Innovative Solutions and Support (ISSC) 10-K 23 Dec 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Nov. 30, 2019	Mar. 31, 2019
Document and Entity Information
Entity Registrant Name	INNOVATIVE SOLUTIONS & SUPPORT INC
Entity Central Index Key	0000836690
Document Type	10-K
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 38.7
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,909,036
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Current assets
Cash and cash equivalents	$ 22,416,830	$ 20,390,713
Accounts receivable	2,348,537	3,449,893
Contract asset	80,182	0
Inventories	4,470,694	4,280,108
Prepaid expenses and other current assets	642,049	544,234
Total current assets	29,958,292	28,664,948
Property and equipment, net	8,444,692	8,786,737
Other assets	154,041	181,993
Total assets	38,557,025	37,633,678
Current liabilities
Accounts payable	1,079,073	1,529,792
Accrued expenses	1,110,918	1,463,021
Contract liability	29,231	356,801
Total current liabilities	2,219,222	3,349,614
Non-current deferred income taxes	129,651	129,594
Total liabilities	2,348,873	3,479,208
Commitments and contingencies (See Note 14)
Shareholders' equity
Preferred stock, 10,000,000 shares authorized, $.001 par value, of which 200,000 shares are authorized as Class A Convertible stock. No shares issued and outstanding at September 30, 2019 and 2018
Common stock, $.001 par value: 75,000,000 shares authorized, 19,005,487 and 18,937,050 issued at September 30, 2019 and 2018, respectively	19,006	18,937
Additional paid-in capital	51,987,096	51,783,779
Retained earnings	5,570,587	3,720,291
Treasury stock, at cost, 2,096,451 shares at September 30, 2019 and at September 30, 2018	(21,368,537)	(21,368,537)
Total shareholders' equity	36,208,152	34,154,470
Total liabilities and shareholders' equity	$ 38,557,025	$ 37,633,678

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	19,005,487	18,937,050
Treasury stock, shares	2,096,451	2,096,451
Class A Convertible stock
Preferred stock, shares authorized	200,000	200,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Net sales:
Total net sales	$ 17,572,589	$ 13,850,372	$ 16,786,674
Cost of sales:
Total cost of sales	7,676,119	7,311,923	8,668,348
Gross profit	9,896,470	6,538,449	8,118,326
Operating expenses:
Research and development	2,489,806	3,575,801	4,456,657
Selling, general and administrative	5,877,920	6,674,187	3,739,234
Total operating expenses	8,367,726	10,249,988	8,195,891
Operating income (loss)	1,528,744	(3,711,539)	(77,565)
Interest income	249,620	53,561	35,888
Other income	73,737	67,724	4,858,224
Income (loss) before income taxes	1,852,101	(3,590,254)	4,816,547
Income tax expense	1,805	63,651	247,920
Net income (loss)	$ 1,850,296	$ (3,653,905)	$ 4,568,627
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.11	$ (0.22)	$ 0.27
Diluted (in dollars per share)	$ 0.11	$ (0.22)	$ 0.27
Weighted average shares outstanding:
Basic (in shares)	16,867,550	16,805,991	16,742,461
Diluted (in shares)	16,942,447	16,805,991	16,855,644
Product
Net sales:
Total net sales	$ 16,165,333	$ 13,450,803	$ 16,133,371
Cost of sales:
Total cost of sales	7,038,717	7,120,731	8,294,228
Engineering development contracts
Net sales:
Total net sales	1,407,256	399,569	653,303
Cost of sales:
Total cost of sales	$ 637,402	$ 191,192	$ 374,121

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Total
Balance at Sep. 30, 2016	$ 18,813	$ 51,392,159	$ 2,805,569	$ (21,368,537)	$ 32,848,004
Increase (Decrease) in Stockholders' Equity
Issuance of stock to directors	67	191,682			191,749
Net (loss) income			4,568,627		4,568,627
Balance at Sep. 30, 2017	18,880	51,583,841	7,374,196	(21,368,537)	37,608,380
Increase (Decrease) in Stockholders' Equity
Issuance of stock to directors	57	199,938			199,995
Net (loss) income			(3,653,905)		(3,653,905)
Balance at Sep. 30, 2018	18,937	51,783,779	3,720,291	(21,368,537)	34,154,470
Increase (Decrease) in Stockholders' Equity
Issuance of stock to directors	69	203,317			203,386
Net (loss) income			1,850,296		1,850,296
Balance at Sep. 30, 2019	$ 19,006	$ 51,987,096	$ 5,570,587	$ (21,368,537)	$ 36,208,152

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 1,850,296	$ (3,653,905)	$ 4,568,627
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	451,278	436,208	449,189
Share-based compensation expense:
Stock awards	173,492	199,995	191,749
Excess and obsolete inventory cost	98,728		92,829
Deferred income taxes	57	61,852	41
(Increase) decrease in:
Accounts receivable	1,101,356	225,336	1,762,494
Contract asset	(80,182)	554,190	116,850
Inventories	(289,314)	(100,454)	(626,655)
Prepaid expenses and other current assets	(99,393)	288,899	(91,280)
Other non-current assets			(32,967)
Increase (decrease) in:
Accounts payable	(450,719)	208,541	(182,520)
Accrued expenses	(323,972)	(297,016)	(129,871)
Income taxes	3,341	258,931	(153,577)
Contract liability	(327,570)	76,447	100,769
Net cash provided by (used in) operating activities	2,107,398	(1,740,976)	6,065,678
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(81,281)	(2,548,612)	(153,038)
Net cash (used in) investing activities	(81,281)	(2,548,612)	(153,038)
Net increase in cash and cash equivalents	2,026,117	(4,289,588)	5,912,640
Cash and cash equivalents, beginning of year	20,390,713	24,680,301	18,767,661
Cash and cash equivalents, end of year	22,416,830	20,390,713	24,680,301
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income tax	456	8,456	$ 400,000
Cash received from income tax refund	$ 2,049	265,588
SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION
Transfer from unbilled to accounts receivable		$ 926,632

Background

Background	12 Months Ended
	Sep. 30, 2019
Background
Background	1. Background Innovative Solutions and Support, Inc. (the “Company,” “IS&S,” “we” or “us”) was incorporated in Pennsylvania on February 12, 1988. The Company operates in one business segment as a systems integrator that designs, develops, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance and cockpit display systems for retrofit applications and original equipment manufacturers (“OEMs”). The Company supplies integrated Flight Management Systems (“FMS”), Flat Panel Display Systems (“FPDS”), FPDS with Autothrottle, air data equipment, Integrated Standby Units (“ISU”), ISU with Autothrottle and advanced Global Positioning System (“GPS”) receivers that enable reduced carbon footprint navigation. The Company has continued to position itself as a system integrator, which provides the Company with the capability and potential to generate more substantive orders over a broader product base. This strategy, as both a manufacturer and integrator, is designed to leverage the latest technologies developed for the computer and telecommunications industries into advanced and cost-effective solutions for the general aviation, commercial air transport, DoD/governmental, and foreign military markets. This approach, combined with the Company’s industry experience, is designed to enable IS&S to develop high-quality products and systems, to reduce product time to market, and to achieve cost advantages over products offered by its competitors. Customers include various OEMs, commercial air transport carriers and corporate/general aviation companies, DoD and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, and foreign militaries.

Concentrations

Concentrations	12 Months Ended
	Sep. 30, 2019
Concentrations
Concentrations	2. Concentrations Major Customers and Products In fiscal 2019, 2018 and 2017, the Company derived 53%, 48% and 54%, respectively, of total sales from five customers, although not all the same customers in each year. Accounts receivable and contract assets related to those top five customers was $1.3 million, $1.4 million and $1.3 million as of September 30, 2019, 2018 and 2017, respectively. The largest customer, Pilatus, accounted for 25% of total revenue in fiscal year 2019 and 20% of total revenue in fiscal year 2018. In fiscal year 2017, the three largest customers, Sierra Nevada, Pilatus and DHL accounted for 16%, 12% and 10% of total revenue, respectively. Flat panel sales were 90%, 75% and 89% of total sales in the years ended September 30, 2019, 2018 and 2017, respectively. Sales of air data systems and components were 10%, 25% and 11% of total sales for the years ended September 30, 2019, 2018 and 2017, respectively. Sales to government contractors and agencies accounted for approximately 20%, 32% and 53% of total sales during fiscal years 2019, 2018 and 2017, respectively. The government agency or general contractor typically retains the right to terminate the contract at any time at its convenience. Upon alteration or termination of these contracts, IS&S is typically entitled to an equitable adjustment to the contract price so that it would be compensated for delivered items and allowable costs incurred. Accordingly, because these contracts can be terminated, the Company cannot be assured that its backlog will result in sales. Major Suppliers The Company buys several of its components from sole source suppliers. Although there are a limited number of suppliers of particular components, management believes other suppliers could provide similar components on comparable terms. During fiscal 2019 the Company had two suppliers that accounted for 23.4% of the Company's total inventory related purchases. During fiscal 2018 the Company had one supplier that accounted for 11% of the Company’s total inventory related purchases. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash balances and accounts receivable. The Company invests its excess cash where preservation of principal is the major consideration. Cash balances are maintained with two major banks. Balances on deposit with certain money market accounts and operating accounts may exceed the Federal Deposit Insurance Corporation limits. The Company’s customer base consists principally of companies within the aviation industry. The Company requests advance payments and/or letters of credit from customers that it considers to be credit risks.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Use of Estimates The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Estimates are used in accounting for, among other items, long term contracts, allowances for doubtful accounts, inventory obsolescence, product warranty cost liabilities, income taxes, engineering and material costs on EDC programs, percentage of completion on EDC contracts, recoverability of long-lived assets and contingencies. Estimates and assumptions are reviewed periodically and the effects of changes, if any, are reflected in the consolidated statements of operations in the period they are determined. Cash and Cash Equivalents Highly liquid investments, purchased with an original maturity of three months or less, are classified as cash equivalents. Cash equivalents at September 30, 2019 and 2018 consist of cash on deposit and cash invested in money market funds with financial institutions. Inventory valuation Inventories are stated at the lower of cost (first-in, first-out) or net realizable value, net of write-downs for excess and obsolete inventory, and consist of the following: September 30, September 30, 2019 2018 Raw materials $ 3,408,742 $ 2,892,366 Work-in-process 775,770 817,051 Finished goods 286,182 570,691 $ 4,470,694 $ 4,280,108 Property and Equipment Property and equipment are stated at cost. Depreciation is provided using an accelerated method over the estimated useful lives of the assets (the lesser of three to seven years or over the lease term), except for the manufacturing facility and the corporate airplanes, which are depreciated using the straight-line method over their estimated useful lives of thirty-nine years and ten years, respectively. Major additions and improvements are capitalized, while maintenance and repairs that do not improve or extend the life of assets are charged to expense as incurred. During fiscal year 2018, the Company purchased a Hawker Beechcraft B200GT aircraft for approximately $2.4 million. This aircraft serves as a test bed for the Company’s new products and also as a sales/marketing tool for demonstrating its products to its aviation customers. Long-Lived Assets The Company assesses the impairment of long-lived assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360-10, “ Property, Plant and Equipment.” This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In addition, long-lived assets to be disposed of should be reported at the lower of the carrying amount or fair value less cost to sell. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to estimated future cash flows expected to result from use of the asset. If the carrying amount of the asset exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows. No impairment charges were recorded in fiscal years 2019, 2018 or 2017. Revenue Recognition The Company enters into sales arrangements with customers that, in general, provide for the Company to design, develop, manufacture and deliver large flat-panel display systems, flight information computers and advanced monitoring systems that measure and display critical flight information, including data relative to aircraft separation, airspeed, altitude, and engine and fuel data measurements. Revenue from Contracts with Customers The Company adopted ASC 606 on October 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for fiscal year ended September 30, 2019 reflect the application of ASC 606 guidance while the reported results for the fiscal years ended September 30, 2018 and September 30, 2017 were prepared under the guidance of ASC 605, “Revenue Recognition“ (“ASC 605”), which is also referred to herein as "legacy GAAP" or the "previous guidance." The adoption of ASC 606 represents a change in accounting principles. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer The Company's contract with its customers typically is the form of a purchase order issued to the Company by its customers and, to a lesser degree, in the form of a purchase order issued in connection with a formal contract executed with a customer. For the purpose of accounting for revenue under ASC 606, a contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party's rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. Most of our revenue is derived from purchases under which we provide a specific product or service and, as a result, there is only one performance obligation. In the event that a contract includes multiple promised goods or services, such as an EDC contract which includes both engineering services and a resulting product shipment, the Company must apply judgment to determine whether promised goods or services are capable of being distinct in the context of the contract. In these cases, the Company considers whether the customer could, on its own, or together with other resources that are readily available from third parties, produce the physical product using only the output resulting from the Company's completion of engineering services. If the customer cannot produce the physical product, then the promised goods or services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company's contracts as of September 30, 2019 included variable consideration. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price by taking into account available information such as market conditions as well as the cost of the goods or services and the Company's normal margins for similar performance obligations. 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. Revenue from products transferred to customers at a point in time accounted for 95 percent of our revenue for the fiscal year ended September 30, 2019 and is typically recognized at the time of shipment of products to the customer. The remaining revenue results from EDC contracts and is recognized over time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress. Contract costs include material, components and third-party avionics purchased from suppliers, direct labor, and overhead costs. At September 30, 2019, we had approximately $5,896,000 of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 91% of our remaining performance obligations as revenue over the next 12 months with the remaining balance recognized thereafter. Contract Estimates Accounting for performance obligations in long-term contracts that are satisfied over time involves the use of various techniques to estimate progress towards satisfaction of the performance obligation. The Company typically measures progress based on costs incurred compared to estimated total contract costs. Contract cost estimates are based on various assumptions to project the outcome of future events that often span more than a single year. These assumptions include the amount of labor and labor costs, the quantity and cost of raw materials used in the completion of the performance obligation, and the complexity of the work to be performed. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified. The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue. The aggregate impact of adjustments in contract estimates did not change our revenue and operating earnings (and diluted earnings per share) for the fiscal year ended September 30, 2019. Therefore, no adjustment on any contract was material to our consolidated financial statements for the fiscal year ended September 30, 2019. Financial Statement Impact of Adopting ASC 606 The Company adopted ASC 606 using the modified retrospective method. The adoption resulted in no adjustment to the Company's retained earnings as of the adoption date, and there were no significant changes in the Company's consolidated statements of operations for the fiscal year ended September 30, 2019 as a result of the adoption of ASC 606 on October 1, 2018 compared to if the Company had continued to recognize revenues under ASC 605. Additionally, there was no change to the Company's assets or liabilities as of September 30, 2019 as a result of the adoption of ASC 606 on October 1, 2018 compared to if the Company had continued to recognize revenues under ASC 605. The adoption of ASC 606 had no impact on the Company's cash flows from operations. Contract Balances Contract assets consist of the right to consideration in exchange for product offerings that we have transferred to a customer under the contract. Contract liabilities primarily relate to consideration received in advance of performance under the contract. The following table reflects the Company's contract assets and contract liabilities: Contract Contract Assets Liabilities September 30, 2018 $ — $ 356,801 Amount transferred to receivables from contract assets — — Contract asset additions 80,182 — Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period — (356,801) Increases due to invoicing prior to satisfaction of performance obligations — 29,231 September 30, 2019 $ 80,182 $ 29,231 Customer Service Revenue The Company enters into sales arrangements with customers for the repair or upgrade of its various products that are not under warranty. The Company’s customer service revenue and cost of sales are included in product sales and product cost of sales, respectively, on the accompanying consolidated statements of operations. The Company’s customer service revenue and cost of sales for the fiscal years ended 2019, 2018 and 2017 are as follows: For the Fiscal Year Ended September 30, 2019 2018 2017 Customer Service Sales $ 3,553,919 $ 4,047,265 $ 3,232,712 Customer Service Cost of Sales 1,374,227 1,724,167 1,520,146 Gross Profit $ 2,179,692 $ 2,323,098 $ 1,712,566 Income Taxes Income taxes are recorded in accordance with ASC Topic 740, “ Income Taxes ” (“ASC Topic 740”), which utilizes a balance sheet approach to provide for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets, liabilities, and expected benefits of utilizing net operating losses (“NOL”) and tax credit carry-forwards. The impact on deferred taxes of changes in tax rates and laws, if any, are applied to the years during which temporary differences are expected to be settled, and are reflected in the consolidated financial statements in the period of enactment. At the end of each interim reporting period, the Company prepares an estimate of the annual effective income tax rate and applies that annual effective income tax rate to ordinary year-to-date pre-tax income for the interim period. Specific tax items discrete to a particular quarter are recorded in income tax expense for that quarter. The estimated annual effective tax rate used in providing for income taxes on a year-to-date basis may change in subsequent periods. Deferred tax assets are reduced by a valuation allowance if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be verified objectively, and significant management judgment is required in determining any valuation allowance recorded against net deferred tax assets. The Company evaluates deferred income taxes on a quarterly basis to determine if a valuation allowance is required by considering available evidence. Deferred tax assets are recognized when expected future taxable income is sufficient to allow the related tax benefits to reduce taxes that would otherwise be payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and credit carryforwards, taxable income in carry-back years, and tax planning strategies which are both prudent and feasible. The Company’s current balance of the deferred tax valuation allowance is recorded against all of its federal and state deferred tax assets. The Company will continue to assess all available evidence during future periods to evaluate any changes to the realization of its deferred tax assets. If the Company were to determine that it would be able to realize additional federal or state deferred tax assets in the future, it would make an adjustment to the valuation allowance which would reduce the provision for income taxes. The accounting for uncertainty in income taxes requires a more likely than not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the (i) benefit recognized and measured for financial statement purposes and (ii) the tax position taken or expected to be taken on the Company’s tax return. To the extent that the Company’s assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company has elected to record any interest or penalties associated with uncertain tax positions as income tax expense. The Company files a consolidated United States federal income tax return. The Company prepares and files tax returns based on the interpretation of tax laws and regulations, and records estimates based on these judgments and interpretations. In the normal course of business, the tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities, and the Company records a liability when it is probable that there will be an assessment. The Company adjusts the estimates periodically as a result of ongoing examinations by and settlements with the various taxing authorities, and changes in tax laws, regulations and precedent. The consolidated tax provision of any given year includes adjustments to prior years’ income tax accruals that are considered appropriate, and any related estimated interest. Management believes that it has made adequate accruals for income taxes. Differences between estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material effect on the Company’s consolidated financial position, but could possibly be material to its consolidated results of operations or cash flow of any one period. On December 22, 2017, the U.S. government enacted the Tax Act, which made broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 34 percent to 21 percent; (2) bonus depreciation that will allow for full expensing of qualified property; (3) elimination of the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (4) a new limitation on deductible interest expense; (5) the repeal of the domestic production activity deduction; and (6) limitations on NOLs generated after December 31, 2017, to 80 percent of taxable income. The Tax Act reduced the corporate tax rate to 21 percent, effective January 1, 2018. Consequently, we recorded a provisional adjustment to decrease related to DTAs and DTLs with a corresponding net adjustment to deferred income tax expense of $321,038 for the period ended December 31, 2017. This expense is offset fully by a change in the valuation allowance. We completed our accounting for the income tax effects of certain elements of the Tax Act as of the quarter ended December 31, 2018. Engineering Development Total engineering development expense comprises of both internally funded R&D and product development and design charges related to specific customer contracts. Engineering development expense consists primarily of payroll-related expenses of employees engaged in EDC projects, engineering related product materials and equipment, and subcontracting costs. R&D charges incurred for product design, product enhancements, and future product development are expensed as incurred. Product development and design charges related to specific customer contracts are charged to cost of sales-EDC based on the method of contract accounting (either percentage-of-completion or completed contract) applicable to such contracts. Comprehensive Income Pursuant to FASB ASC Topic 220, “ Comprehensive Income ”, the Company is required to classify items of other comprehensive income by their nature in a financial statement and display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of its condensed consolidated balance sheets. For fiscal years 2019, 2018 and 2017 comprehensive income consisted of net income only, and there were no items of other comprehensive income for any of the periods presented. Fair Value of Financial Instruments The net carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximate their fair value because of the short-term nature of these instruments. For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value as follows: Level 1 — Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: · Quoted prices for similar assets or liabilities in active markets; · Quoted prices for identical or similar assets in non-active markets; · Inputs other than quoted prices that are observable for the asset or liability; and · Inputs that are derived principally from or corroborated by other observable market data. Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2019 and 2018, according to the valuation techniques the Company used to determine their fair values. Fair Value Measurement on September 30, 2019 Quoted Price in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents: Money market funds $ 21,450,242 $ — $ — Fair Value Measurement on September 30, 2018 Quoted Price in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents: Money market funds $ 19,725,474 $ — $ — Share-Based Compensation The Company accounts for share-based compensation under FASB ASC Topic 505-50, “Equity-Based Payments to Non-Employees” (“ASC Topic 505-50”), and ASC Topic 718, “Stock Compensation” (“ASC Topic 718”), which require the Company to measure the cost of employee or non-employee director services received in exchange for an award of equity instruments based on the grant-date fair value of the award using an option pricing model. The Company recognizes such cost over the period during which an employee or non-employee director is required to provide service in exchange for the award. Accordingly, adoption of ASC Topic 505-50's and ASC Topic 718's fair value method results in recording compensation costs under the Company's stock based compensation plans. The Company determined the fair value of its stock option awards at the date of grant using the Black-Scholes option pricing model. Option pricing models and generally accepted valuation techniques require management to make assumptions and to apply judgment to determine the fair value of its awards. These assumptions and judgments include estimating future volatility of the Company's stock price, expected dividend yield, future employee turnover rates, and future employee stock option exercise behaviors. Changes in these assumptions can materially affect fair value estimates. The Company does not believe that a reasonable likelihood exists that there will be a material change in future estimates or assumptions used to determine share-based compensation expense. However, if actual results are not consistent with the Company's estimates or assumptions, the Company would adjust its estimates. Such adjustments could have a material impact on the Company's financial position. Warranty Reserves The Company offers warranties on some products of various lengths, however the standard warranty is twenty-four months. At the time of shipment, the Company establishes a reserve for estimated costs of warranties based on its best estimate of the amounts necessary to settle future and existing claims using historical data on products sold as of the balance sheet date. The length of the warranty period, the product’s failure rates, and the customer’s usage affect warranty cost. If actual warranty costs differ from the Company’s estimated amounts, future results of operations could be affected adversely. Warranty cost is recorded as cost of sales, and the reserve balance recorded as an accrued expense. While the Company maintains product quality programs and processes, its warranty obligation is affected by product failure rates and the related corrective costs. If actual product failure rates and/or corrective costs differ from the estimates, the Company revises the estimated warranty liability accordingly. Self-Insurance Reserves Since January 1, 2014, the Company has self-insured a significant portion of its employee medical insurance. The Company maintains a stop-loss insurance policy that limits its losses both on a per employee basis and an aggregate basis. Liabilities associated with the risks that are retained by the Company are estimated based upon actuarial assumptions such as historical claims experience, demographic factors and other actuarial assumptions. The Company estimated the total medical claims incurred but not reported and the Company believes that it has adequate reserves for these claims at September 30, 2019 and 2018. However, the actual value of such claims could be significantly affected if future occurrences and claims differ from these assumptions. At September 30, 2019 and 2018, the estimated liability for medical claims incurred but not reported was $55,700 and $60,200, respectively. The Company has recorded the excess of funded premiums over estimated claims incurred but not reported of $123,100 as a current asset in the accompanying consolidated balance sheet. During the year ended September 30, 2019, the Company has used the excess of funded premiums to reduce amounts payable for claims incurred. Treasury Stock We account for treasury stock purchased under the cost method and include treasury stock as a component of stockholder’s equity. Treasury stock purchased with intent to retire (whether or not the retirement is actually accomplished) is charged to common stock. New Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, “ Improvements to Employer Share-Based Payment Accounting ,” which simplifies the tax treatment of stock “shortfalls” and “windfalls.” Previous guidance required excess tax benefits (“windfalls”) to be recorded in equity. Tax deficiencies (“shortfalls”) were recorded in equity to the extent of previous windfalls then to the income statement. The new guidance simplifies this treatment by having all “windfalls” and “shortfalls” recorded through the income statement. This guidance became effective for us beginning on October 1, 2017. Adoption of this standard did not have a material effect upon the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842 ) " ("ASU 2016-02") as modified, which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 will require lessees to recognize most leases on their balance sheets as liabilities, with corresponding "right-of-use" assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. For income statement recognition purposes, leases will be classified as either a finance or an operating lease without relying upon the bright-line tests under current GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. We adopted ASU 2016-02 effective October 1, 2019 using the required modified retrospective approach . This adoption approach will result in a balance sheet presentation that will not be comparable to the prior period in the first year of adoption. At adoption, we will recognize a right-to-use asset and corresponding lease liability of approximately $130,000 on our consolidated balance sheets. The income statement recognition of lease expense appears similar to our current methodology. In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ,” which simplifies balance sheet presentation of deferred income taxes. Previous guidance required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position; however, the new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The updated standard is effective for the Company beginning October 1, 2017, with early adoption permitted as of the beginning of any interim or annual reporting period. The Company early adopted this standard retrospectively and reclassified its current deferred tax balances to noncurrent deferred tax for all periods presented. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventory " ("ASU 2015-11"). ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the

Net Income Per Share

Net Income Per Share	12 Months Ended
	Sep. 30, 2019
Net Income Per Share
Net Income Per Share	4. Net Income Per Share For the Fiscal Year Ended September 30, 2019 2018 2017 Numerator: Net income (loss) $ 1,850,296 $ (3,653,905) $ 4,568,627 Denominator: Basic weighted average shares 16,867,550 16,805,991 16,742,461 Dilutive effect of share-based awards 74,897 — 113,182 Diluted weighted average shares 16,942,447 16,805,991 16,855,644 Net income (loss) per common share: Basic $ 0.11 $ (0.22) $ 0.27 Diluted $ 0.11 $ (0.22) $ 0.27 Net income per share is calculated pursuant to ASC Topic 260, “ Earnings per Share” (“ASC Topic 260”). Basic earnings per share (“EPS”) excludes potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed assuming the conversion or exercise of all dilutive securities such as employee stock options and restricted stock units (“RSUs”). The number of incremental shares from the assumed exercise of stock options and RSUs is calculated by using the treasury stock method. As of September 30, 2019, 2018 and 2017, there were 550,834, 550,834 and 586,834 options to purchase common stock outstanding, respectively, and no shares subject to vesting of restricted stock units outstanding, respectively. The average outstanding diluted shares calculation excludes options with an exercise price that exceeds the average market price of shares during the period. For fiscal year 2018, all options to purchase common stock were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive. For fiscal years 2017, 336,961 shares were excluded from the calculation of earnings per share as their effect would be anti-dilutive. Net income and EPS in the period ended September 30, 2017 were positively impacted by approximately $4.1 million of other income related to the Company’s settlement agreement with Delta Air Lines, Inc.

Contract Asset

Contract Asset	12 Months Ended
	Sep. 30, 2019
Contract Asset
Contract Asset	5. Contract Asset Contract asset principally represent sales recorded under the over time method of accounting that have not been billed to customers in accordance with applicable contract terms. Contract asset was $80,182 and $0 at September 30, 2019 and 2018, respectively. The over time method of accounting for EDC revenue, requires estimates of profit margins for contracts be reviewed by the Company on a quarterly basis. If the initial estimates of revenues and costs under a contract are accurate, the over time method results in the profit margin being recorded evenly as revenue is recognized under the contract. Changes in these underlying estimates because of revisions in revenue and cost estimates or the exercise of contract options may result in profit margins being recognized unevenly over a contract because such changes are accounted for on a cumulative basis in the period in which the estimates are revised. Significant changes in estimates related to accounting for long-term contracts may have a material effect on the Company’s results of operations in the period in which the revised estimates are made. Net cumulative catch-up adjustments resulting from changes in estimates decreased operating income by $16,000, $0 and increased operating income by $61,000 during the fiscal years ended September 30, 2019, 2018 and 2017, respectively.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Sep. 30, 2019
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	6. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: September 30, September 30, 2019 2018 Prepaid insurance $ 302,376 $ 258,015 Income tax refund receivable — 1,578 Other 339,673 284,641 $ 642,049 $ 544,234

Property and Equipment

Property and Equipment	12 Months Ended
	Sep. 30, 2019
Property and Equipment
Property and Equipment	7. Property and Equipment Property and equipment, net consists of the following balances: September 30, September 30, 2019 2018 Computer equipment $ 2,285,152 $ 2,268,969 Corporate airplanes 5,601,039 5,601,039 Furniture and office equipment 1,033,779 1,033,779 Manufacturing facility 5,733,313 5,733,313 Equipment 5,635,134 5,580,083 Land 1,021,245 1,021,245 21,309,662 21,238,428 Less accumulated depreciation and amortization (12,864,970) (12,451,691) $ 8,444,692 $ 8,786,737 Depreciation related to property and equipment was approximately $0.4 million, $0.4 million and $0.4 million in fiscal years 2019, 2018 and 2017, respectively. The corporate airplanes are utilized primarily in support of product development. The Pilatus PC-12 airplane, one of the Company’s two corporate airplanes, has been depreciated to its estimated salvage value.

Other Assets

Other Assets	12 Months Ended
	Sep. 30, 2019
Other Assets
Other Assets	8. Other Assets Other assets consist of the following: September 30, September 30, 2019 2018 Intangible assets, net of accumulated amortization of $551,037 at September 30, 2019 and $531,637 at September 30, 2018 $ 49,200 $ 68,600 Other non-current assets 104,841 113,393 $ 154,041 $ 181,993 Intangible assets consist of licensing and certification rights which are amortized over a defined number of units. No impairment charges were recorded in fiscal 2019, 2018 or 2017. Total intangible amortization expense was $19,400, $0 and $2,600 in fiscal years 2019, 2018 and 2017, respectively. The timing of future amortization expense is not determinable because the intangible assets are being amortized over a defined number of units. Other non-current assets as of September 30, 2019 and September 30, 2018 include the security deposit for an airplane hangar, and a deposit for medical claims required under the Company’s medical plan. In addition, other non-current assets includes $29,500 and $38,100 of prepaid software licenses, that will be earned upon the shipment of a certain product to a customer, as of September 30, 2019 and September 30, 2018, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Sep. 30, 2019
Accrued Expenses
Accrued Expenses	9. Accrued Expenses Accrued expenses consist of the following: September 30, September 30, 2019 2018 Warranty $ 606,680 $ 854,952 Salary, benefits and payroll taxes 212,322 143,183 Professional fees 153,298 203,823 Other 138,618 261,063 $ 1,110,918 $ 1,463,021

Warranty

Warranty	12 Months Ended
	Sep. 30, 2019
Warranty
Warranty	10. Warranty The Company provides for the estimated cost of product warranties at the time revenue is recognized. Warranty cost is recorded as cost of sales and the reserve balance is recorded as an accrued expense in the financial statements. While the Company engages in extensive product quality programs and processes, the Company’s warranty obligation is affected by product failure rates and by the related material, labor, and delivery costs incurred in correcting a product failure. If actual product failure rates, material, or labor costs differ from the Company’s estimates, further revisions to the estimated warranty liability would be recorded. Warranty cost and accrual information for fiscal years ended September 30, 2019 and 2018: 2019 2018 Warranty accrual as of October 1, $ 854,952 $ 1,013,461 Release of accrual, net (168,589) (5,926) Warranty cost incurred for fiscal year (79,683) (152,583) Warranty accrual as of September 30, $ 606,680 $ 854,952

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	11. Income Taxes The components of income taxes are as follows: For the Fiscal Year Ended September 30, 2019 2018 2017 Current provision (benefit): Federal $ — $ (3,440) $ 244,794 State 1,749 5,239 3,082 Total current provision 1,749 1,799 247,876 Deferred provision Federal — 61,799 — State 56 53 44 Total deferred provision 56 61,852 44 Total current and deferred provision $ 1,805 $ 63,651 $ 247,920 Following is a reconciliation of the statutory federal rate to the Company’s effective income tax rate: For the Fiscal Year Ended September 30, 2019 2018 2017 U.S. Federal statutory tax rate 21.0 % 24.3 % 34.0 % Rate change due to tax reform 0.0 % (9.0) % — State income taxes, net of federal benefit (0.9) % 1.9 % (0.4) % Permanent items 0.8 % (0.1) % 0.2 % Research and development tax credits (0.8) % 1.3 % 8.1 % Valuation allowance (20.2) % (20.3) % (35.9) % Change in unrecognized tax benefits 0.2 % 0.9 % (0.9) % 123R cancellations and forfeitures 0.0 % (0.8) % 0.1 % Effective income tax rate 0.1 % (1.8) % 5.2 % The Company’s U.S. federal statutory tax rate was impacted by the Tax Act. The deferred tax effect of temporary differences giving rise to the Company’s deferred tax assets and liabilities consists of the components below: As of September 30, 2019 2018 2017 Non Current Non Current Non Current Deferred tax assets: Reserves and accruals $ 690,148 $ 730,015 $ 1,275,427 Research and development credit 1,331,170 1,318,977 1,236,365 NOL carryforwards -fed/state 2,590,791 2,982,246 1,208,592 Depreciation (826,724) (863,796) (690,774) Stock options 348,624 345,608 609,016 4,134,009 4,513,050 3,638,626 Less: Valuation allowance (3,922,620) (4,296,553) (3,568,459) Total deferred tax assets 211,389 216,497 70,167 Deferred tax liabilities: Depreciation (341,040) (346,091) (137,909) Total deferred tax liabilities (341,040) (346,091) (137,909) Net deferred tax (liability) asset $ (129,651) $ (129,594) $ (67,742) At September 30, 2019 and 2018, the Company had state NOL carryforwards of $24.0 million and $23.8 million, respectively, which begin to expire in varying amounts after the fiscal year ending September 30, 2026. The Company has federal R&D Tax Credit carryforwards of approximately $1.3 million and $1.3 million in fiscal 2019 and 2018, respectively, which begin to expire in varying amounts after fiscal year ending September 30, 2034. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be verified objectively, and significant management judgment is required in determining any valuation allowance recorded against net deferred tax assets. The Company evaluates deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence, including historical and projected taxable income and tax planning strategies which are both prudent and feasible. ASC Topic 740 requires the consideration of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Significant management judgment is required in determining any valuation allowance recorded against net deferred tax assets. The change in the valuation allowance for the period ended September 30, 2019 and September 30, 2018 was approximately $0.4 million and $0.7 million, respectively. The Company will continue to maintain the balance of the valuation allowance until an appropriate level of profitability is sustained to warrant a conclusion that it is no longer more likely than not that a portion of these deferred tax assets will not be realized in future periods. There is currently no assurance of such future income before taxes. The Company believes that its estimate of future taxable income is inherently uncertain, and if its current or future operations generate losses, further adjustments to the valuation allowance are possible. Following is a reconciliation of beginning and ending balances of total amounts of gross unrecognized tax benefits: For the Fiscal Year Ended September 30, 2019 2018 2017 Balance at beginning of year $ 540,000 $ 570,000 $ 615,000 Unrecognized tax benefits related to prior years — 52,000 — Unrecognized tax benefits related to current year 6,000 11,000 18,000 Decrease in unrecognized tax benefits due to the lapse of applicable statute of limitations — (93,000) (63,000) Balance at end of year $ 546,000 $ 540,000 $ 570,000 The total liabilities associated with the unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate were $546,000, $540,000 and $570,000 at September 30, 2019, 2018 and 2017, respectively. It is not anticipated that the balance of unrecognized tax benefits at September 30, 2019 will change significantly over the next twelve months. The balance of unrecognized tax benefits as reflected in the table above at September 30, 2019 are recorded on the balance sheet as a reduction to deferred tax assets. The Company’s policy is to recognize interest accrued and, if applicable, penalties related to unrecognized tax benefits in income tax expense for all periods presented. At September 30, 2019, the Company currently has no unrecognized tax benefits against which interest has been accrued, and there is no accrual recorded for penalties. The Company recognized expense of $0 for interest (net of federal impact) within income tax expense for each of the fiscal years ended September 30, 2019, 2018 and 2017. The Company is subject to income taxes in the U.S. federal and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of related tax laws and regulations and require significant judgment to apply. The Company’s federal income tax returns for the fiscal years ended September 30, 2016 and thereafter are open years subject to examination by the Internal Revenue Service. The Company files income tax returns in various state jurisdictions, as appropriate, with varying statutes of limitation. There are no state income tax examinations in process at this time.

Savings Plan

Savings Plan	12 Months Ended
	Sep. 30, 2019
Savings Plan
Savings Plan	12. Savings Plan The Company sponsors a voluntary defined contribution savings plan covering all employees. The Company made contributions of $96,000, $110,000 and $120,000 for the fiscal years ended September 30, 2019, 2018 and 2017, respectively.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Sep. 30, 2019
Share-Based Compensation
Share-Based Compensation	13. Share-Based Compensation The Company accounts for share-based compensation under the provisions of ASC Topic 505-50 and ASC Topic 718 by using the fair value method for expensing stock options and stock awards. Total share-based compensation expense was approximately $173,000, $200,000 and $203,000 for the fiscal years ended September 30, 2019, 2018 and 2017, respectively. The income tax impact recognized as a (charge) credit to additional paid in capital in the statement of shareholders’ equity related to share-based compensation arrangements was $0 for each of the fiscal years ended September 30, 2019, 2018 and 2017. Compensation expense related to share-based awards is recorded as a component of selling, general and administrative expenses. The Company has two share-based compensation plans: (1) the 2009 Stock-Based Incentive Compensation Plan (the “2009 Plan”), which terminated with respect to the grant of any new awards on January 20, 2019, and (2) the 2019 Stock-Based Incentive Compensation Plan (the "2019 Plan"), under which no awards have yet been granted as of September 30, 2019. The 2009 Plan and the 2019 Plan were approved by the shareholders on March 12, 2009 and April 2, 2019, respectively. 2009 Stock-Based Incentive Compensation Plan The 2009 Plan authorized the grant of stock appreciation rights, restricted stock, options, RSUs and other equity-based awards. Options granted under the 2009 Plan may be either “incentive stock options” as defined in section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options, as determined by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). Subject to an adjustment necessary upon a stock dividend, recapitalization, forward split or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase or share exchange, extraordinary or unusual cash distribution, or other similar corporate transaction or event, the maximum number of shares of common stock available for awards under the 2009 Plan was 1,200,000, all of which could be issued pursuant to awards of incentive stock options. In addition, the 2009 Plan provided that no more than 300,000 shares of common stock per year may be awarded to any employee as a performance-based award under Section 162(m) of the Code. The 2009 Plan terminated on January 20, 2019 with respect to the grant of any new awards. If there is any change in the Company’s corporate capitalization, the Compensation Committee must proportionately and equitably adjust the number and type of shares of common stock covered by awards then outstanding under the 2009 Plan, the number and type of shares of common stock available under the 2009 Plan, the exercise or grant price of any award, or if deemed appropriate, make provision for a cash payment with respect to any outstanding award, provided that no adjustment may be made that would adversely affect the status of any award that is intended to be a performance-based award under Section 162(m) of the Code, unless otherwise determined by the Compensation Committee. In addition, the Compensation Committee may make adjustments in the terms and conditions of any awards, including any performance goals, in recognition of unusual or nonrecurring events affecting the Company or any subsidiary, or in response to changes in applicable laws, regulations or accounting principles, provided that no adjustment may be made that would adversely affect the status of any award that is intended to be a performance-based award under Section 162(m) of the Code, unless otherwise determined by the Compensation Committee. Following is a summary of option activity under the 2009 Plan for the fiscal years ended September 30, 2019, 2018 and 2017, and changes during the periods then ended: Weighted Average Aggregate Exercise Intrinsic Options Price Value Outstanding at September 30, 2016 626,283 $ 3.35 $ — Granted — 2.81 25,504 Exercised (67,115) — 55,705 Cancelled (2,334) 3.78 — Outstanding at September 30, 2017 556,834 $ 3.32 177,043 Granted — — — Exercised — — — Cancelled (6,000) 3.78 — Outstanding at September 30, 2018 550,834 $ 3.32 $ 15,000 Granted — — — Exercised — — — Cancelled — Outstanding at September 30, 2019 550,834 $ 3.32 $ 761,767 Vested and expected to vest 550,834 $ 3.32 $ 761,767 Options exercisable at September 30, 2019 550,834 $ 3.32 $ 761,767 The following table summarizes information about stock options under the 2009 Plan at September 30, 2019: Options Outstanding Options Exercisable Outstanding Weighted- As of Average Weighted- Weighted- Range of Exercise September 30, Remaining Average As of September Average Prices 2019 Contractual Life Exercise Price 30, 2019 Exercise Price $ 0.00 - $ 5.00 550,834 $ 3.32 550,834 $ 3.32 Fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. Options are exercisable over a maximum term of ten years from date of grant and vest typically over periods of three to five years from the grant date. The expected term of options represents the period of time that options granted are expected to be outstanding and is based on historical experience and the expected turnover rate of the employees receiving the options. Expected volatility is based on historical volatility of the Company’s stock. The risk free interest rate is based on U.S. Treasuries with maturities consistent with the expected life of the options in effect at the time of grant. Compensation expense for employee stock options includes an estimate for forfeitures and is recognized ratably over the vesting term. The Company did not grant any options in fiscal years 2019, 2018 and 2017. Total compensation expense associated with stock option awards to employees under the 2009 Plan was $0 for each of the fiscal years ended September 30, 2019, 2018 and 2017, respectively. Total share-based compensation expense associated with the annual grant of stock awards to non-employee directors under the 2009 Plan was approximately $173,000, $200,000 and $203,000 for the fiscal years ended September 30, 2019, 2018 and 2017, respectively. At September 30, 2019, no unrecognized compensation expense, net of forfeitures, related to non-vested stock options under the 2009 Plan, will be recognized. 2019 Stock-Based Incentive Compensation Plan The 2019 Plan authorizes the grant of stock appreciation rights, restricted stock, options and other equity-based awards. Options granted under the 2019 Plan may be either “incentive stock options” as defined in section 422 of the Code or nonqualified stock options, as determined by the Compensation Committee. Subject to an adjustment necessary upon a stock dividend, recapitalization, forward split or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase or share exchange, extraordinary or unusual cash distribution, or similar corporate transaction or event, the maximum number of shares of common stock available for awards under the 2019 Plan is 750,000, plus 139,691 shares of common stock that were authorized but unissued under the 2009 Plan as of the effective date of the 2019 Plan (i.e., April 2, 2019), all of which may be issued pursuant to awards of incentive stock options. In addition, the 2019 Plan provides that no more than 300,000 shares may be awarded in any calendar year to any employee. As of September 30, 2019, there were 889,691 shares of common stock available for awards under the 2019 Plan. If any award is forfeited, terminates or otherwise is settled for any reason without an actual distribution of shares to the participant, the related shares of common stock subject to such award will again be available for future grant. Any shares tendered by a participant in payment of the exercise price of an option or the tax liability with respect to an award (including, in any case, shares withheld from any such award) will not be available for future grant under the 2019 Plan. If there is any change in the Company’s corporate capitalization, the Compensation Committee must proportionately and equitably adjust the number and kind of shares of common stock which may be issued in connection with future awards, the number and kind of shares of common stock covered by awards then outstanding under the 2019 Plan, the aggregate number and kind of shares of common stock available under the 2019 Plan, any applicable individual limits on the number of shares of common stock available for awards under the 2019 Plan, the exercise or grant price of any award, or if deemed appropriate, make provision for a cash payment with respect to any outstanding award. In addition, the Compensation Committee may make adjustments in the terms and conditions of any awards, including any performance goals, in recognition of unusual or nonrecurring events affecting the Company or any subsidiary, or in response to changes in applicable laws, regulations, or accounting principles. No equity awards were granted under the 2019 Plan as of September 30, 2019, and therefore the Company did not record any compensation expense related to the 2019 Plan during fiscal years 2019, 2018 and 2017.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Sep. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies Operating Leases Rent expense under operating leases totaled approximately $140,000, $113,000 and $94,000 for the years ended September 30, 2019, 2018 and 2017, respectively. Future minimum lease payments under non-cancelable operating leases are $135,000 for the year ended September 30, 2019. Purchase Obligations A “purchase obligation” is defined as an agreement to purchase goods or services that is enforceable and legally binding on the Company and that specifies all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions, and the approximate timing of the transaction. These amounts are composed primarily of open purchase order commitments entered in the ordinary course of business with vendors and subcontractors pertaining to fulfillment of the Company’s current order backlog. The purchase obligations on open purchase orders were $1.1 million, $0.7 million and $0.9 million as of September 30, 2019, 2018 and 2017, respectively. Product Liability The Company has product liability insurance of $50,000,000. The Company has not experienced any material product liability claims. Legal Proceedings In the ordinary course of business, the Company is at times subject to various legal proceedings and claims. The Company does not believe any such matters that are currently pending will, individually or in the aggregate, have a material effect on the results of operations or financial position.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Sep. 30, 2019
Related Party Transactions
Related Party Transactions	15. Related Party Transactions The Company incurred legal fees of $8,000 and $0 for the fiscal years ended September 30, 2019 and 2018, respectively with a lawyer who is a shareholder of the Company.

Quarterly Financial Data (unaud

Quarterly Financial Data (unaudited)	12 Months Ended
	Sep. 30, 2019
Quarterly Financial Data (unaudited)
Quarterly Financial Data (unaudited)	16. Quarterly Financial Data (unaudited) Summarized quarterly results of operations of the Company for the years ended September 30, 2019 and September 30, 2018 are presented below: Fiscal Year Ended September 30, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 3,977,650 $ 4,203,127 $ 4,589,824 $ 4,801,988 Cost of sales 1,811,847 1,856,921 2,064,617 1,942,734 Gross profit 2,165,803 2,346,206 2,525,207 2,859,254 Operating income 96,015 173,067 386,629 873,033 Net income 139,421 202,499 511,259 997,117 Net income per common share Basic $ 0.01 $ 0.01 $ 0.03 $ 0.06 Diluted $ 0.01 $ 0.01 $ 0.03 $ 0.06 Fiscal Year Ended September 30, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 3,087,984 $ 3,727,204 $ 3,389,663 $ 3,645,521 Cost of sales 1,593,268 2,082,347 1,806,980 1,829,328 Gross profit 1,494,716 1,644,857 1,582,683 1,816,193 Operating (loss) income (1,051,560) (1,143,511) (1,072,228) (444,240) Net (loss) income (881,619) (1,316,871) (1,041,037) (414,378) Net (loss) income per common share Basic $ (0.05) $ (0.08) $ (0.06) $ (0.03) Diluted $ (0.05) $ (0.08) $ (0.06) $ (0.03) Quarterly and full fiscal year EPS are calculated independently based on the weighted average number of shares outstanding during each period. As a result, the sum of each quarter’s per share amount may not equal the total per share amount for the respective year.

Business Segments

Business Segments	12 Months Ended
	Sep. 30, 2019
Business Segments
Business Segments	17. Business Segments The Company operates in one business segment which designs, manufactures and sells flat panel displays, flight information computers, and advanced monitoring systems to the DoD, the Department of Interior, other government agencies, commercial air transport carriers and corporate/general aviation markets. The Company currently derives virtually all of its revenues from the sale of this equipment and related EDC. Most of the Company’s sales, operating results, and identifiable assets are in the United States. During fiscal years 2019, 2018 and 2017, IS&S derived 90%, 75% and 89%, respectively, of its total product revenues from the sale of FPDS. During fiscal years 2019, 2018 and 2017, the Company derived 10%, 25% and 11%, respectively, of total product revenues from the sale of air data systems related products. During fiscal 2019, 2018 and 2017, the Company derived 8%, 3% and 4%, respectively, of total revenues from the sale of EDC services. Geographic Data Most of the Company’s sales, operating results and identifiable assets are generated in the United States. In fiscal years 2019, 2018 and 2017, net sales outside the United States amounted to $7.5 million, $4.7 million and $2.6 million, respectively. Product Data The Company’s current product line includes FPDS, flight management systems, and air data systems and components. During fiscal years 2019, 2018 and 2017, the Company derived 90%, 75% and 89%, respectively, of its revenue from sales of FPDS. The remaining revenue for each of the fiscal years was from sales of air data systems and components.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Estimates are used in accounting for, among other items, long term contracts, allowances for doubtful accounts, inventory obsolescence, product warranty cost liabilities, income taxes, engineering and material costs on EDC programs, percentage of completion on EDC contracts, recoverability of long-lived assets and contingencies. Estimates and assumptions are reviewed periodically and the effects of changes, if any, are reflected in the consolidated statements of operations in the period they are determined.
Cash and Cash Equivalents	Cash and Cash Equivalents Highly liquid investments, purchased with an original maturity of three months or less, are classified as cash equivalents. Cash equivalents at September 30, 2019 and 2018 consist of cash on deposit and cash invested in money market funds with financial institutions.
Inventory valuation	Inventory valuation Inventories are stated at the lower of cost (first-in, first-out) or net realizable value, net of write-downs for excess and obsolete inventory, and consist of the following: September 30, September 30, 2019 2018 Raw materials $ 3,408,742 $ 2,892,366 Work-in-process 775,770 817,051 Finished goods 286,182 570,691 $ 4,470,694 $ 4,280,108
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Depreciation is provided using an accelerated method over the estimated useful lives of the assets (the lesser of three to seven years or over the lease term), except for the manufacturing facility and the corporate airplanes, which are depreciated using the straight-line method over their estimated useful lives of thirty-nine years and ten years, respectively. Major additions and improvements are capitalized, while maintenance and repairs that do not improve or extend the life of assets are charged to expense as incurred. During fiscal year 2018, the Company purchased a Hawker Beechcraft B200GT aircraft for approximately $2.4 million. This aircraft serves as a test bed for the Company’s new products and also as a sales/marketing tool for demonstrating its products to its aviation customers.
Long-Lived Assets	Long-Lived Assets The Company assesses the impairment of long-lived assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360-10, “ Property, Plant and Equipment.” This statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In addition, long-lived assets to be disposed of should be reported at the lower of the carrying amount or fair value less cost to sell. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to estimated future cash flows expected to result from use of the asset. If the carrying amount of the asset exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows. No impairment charges were recorded in fiscal years 2019, 2018 or 2017.
Revenue Recognition	Revenue Recognition The Company enters into sales arrangements with customers that, in general, provide for the Company to design, develop, manufacture and deliver large flat-panel display systems, flight information computers and advanced monitoring systems that measure and display critical flight information, including data relative to aircraft separation, airspeed, altitude, and engine and fuel data measurements. Revenue from Contracts with Customers The Company adopted ASC 606 on October 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for fiscal year ended September 30, 2019 reflect the application of ASC 606 guidance while the reported results for the fiscal years ended September 30, 2018 and September 30, 2017 were prepared under the guidance of ASC 605, “Revenue Recognition“ (“ASC 605”), which is also referred to herein as "legacy GAAP" or the "previous guidance." The adoption of ASC 606 represents a change in accounting principles. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer The Company's contract with its customers typically is the form of a purchase order issued to the Company by its customers and, to a lesser degree, in the form of a purchase order issued in connection with a formal contract executed with a customer. For the purpose of accounting for revenue under ASC 606, a contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party's rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. Most of our revenue is derived from purchases under which we provide a specific product or service and, as a result, there is only one performance obligation. In the event that a contract includes multiple promised goods or services, such as an EDC contract which includes both engineering services and a resulting product shipment, the Company must apply judgment to determine whether promised goods or services are capable of being distinct in the context of the contract. In these cases, the Company considers whether the customer could, on its own, or together with other resources that are readily available from third parties, produce the physical product using only the output resulting from the Company's completion of engineering services. If the customer cannot produce the physical product, then the promised goods or services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company's contracts as of September 30, 2019 included variable consideration. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price by taking into account available information such as market conditions as well as the cost of the goods or services and the Company's normal margins for similar performance obligations. 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. Revenue from products transferred to customers at a point in time accounted for 95 percent of our revenue for the fiscal year ended September 30, 2019 and is typically recognized at the time of shipment of products to the customer. The remaining revenue results from EDC contracts and is recognized over time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress. Contract costs include material, components and third-party avionics purchased from suppliers, direct labor, and overhead costs. At September 30, 2019, we had approximately $5,896,000 of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 91% of our remaining performance obligations as revenue over the next 12 months with the remaining balance recognized thereafter. Contract Estimates Accounting for performance obligations in long-term contracts that are satisfied over time involves the use of various techniques to estimate progress towards satisfaction of the performance obligation. The Company typically measures progress based on costs incurred compared to estimated total contract costs. Contract cost estimates are based on various assumptions to project the outcome of future events that often span more than a single year. These assumptions include the amount of labor and labor costs, the quantity and cost of raw materials used in the completion of the performance obligation, and the complexity of the work to be performed. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified. The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue. The aggregate impact of adjustments in contract estimates did not change our revenue and operating earnings (and diluted earnings per share) for the fiscal year ended September 30, 2019. Therefore, no adjustment on any contract was material to our consolidated financial statements for the fiscal year ended September 30, 2019. Financial Statement Impact of Adopting ASC 606 The Company adopted ASC 606 using the modified retrospective method. The adoption resulted in no adjustment to the Company's retained earnings as of the adoption date, and there were no significant changes in the Company's consolidated statements of operations for the fiscal year ended September 30, 2019 as a result of the adoption of ASC 606 on October 1, 2018 compared to if the Company had continued to recognize revenues under ASC 605. Additionally, there was no change to the Company's assets or liabilities as of September 30, 2019 as a result of the adoption of ASC 606 on October 1, 2018 compared to if the Company had continued to recognize revenues under ASC 605. The adoption of ASC 606 had no impact on the Company's cash flows from operations. Contract Balances Contract assets consist of the right to consideration in exchange for product offerings that we have transferred to a customer under the contract. Contract liabilities primarily relate to consideration received in advance of performance under the contract. The following table reflects the Company's contract assets and contract liabilities: Contract Contract Assets Liabilities September 30, 2018 $ — $ 356,801 Amount transferred to receivables from contract assets — — Contract asset additions 80,182 — Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period — (356,801) Increases due to invoicing prior to satisfaction of performance obligations — 29,231 September 30, 2019 $ 80,182 $ 29,231 Customer Service Revenue The Company enters into sales arrangements with customers for the repair or upgrade of its various products that are not under warranty. The Company’s customer service revenue and cost of sales are included in product sales and product cost of sales, respectively, on the accompanying consolidated statements of operations. The Company’s customer service revenue and cost of sales for the fiscal years ended 2019, 2018 and 2017 are as follows: For the Fiscal Year Ended September 30, 2019 2018 2017 Customer Service Sales $ 3,553,919 $ 4,047,265 $ 3,232,712 Customer Service Cost of Sales 1,374,227 1,724,167 1,520,146 Gross Profit $ 2,179,692 $ 2,323,098 $ 1,712,566
Income Taxes	Income Taxes Income taxes are recorded in accordance with ASC Topic 740, “ Income Taxes ” (“ASC Topic 740”), which utilizes a balance sheet approach to provide for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets, liabilities, and expected benefits of utilizing net operating losses (“NOL”) and tax credit carry-forwards. The impact on deferred taxes of changes in tax rates and laws, if any, are applied to the years during which temporary differences are expected to be settled, and are reflected in the consolidated financial statements in the period of enactment. At the end of each interim reporting period, the Company prepares an estimate of the annual effective income tax rate and applies that annual effective income tax rate to ordinary year-to-date pre-tax income for the interim period. Specific tax items discrete to a particular quarter are recorded in income tax expense for that quarter. The estimated annual effective tax rate used in providing for income taxes on a year-to-date basis may change in subsequent periods. Deferred tax assets are reduced by a valuation allowance if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be verified objectively, and significant management judgment is required in determining any valuation allowance recorded against net deferred tax assets. The Company evaluates deferred income taxes on a quarterly basis to determine if a valuation allowance is required by considering available evidence. Deferred tax assets are recognized when expected future taxable income is sufficient to allow the related tax benefits to reduce taxes that would otherwise be payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and credit carryforwards, taxable income in carry-back years, and tax planning strategies which are both prudent and feasible. The Company’s current balance of the deferred tax valuation allowance is recorded against all of its federal and state deferred tax assets. The Company will continue to assess all available evidence during future periods to evaluate any changes to the realization of its deferred tax assets. If the Company were to determine that it would be able to realize additional federal or state deferred tax assets in the future, it would make an adjustment to the valuation allowance which would reduce the provision for income taxes. The accounting for uncertainty in income taxes requires a more likely than not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the (i) benefit recognized and measured for financial statement purposes and (ii) the tax position taken or expected to be taken on the Company’s tax return. To the extent that the Company’s assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company has elected to record any interest or penalties associated with uncertain tax positions as income tax expense. The Company files a consolidated United States federal income tax return. The Company prepares and files tax returns based on the interpretation of tax laws and regulations, and records estimates based on these judgments and interpretations. In the normal course of business, the tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities, and the Company records a liability when it is probable that there will be an assessment. The Company adjusts the estimates periodically as a result of ongoing examinations by and settlements with the various taxing authorities, and changes in tax laws, regulations and precedent. The consolidated tax provision of any given year includes adjustments to prior years’ income tax accruals that are considered appropriate, and any related estimated interest. Management believes that it has made adequate accruals for income taxes. Differences between estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material effect on the Company’s consolidated financial position, but could possibly be material to its consolidated results of operations or cash flow of any one period. On December 22, 2017, the U.S. government enacted the Tax Act, which made broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 34 percent to 21 percent; (2) bonus depreciation that will allow for full expensing of qualified property; (3) elimination of the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (4) a new limitation on deductible interest expense; (5) the repeal of the domestic production activity deduction; and (6) limitations on NOLs generated after December 31, 2017, to 80 percent of taxable income. The Tax Act reduced the corporate tax rate to 21 percent, effective January 1, 2018. Consequently, we recorded a provisional adjustment to decrease related to DTAs and DTLs with a corresponding net adjustment to deferred income tax expense of $321,038 for the period ended December 31, 2017. This expense is offset fully by a change in the valuation allowance. We completed our accounting for the income tax effects of certain elements of the Tax Act as of the quarter ended December 31, 2018.
Engineering Development	Engineering Development Total engineering development expense comprises of both internally funded R&D and product development and design charges related to specific customer contracts. Engineering development expense consists primarily of payroll-related expenses of employees engaged in EDC projects, engineering related product materials and equipment, and subcontracting costs. R&D charges incurred for product design, product enhancements, and future product development are expensed as incurred. Product development and design charges related to specific customer contracts are charged to cost of sales-EDC based on the method of contract accounting (either percentage-of-completion or completed contract) applicable to such contracts.
Comprehensive Income	Comprehensive Income Pursuant to FASB ASC Topic 220, “ Comprehensive Income ”, the Company is required to classify items of other comprehensive income by their nature in a financial statement and display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of its condensed consolidated balance sheets. For fiscal years 2019, 2018 and 2017 comprehensive income consisted of net income only, and there were no items of other comprehensive income for any of the periods presented.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The net carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximate their fair value because of the short-term nature of these instruments. For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value as follows: Level 1 — Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: · Quoted prices for similar assets or liabilities in active markets; · Quoted prices for identical or similar assets in non-active markets; · Inputs other than quoted prices that are observable for the asset or liability; and · Inputs that are derived principally from or corroborated by other observable market data. Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2019 and 2018, according to the valuation techniques the Company used to determine their fair values. Fair Value Measurement on September 30, 2019 Quoted Price in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents: Money market funds $ 21,450,242 $ — $ — Fair Value Measurement on September 30, 2018 Quoted Price in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents: Money market funds $ 19,725,474 $ — $ —
Share-Based Compensation	Share-Based Compensation The Company accounts for share-based compensation under FASB ASC Topic 505-50, “Equity-Based Payments to Non-Employees” (“ASC Topic 505-50”), and ASC Topic 718, “Stock Compensation” (“ASC Topic 718”), which require the Company to measure the cost of employee or non-employee director services received in exchange for an award of equity instruments based on the grant-date fair value of the award using an option pricing model. The Company recognizes such cost over the period during which an employee or non-employee director is required to provide service in exchange for the award. Accordingly, adoption of ASC Topic 505-50's and ASC Topic 718's fair value method results in recording compensation costs under the Company's stock based compensation plans. The Company determined the fair value of its stock option awards at the date of grant using the Black-Scholes option pricing model. Option pricing models and generally accepted valuation techniques require management to make assumptions and to apply judgment to determine the fair value of its awards. These assumptions and judgments include estimating future volatility of the Company's stock price, expected dividend yield, future employee turnover rates, and future employee stock option exercise behaviors. Changes in these assumptions can materially affect fair value estimates. The Company does not believe that a reasonable likelihood exists that there will be a material change in future estimates or assumptions used to determine share-based compensation expense. However, if actual results are not consistent with the Company's estimates or assumptions, the Company would adjust its estimates. Such adjustments could have a material impact on the Company's financial position.
Warranty Reserves	Warranty Reserves The Company offers warranties on some products of various lengths, however the standard warranty is twenty-four months. At the time of shipment, the Company establishes a reserve for estimated costs of warranties based on its best estimate of the amounts necessary to settle future and existing claims using historical data on products sold as of the balance sheet date. The length of the warranty period, the product’s failure rates, and the customer’s usage affect warranty cost. If actual warranty costs differ from the Company’s estimated amounts, future results of operations could be affected adversely. Warranty cost is recorded as cost of sales, and the reserve balance recorded as an accrued expense. While the Company maintains product quality programs and processes, its warranty obligation is affected by product failure rates and the related corrective costs. If actual product failure rates and/or corrective costs differ from the estimates, the Company revises the estimated warranty liability accordingly.
Self-Insurance Reserves	Self-Insurance Reserves Since January 1, 2014, the Company has self-insured a significant portion of its employee medical insurance. The Company maintains a stop-loss insurance policy that limits its losses both on a per employee basis and an aggregate basis. Liabilities associated with the risks that are retained by the Company are estimated based upon actuarial assumptions such as historical claims experience, demographic factors and other actuarial assumptions. The Company estimated the total medical claims incurred but not reported and the Company believes that it has adequate reserves for these claims at September 30, 2019 and 2018. However, the actual value of such claims could be significantly affected if future occurrences and claims differ from these assumptions. At September 30, 2019 and 2018, the estimated liability for medical claims incurred but not reported was $55,700 and $60,200, respectively. The Company has recorded the excess of funded premiums over estimated claims incurred but not reported of $123,100 as a current asset in the accompanying consolidated balance sheet. During the year ended September 30, 2019, the Company has used the excess of funded premiums to reduce amounts payable for claims incurred.
Treasury Stock	Treasury Stock We account for treasury stock purchased under the cost method and include treasury stock as a component of stockholder’s equity. Treasury stock purchased with intent to retire (whether or not the retirement is actually accomplished) is charged to common stock.
New Accounting Pronouncements	New Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, “ Improvements to Employer Share-Based Payment Accounting ,” which simplifies the tax treatment of stock “shortfalls” and “windfalls.” Previous guidance required excess tax benefits (“windfalls”) to be recorded in equity. Tax deficiencies (“shortfalls”) were recorded in equity to the extent of previous windfalls then to the income statement. The new guidance simplifies this treatment by having all “windfalls” and “shortfalls” recorded through the income statement. This guidance became effective for us beginning on October 1, 2017. Adoption of this standard did not have a material effect upon the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842 ) " ("ASU 2016-02") as modified, which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 will require lessees to recognize most leases on their balance sheets as liabilities, with corresponding "right-of-use" assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. For income statement recognition purposes, leases will be classified as either a finance or an operating lease without relying upon the bright-line tests under current GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. We adopted ASU 2016-02 effective October 1, 2019 using the required modified retrospective approach . This adoption approach will result in a balance sheet presentation that will not be comparable to the prior period in the first year of adoption. At adoption, we will recognize a right-to-use asset and corresponding lease liability of approximately $130,000 on our consolidated balance sheets. The income statement recognition of lease expense appears similar to our current methodology. In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ,” which simplifies balance sheet presentation of deferred income taxes. Previous guidance required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position; however, the new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The updated standard is effective for the Company beginning October 1, 2017, with early adoption permitted as of the beginning of any interim or annual reporting period. The Company early adopted this standard retrospectively and reclassified its current deferred tax balances to noncurrent deferred tax for all periods presented. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventory " ("ASU 2015-11"). ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. ASU 2015-11 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. We adopted ASU 2015-11 effective October 1, 2017 and the implementation had no material impact on the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “ Presentation of Financial Statements - Going Concern (Subtopic 205-40 ) " ("ASU 2014-15"). The objective of ASU 2014-15 is to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and provide related disclosures. Previously, GAAP did not provide guidance to evaluate whether there was substantial doubt regarding an organization’s ability to continue as a going concern. ASU 2014-15 provides guidance to an organization’s management, with principles and definitions to reduce diversity in the timing and content of financial statement disclosures commonly provided by organizations. This standard was adopted by the Company at September 30, 2017, and the adoption of ASU 2014-15 did not have a material impact on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers ,” which provides a single, comprehensive revenue recognition model for all contracts with customers, and contains principles to determine the measurement of revenue and timing of when it is recognized. The model will supersede most existing revenue recognition guidance, and also requires enhanced revenue-related disclosures. Under the new standard and its related amendments (collectively known as “ASC 606”), revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized will reflect the consideration that the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). We adopted this guidance on October 1, 2018 using the modified retrospective method . See Note 3, "Financial Statement Impact of Adopting ASC 606," to the unaudited condensed consolidated financial statements for a discussion of the impact resulting from the adoption of this guidance. In June 2018, the FASB issued ASU No. 2018-07, “ Stock-based Compensation: Improvements to Nonemployee Share-based Payment Accounting ,” ("ASU 2018-07") which amends the existing accounting standards for share-based payments to nonemployees. This ASU aligns much of the guidance on measuring and classifying nonemployee awards with that of awards to employees. Under the new guidance, the measurement of nonemployee equity awards is fixed on the grant date. This ASU becomes effective in the first quarter of fiscal year 2019 and early adoption is permitted but no earlier than an entity's adoption date of Topic 606 . Entities will apply the ASU by recognizing a cumulative-effect adjustment to retained earnings as of the beginning of the annual period of adoption. We adopted ASU 2018-07 effective October 1, 2018 and the implementation had no material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ,” ("ASU 2018-13") which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reason for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income. For public entities, the standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures and adoption of the additional disclosures can be delayed until the effective date. The Company does not currently expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Schedule of inventories	September 30, September 30, 2019 2018 Raw materials $ 3,408,742 $ 2,892,366 Work-in-process 775,770 817,051 Finished goods 286,182 570,691 $ 4,470,694 $ 4,280,108
Summary of contract liabilities balance	Contract Contract Assets Liabilities September 30, 2018 $ — $ 356,801 Amount transferred to receivables from contract assets — — Contract asset additions 80,182 — Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period — (356,801) Increases due to invoicing prior to satisfaction of performance obligations — 29,231 September 30, 2019 $ 80,182 $ 29,231
Schedule of customer service revenue and cost of sales	For the Fiscal Year Ended September 30, 2019 2018 2017 Customer Service Sales $ 3,553,919 $ 4,047,265 $ 3,232,712 Customer Service Cost of Sales 1,374,227 1,724,167 1,520,146 Gross Profit $ 2,179,692 $ 2,323,098 $ 1,712,566
Schedule of financial assets and liabilities accounted for at fair value on a recurring basis	Fair Value Measurement on September 30, 2019 Quoted Price in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents: Money market funds $ 21,450,242 $ — $ — Fair Value Measurement on September 30, 2018 Quoted Price in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents: Money market funds $ 19,725,474 $ — $ —

Net Income Per Share (Tables)

Net Income Per Share (Tables)	12 Months Ended
	Sep. 30, 2019
Net Income Per Share
Schedule of net income per share	For the Fiscal Year Ended September 30, 2019 2018 2017 Numerator: Net income (loss) $ 1,850,296 $ (3,653,905) $ 4,568,627 Denominator: Basic weighted average shares 16,867,550 16,805,991 16,742,461 Dilutive effect of share-based awards 74,897 — 113,182 Diluted weighted average shares 16,942,447 16,805,991 16,855,644 Net income (loss) per common share: Basic $ 0.11 $ (0.22) $ 0.27 Diluted $ 0.11 $ (0.22) $ 0.27

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Sep. 30, 2019
Prepaid Expenses and Other Current Assets
Schedule of prepaid expenses and other current assets	September 30, September 30, 2019 2018 Prepaid insurance $ 302,376 $ 258,015 Income tax refund receivable — 1,578 Other 339,673 284,641 $ 642,049 $ 544,234

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Sep. 30, 2019
Property and Equipment
Schedule of property and equipment, net	September 30, September 30, 2019 2018 Computer equipment $ 2,285,152 $ 2,268,969 Corporate airplanes 5,601,039 5,601,039 Furniture and office equipment 1,033,779 1,033,779 Manufacturing facility 5,733,313 5,733,313 Equipment 5,635,134 5,580,083 Land 1,021,245 1,021,245 21,309,662 21,238,428 Less accumulated depreciation and amortization (12,864,970) (12,451,691) $ 8,444,692 $ 8,786,737

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Sep. 30, 2019
Other Assets
Schedule of other assets	September 30, September 30, 2019 2018 Intangible assets, net of accumulated amortization of $551,037 at September 30, 2019 and $531,637 at September 30, 2018 $ 49,200 $ 68,600 Other non-current assets 104,841 113,393 $ 154,041 $ 181,993

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Sep. 30, 2019
Accrued Expenses
Schedule of accrued expenses	September 30, September 30, 2019 2018 Warranty $ 606,680 $ 854,952 Salary, benefits and payroll taxes 212,322 143,183 Professional fees 153,298 203,823 Other 138,618 261,063 $ 1,110,918 $ 1,463,021

Warranty (Tables)

Warranty (Tables)	12 Months Ended
	Sep. 30, 2019
Warranty
Schedule of warranty cost and accrual information	2019 2018 Warranty accrual as of October 1, $ 854,952 $ 1,013,461 Release of accrual, net (168,589) (5,926) Warranty cost incurred for fiscal year (79,683) (152,583) Warranty accrual as of September 30, $ 606,680 $ 854,952

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2019
Income Taxes
Schedule of components of income taxes	For the Fiscal Year Ended September 30, 2019 2018 2017 Current provision (benefit): Federal $ — $ (3,440) $ 244,794 State 1,749 5,239 3,082 Total current provision 1,749 1,799 247,876 Deferred provision Federal — 61,799 — State 56 53 44 Total deferred provision 56 61,852 44 Total current and deferred provision $ 1,805 $ 63,651 $ 247,920
Schedule of reconciliation of the statutory federal rate to the Company's effective income tax rate	For the Fiscal Year Ended September 30, 2019 2018 2017 U.S. Federal statutory tax rate 21.0 % 24.3 % 34.0 % Rate change due to tax reform 0.0 % (9.0) % — State income taxes, net of federal benefit (0.9) % 1.9 % (0.4) % Permanent items 0.8 % (0.1) % 0.2 % Research and development tax credits (0.8) % 1.3 % 8.1 % Valuation allowance (20.2) % (20.3) % (35.9) % Change in unrecognized tax benefits 0.2 % 0.9 % (0.9) % 123R cancellations and forfeitures 0.0 % (0.8) % 0.1 % Effective income tax rate 0.1 % (1.8) % 5.2 %
Schedule of deferred tax assets and liabilities	As of September 30, 2019 2018 2017 Non Current Non Current Non Current Deferred tax assets: Reserves and accruals $ 690,148 $ 730,015 $ 1,275,427 Research and development credit 1,331,170 1,318,977 1,236,365 NOL carryforwards -fed/state 2,590,791 2,982,246 1,208,592 Depreciation (826,724) (863,796) (690,774) Stock options 348,624 345,608 609,016 4,134,009 4,513,050 3,638,626 Less: Valuation allowance (3,922,620) (4,296,553) (3,568,459) Total deferred tax assets 211,389 216,497 70,167 Deferred tax liabilities: Depreciation (341,040) (346,091) (137,909) Total deferred tax liabilities (341,040) (346,091) (137,909) Net deferred tax (liability) asset $ (129,651) $ (129,594) $ (67,742)
Schedule of reconciliation of beginning and ending balances of total amounts of gross unrecognized tax benefits	For the Fiscal Year Ended September 30, 2019 2018 2017 Balance at beginning of year $ 540,000 $ 570,000 $ 615,000 Unrecognized tax benefits related to prior years — 52,000 — Unrecognized tax benefits related to current year 6,000 11,000 18,000 Decrease in unrecognized tax benefits due to the lapse of applicable statute of limitations — (93,000) (63,000) Balance at end of year $ 546,000 $ 540,000 $ 570,000

Share-Based Compensation (Table

Share-Based Compensation (Tables) - 2009 Plan	12 Months Ended
	Sep. 30, 2019
Share-based compensation
Summary of option activity	Weighted Average Aggregate Exercise Intrinsic Options Price Value Outstanding at September 30, 2016 626,283 $ 3.35 $ — Granted — 2.81 25,504 Exercised (67,115) — 55,705 Cancelled (2,334) 3.78 — Outstanding at September 30, 2017 556,834 $ 3.32 177,043 Granted — — — Exercised — — — Cancelled (6,000) 3.78 — Outstanding at September 30, 2018 550,834 $ 3.32 $ 15,000 Granted — — — Exercised — — — Cancelled — Outstanding at September 30, 2019 550,834 $ 3.32 $ 761,767 Vested and expected to vest 550,834 $ 3.32 $ 761,767 Options exercisable at September 30, 2019 550,834 $ 3.32 $ 761,767
Summary of information about stock options	Options Outstanding Options Exercisable Outstanding Weighted- As of Average Weighted- Weighted- Range of Exercise September 30, Remaining Average As of September Average Prices 2019 Contractual Life Exercise Price 30, 2019 Exercise Price $ 0.00 - $ 5.00 550,834 $ 3.32 550,834 $ 3.32

Quarterly Financial Data (una_2

Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Sep. 30, 2019
Quarterly Financial Data (unaudited)
Summary of quarterly results of operations of the Company	Fiscal Year Ended September 30, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 3,977,650 $ 4,203,127 $ 4,589,824 $ 4,801,988 Cost of sales 1,811,847 1,856,921 2,064,617 1,942,734 Gross profit 2,165,803 2,346,206 2,525,207 2,859,254 Operating income 96,015 173,067 386,629 873,033 Net income 139,421 202,499 511,259 997,117 Net income per common share Basic $ 0.01 $ 0.01 $ 0.03 $ 0.06 Diluted $ 0.01 $ 0.01 $ 0.03 $ 0.06 Fiscal Year Ended September 30, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 3,087,984 $ 3,727,204 $ 3,389,663 $ 3,645,521 Cost of sales 1,593,268 2,082,347 1,806,980 1,829,328 Gross profit 1,494,716 1,644,857 1,582,683 1,816,193 Operating (loss) income (1,051,560) (1,143,511) (1,072,228) (444,240) Net (loss) income (881,619) (1,316,871) (1,041,037) (414,378) Net (loss) income per common share Basic $ (0.05) $ (0.08) $ (0.06) $ (0.03) Diluted $ (0.05) $ (0.08) $ (0.06) $ (0.03)

Background (Details)

Background (Details)	12 Months Ended
	Sep. 30, 2019segment
Background
Number of business segments	1

Concentrations (Details)

Concentrations (Details) $ in Millions	12 Months Ended
	Sep. 30, 2019USD ($)customeritem	Sep. 30, 2018USD ($)customeritem	Sep. 30, 2017USD ($)customer
Concentration of Credit Risk
Concentration of Credit Risk
Number of banks for maintenance of cash balances | item	2
Net sales | Major Customers and Products
Concentrations
Concentration of risk (as a percent)	53.00%	48.00%	54.00%
Number of major customers | customer	5	5	5
Number of major annual customers | customer			3
Accounts receivable and contract assets | $	$ 1.3	$ 1.4	$ 1.3
Net sales | Major Customers and Products | Sierra Nevada
Concentrations
Concentration of risk (as a percent)			16.00%
Net sales | Major Customers and Products | Pilatus
Concentrations
Concentration of risk (as a percent)	25.00%	20.00%	12.00%
Net sales | Major Customers and Products | DHL
Concentrations
Concentration of risk (as a percent)			10.00%
Net sales | Major Customers and Products | Government contractors and Agencies
Concentrations
Concentration of risk (as a percent)	20.00%	32.00%	53.00%
Net sales | Major Products | FPDS
Concentrations
Concentration of risk (as a percent)	90.00%	75.00%	89.00%
Net sales | Major Products | Air data systems and components
Concentrations
Concentration of risk (as a percent)	10.00%	25.00%	11.00%
Inventory | Major Suppliers
Concentrations
Concentration of risk (as a percent)	23.40%	11.00%
Number of major suppliers | item	2	1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Jan. 01, 2018	Dec. 22, 2017	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Inventory valuation
Raw materials			$ 3,408,742				$ 2,892,366				$ 3,408,742	$ 2,892,366
Work-in-process			775,770				817,051				775,770	817,051
Finished goods			286,182				570,691				286,182	570,691
Inventories			4,470,694				4,280,108				4,470,694	4,280,108
Property and Equipment
Payment to acquire property and equipment											81,281	2,548,612		$ 153,038
Long-Lived Assets
Impairment charges											0	0		0
Contract Balances
Balance at beginning of the year (contract assets)						$ 0					0
Balance at beginning of the year						356,801					356,801
Contract asset additions											80,182	(554,190)		(116,850)
Performance obligations satisfied during the period that were included in the contract liability balance at the beginning of the period											(356,801)
Increases due to invoicing prior to satisfaction of performance obligations											29,231
Balance at end of the year (contract assets)			80,182				0				80,182	0
Balance at end of the year			29,231				356,801				29,231	356,801
Customer Service Revenue
Cost of sales			1,942,734	$ 2,064,617	$ 1,856,921	1,811,847	1,829,328	$ 1,806,980	$ 2,082,347	$ 1,593,268	7,676,119	7,311,923		8,668,348
Gross Profit			$ 2,859,254	$ 2,525,207	$ 2,346,206	$ 2,165,803	$ 1,816,193	$ 1,582,683	$ 1,644,857	$ 1,494,716	$ 9,896,470	$ 6,538,449		$ 8,118,326
Income taxes
U.S. Federal statutory tax rate (as a percent)	21.00%	34.00%									21.00%	24.30%		34.00%
Percentage of limitation on net operating losses	80.00%
Deferred income tax expense due to Tax Cuts and Jobs Act													$ 321,038
Customer Service
Customer Service Revenue
Customer Service Sales											$ 3,553,919	$ 4,047,265		$ 3,232,712
Cost of sales											1,374,227	1,724,167		1,520,146
Gross Profit											$ 2,179,692	2,323,098		$ 1,712,566
Property and equipment except manufacturing facility and the corporate airplane | Minimum
Property and Equipment
Estimated useful lives											3 years
Property and equipment except manufacturing facility and the corporate airplane | Maximum
Property and Equipment
Estimated useful lives											7 years
Corporate airplanes
Property and Equipment
Estimated useful lives											10 years
Hawker Beechcraft B200GT Aircraft
Property and Equipment
Payment to acquire property and equipment												$ 2,400,000
Manufacturing facility
Property and Equipment
Estimated useful lives											39 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Sep. 30, 2019USD ($)
Revenue Recognition
Percentage of revenue from products	95.00%
Remaining performance obligations	$ 5,896,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, remaining performance obligations
Percentage of remaining performance obligation expected to be recognized in period	91.00%
Revenue, Remaining Performance Obligation,Expected Timing of Satisfaction, Period	12 months

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Fair Value (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Warranty
Length of warranty period	24 months
Self-Insurance Reserves
Estimated liability for medical claims incurred but not reported	$ 55,700	$ 60,200
Excess of funded premiums over estimated claims incurred but not reported	123,100
Fair value on a recurring basis | Quoted Price in Active Markets for Identical Assets (Level 1) | Money market funds
Assets
Cash and cash equivalents	$ 21,450,242	$ 19,725,474

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - 2016-02	Oct. 01, 2019USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ROU assets	$ 130,000
Operating lease liabilities	$ 130,000

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income (loss)	$ 997,117	$ 511,259	$ 202,499	$ 139,421	$ (414,378)	$ (1,041,037)	$ (1,316,871)	$ (881,619)	$ 1,850,296	$ (3,653,905)	$ 4,568,627
Denominator:
Basic weighted average shares									16,867,550	16,805,991	16,742,461
Dilutive effect of share-based awards									74,897		113,182
Diluted weighted average shares									16,942,447	16,805,991	16,855,644
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.06	$ 0.03	$ 0.01	$ 0.01	$ (0.03)	$ (0.06)	$ (0.08)	$ (0.05)	$ 0.11	$ (0.22)	$ 0.27
Diluted (in dollars per share)	$ 0.06	$ 0.03	$ 0.01	$ 0.01	$ (0.03)	$ (0.06)	$ (0.08)	$ (0.05)	$ 0.11	$ (0.22)	$ 0.27
Options to purchase common stock outstanding (in shares)	550,834				550,834				550,834	550,834	586,834
Anti-dilutive options to purchase common stock excluded from the computation of diluted earnings per share (in shares)											336,961
Delta | Other income
Net income (loss) per common share:
Reminder of amount paid											$ 4,100,000
RSU
Net income (loss) per common share:
Restricted stock units outstanding ( in shares)	0				0				0	0	0

Contract Asset (Details)

Contract Asset (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Contract Asset
Contract asset	$ 80,182				$ 0				$ 80,182	$ 0
Cumulative change in operating income resulting from changes in estimates	$ 873,033	$ 386,629	$ 173,067	$ 96,015	$ (444,240)	$ (1,072,228)	$ (1,143,511)	$ (1,051,560)	1,528,744	(3,711,539)	$ (77,565)
Long-term contracts accounted for under percentage-of-completion
Contract Asset
Cumulative change in operating income resulting from changes in estimates									$ (16,000)	$ 0	$ 61,000

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Prepaid Expenses and Other Current Assets
Prepaid insurance	$ 302,376	$ 258,015
Income tax refund receivable		1,578
Other	339,673	284,641
Total prepaid expenses and other current assets	$ 642,049	$ 544,234

Property and Equipment (Details

Property and Equipment (Details)	12 Months Ended
	Sep. 30, 2019USD ($)aircraft	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Property and equipment
Property and equipment, gross	$ 21,309,662	$ 21,238,428
Less: accumulated depreciation and amortization	(12,864,970)	(12,451,691)
Property and equipment, net	8,444,692	8,786,737
Depreciation	$ 400,000	400,000	$ 400,000
Number of corporate airplanes, depreciated | aircraft	2
Computer equipment
Property and equipment
Property and equipment, gross	$ 2,285,152	2,268,969
Corporate airplanes
Property and equipment
Property and equipment, gross	5,601,039	5,601,039
Furniture and office equipment
Property and equipment
Property and equipment, gross	1,033,779	1,033,779
Manufacturing facility
Property and equipment
Property and equipment, gross	5,733,313	5,733,313
Equipment
Property and equipment
Property and equipment, gross	5,635,134	5,580,083
Land
Property and equipment
Property and equipment, gross	$ 1,021,245	$ 1,021,245

Other Assets (Details)

Other Assets (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Other Assets
Intangible assets, net of accumulated amortization of $551,037 at September 30, 2019 and $531,637 at September 30, 2018	$ 49,200	$ 68,600
Other non-current assets	104,841	113,393
Total other assets	154,041	181,993
Accumulated amortization of intangible assets	551,037	531,637
Impairment charges	0	0	$ 0
Intangible asset amortization expense	19,400	0	$ 2,600
Prepaid software licenses	$ 29,500	$ 38,100

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Accrued Expenses
Warranty	$ 606,680	$ 854,952	$ 1,013,461
Salary, benefits and payroll taxes	212,322	143,183
Professional fees	153,298	203,823
Other	138,618	261,063
Total accrued expenses	$ 1,110,918	$ 1,463,021

Warranty (Details)

Warranty (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Warranty cost and accrual information
Warranty accrual, beginning of period	$ 854,952	$ 1,013,461
Release of accrual, net	(168,589)	(5,926)
Warranty cost incurred for fiscal year	(79,683)	(152,583)
Warranty accrual, end of period	$ 606,680	$ 854,952

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Jan. 01, 2018	Dec. 22, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Current provision (benefit):
Federal				$ (3,440)	$ 244,794
State			$ 1,749	5,239	3,082
Total current provision			1,749	1,799	247,876
Deferred provision (benefit):
Federal				61,799
State			56	53	44
Total deferred provision			56	61,852	44
Total current and deferred provision			$ 1,805	$ 63,651	$ 247,920
Reconciliation of the statutory federal rate to the Company's effective income tax rate
U.S. Federal statutory tax rate (as a percent)	21.00%	34.00%	21.00%	24.30%	34.00%
Rate change due to tax reform (as a percent)			0.00%	(9.00%)
State income taxes, net of federal benefit (as a percent)			(0.90%)	1.90%	(0.40%)
Permanent items (as a percent)			0.80%	(0.10%)	0.20%
Research and development tax credits (as a percent)			(0.80%)	1.30%	8.10%
Valuation allowance (as a percent)			(20.20%)	(20.30%)	(35.90%)
Change in unrecognized tax benefits (as a percent)			0.20%	0.90%	(0.90%)
123R cancellations and forfeitures			0.00%	(0.80%)	0.10%
Effective income tax rate (as a percent)			0.10%	(1.80%)	5.20%

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets and liabilities component (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Deferred tax assets:
Reserves and accruals	$ 690,148	$ 730,015	$ 1,275,427
Research and development credit	1,331,170	1,318,977	1,236,365
NOL carryforward - fed/state	2,590,791	2,982,246	1,208,592
Depreciation	(826,724)	(863,796)	(690,774)
Stock options	348,624	345,608	609,016
Gross non current deferred tax assets	4,134,009	4,513,050	3,638,626
Less : Valuation allowance	(3,922,620)	(4,296,553)	(3,568,459)
Total deferred tax assets	211,389	216,497	70,167
Deferred tax liabilities:
Depreciation	(341,040)	(346,091)	(137,909)
Total deferred tax liabilities	(341,040)	(346,091)	(137,909)
Net deferred tax (liability) asset	$ (129,651)	$ (129,594)	$ (67,742)

Income Taxes - Net operating lo

Income Taxes - Net operating loss (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
State
Operating loss carryforward
Net operating loss	$ 24,000	$ 23,800

Income Taxes - Tax carryforward

Income Taxes - Tax carryforward and reconciliation of unrecognized tax benefit (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Tax credit carryforward
Change in valuation allowance	$ 400,000	$ 700,000
Valuation allowance	3,922,620	4,296,553	$ 3,568,459
Reconciliation of beginning and ending balances of total amounts of gross unrecognized tax benefits
Balance at beginning of year	540,000	570,000	615,000
Unrecognized tax benefits related to prior years		52,000
Unrecognized tax benefits related to current year	6,000	11,000	18,000
Decrease in unrecognized tax benefits due to the lapse of applicable statute of limitations		(93,000)	(63,000)
Balance at end of year	546,000	540,000	570,000
Unrecognized tax benefits , if recognized, would impact effective tax rate	546,000	540,000	570,000
Unrecognized tax benefits against accrued interest	0
Accrual recorded for penalties	0
(Benefit) expense for interest (net of federal impact) recognized	0	0	$ 0
Adjustments resulting from IRS examination	0
R&D | Federal
Tax credit carryforward
Tax Credit carryforwards	$ 1,300,000	$ 1,300,000

Savings Plan (Details)

Savings Plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Savings Plan
Contributions made to defined contribution savings plan	$ 96,000	$ 110,000	$ 120,000

Share-Based Compensation (Detai

Share-Based Compensation (Details)	12 Months Ended
	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Share-based compensation
Share-based compensation expense	$ 173,000	$ 200,000	$ 203,000
Income tax effect recognized as a credit to additional paid-in capital related to share-based compensation	$ 0	0	0
Number of share-based compensation plans maintained by the company | item	2
2009 Plan
Share-based compensation
Share-based compensation expense	$ 0	$ 0	$ 0

Share-Based Compensation - 2009

Share-Based Compensation - 2009 Stock-Based Incentive Compensation Plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Options
Outstanding at the beginning of the period (in shares)	586,834
Outstanding at the end of the period (in shares)	550,834	586,834
Outstanding at the end of the period (in shares)	550,834	586,834	550,834	550,834	586,834
2009 Plan
Share-based compensation
Number of shares of common stock reserved for awards			1,200,000
2009 Plan | Options
Options
Outstanding at the beginning of the period (in shares)	556,834	626,283
Exercised (in shares)		(67,115)
Cancelled (in shares)	(6,000)	(2,334)
Outstanding at the end of the period (in shares)	550,834	556,834
Outstanding at the end of the period (in shares)	550,834	556,834	550,834	550,834	556,834
Vested and expected to vest (in shares)			550,834
Options exercisable at the end of the period (in shares)			550,834
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 3.32	$ 3.35
Granted (in dollars per share)		2.81
Cancelled (in dollars per share)	3.78	3.78
Outstanding at the end of the period (in dollars per share)	3.32	3.32
Outstanding at the end of the period (in dollars per share)	$ 3.32	$ 3.32	$ 3.32	$ 3.32	$ 3.32
Vested and expected to vest (in dollars per share)			3.32
Options exercisable at the end of the period (in dollars per share)			$ 3.32
Aggregate Intrinsic Value
Granted (in dollars)		$ 25,504
Exercised (in dollars)		$ 55,705
Outstanding at the end of the period (in dollars)			$ 761,767	$ 15,000	$ 177,043
Vested and expected to vest (in dollars)			761,767
Options exercisable at the end of the period (in dollars)			$ 761,767
2009 Plan | Performance-based Award | Employee
Share-based compensation
Maximum award (in shares)			300,000

Share-Based Compensation - Summ

Share-Based Compensation - Summary of information about stock options 2009 plan (Details) - 2009 Plan - Range of Exercise Price - $0.00 - $5.00 - Options	12 Months Ended
	Sep. 30, 2019$ / sharesshares
Information about stock options, by exercise price range
Exercise price, low end of range (in dollars per share)	$ 0
Exercise price, high end of range (in dollars per share)	$ 5
Options outstanding at the end of the period (in shares) | shares	550,834
Options Outstanding - Weighted-Average Remaining Contractual Life	2 years 9 months 18 days
Options Outstanding - Weighted-Average Exercise Price (in dollars per share)	$ 3.32
Options exercisable at the end of the period (in shares) | shares	550,834
Options Exercisable - Weighted-Average Exercise Price (in dollars per share)	$ 3.32

Share-Based Compensation - Fair

Share-Based Compensation - Fair Value assumptions for 2009 stock option plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share-based compensation
Share-based compensation expense	$ 173,000	$ 200,000	$ 203,000
2009 Plan
Share-based compensation
Share-based compensation expense	0	0	0
2009 Plan | Non-employee director
Share-based compensation
Share-based compensation expense	173,000	$ 200,000	$ 203,000
2009 Plan | Options
Share-based compensation
Unrecognized compensation cost, related to non-vested stock options	$ 0
2009 Plan | Options | Minimum
Share-based compensation
Vesting period	3 years
2009 Plan | Options | Maximum
Share-based compensation
Expiration term	10 years
Vesting period	5 years

Share-Based Compensation - 2019

Share-Based Compensation - 2019 Stock-Based Incentive Compensation Plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share-based compensation.
Common stock, shares authorized	75,000,000	75,000,000
Share-based compensation expense	$ 173,000	$ 200,000	$ 203,000
2019 Plan
Share-based compensation.
Common stock, shares authorized	139,691
Share-based compensation expense	$ 0	$ 0	$ 0
Number of shares of common stock reserved for awards	750,000
Number of shares of common stock available for awards under the plan	889,691
2019 Plan | Employee
Share-based compensation.
Number of shares of common stock reserved for awards	300,000

Commitments and Contingencies -

Commitments and Contingencies - Operating leases and purchase obligations (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Operating Leases
Rent expense under operating leases	$ 140,000	$ 113,000	$ 94,000
Operating leases future minimum payments due	135,000
Purchase Obligations
Purchase obligations on open purchase orders	1,100,000	$ 700,000	$ 900,000
Product Liability
Product liability insurance	$ 50,000,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Shareholder
Related Party Transactions
Legal fees	$ 8,000	$ 0

Quarterly Financial Data (una_3

Quarterly Financial Data (unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Quarterly Financial Data (unaudited)
Net sales	$ 4,801,988	$ 4,589,824	$ 4,203,127	$ 3,977,650	$ 3,645,521	$ 3,389,663	$ 3,727,204	$ 3,087,984	$ 17,572,589	$ 13,850,372	$ 16,786,674
Cost of sales	1,942,734	2,064,617	1,856,921	1,811,847	1,829,328	1,806,980	2,082,347	1,593,268	7,676,119	7,311,923	8,668,348
Gross profit	2,859,254	2,525,207	2,346,206	2,165,803	1,816,193	1,582,683	1,644,857	1,494,716	9,896,470	6,538,449	8,118,326
Operating (loss) income	873,033	386,629	173,067	96,015	(444,240)	(1,072,228)	(1,143,511)	(1,051,560)	1,528,744	(3,711,539)	(77,565)
Net (loss) income	$ 997,117	$ 511,259	$ 202,499	$ 139,421	$ (414,378)	$ (1,041,037)	$ (1,316,871)	$ (881,619)	$ 1,850,296	$ (3,653,905)	$ 4,568,627
Net (loss) income per common share
Basic (in dollars per share)	$ 0.06	$ 0.03	$ 0.01	$ 0.01	$ (0.03)	$ (0.06)	$ (0.08)	$ (0.05)	$ 0.11	$ (0.22)	$ 0.27
Diluted (in dollars per share)	$ 0.06	$ 0.03	$ 0.01	$ 0.01	$ (0.03)	$ (0.06)	$ (0.08)	$ (0.05)	$ 0.11	$ (0.22)	$ 0.27

Business Segments (Details)

Business Segments (Details) $ in Millions	12 Months Ended
	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Business segments
Number of business segments | segment	1
Outside the United States
Geographic Data
Net sales from outside the United States | $	$ 7.5	$ 4.7	$ 2.6
FPDS | Net sales
Business segments
Sales percentage	90.00%	75.00%	89.00%
Air data systems and components | Net sales
Business segments
Sales percentage	10.00%	25.00%	11.00%
Engineering development contracts | Net sales
Business segments
Sales percentage	8.00%	3.00%	4.00%