (46 ) — — Change in unrealized gains (losses) on marketable securities 7 5 (10 ) Total comprehensive income (loss) $ 1,920 $ 2,531 $ (5,302 ) Included on the balance sheet at September 30, 2016 is an accumulated other comprehensive loss of $42,000, compared to an accumulated other comprehensive loss of $3,000 at September 30, 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On November 20, 2015, the FASB issued Accounting Standards Update (“ASU”) Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In May 2014, the FASB issued guidance codified in ASC No. 606, Revenue Recognition – Revenue from Contracts with Customers Revenue Recognition In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (Topic 805) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-19”), in its first quarter of fiscal 2018. The Company is currently evaluating the impact of adopting the new stock compensation standard on its consolidated financial statements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Nature of Operations and Summ17
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Potentially Dilutive Common Shares Excluded from Net Income (Loss) per Share Calculation | At September 30, 2016, 2015 and 2014, the following potentially dilutive common shares were excluded from the net income (loss) per share calculation, as they would have been antidilutive: 2016 2015 2014 Stock options 1,258,844 2,202,844 2,334,326 Warrants — — 6,667 Restricted stock units 623,883 287,147 1,101,303 IDchecker shares 349,239 63,037 — Total potentially dilutive common shares outstanding 2,231,966 2,553,028 3,442,296 |
Computation of Basic and Diluted Net Income (Loss) Per Share | The computation of basic and diluted net income (loss) per share for the fiscal years ended September 30, 2016, 2015 and 2014 is as follows (amounts in thousands, except share data): 2016 2015 2014 Net income (loss) $ 1,959 $ 2,526 $ (5,292 ) Weighted-average common shares and share equivalents outstanding—basic 31,586,535 30,790,258 30,466,063 Dilutive potential common stock equivalents 2,231,966 689,983 — Weighted-average common shares and share equivalents outstanding—diluted 33,818,501 31,480,241 30,466,063 Net income (loss) per share: Basic $ 0.06 $ 0.08 $ (0.17 ) Diluted $ 0.06 $ 0.08 $ (0.17 ) |
Summary of Property and Equipment | The following is a summary of property and equipment as of September 30, 2016 and 2015 (amounts shown in thousands): 2016 2015 Property and equipment—at cost: Equipment $ 1,476 $ 1,281 Furniture and fixtures 249 229 Leasehold improvements 1,018 995 2,743 2,505 Less: accumulated depreciation and amortization (2,303 ) (1,530 ) Total property and equipment, net $ 440 $ 975 |
Components of Comprehensive Loss | The following table summarizes the components of comprehensive loss for the fiscal years ended September 30, 2016, 2015 and 2014 (amounts shown in thousands): 2016 2015 2014 Net income (loss) $ 1,959 $ 2,526 $ (5,292 ) Other comprehensive income (loss): Foreign currency translation adjustment (46 ) — — Change in unrealized gains (losses) on marketable securities 7 5 (10 ) Total comprehensive income (loss) $ 1,920 $ 2,531 $ (5,302 ) |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
IDchecker [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 (amounts shown in thousands): June 17, 2015 Current assets $ 620 Property, plant and equipment 42 Intangible assets 3,570 Assets acquired $ 4,232 Current liabilities $ (476 ) Other liabilities (810 ) Liabilities assumed $ (1,286 ) Fair value of net assets acquired $ 2,946 Total consideration paid 5,819 Goodwill before effect in exchange rates $ 2,873 Effect of movements in exchange rates (10 ) Goodwill $ 2,863 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Summary of Investments by Type of Security | The following table summarizes investments by security type as of September 30, 2016 and 2015 (amounts shown in thousands): September 30, 2016 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: US Treasury $ 12,907 $ 8 $ — $ 12,915 Corporate debt securities, short-term 11,949 2 (3 ) 11,948 Corporate debt securities, long-term 1,954 1 (3 ) 1,952 Total $ 26,810 $ 11 $ (6 ) $ 26,815 September 30, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities, short-term $ 23,924 $ 3 $ (6 ) $ 23,921 Total $ 23,924 $ 3 $ (6 ) $ 23,921 |
Summary of Fair Value of Investments Measured on Recurring Basis | Balance Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2016: Assets: Short-term investments: US Treasury $ 12,915 $ 12,915 $ — $ — Corporate debt securities Financial 3,963 — 3,963 — Industrial 4,445 — 4,445 — Commercial paper Industrial 697 — 697 — Financial 2,843 — 2,843 — Total short-term investments at fair value 24,863 12,915 11,948 — Long-term investments: Corporate debt securities Financial 502 — 502 — Industrial 1,450 — 1,450 — Total assets at fair value $ 26,815 $ 12,915 $ 13,900 $ — Liabilities: Acquisition-related contingent consideration 252 — — 252 Total liabilities at fair value $ 252 $ — $ — $ 252 September 30, 2015: Assets: Short-term investments: Corporate debt securities Financial $ 10,308 $ — $ 10,308 $ — Industrial 9,665 — 9,665 — Utility 1,802 — 1,802 — Commercial paper Industrial 1,448 — 1,448 — Financial 698 — 698 — Total assets at fair value $ 23,921 $ — $ 23,921 $ — Liabilities: Acquisition-related contingent consideration 47 — — 47 Total liabilities at fair value $ 47 $ — $ — $ 47 |
Contingent Consideration [Member] | |
Summary of Acquisition-related Contingent Consideration Measured at Fair Value | The following table includes a summary of the Acquisition-related contingent consideration measured at fair value using significant unobservable inputs (Level 3) during the year ended September 30, 2016 (amounts shown in thousands): Balance at September 30, 2015 $ 47 Expenses recorded due to changes in fair value 293 Issuance of common stock (88 ) Balance at September 30, 2016 $ 252 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 (amounts shown in thousands, except for years): Weighted Average Amortization Period Cost Accumulated Amortization Net Completed technologies 6 years $ 2,370 $ 516 $ 1,854 Customer relationships 6 years 970 211 759 Tradenames 5 years 230 60 170 Total intangible assets $ 3,570 $ 787 $ 2,783 |
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 (amounts shown in thousands): Estimated Future Amortization Expense 2017 $ 601 2018 601 2019 601 2020 587 2021 393 Thereafter — $ 2,783 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Fair Value Calculations for Stock-Based Compensation Awards | The fair value calculations for stock-based compensation awards to employees for the fiscal years ended September 30, 2016 and 2015 were based on the following assumptions: 2016 2015 Risk-free interest rate 1.43% - 1.66% 1.29% - 1.66% Expected life (years) 5.9 5.3 Expected volatility 83% 90% Expected dividends None None |
Stock-Based Compensation Expense Related to Stock Options and RSUs | The following table summarizes stock-based compensation expense under ASC 718 for the fiscal years ended September 30, 2016, 2015 and 2014, which were allocated as follows (amounts shown in thousands): 2016 2015 2014 Sales and marketing $ 1,122 $ 743 $ 824 Research and development 669 592 675 General and administrative 2,288 2,032 1,945 Acquisition-related costs and expenses 1,503 393 — Stock-based compensation expense related to employee stock options included in operating expenses $ 5,582 $ 3,760 $ 3,444 |
Summary of Vested and Unvested Options, Weighted Average Exercise Price per Share, Weighted Average Remaining Term and Aggregate Intrinsic Value | The following table summarizes vested and unvested options, weighted average exercise price per share, weighted average remaining term and aggregate intrinsic value at September 30, 2016: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Vested 2,107,825 $ 4.31 5.55 $ 9,491,803 Unvested 907,549 $ 3.11 8.33 4,700,241 Total 3,015,374 $ 3.95 6.39 $ 14,192,044 |
Stock Option Activity | The following table summarizes stock option activity under the Company’s stock option plans during the fiscal years ended September 30, 2016, 2015 and 2014: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Outstanding, September 30, 2013 2,824,964 $ 4.09 7.29 Granted — $ — Exercised (108,135 ) $ 1.27 Cancelled (382,503 ) $ 4.77 Outstanding, September 30, 2014 2,334,326 $ 4.11 5.46 Granted 1,927,500 $ 2.92 Exercised (232,203 ) $ 1.06 Cancelled (381,918 ) $ 3.85 Outstanding, September 30, 2015 3,647,705 $ 3.70 7.15 Granted 98,500 $ 4.51 Exercised (661,663 ) $ 2.67 Cancelled (69,168 ) $ 4.51 Outstanding, September 30, 2016 3,015,374 $ 3.95 6.39 |
Number of Stock Options Outstanding under Prior Plans | The following table summarizes the number of stock options outstanding under the Prior Plans as of September 30, 2016: 2000 Stock Option Plan 6,262 2002 Stock Option Plan 36,750 2006 Stock Option Plan 43,000 2010 Stock Option Plan 1,012,716 Total stock options outstanding under the Prior Plans 1,098,728 |
RSU Activity | The following table summarizes RSU activity in the fiscal years ended September 30, 2016, 2015 and 2014: Number of shares Weighted- average fair value per share Outstanding at September 30, 2013 692,504 $ 4.85 Granted 625,139 $ 4.83 Settled (63,334 ) $ 4.66 Cancelled (153,006 ) $ 5.03 Outstanding at September 30, 2014 1,101,303 $ 4.71 Granted 104,000 $ 2.29 Settled (255,041 ) $ 2.96 Cancelled (147,345 ) $ 3.54 Outstanding at September 30, 2015 802,917 $ 4.49 Granted 1,536,000 $ 4.82 Settled (261,621 ) $ 4.77 Cancelled (31,127 ) $ 4.19 Outstanding at September 30, 2016 2,046,169 $ 4.90 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Provision) Benefit | For the fiscal years ended September 30, 2016, 2015 and 2014 the income tax (provision) benefit was as follows (amounts shown in thousands): 2016 2015 2014 Federal—current $ (129 ) $ (84 ) $ — Federal—deferred — 621 — State—current (16 ) (10 ) (2 ) State—deferred — 13 — Foreign—current 146 3 — Total $ 1 $ 543 $ (2 ) |
Company's Net Deferred Tax Assets and Liabilities | Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2016 and 2015 are as follows (amounts shown in thousands): 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 7,095 $ 9,825 Foreign net operating losses 327 258 Stock based compensation 2,898 2,333 AMT credit carryforwards 279 149 Other, net 320 305 Research credit carryforwards 44 44 Total deferred assets 10,963 12,914 Deferred tax liabilities: Intangibles (473 ) (603 ) Foreign deferred liabilities (356 ) (415 ) Net deferred tax asset 10,134 11,896 Valuation allowance for net deferred tax assets (10,163 ) (12,053 ) Net deferred tax liability $ (29 ) $ (157 ) |
Income Taxes Computed Using Federal Income Tax Rate | The difference between the income tax (provision) benefit and income taxes computed using the U.S. federal income tax rate was as follows for the years ended September 30, 2016, 2015 and 2014 (amounts shown in thousands): 2016 2015 2014 Amount computed using statutory rate $ (666 ) $ (674 ) $ 1,798 Net change in valuation allowance for net deferred tax assets 1,889 1,619 (1,677 ) AMT and other (148 ) 151 — Foreign rate differential (70 ) (1 ) — Non-deductible items (1,136 ) (182 ) (411 ) State income tax (15 ) (370 ) 288 Foreign net operating loss 147 — — Income tax (provision) benefit $ 1 $ 543 $ (2 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Annual Minimum Rental Payments Payable | Future annual minimum rental payments payable under the facility leases are as follows (shown in thousands): Years ending September 30: 2017 $ 499 2018 755 2019 776 2020 469 2021 — Thereafter — Total $ 2,499 |
Quarterly Information (Unaudi24
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following table sets forth selected quarterly financial data for 2016, 2015 and 2014 (shown in thousands except share data): 2016 (by quarter) 1 2 3 4 Revenue $ 7,404 $ 8,522 $ 9,105 $ 9,670 Cost of revenue 942 720 793 940 Operating expenses 6,804 7,171 7,618 7,889 Operating income (loss) (342 ) 631 694 841 Other income (expense), net 36 30 45 23 Income tax benefit (provision) (16 ) (79 ) — 96 Net income (loss) (322 ) 582 739 960 Net income (loss) per share: Basic income (loss) per share (0.01 ) 0.02 0.02 0.03 Shares used in calculating net income (loss) per share - basic 31,094,417 31,325,577 31,823,386 32,086,223 Diluted income (loss) per share (0.01 ) 0.02 0.02 0.03 Shares used in calculating net income (loss) per share - diluted 31,094,417 33,133,920 34,531,964 34,859,861 2015 (by quarter) 1 2 3 4 Revenue $ 5,389 $ 5,672 $ 6,440 $ 7,866 Cost of revenue 497 558 591 825 Operating expenses 4,758 4,628 5,539 6,079 Operating income (loss) 134 486 310 962 Other income (expense), net 15 21 30 25 Income tax benefit (provision) (3 ) — 578 (32 ) Net income (loss) 146 507 918 955 Net income (loss) per share: Basic income (loss) per share 0.00 0.02 0.03 0.03 Shares used in calculating net income (loss) per share - basic 30,618,097 30,697,391 30,764,694 30,969,157 Diluted income (loss) per share 0.00 0.02 0.03 0.03 Shares used in calculating net income (loss) per share - diluted 31,173,815 31,321,259 31,645,696 31,664,178 2014 (by quarter) 1 2 3 4 Revenue $ 4,463 $ 4,484 $ 4,660 $ 5,544 Cost of revenue 571 450 608 520 Operating expenses 5,373 6,246 5,702 5,089 Operating income (loss) (1,481 ) (2,212 ) (1,650 ) (65 ) Other income (expense), net 13 19 17 67 Income tax benefit (provision) — — — — Net income (loss) (1,468 ) (2,193 ) (1,633 ) 2 Net income (loss) per share: Basic income (loss) per share (0.05 ) (0.07 ) (0.05 ) 0.00 Shares used in calculating net income (loss) per share - basic 30,402,397 30,453,455 30,481,168 30,510,587 Diluted income (loss) per share (0.05 ) (0.07 ) (0.05 ) 0.00 Shares used in calculating net income (loss) per share - diluted 30,402,397 30,453,455 30,481,168 31,022,148 |
Nature of Operations and Summ25
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)PatentsInstitution | Sep. 30, 2016USD ($)PatentsInstitutionReportingSegment | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of patents granted | Patents | 27 | 27 | ||
Number of patent applications pending | Patents | 16 | 16 | ||
Number of financial institutions signed agreements to deploy mobile deposit | Institution | 5,400 | 5,400 | ||
Number of top U.S. retail banks that deployed mobile deposit | Institution | 50 | 50 | ||
Foreign currency translation adjustment | $ 46,000 | $ 0 | $ 0 | |
Impairment of goodwill and intangibles | $ 0 | |||
Number of reporting unit | Reporting | 1 | |||
Other-than-temporary impairment charges recognized | $ 0 | 0 | 0 | |
Allowance for doubtful accounts | 0 | 0 | ||
Allowance for doubtful accounts receivable | 35,000 | $ 35,000 | 13,000 | |
Deferred software maintenance fees amortization period | 1 year | |||
Depreciation and amortization of property and equipment total | $ 800,000 | 400,000 | 500,000 | |
Fixed assets acquired under capital leases | 2,743,000 | 2,743,000 | 2,505,000 | |
Total repairs and maintenance expenses | 200,000 | 100,000 | 100,000 | |
Impairment charges | 0 | 0 | 0 | |
Software development costs capitalized | 0 | $ 0 | 0 | |
Tax benefit is measured based on the largest benefit | Greater than 50% | |||
Advertising costs | $ 200,000 | 200,000 | 100,000 | |
Number of operating segment | Segment | 1 | |||
Accumulated other comprehensive loss | 42,000 | $ 42,000 | 3,000 | |
ASU No 2015-17 [Member] | Early adoption [Member] | ||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
New accounting guidance, no adjustment made to prior periods | true | |||
Minimum [Member] | ||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful lives | 3 years | |||
Maximum [Member] | ||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful lives | 5 years | |||
Assets acquired under capital leases [Member] | ||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Fixed assets acquired under capital leases | 100,000 | $ 100,000 | 100,000 | |
Equipment [Member] | ||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Fixed assets acquired under capital leases | 1,476,000 | 1,476,000 | 1,281,000 | |
Depreciation expense under capital lease | 19,000 | 19,000 | $ 19,000 | |
Accumulated depreciation | $ 100,000 | $ 100,000 | $ 100,000 |
Nature of Operations and Summ26
Nature of Operations and Summary of Significant Accounting Policies - Potentially Dilutive Common Shares Excluded from Net Income (Loss) per Share Calculation (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total potentially dilutive common shares outstanding | 2,231,966 | 2,553,028 | 3,442,296 |
Stock options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total potentially dilutive common shares outstanding | 1,258,844 | 2,202,844 | 2,334,326 |
Warrants [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total potentially dilutive common shares outstanding | 6,667 | ||
Restricted stock units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total potentially dilutive common shares outstanding | 623,883 | 287,147 | 1,101,303 |
IDchecker [Member] | Share Purchase Agreement [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total potentially dilutive common shares outstanding | 349,239 | 63,037 |
Nature of Operations and Summ27
Nature of Operations and Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share Basic And Diluted [Line Items] | |||||||||||||||
Net income (loss) | $ 960 | $ 739 | $ 582 | $ (322) | $ 955 | $ 918 | $ 507 | $ 146 | $ 2 | $ (1,633) | $ (2,193) | $ (1,468) | $ 1,959 | $ 2,526 | $ (5,292) |
Weighted-average common shares and share equivalents outstanding—basic | 32,086,223 | 31,823,386 | 31,325,577 | 31,094,417 | 30,969,157 | 30,764,694 | 30,697,391 | 30,618,097 | 30,510,587 | 30,481,168 | 30,453,455 | 30,402,397 | 31,586,535 | 30,790,258 | 30,466,063 |
Weighted-average common shares and share equivalents outstanding—diluted | 34,859,861 | 34,531,964 | 33,133,920 | 31,094,417 | 31,664,178 | 31,645,696 | 31,321,259 | 31,173,815 | 31,022,148 | 30,481,168 | 30,453,455 | 30,402,397 | 33,818,501 | 31,480,241 | 30,466,063 |
Net income (loss) per share - Basic | $ 0.03 | $ 0.02 | $ 0.02 | $ (0.01) | $ 0.03 | $ 0.03 | $ 0.02 | $ 0 | $ 0 | $ (0.05) | $ (0.07) | $ (0.05) | $ 0.06 | $ 0.08 | $ (0.17) |
Net income (loss) per share - Diluted | $ 0.03 | $ 0.02 | $ 0.02 | $ (0.01) | $ 0.03 | $ 0.03 | $ 0.02 | $ 0 | $ 0 | $ (0.05) | $ (0.07) | $ (0.05) | $ 0.06 | $ 0.08 | $ (0.17) |
Stock options [Member] | |||||||||||||||
Earnings Per Share Basic And Diluted [Line Items] | |||||||||||||||
Dilutive potential common stock equivalents | 2,231,966 | 689,983 |
Nature of Operations and Summ28
Nature of Operations and Summary of Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,743 | $ 2,505 |
Less: accumulated depreciation and amortization | (2,303) | (1,530) |
Total property and equipment, net | 440 | 975 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,476 | 1,281 |
Furniture and fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 249 | 229 |
Leasehold improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,018 | $ 995 |
Nature of Operations and Summ29
Nature of Operations and Summary of Significant Accounting Policies - Components of Comprehensive Loss (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Comprehensive Income Net Of Tax [Abstract] | |||||||||||||||
Net income (loss) | $ 960,000 | $ 739,000 | $ 582,000 | $ (322,000) | $ 955,000 | $ 918,000 | $ 507,000 | $ 146,000 | $ 2,000 | $ (1,633,000) | $ (2,193,000) | $ (1,468,000) | $ 1,959,000 | $ 2,526,000 | $ (5,292,000) |
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustment | (46,000) | 0 | 0 | ||||||||||||
Change in unrealized gain (loss) on investments | 7,000 | 5,000 | (10,000) | ||||||||||||
Total comprehensive income (loss) | $ 1,920,000 | $ 2,531,000 | $ (5,302,000) |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) | Jun. 17, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Goodwill | $ 2,863,000 | $ 2,873,000 | |
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Business combination, escrow fund period | 24 months | ||
IDchecker [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Jun. 17, 2015 | ||
Total consideration paid | $ 5,900,000 | ||
Payments to acquire businesses, gross | 5,600,000 | ||
Common stock issued during acquisition, value | $ 2,700,000 | ||
Common stock, par value | $ 0.001 | ||
Business combination consideration transfer, promissory notes | $ 300,000 | ||
Cash payment to escrow fund related to business acquisition | $ 1,800,000 | ||
Business combination, percentage of closing shares in escrow fund | 20.00% | ||
Goodwill | $ 2,863,000 | ||
IDchecker [Member] | Closing Shares [Member] | |||
Business Acquisition [Line Items] | |||
Common stock issued during acquisition, share | 712,790 | ||
IDchecker [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Business combination, earnout shares | $ 2,000,000 | $ 2,000,000 |
Business Combination - Schedule
Business Combination - Schedule of Estimated Fair Values of Assets acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 17, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,863 | $ 2,873 | |
IDchecker [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | $ 620 | ||
Property, plant and equipment | 42 | ||
Intangible assets | 3,570 | ||
Assets acquired | 4,232 | ||
Current liabilities | (476) | ||
Other liabilities | (810) | ||
Liabilities assumed | (1,286) | ||
Fair value of net assets acquired | 2,946 | ||
Total consideration paid | 5,819 | ||
Goodwill before effect in exchange rates | 2,873 | ||
Effect of movements in exchange rates | (10) | ||
Goodwill | $ 2,863 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments Debt And Equity Securities [Abstract] | |||
Other-than-temporary impairment charges recognized | $ 0 | $ 0 | $ 0 |
Investments - Summary of Invest
Investments - Summary of Investments by Type of Security (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | $ 26,810 | $ 23,924 |
Gross Unrealized Gains | 11 | 3 |
Gross Unrealized Losses | (6) | (6) |
Fair Market Value | 26,815 | 23,921 |
US Treasury [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 12,907 | |
Gross Unrealized Gains | 8 | |
Fair Market Value | 12,915 | |
Corporate debt securities [Member] | Short-term [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 11,949 | 23,924 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | (3) | (6) |
Fair Market Value | 11,948 | $ 23,921 |
Corporate debt securities [Member] | Long-term [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 1,954 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (3) | |
Fair Market Value | $ 1,952 |
Investments - Summary of Fair V
Investments - Summary of Fair Value of Investments Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | $ 26,815 | $ 23,921 |
Acquisition-related contingent consideration | 252 | 47 |
Total liabilities at fair value | 252 | 47 |
Short-term investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 24,863 | |
Short-term investments [Member] | US Treasury [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 12,915 | |
Short-term investments [Member] | Corporate debt securities [Member] | Financial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 3,963 | 10,308 |
Short-term investments [Member] | Corporate debt securities [Member] | Industrial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 4,445 | 9,665 |
Short-term investments [Member] | Corporate debt securities [Member] | Utility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 1,802 | |
Short-term investments [Member] | Commercial paper [Member] | Financial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 2,843 | 698 |
Short-term investments [Member] | Commercial paper [Member] | Industrial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 697 | 1,448 |
Long-term [Member] | Corporate debt securities [Member] | Financial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 502 | |
Long-term [Member] | Corporate debt securities [Member] | Industrial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 1,450 | |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 12,915 | |
Quoted Prices in Active Markets (Level 1) [Member] | Short-term investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 12,915 | |
Quoted Prices in Active Markets (Level 1) [Member] | Short-term investments [Member] | US Treasury [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 12,915 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 13,900 | 23,921 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 11,948 | |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | Corporate debt securities [Member] | Financial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 3,963 | 10,308 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | Corporate debt securities [Member] | Industrial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 4,445 | 9,665 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | Corporate debt securities [Member] | Utility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 1,802 | |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | Commercial paper [Member] | Financial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 2,843 | 698 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | Commercial paper [Member] | Industrial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 697 | 1,448 |
Significant Other Observable Inputs (Level 2) [Member] | Long-term [Member] | Corporate debt securities [Member] | Financial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 502 | |
Significant Other Observable Inputs (Level 2) [Member] | Long-term [Member] | Corporate debt securities [Member] | Industrial [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 1,450 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Acquisition-related contingent consideration | 252 | 47 |
Total liabilities at fair value | $ 252 | $ 47 |
Investments - Summary of Acquis
Investments - Summary of Acquisition-related Contingent Consideration Measured at Fair Value (Detail) - Contingent Consideration [Member] $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at September 30, 2015 | $ 47 |
Expenses recorded due to changes in fair value | 293 |
Issuance of common stock | (88) |
Balance at September 30, 2016 | $ 252 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items] | |||
Goodwill | $ 2,863,000 | $ 2,873,000 | |
Goodwill impairment | 0 | ||
Amortization of intangible assets | $ 598,000 | $ 172,000 | $ 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 Asset37
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Cost | $ 3,570 | |
Accumulated Amortization | 787 | |
Net | $ 2,783 | $ 3,397 |
Completed technologies [Member] | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Weighted Average Amortization Period | 6 years | |
Cost | $ 2,370 | |
Accumulated Amortization | 516 | |
Net | $ 1,854 | |
Customer relationships [Member] | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Weighted Average Amortization Period | 6 years | |
Cost | $ 970 | |
Accumulated Amortization | 211 | |
Net | $ 759 | |
Tradenames [Member] | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Weighted Average Amortization Period | 5 years | |
Cost | $ 230 | |
Accumulated Amortization | 60 | |
Net | $ 170 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 601 | |
2,018 | 601 | |
2,019 | 601 | |
2,020 | 587 | |
2,021 | 393 | |
Net | $ 2,783 | $ 3,397 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Jun. 17, 2015 | Jul. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Feb. 19, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares sold | 32,781,704 | 31,721,114 | ||||||
Number of warrants outstanding | 6,667 | |||||||
Common stock issued exercise price | $ 0.91 | |||||||
Warrants expired date | 2014-12 | |||||||
Estimated average forfeiture rate | 12.10% | |||||||
Tax benefits received related to stock option exercises | $ 0 | $ 0 | $ 0 | |||||
Recognized compensation expense | 5,582,000 | 3,760,000 | 3,444,000 | |||||
Unrecognized compensation expense | 2,000,000 | |||||||
Total intrinsic value of options exercised | $ 3,300,000 | $ 600,000 | $ 500,000 | |||||
Weighted average fair value of options granted | $ 3.29 | $ 2.83 | ||||||
Number of options granted to employees | 98,500 | 1,927,500 | 0 | |||||
Purchase of common stock | 3,015,374 | 3,647,705 | 2,334,326 | 2,824,964 | ||||
Percentage of earnout shares vest and eligible for resale | 12.50% | |||||||
Percentage of remaining earnout shares vest and eligible for resale | 87.50% | |||||||
Earnout Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expense | $ 300,000 | $ 47,000 | ||||||
Vesting period of shares received | 27 months | |||||||
Common stock trading period | 10 days | |||||||
Earnout Shares [Member] | Maximum [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 | |||||||
IDchecker [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business combination, earnout shares | $ 2,000,000 | $ 2,000,000 | ||||||
IDchecker [Member] | Maximum [Member] | 1/1/15-9/30/15 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business combination, earnout shares | 1,000,000 | |||||||
IDchecker [Member] | Maximum [Member] | 10/1/15-9/30/16 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business combination, earnout shares | 1,000,000 | |||||||
IDchecker [Member] | Closing Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expense | 1,300,000 | 300,000 | ||||||
Vesting period of shares received | 27 months | |||||||
Common stock issued during acquisition, share | 712,790 | |||||||
Unrecognized compensation expense | $ 1,200,000 | |||||||
2012 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 4,000,000 | |||||||
Purchase of common stock | 1,916,646 | |||||||
Number of common stock reserved for future grants | 2,040,378 | |||||||
Scenario, Previously Reported [Member] | 2012 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 2,000,000 | |||||||
Stock options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expense | $ 1,300,000 | 2,200,000 | $ 2,200,000 | |||||
Weighted average period for unrecognized compensation expense expected to be recognized | 2 years 3 months 18 days | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expense | $ 2,700,000 | $ 1,200,000 | $ 1,300,000 | |||||
Weighted average period for unrecognized compensation expense expected to be recognized | 2 years 8 months 12 days | |||||||
Common stock reserved for issuance | 1,000,000 | |||||||
Options outstanding | 2,046,169 | 802,917 | 1,101,303 | 692,504 | ||||
Vesting period of shares received | 4 years | |||||||
Unrecognized compensation expense | $ 6,300,000 | |||||||
Restricted Stock Units (RSUs) [Member] | 2012 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding | 1,401,169 | |||||||
IPO [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares sold | 2,857,142 | |||||||
Common stock, price per share | $ 5.25 | |||||||
Net proceeds from issuance of common stock | $ 13,900,000 | |||||||
Underwriting discounts and commissions and other offering expenses | $ 1,100,000 | |||||||
Other offering expenses | $ 100,000 | |||||||
Overallotment option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional shares of common stock to cover over allotments | 428,571 | |||||||
Underwriter option exercised | $ 2,100,000 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value Calculations for Stock-Based Compensation Awards (Detail) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Equity [Abstract] | ||
Risk-free interest rate, Minimum | 1.43% | 1.29% |
Risk-free interest rate, Maximum | 1.66% | 1.66% |
Expected life (years) | 5 years 10 months 24 days | 5 years 3 months 18 days |
Expected volatility | 83.00% | 90.00% |
Expected dividends | 0.00% | 0.00% |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Related to Stock Options and RSUs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to employee stock options included in operating expenses | $ 5,582 | $ 3,760 | $ 3,444 |
Acquisition-related costs and expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to employee stock options included in operating expenses | 1,503 | 393 | |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to employee stock options included in operating expenses | 1,122 | 743 | 824 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to employee stock options included in operating expenses | 669 | 592 | 675 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to employee stock options included in operating expenses | $ 2,288 | $ 2,032 | $ 1,945 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Vested and Unvested Options, Weighted Average Exercise Price per Share, Weighted Average Remaining Term and Aggregate Intrinsic Value (Detail) | 12 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Vested | shares | 2,107,825 |
Number of Shares, Unvested | shares | 907,549 |
Number of Shares, Total | shares | 3,015,374 |
Weighted Average Exercise Price Per Share, Vested | $ / shares | $ 4.31 |
Weighted Average Exercise Price Per Share, Unvested | $ / shares | 3.11 |
Weighted Average Exercise Price Per Share, Total | $ / shares | $ 3.95 |
Weighted Average Remaining Contractual Life, Vested | 5 years 6 months 18 days |
Weighted Average Remaining Contractual Life, Unvested | 8 years 3 months 29 days |
Weighted Average Remaining Contractual Life, Total | 6 years 4 months 21 days |
Aggregate Intrinsic Value, Vested | $ | $ 9,491,803 |
Aggregate Intrinsic Value, Unvested | $ | 4,700,241 |
Aggregate Intrinsic Value, Total | $ | $ 14,192,044 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity (Detail) - $ / shares | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of Shares, Beginning balance | 3,647,705 | 2,334,326 | 2,824,964 | |
Number of Shares, Granted | 98,500 | 1,927,500 | 0 | |
Number of Shares, Exercised | (661,663) | (232,203) | (108,135) | |
Number of Shares, Cancelled | (69,168) | (381,918) | (382,503) | |
Number of Shares, Ending balance | 3,015,374 | 3,647,705 | 2,334,326 | 2,824,964 |
Weighted Average Exercise Price Per Share, Beginning balance | $ 3.70 | $ 4.11 | $ 4.09 | |
Weighted Average Exercise Price Per Share, Granted | 4.51 | 2.92 | ||
Weighted Average Exercise Price Per Share, Exercised | 2.67 | 1.06 | 1.27 | |
Weighted Average Exercise Price Per Share, Cancelled | 4.51 | 3.85 | 4.77 | |
Weighted Average Exercise Price Per Share, Ending balance | $ 3.95 | $ 3.70 | $ 4.11 | $ 4.09 |
Weighted Average Remaining Contractual Term (in Years) | 6 years 4 months 21 days | 7 years 1 month 24 days | 5 years 5 months 16 days | 7 years 3 months 15 days |
Stockholders' Equity - Number o
Stockholders' Equity - Number of Stock Options Outstanding under Prior Plans (Detail) | Sep. 30, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 1,098,728 |
2000 Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 6,262 |
2002 Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 36,750 |
2006 Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 43,000 |
2010 Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 1,012,716 |
Stockholders' Equity - RSU Acti
Stockholders' Equity - RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Beginning balance | 802,917 | 1,101,303 | 692,504 |
Number of Shares, Granted | 1,536,000 | 104,000 | 625,139 |
Number of Shares, Settled | (261,621) | (255,041) | (63,334) |
Number of Shares, Cancelled | (31,127) | (147,345) | (153,006) |
Number of Shares, Ending balance | 2,046,169 | 802,917 | 1,101,303 |
Weighted Average Fair Value Per Share, Beginning balance | $ 4.49 | $ 4.71 | $ 4.85 |
Weighted Average Fair Value Per Share, Granted | 4.82 | 2.29 | 4.83 |
Weighted Average Fair Value Per Share, Settled | 4.77 | 2.96 | 4.66 |
Weighted Average Fair Value Per Share, Cancelled | 4.19 | 3.54 | 5.03 |
Weighted Average Fair Value Per Share, Ending balance | $ 4.90 | $ 4.49 | $ 4.71 |
Income Taxes - Income Tax (Prov
Income Taxes - Income Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||
Federal—current | $ (129) | $ (84) | |||||||
Federal—deferred | 621 | ||||||||
State—current | (16) | (10) | $ (2) | ||||||
State—deferred | 13 | ||||||||
Foreign—current | 146 | 3 | |||||||
Income tax (provision) benefit | $ 96 | $ (79) | $ (16) | $ (32) | $ 578 | $ (3) | $ 1 | $ 543 | $ (2) |
Income Taxes - Company's Net De
Income Taxes - Company's Net Deferred Tax Assets and Liabilities (Detail) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 7,095,000 | $ 9,825,000 |
Foreign net operating losses | 327,000 | 258,000 |
Stock based compensation | 2,898,000 | 2,333,000 |
AMT credit carryforwards | 279,000 | 149,000 |
Other, net | 320,000 | 305,000 |
Research credit carryforwards | 44,000 | 44,000 |
Total deferred assets | 10,963,000 | 12,914,000 |
Deferred tax liabilities: | ||
Intangibles | (473,000) | (603,000) |
Foreign deferred liabilities | (356,000) | (415,000) |
Net deferred tax asset | 10,134,000 | 11,896,000 |
Valuation allowance for net deferred tax assets | (10,163,000) | (12,053,000) |
Net deferred tax liability | $ (29,000) | $ (157,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Taxes [Line Items] | ||
Net change in total valuation allowance | $ (1,900,000) | $ (900,000) |
Operating loss carryforwards, expiration start year | 2,018 | |
Net operating loss carryforwards will begin to expire | 2,017 | |
Investment credit carryforwards | $ 44,000 | 44,000 |
Alternative minimum tax credit carryforwards | 279,000 | $ 149,000 |
Accrued interest or penalties | 0 | |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 37,400,000 | |
Investment credit carryforwards | $ 29,000 | |
Research and development credits expiry period beginning year | 2,023 | |
State [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 31,700,000 | |
Research and development credit [Member] | Stock Option [Member] | Federal and state [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 18,800,000 | |
Research and development credit [Member] | California [Member] | ||
Income Taxes [Line Items] | ||
Research and development credit carryforwards | $ 14,000 |
Income Taxes - Income Taxes Com
Income Taxes - Income Taxes Computed Using Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||
Amount computed using statutory rate | $ (666) | $ (674) | $ 1,798 | ||||||
Net change in valuation allowance for net deferred tax assets | 1,889 | 1,619 | (1,677) | ||||||
AMT and other | (148) | 151 | |||||||
Foreign rate differential | (70) | (1) | |||||||
Non-deductible items | (1,136) | (182) | (411) | ||||||
State income tax | (15) | (370) | 288 | ||||||
Foreign net operating loss | 147 | ||||||||
Income tax (provision) benefit | $ 96 | $ (79) | $ (16) | $ (32) | $ 578 | $ (3) | $ 1 | $ 543 | $ (2) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |||
Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2016EUR (€)ft² | |
Loss Contingencies [Line Items] | ||||
Commencement date of term of lease | Oct. 1, 2016 | |||
Expiration date of term of lease | Apr. 30, 2020 | |||
Annual base rent | $ 600,000 | |||
Tenant improvement allowances | $ 300,000 | |||
Previous facility lease termination date | Oct. 16, 2016 | |||
Unamortized lease incentives | $ 49,000 | |||
Rent expense for the Company's operating leases | $ 300,000 | $ 400,000 | $ 400,000 | |
IDchecker [Member] | ||||
Loss Contingencies [Line Items] | ||||
Expiration date of term of lease | May 31, 2020 | |||
Annual base rent | € | € 48,000 | |||
Building [Member] | ||||
Loss Contingencies [Line Items] | ||||
Amended office space subject to the lease | ft² | 28,354 | 28,354 | ||
Sales office [Member] | ||||
Loss Contingencies [Line Items] | ||||
Expiration date of term of lease | May 31, 2017 | |||
Annual base rent | € | € 65,000 | |||
Defined contribution 401 K Plan [Member] | ||||
Loss Contingencies [Line Items] | ||||
Employer contribution amount | $ 63,000 | $ 42,000 | $ 0 |
Commitments and Contingencies51
Commitments and Contingencies - Future Annual Minimum Rental Payments Payable (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,017 | $ 499 |
2,018 | 755 |
2,019 | 776 |
2,020 | 469 |
Total | $ 2,499 |
Revenue and Vendor Concentrat52
Revenue and Vendor Concentrations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue, Major Customer [Line Items] | |||||||||||||||
Revenue | $ 9,670 | $ 9,105 | $ 8,522 | $ 7,404 | $ 7,866 | $ 6,440 | $ 5,672 | $ 5,389 | $ 5,544 | $ 4,660 | $ 4,484 | $ 4,463 | $ 34,701 | $ 25,367 | $ 19,150 |
Accounts receivable, net | 4,949 | 3,937 | 4,949 | 3,937 | |||||||||||
Customer Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Revenue | $ 6,300 | $ 6,300 | $ 5,700 | ||||||||||||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Total revenue, percentage | 10.00% | 10.00% | 10.00% | ||||||||||||
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Total revenue, percentage | 15.00% | 5.00% | 4.00% | ||||||||||||
Customer One [Member] | Customer Concentration Risk [Member] | Sales Revenue Net [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Total revenue, percentage | 18.00% | 25.00% | 30.00% | ||||||||||||
Major Customers [Member] | Customer Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Accounts receivable, net | $ 1,000 | $ 1,100 | $ 1,400 | $ 1,000 | $ 1,100 | $ 1,400 | |||||||||
Channel Partners [Member] | Supplier Concentration Risk [Member] | Sales Revenue Net [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Total revenue, percentage | 10.00% |
Quarterly Information (Unaudi53
Quarterly Information (Unaudited) - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue | $ 9,670 | $ 9,105 | $ 8,522 | $ 7,404 | $ 7,866 | $ 6,440 | $ 5,672 | $ 5,389 | $ 5,544 | $ 4,660 | $ 4,484 | $ 4,463 | $ 34,701 | $ 25,367 | $ 19,150 |
Cost of revenue | 940 | 793 | 720 | 942 | 825 | 591 | 558 | 497 | 520 | 608 | 450 | 571 | |||
Operating expenses | 7,889 | 7,618 | 7,171 | 6,804 | 6,079 | 5,539 | 4,628 | 4,758 | 5,089 | 5,702 | 6,246 | 5,373 | |||
Operating income (loss) | 841 | 694 | 631 | (342) | 962 | 310 | 486 | 134 | (65) | (1,650) | (2,212) | (1,481) | 1,824 | 1,892 | (5,408) |
Other income (expense), net | 23 | 45 | 30 | 36 | 25 | 30 | 21 | 15 | 67 | 17 | 19 | 13 | 134 | 91 | 118 |
Income tax benefit (provision) | 96 | (79) | (16) | (32) | 578 | (3) | 1 | 543 | (2) | ||||||
Net income (loss) | $ 960 | $ 739 | $ 582 | $ (322) | $ 955 | $ 918 | $ 507 | $ 146 | $ 2 | $ (1,633) | $ (2,193) | $ (1,468) | $ 1,959 | $ 2,526 | $ (5,292) |
Net income (loss) per share: | |||||||||||||||
Basic income (loss) per share | $ 0.03 | $ 0.02 | $ 0.02 | $ (0.01) | $ 0.03 | $ 0.03 | $ 0.02 | $ 0 | $ 0 | $ (0.05) | $ (0.07) | $ (0.05) | $ 0.06 | $ 0.08 | $ (0.17) |
Shares used in calculating net income (loss) per share - basic | 32,086,223 | 31,823,386 | 31,325,577 | 31,094,417 | 30,969,157 | 30,764,694 | 30,697,391 | 30,618,097 | 30,510,587 | 30,481,168 | 30,453,455 | 30,402,397 | 31,586,535 | 30,790,258 | 30,466,063 |
Diluted income (loss) per share | $ 0.03 | $ 0.02 | $ 0.02 | $ (0.01) | $ 0.03 | $ 0.03 | $ 0.02 | $ 0 | $ 0 | $ (0.05) | $ (0.07) | $ (0.05) | $ 0.06 | $ 0.08 | $ (0.17) |
Shares used in calculating net income (loss) per share - diluted | 34,859,861 | 34,531,964 | 33,133,920 | 31,094,417 | 31,664,178 | 31,645,696 | 31,321,259 | 31,173,815 | 31,022,148 | 30,481,168 | 30,453,455 | 30,402,397 | 33,818,501 | 31,480,241 | 30,466,063 |