Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Nov. 14, 2013 | Mar. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'LRAD Corp | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 32,911,605 | ' |
Entity Public Float | ' | ' | $25,643,882 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000924383 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Current assets: | ' | ' |
Cash | $15,805,195 | $13,859,505 |
Accounts receivable, less allowance of $3,772 and $4,372 for doubtful accounts | 4,958,532 | 5,517,894 |
Inventories, net | 4,587,750 | 3,112,489 |
Prepaid expenses and other | 1,003,875 | 441,823 |
Total current assets | 26,355,352 | 22,931,711 |
Property and equipment, net | 237,377 | 212,863 |
Intangible assets, net | 51,650 | 158,457 |
Prepaid expenses and other - noncurrent | 914,516 | 1,102,016 |
Total assets | 27,558,895 | 24,405,047 |
Current liabilities: | ' | ' |
Accounts payable | 1,596,409 | 995,719 |
Accrued liabilities | 1,054,968 | 623,742 |
Total current liabilities | 2,651,377 | 1,619,461 |
Other liabilities - noncurrent | 146,109 | 363,817 |
Total liabilities | 2,797,486 | 1,983,278 |
Common stock, $0.00001 par value; 50,000,000 shares authorized; 32,900,705 and 32,374,499 shares issued and outstanding, respectively | 329 | 324 |
Additional paid-in capital | 87,434,834 | 86,358,011 |
Accumulated deficit | -62,673,754 | -63,936,566 |
Total stockholders' equity | 24,761,409 | 22,421,769 |
Total liabilities and stockholders' equity | $27,558,895 | $24,405,047 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Accounts receivable, allowancе for doubtful accounts (in Dollars) | $3,772 | $4,372 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 32,900,705 | 32,374,499 |
Common stock, shares outstanding | 32,900,705 | 32,374,499 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operation (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | ' | ' |
Product sales | $16,001,820 | $14,218,766 |
Contract and other | 1,086,110 | 573,572 |
Total revenues | 17,087,930 | 14,792,338 |
Cost of revenues | 8,842,631 | 7,313,762 |
Gross profit | 8,245,299 | 7,478,576 |
Operating expenses: | ' | ' |
Selling, general and administrative | 5,438,406 | 4,541,594 |
Research and development | 1,841,369 | 1,659,673 |
Total operating expenses | 7,279,775 | 6,201,267 |
Income from operations | 965,524 | 1,277,309 |
Other income | 299,190 | 33,895 |
Income from operations before income taxes | 1,264,714 | 1,311,204 |
Income tax expense (benefit) | 1,902 | -150,816 |
Net income | $1,262,812 | $1,462,020 |
Net income per common share | ' | ' |
Basic (in Dollars per share) | $0.04 | $0.05 |
Diluted (in Dollars per share) | $0.04 | $0.04 |
Weighted average common shares outstanding: | ' | ' |
Basic (in Shares) | 32,464,935 | 32,374,499 |
Diluted (in Shares) | 32,920,019 | 33,015,955 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders’ Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balances at Sep. 30, 2011 | $324 | $85,673,560 | ($65,398,586) | $20,275,298 |
Balances (in Shares) at Sep. 30, 2011 | 32,374,499 | ' | ' | ' |
Share-based compensation expense | ' | 684,451 | ' | 684,451 |
Net income | ' | ' | 1,462,020 | 1,462,020 |
Balances at Sep. 30, 2012 | 324 | 86,358,011 | -63,936,566 | 22,421,769 |
Balances (in Shares) at Sep. 30, 2012 | 32,374,499 | ' | ' | ' |
Issuance of common stock upon exercise of stock options, net | 5 | 340,445 | ' | 340,450 |
Issuance of common stock upon exercise of stock options, net (in Shares) | 526,206 | ' | ' | 526,206 |
Share-based compensation expense | ' | 736,378 | ' | 736,378 |
Net income | ' | ' | 1,262,812 | 1,262,812 |
Balances at Sep. 30, 2013 | $329 | $87,434,834 | ($62,673,754) | $24,761,409 |
Balances (in Shares) at Sep. 30, 2013 | 32,900,705 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Net income | $1,262,812 | $1,462,020 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 146,307 | 93,931 |
Provision for doubtful accounts | -600 | 4,372 |
Warranty provision | 19,254 | -33,566 |
Inventory obsolescence | -143,686 | 154,109 |
Share-based compensation | 736,378 | 684,451 |
Loss on sale or impairment of patents | 86,445 | 41,621 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | ' | 606,250 |
Accounts receivable | 559,962 | -424,118 |
Inventories | -1,331,575 | -524,828 |
Prepaid expenses and other | -562,052 | 221,778 |
Prepaid expenses and other - noncurrent | 187,500 | 116,734 |
Accounts payable | 600,690 | -44,483 |
Warranty settlements | -10,808 | -34,382 |
Accrued and other liabilities | 205,072 | -2,129,711 |
Net cash provided by operating activities | 1,755,699 | 194,178 |
Purchased property and equipment | -147,504 | -201,804 |
Patent costs paid | -2,955 | -3,631 |
Net cash used in investing activities | -150,459 | -205,435 |
Proceeds from exercise of stock options | 340,450 | ' |
Net cash provided by financing activities | 340,450 | ' |
Net increase (decrease) in cash and cash equivalents | 1,945,690 | -11,257 |
Cash and cash equivalents, beginning of period | 13,859,505 | 13,870,762 |
Cash and cash equivalents, end of period | 15,805,195 | 13,859,505 |
Supplemental Disclosure of Cash Flow Information Cash refunded for taxes | ($38,662) | ($152,344) |
Note_1_Operations
Note 1 - Operations | 12 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Nature of Operations [Text Block] | ' |
1. OPERATIONS | |
LRAD Corporation, a Delaware corporation (the “Company”), is engaged in design, development and commercialization of directed sound technologies and products. The principal markets for the Company’s proprietary sound reproduction technologies and products are in North and South America, Europe, Middle East and Asia. |
Note_2_Basis_Of_Presentation_A
Note 2 - Basis Of Presentation And Significant Acounting Policies | 12 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
PRINCIPLES OF CONSOLIDATION | |
The Company has a currently inactive wholly owned subsidiary, LRAD International Corporation, previously American Technology Holdings, Inc., which the Company formed to conduct international marketing, sales and distribution activities. The consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts. | |
USE OF ESTIMATES | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued bonus and valuation allowance related to deferred tax assets) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |
CONCENTRATION OF CREDIT RISK | |
The Company maintains cash and cash equivalent accounts with Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. Under provisions of the Dodd Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank Act”), unlimited FDIC insurance was provided for all funds in non-interest bearing transaction accounts through December 31, 2012. Beginning on January 1, 2013, the FDIC covers all deposit accounts up to $250,000 per depositor for each insured bank. The Company’s exposure for amounts in excess of FDIC insured limits at September 30, 2013 was approximately $15,600,000. The Company has not experienced any losses in such accounts. | |
The Company sells its products to a large number of geographically diverse customers. The Company routinely assesses the financial strength of its customers and generally does not require collateral or other security to support customer receivables. At September 30, 2013, accounts receivable from two customers accounted for 36% each of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. At September 30, 2012, accounts receivable from one customer accounted for 65% of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | |
The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. | |
The Company considers any amounts pledged as collateral or otherwise restricted for use in current operations to be restricted cash. Restricted cash is classified as a current asset unless amounts are not expected to be released and available for use in operations within one year. | |
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
The Company carries its accounts receivable at their historical cost, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts for estimated losses considering the following factors when determining if collection of a receivable is reasonably assured: customer credit-worthiness, past transaction history with the customer, current economic industry trends and changes in customer payment terms. If the Company has no previous experience with the customer, the Company may obtain reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. There was no deferred revenue at September 30, 2013 or 2012 as a result of collection issues. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The Company determines allowances on a customer specific. The Company had allowances for doubtful accounts of $3,772 and $4,372 for the years ended September 30, 2013 or 2012. | |
CONTRACT MANUFACTURERS | |
The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time, but recognizes no revenue or markup on such transactions. During fiscal 2013, the Company performed assembly of products in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers. | |
INVENTORIES | |
Inventories are valued at the lower of cost or net realizable value. Cost is determined using a standard cost system whereby differences between the standard cost and purchase price are recorded as a purchase price variance in cost of revenues. Inventory is comprised of raw materials, assemblies and finished products intended for sale. The Company periodically makes judgments and estimates regarding the future utility and carrying value of inventory. The carrying value of inventory is periodically reviewed and impairments, if any, are recognized when the expected net realizable value is less than carrying value. The Company has inventory reserves for estimated obsolescence or unmarketable inventory, which is equal to the difference between the cost of inventory and the estimated market value, based upon assumptions about future demand and market conditions. The Company decreased its inventory reserve by $143,686 and increased its inventory reserve by $154,109 during the years ended September 30, 2013 and 2012, respectively, based on expected usage of components resulting from changes in product lines and customer demand. | |
EQUIPMENT AND DEPRECIATION | |
Equipment is stated at cost. Depreciation on machinery and equipment and office furniture and equipment is computed over the estimated useful lives of three to five years using the straight-line method. Leasehold improvements are amortized over the life of the lease. Upon retirement or disposition of equipment, the related cost and accumulated depreciation is removed, and a gain or loss is recorded. | |
INTANGIBLES | |
Intangible assets, which consist of patents and trademarks, are carried at cost less accumulated amortization. Intangible assets are amortized over their estimated useful lives, which have been estimated to be 15 years. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value. | |
LEASES | |
Leases entered into are classified as either capital or operating leases. At the time a capital lease is entered into, an asset is recorded, together with its related long-term obligation to reflect the purchase and financing. At September 30, 2013 and 2012, the Company had no capital lease obligations. | |
REVENUE RECOGNITION | |
The Company derives its revenue primarily from two sources: (i) product revenues, and (ii) contracts, license fees, other services, and freight. | |
Product revenues from customers, including resellers and system integrators, are recognized in the periods that products are shipped (FOB shipping point) or received by customers (FOB destination), when the fee is fixed or determinable, when collection of resulting receivables is reasonably assured, and there are no remaining obligations for the Company. Most revenues to resellers and system integrators are based on firm commitments from the end user; as a result, resellers and system integrators carry little or no inventory. Revenues from associated engineering and installation contracts are recognized based on milestones or completion of the contracted services. The Company’s customers do not have the right to return product unless the product is found to be defective. | |
The Company licenses its technology to third parties. Revenues from up-front license fees are evaluated for multiple elements, but are generally recognized ratably over the specified term of the particular license or agreement. Revenues from ongoing per unit license fees are earned based on units shipped and are recognized in the period when the ultimate customer accepts the product, and collection is reasonably assured. | |
The Company also sells extended repair and maintenance contracts with terms ranging from one to several years which provide repair and maintenance services after expiration of the original one year warranty term. Revenues from separately priced extended repair and maintenance contracts are recognized on a straight-line basis over the contract period and classified as contract and other revenues. | |
SHIPPING AND HANDLING COSTS | |
Shipping and handling costs are included in cost of revenues. The amount of shipping and handling costs invoiced to customers is included in revenue. Actual shipping and handling costs were $142,453 and $127,392 for the fiscal years ended September 30, 2013 and 2012, respectively. | |
ADVERTISING | |
Advertising costs are charged to expense as incurred. The Company expensed $74,452 and $62,663 for the years ended September 2013 and 2012, respectively, for advertising costs. | |
RESEARCH AND DEVELOPMENT COSTS | |
Research and development costs are expensed as incurred. | |
WARRANTY RESERVES | |
The Company warrants its products to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. Some agreements with OEM customers, from time to time, may require that certain quantities of product be made available for use as warranty replacements. International market warranties are generally similar to the U.S. market. The Company also sells extended warranty contracts and maintenance agreements. | |
The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. In the fiscal year ended September 30, 2013, the Company increased its reserve by $8,446. The warranty reserve was $212,759 and $204,313 at September 30, 2013 and 2012, respectively. | |
INCOME TAXES | |
The Company determines its income tax provision using the asset and liability method. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. A valuation allowance is recorded by the Company to the extent it is more likely than not that a deferred tax asset will not be realized. Additional information regarding income taxes appears in Note 10, Income Taxes. | |
IMPAIRMENT OF LONG-LIVED ASSETS | |
Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset, or if changes in facts and circumstances indicate this, an impairment loss is measured and recognized using the asset’s fair value. | |
SEGMENT INFORMATION | |
The Company presents its business as one reportable segment due to the similarity in nature of products provided, financial performance measures (revenue growth and gross margin), methods of distribution (direct and indirect) and customer markets (each product is sold by the same personnel to government and commercial customers, domestically and internationally). The Company’s chief operating decision making officer reviews financial information on sound products on a consolidated basis. See Note 15, Major Customers, Suppliers, Segment and Related Information, for additional information. | |
NET INCOME PER SHARE | |
Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution of securities that could occur if outstanding securities convertible into common stock were exercised or converted. See Note 14, Net Income Per Share, for additional information. | |
FOREIGN CURRENCY TRANSLATION | |
The Company’s functional currency is U.S. dollars as substantially all of the Company’s operations use this denomination. Foreign sales to date have been denominated in U.S. dollars. Transactions undertaken in other currencies, which have not been material, are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the statements of operations. | |
SHARE-BASED COMPENSATION | |
The Company recognized share-based compensation expense related to non-qualified stock options issued to employees and directors over the expected vesting term of the stock-based instrument based on the grant date fair value. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates or if the Company updates its estimated forfeiture rate. From time to time, the Company grants stock options to directors and non-employee service providers. See Note 12, Share-based Compensation, for additional information. | |
REGISTRATION PAYMENT ARRANGEMENTS | |
In connection with the issuance of warrants on February 4, 2011 (“2011 Warrants”), the Company entered into a Registration Rights Agreement with the warrant holders (“Warrant Holders”), whereby the Company agreed to prepare and file, within 30 days following the issuance of the 2011 Warrants, a registration statement covering the resale of the shares of common stock issuable upon exercise of the 2011 Warrants. If the registration statement had not been declared effective within 90 days following the date of issuance of the securities, or the Warrant Holders are otherwise unable to re-sell the shares purchased upon exercise of the 2011 Warrants, the Company would be obligated to pay liquidated damages to the purchasers in the amount of $0.01335 per day per applicable share until 180 days after the date the registration statement is required to be filed, and $0.0267 per day per applicable share thereafter, but not to exceed a total of $0.534 per applicable share or a maximum of $869,323. This obligation will be effective for the five year term of the Warrants, or until all 2011 Warrants have been exercised. The Company filed a registration statement on Form S-3 within 30 days of issuance, which became effective on April 7, 2011 in satisfaction of the initial 90 day effectiveness obligation. No liquidated damages have been accrued as of September 30, 2012 as it was not deemed to be probable that any such damages will be incurred. | |
RECLASSIFICATIONS | |
Where necessary, the prior year’s information has been reclassified to conform to the fiscal 2013 statement presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit. | |
SUBSEQUENT EVENTS | |
Management has evaluated events subsequent to September 30, 2013 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission and noted that there have been no events or transactions which would affect the Company’s consolidated financial statements for the year ended September 30, 2013. |
Note_3_Recent_Accounting_Prono
Note 3 - Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2013 | |
Table Text Block [Abstract] | ' |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | ' |
3. RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued guidance requiring a liability related to an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The presentation of unrecognized tax benefits as a reduction of a deferred tax asset is consistent with an entity’s analysis of the realizability of its deferred tax assets and, as a result, is not expected to change an entity’s assessment of realizability. For public companies, this guidance is effective on a prospective basis for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on our financial statements. |
Note_4_Fair_Value_Measurements
Note 4 - Fair Value Measurements | 12 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
4. FAIR VALUE MEASUREMENTS | |
At September 30, 2013, for certain financial instruments, including accounts receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities. | |
As of September 30, 2013 and 2012, the Company had no financial instruments that are required to be measured at fair value on a recurring basis. |
Note_5_Inventories
Note 5 - Inventories | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
5. INVENTORIES | |||||||||
Inventories consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,941,203 | $ | 2,693,753 | |||||
Finished goods | 605,240 | 818,082 | |||||||
Work in process | 358,826 | 61,859 | |||||||
4,905,269 | 3,573,694 | ||||||||
Reserve for obsolescence | (317,519 | ) | (461,205 | ) | |||||
$ | 4,587,750 | $ | 3,112,489 | ||||||
The Company had raw materials located at supplier locations of $63,429 and $144,674 at September 30, 2013 and 2012, respectively. | |||||||||
The Company relies on one supplier for compression drivers for its LRAD product and is making efforts to obtain alternative suppliers to reduce such reliance. The Company’s ability to manufacture its LRAD product could be adversely affected if it were to lose this sole source supplier and was unable to find an alternative supplier. |
Note_6_Property_And_Equipment
Note 6 - Property And Equipment | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
6. PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Office furniture and equipment | $ | 769,799 | $ | 716,625 | |||||
Machinery and equipment | 607,803 | 525,020 | |||||||
Leasehold improvements | 55,298 | 55,298 | |||||||
1,432,900 | 1,296,943 | ||||||||
Accumulated depreciation | (1,195,523 | ) | (1,084,080 | ) | |||||
$ | 237,377 | $ | 212,863 | ||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
Depreciation expense | $ | 122,990 | $ | 64,409 | |||||
Note_7_Intangible_Assets
Note 7 - Intangible Assets | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||
7. INTANGIBLE ASSETS | |||||||||
Intangible assets consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Cost | $ | 93,938 | $ | 358,925 | |||||
Accumulated amortization | (42,288 | ) | (200,468 | ) | |||||
$ | 51,650 | $ | 158,457 | ||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
Amortization expense | $ | 23,317 | $ | 29,522 | |||||
Loss on sale or impairment of patents | 81,307 | 41,621 | |||||||
Net sale or impairment of patents | $ | 104,624 | $ | 71,143 | |||||
Each quarter, the Company reviews the ongoing value of its capitalized patent costs. In the fiscal years ended September 30, 2013 and 2012, some of these assets were identified as being associated with patents no longer consistent with the Company’s business strategy. As a result of this review, the Company recorded a loss as shown above from the impairment of patents that were previously capitalized. | |||||||||
Estimated Amortization Expense Years Ended September 30, | |||||||||
2014 | $ | 6,269 | |||||||
2015 | 6,269 | ||||||||
2016 | 6,269 | ||||||||
2017 | 6,269 | ||||||||
2018 | 6,269 | ||||||||
Thereafter | 20,305 | ||||||||
$ | 51,650 | ||||||||
Note_8_Prepaid_Maintenance_Agr
Note 8 - Prepaid Maintenance Agreement | 12 Months Ended |
Sep. 30, 2013 | |
Prepaid Maintenance Agreement Disclosure [Abstract] | ' |
Prepaid Maintenance Agreement Disclosure [Text Block] | ' |
8. PREPAID MAINTENANCE AGREEMENT | |
At March 31, 2011, prepaid expenses included $1,500,000 paid to a third party service provider in connection with the Company’s obligations under a sales contract to a foreign military service to provide repair and maintenance services over an eight year period for products sold thereunder. The total prepaid expense is being amortized on a straight-line basis at an annual rate of $187,500 over the eight-year contract period to correspond with the revenues for these services, and is being recognized as a component of cost of sales. Accordingly, as of September 30, 2013, $187,500 of the total prepayment was classified as a current asset and $843,750 was classified as noncurrent. |
Note_9_Accrued_Liabilities_And
Note 9 - Accrued Liabilities And Other Liabilities - Noncurrent | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Current And Noncurrent Accrued Liabilities [Abstract] | ' | ||||||||
Current And Noncurrent Accrued Liabilities [Text Block] | ' | ||||||||
9. ACCRUED AND OTHER LIABILITIES—NONCURRENT | |||||||||
Accrued liabilities consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Payroll and related | $ | 650,125 | $ | 272,212 | |||||
Accrued contract costs | 197,034 | 197,032 | |||||||
Warranty reserve | 189,277 | 154,069 | |||||||
Deferred revenue and other | 18,532 | 429 | |||||||
Total | $ | 1,054,968 | $ | 623,742 | |||||
Other liabilities - noncurrent consisted of the following: | |||||||||
Deferred rent | $ | 122,627 | $ | 43,433 | |||||
Extended warranty | 23,482 | 50,244 | |||||||
Deferred revenue - noncurrent | - | 270,140 | |||||||
Total | $ | 146,109 | $ | 363,817 | |||||
Payroll and related | |||||||||
Accrued payroll and related consists primarily of accrued vacation and outside commissions at September 30, 2013 and accrued vacation at September 30, 2012. | |||||||||
Accrued contract costs | |||||||||
Accrued contract costs consist of accrued expenses for contracting a third party service provider to fulfill repair and maintenance obligations required under a contract through 2019 with a foreign military for units sold last year. Payments to the service provider will be made annually upon completion of each year of service. These services are being recorded in cost of revenues to correspond with the revenues for these services. | |||||||||
Warranty Reserve | |||||||||
Details of the estimated warranty reserve were as follows: | |||||||||
Years Ended September 30, | 2013 | 2012 | |||||||
Beginning balance | $ | 204,313 | $ | 272,261 | |||||
Warranty provision | 19,254 | (33,566 | ) | ||||||
Warranty settlements | (10,808 | ) | (34,382 | ) | |||||
Ending balance | $ | 212,759 | $ | 204,313 | |||||
Short-term warranty reserve | $ | 189,277 | $ | 154,069 | |||||
Long-term warranty reserve | 23,482 | 50,244 | |||||||
$ | 212,759 | $ | 204,313 | ||||||
The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenue is recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. In the fiscal year ended September 30, 2013, the Company increased its reserve by $8,446. | |||||||||
Deferred Revenue | |||||||||
Deferred revenue at September 30, 2012 included $270,559 collected from a license agreement in advance of recognized revenue. This license agreement was cancelled in September 2013, so the remaining deferred revenue balance was recorded as other income during the quarter ended September 30, 2013. Deferred revenue at September 30, 2013 included $18,532 which represents prepayments on current orders scheduled for delivery in the quarter ended December 31, 2013. |
Note_10_Income_Taxes
Note 10 - Income Taxes | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
10. INCOME TAXES | |||||||||
Income taxes consisted of the following: | |||||||||
Years Ended September 30, | 2013 | 2012 | |||||||
Current tax (benefit) expense | |||||||||
Federal | $ | - | $ | (155,000 | ) | ||||
State | 2,000 | 4,000 | |||||||
2,000 | (151,000 | ) | |||||||
Deferred (benefit) expense | |||||||||
Federal | (779,000 | ) | (1,583,000 | ) | |||||
State | (138,000 | ) | (279,000 | ) | |||||
(917,000 | ) | (1,862,000 | ) | ||||||
Change in valuation allowance | 917,000 | 1,862,000 | |||||||
Provision for income taxes | $ | 2,000 | $ | (151,000 | ) | ||||
A reconciliation of income taxes at the federal statutory rate of 34% to the effective tax rate was as follows: | |||||||||
Years Ended September 30, | 2013 | 2012 | |||||||
Income taxes computed at the federal statutory rate | $ | 430,000 | $ | 446,000 | |||||
Change in valuation allowance | (917,000 | ) | (1,862,000 | ) | |||||
Nondeductible compensation, interest expense and other | 8,000 | 6,000 | |||||||
State income taxes, net of federal tax benefit | 70,000 | 72,000 | |||||||
Change in R&D credit carryover | (56,000 | ) | 53,000 | ||||||
Stock options and other prior year true-ups | 462,000 | 1,389,000 | |||||||
State business credit utilization | (4,000 | ) | (100,000 | ) | |||||
Prior year tax adjustments | 9,000 | (155,000 | ) | ||||||
$ | 2,000 | $ | (151,000 | ) | |||||
The types of temporary differences between the tax basis of assets and liabilities and their approximate tax effects that give rise to a significant portion of the net deferred tax asset at September 30, 2013 and 2012 were as follows: | |||||||||
At September 30, | |||||||||
Deferred tax assets: | 2013 | 2012 | |||||||
Net operating loss carryforwards | $ | 19,576,000 | $ | 20,350,000 | |||||
Research and development credit | 2,257,000 | 2,206,000 | |||||||
Share-based compensation | 526,000 | 600,000 | |||||||
Equipment | (18,000 | ) | - | ||||||
Patents | 230,000 | 229,000 | |||||||
Accruals and other | 463,000 | 509,000 | |||||||
State tax deduction | (2,000 | ) | (2,000 | ) | |||||
Federal AMT Credit | 49,000 | 49,000 | |||||||
Allowances | 127,000 | 184,000 | |||||||
Gross deferred tax asset | 23,208,000 | 24,125,000 | |||||||
Less valuation allowance | (23,208,000 | ) | (24,125,000 | ) | |||||
$ | - | $ | - | ||||||
At September 30, 2013, the Company had net deferred tax assets of approximately $23,208,000. The deferred tax assets are primarily composed of federal and state NOL carryforwards and federal and state research and development (“R&D”) credit carryforwards. At September 30, 2013, the Company, for federal income tax purposes, had NOL carryforwards of approximately $51,722,000, which expire through 2028. The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for NOL carryforwards resulting from windfall tax benefits occurring from October 1, 2008 onward. At September 30, 2013, deferred tax assets do not include excess tax benefits from stock-based compensation of approximately $386,000. | |||||||||
Due to uncertainties surrounding the Company’s ability to generate future taxable income to realize these assets, a full valuation allowance has been established to offset net deferred tax assets as realization of such assets has not met the threshold under ASC 740-10, “Income Taxes.” The future utilization of the Company’s NOL carryforwards to offset future taxable income may be subject to a substantial annual limitation as a result of ownership changes that could occur in the future. The Company has an estimated $1,741,000 and $728,000 of federal and state R&D tax credits, respectively, at September 30, 2013, a portion of which began to expire in the 2012 tax year. Further, due to a change in California tax law in fiscal year 2008, NOL carryforwards were not able to be used in tax years 2008, 2009, 2010 and 2011, and R&D credit utilization was limited to fifty percent of the Company’s net tax in tax years 2008 and 2009. | |||||||||
The Company did not record a tax provision during the year ended September 30, 2013 as the Company’s annual effective tax rate is zero. During the quarter ended June 30, 2012, the Company amended its federal tax return for the year ended September 30, 2008 to make an election to carry back its fiscal year ended September 30, 2008 applicable NOL for a period of 3 years, and carry forward the loss for up to 20 years, as per Section 172(b)(1)(H) of the Internal Revenue Code of 1986 (“Section 172”), as amended per the American Recovery and Reinvestment Tax Act of 2009 for eligible small businesses. The Company also amended its federal tax returns for the years ended September 30, 2009 and 2010 and filed its federal tax return for the year ended September 30, 2011, during the fiscal year ended September 30, 2012, resulting in a federal income tax benefit of $152,333. Of this benefit, $112,009 was received from the Internal Revenue Service in the year ended September 30, 2012, and the remaining $40,324 was received in the year ended September 30, 2013. | |||||||||
The Company adopted ASC 740-10-25, “Income Taxes—Recognition” as of October 1, 2007. As of the date of the adoption, the Company had no unrecognized tax benefits and there were no material changes during the year. Due to the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. | |||||||||
The Company is subject to taxation in the U.S. and various state jurisdictions. All of the Company’s historical tax years are subject to examination by the Internal Revenue Service and various state jurisdictions due to the generation of NOL and credit carryforwards. |
Note_11_Commitments_and_Contin
Note 11 - Commitments and Contingencies | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
11. COMMITMENTS AND CONTINGENCIES | |||||
Facility Lease | |||||
On November 29, 2011, the Company entered into a new lease for 31,360 square feet to replace the prior San Diego facility as the Company’s executive offices, research and development, assembly and operational facilities. The lease commenced July 1, 2012 and will expire June 30, 2018. The aggregate monthly payments, with abatements, averaged $16,306 per month in the first year, and will be $25,088, $26,656, $28,224, $29,792 and $31,360 per month for the second through sixth years of the lease, plus certain other costs and charges as specified in the lease agreement, including the Company’s proportionate share of the building operating expenses and real estate taxes. | |||||
Operating Leases | |||||
Total operating lease expense, including facilities and business equipment commitments, recorded by the Company for the years ended September 30, 2013 and 2012 was $269,273 and $209,401, respectively. | |||||
The obligations under all operating leases are as follows: | |||||
Years ending September 30: | |||||
2014 | 337,848 | ||||
2015 | 341,659 | ||||
2016 | 374,731 | ||||
2017 | 389,276 | ||||
2018 | 285,804 | ||||
2019 | - | ||||
$ | 1,729,318 | ||||
Employment Agreements | |||||
The Company entered into an employment agreement in September 2006 with its president and chief executive officer that provides for severance benefits of up to a maximum of six months’ salary and health benefit continuation if his employment is terminated without cause or he resigns for good reason. There are no other employment agreements with executive officers or other employees providing future benefits or severance arrangements. | |||||
Bonus Plan | |||||
The Company has established a bonus plan for its employees, in accordance with their terms of employment, whereby they can earn a percentage of their salary at three different levels based on meeting three different targeted objectives for earnings per share. The number of shares outstanding used for the calculation is as of October 1, 2012. In fiscal 2013 and 2012, the Company did not accrue any bonus expense as the Company did not achieve targeted objectives for the year. | |||||
Change of Control Severance Benefit Plan | |||||
The Company has a Change of Control Plan that provides that in the event of a qualifying termination, each of the two participating executives will be entitled to receive (i) a lump sum payment equal to twenty-four months’ base salary (less applicable tax and other withholdings), (ii) a lump sum payment equal to the officer’s target bonus for the year in which the officer is terminated, (iii) continuation of health benefits for twenty-four months and (iv) accelerated vesting of any unvested stock options and other securities or similar incentives held at the time of termination. A qualifying termination under the Change of Control Plan is any involuntary termination without cause or any voluntary termination for good reason, in each case occurring within three months before or twelve months after a change of control of the Company. | |||||
Employee Benefit—401K Plan | |||||
The Company has a defined contribution plan (401(k)) covering its employees. Matching contributions are made on behalf of all participants at the discretion of the board of directors. During the fiscal years ended September 30, 2013 and 2012, the Company made matching contributions of $124,391 and $170,321, respectively. | |||||
Litigation | |||||
The Company may at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in management’s estimation, record adequate reserves in the Company’s financial statements for pending litigation. | |||||
On July 24, 2012, the Company was served with a complaint filed in the Delaware Court of Chancery by Iroquois Master Fund Ltd. (“Iroquois”), a shareholder of the Company, against the Company’s board of directors (the “Board”), its Chief Executive Officer and Chief Financial Officer (the “Delaware Litigation”). The action was a purported derivative action which alleged breach of fiduciary duty and other claims against the individual defendants based on the issuance of stock options to them, which the plaintiff alleged were granted in violation of the terms of the Company’s 2005 Equity Incentive Plan. The Company was also named in the action as a nominal defendant against which no recovery was sought. The plaintiff sought rescission or repricing of the stock options at issue and other damages, purportedly on behalf of the Company. | |||||
On January 17, 2013, the Company received a notice and a Schedule 13D was filed by Iroquois with the SEC announcing Iroquois’ intention to nominate a slate of five directors to stand for election at the Company’s 2013 Annual Meeting of Stockholders. On May 21, 2013, the Company entered into an agreement (the “Settlement Agreement”) with Iroquois to settle the potential proxy contest pertaining to the election of directors to the Board at the Company’s annual meeting. Also as part of the settlement, the Company and Iroquois agreed to execute a Stipulation of Settlement seeking to settle the Delaware Litigation. Following a hearing on September 10, 2013, the Delaware Court issued an Order and Final Judgment approving the Stipulation of Settlement as proposed. | |||||
Guarantees and Indemnifications | |||||
The Company enters into indemnification provisions under (i) its agreements with other companies in its ordinary course of business, typically with business partners, contractors, customers and landlords and (ii) its agreements with investors. Under these arrangements, the Company may indemnify other parties such as business partners, customers, underwriters, and investors for certain losses suffered, claims of intellectual property infringement, negligence and intentional acts in the performance of services, and violations of laws including certain violations of securities laws. The Company’s obligation to provide such indemnification in such circumstances would arise if, for example, a third party sued a customer for intellectual property infringement and the Company agreed to indemnify the customer against such claims. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to such indemnification obligations. Some of the factors that would affect this assessment include, but are not limited to, the nature of the claim asserted, the relative merits of the claim, the financial ability of the parties, the nature and amount of damages claimed, insurance coverage that the Company may have to cover such claims, and the willingness of the parties to reach settlement, if any. Because of the uncertainty surrounding these circumstances, the Company’s indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements in the past, and the Company had no liabilities recorded for these agreements as of September 30, 2013, or 2012. | |||||
Under its bylaws, the Company has agreed to indemnify its officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. In addition, the Company executed indemnification agreements in June 2013 with the then current Directors and Officers of the Company, indemnifying them from any expenses arising out of any claims. All new Directors and Officers subsequent to June 2013 have and will also execute indemnification agreements. The term of the indemnification period is for the officer or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. However, the Company has a director and officers’ liability insurance policy that limits its exposure and enables it to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company does not believe that a material loss exposure related to these agreements is either probable or reasonably estimable. Accordingly, the Company has no liability recorded for these agreements as of September 30, 2013, or 2012. |
Note_12_Sharebased_Compensatio
Note 12 - Share-based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||
12. SHARE-BASED COMPENSATION | |||||||||||||||||||||||||
Stock Option Plans | |||||||||||||||||||||||||
At September 30, 2013, the Company had one equity incentive plan. The 2005 Equity Incentive Plan (“2005 Equity Plan”), as amended, authorizes for issuance as stock options, stock appreciation rights, or stock awards for an aggregate of 3,250,000 shares of common stock to employees, directors or consultants. The total 2005 Equity Plan reserve includes these shares and shares reserved under other plans prior to the 2005 Equity Plan, allowing for the issuance of up to 4,999,564 shares. At September 30, 2013, there were options outstanding covering 2,394,476 shares of common stock under the 2005 Equity Plan and 1,512,634 shares of common stock available for grant for a total of 3,907,110 currently available under the 2005 Equity Plan. | |||||||||||||||||||||||||
Share-Based Compensation | |||||||||||||||||||||||||
The Company’s employee stock options have various restrictions that reduce option value, including vesting provisions and restrictions on transfer and hedging, among others, and are often exercised prior to their contractual maturity. | |||||||||||||||||||||||||
The Company recorded $736,378 and $684,451 of stock compensation expense for the years ended September 30, 2013 and 2012, respectively. The weighted average estimated fair value of employee stock options granted during the year ended September 30, 2013 and 2012 was calculated using the Black-Scholes option-pricing model with the following weighted average assumptions (annualized percentages): | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Volatility | 74.0% | - | 81.00% | 81.0% | - | 82.00% | |||||||||||||||||||
Risk-free interest rate | 0.93% | - | 1.70% | 0.8% | - | 1.10% | |||||||||||||||||||
Forfeiture rate | 10.00% | 10.00% | |||||||||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||||||||||
Expected life in years | 6.4 | 5.4 | - | 6.4 | |||||||||||||||||||||
Weighted average fair value of options granted during the period | $0.86 | $0.88 | |||||||||||||||||||||||
The Company has never paid cash dividends. Expected volatility is based on the historical volatility of the Company’s common stock over the period commensurate with the expected life of the options. The risk-free interest rate is based on rates published by the Federal Reserve Board. The contractual term of the options is ten years. The expected life is based on observed and expected time to post-vesting exercise. The expected forfeiture rate is based on past experience and employee retention data. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates. Such revision adjustments to expense will be recorded as a cumulative adjustment in the period in which the estimate is changed. | |||||||||||||||||||||||||
As of September 30, 2013, there was approximately $400,000 of total unrecognized compensation costs related to outstanding employee stock options. This amount is expected to be recognized over a weighted average period of 1.2 years. To the extent the forfeiture rate is different from what the Company anticipated, stock-based compensation related to these awards will be different from the Company’s expectations. | |||||||||||||||||||||||||
Stock Option Summary Information | |||||||||||||||||||||||||
A summary of activity for the Company’s stock option plans, as well as options granted outside such plans as of September 30, 2013 and 2012, is presented below: | |||||||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||||||
of Shares | Exercise Price | ||||||||||||||||||||||||
Fiscal 2012: | |||||||||||||||||||||||||
Outstanding October 1, 2011 | 4,181,339 | $ | 2.4 | ||||||||||||||||||||||
Granted | 1,237,500 | $ | 1.33 | ||||||||||||||||||||||
Forfeited/expired | (1,955,500 | ) | $ | 3.67 | |||||||||||||||||||||
Outstanding September 30, 2012 | 3,463,339 | $ | 1.31 | ||||||||||||||||||||||
Exercisable September 30, 2012 | 2,575,857 | $ | 1.25 | ||||||||||||||||||||||
Fiscal 2013: | |||||||||||||||||||||||||
Outstanding October 1, 2012 | 3,463,339 | $ | 1.31 | ||||||||||||||||||||||
Granted | 804,500 | $ | 2.88 | ||||||||||||||||||||||
Forfeited/expired | (1,347,157 | ) | $ | 1.48 | |||||||||||||||||||||
Exercised | (526,206 | ) | $ | 0.65 | |||||||||||||||||||||
Outstanding September 30, 2013 | 2,394,476 | $ | 1.89 | ||||||||||||||||||||||
Exercisable September 30, 2013 | 2,059,256 | $ | 1.82 | ||||||||||||||||||||||
Weighted average fair value of options granted during the year | $ | 0.86 | |||||||||||||||||||||||
Under the Stipulation of Settlement, Thomas R. Brown, President and Chief Executive Officer of the Company, agreed to increase the exercise price of the option granted to Mr. Brown in May 2012 for 750,000 shares from $1.33 to $3.00 per share. The table above reflects the option modification as an exchange of the original award, by reflecting the forfeiture of the original award at $1.33 and the grant of the modified award at $3.00. | |||||||||||||||||||||||||
The aggregate intrinsic value for options outstanding and options exercisable at September 30, 2013 was $483,392 and $464,364, respectively. The aggregate intrinsic value represents the difference between the Company’s closing stock price on the last day of trading during the year, which was $1.45 per share, and the exercise price multiplied by the number of applicable options. The total intrinsic value of stock options exercised during the year ended September 30, 2013 was $391,238 and cash received from these exercises was $340,450. There were no stock options exercised in the year ended September 30, 2012. The Company recognized $391,238 as a tax benefit in the income tax provision for the year ended September 30, 2013.The Company did not recognize any tax benefit for exercised stock options in the year ended September 30, 2012. | |||||||||||||||||||||||||
The following table summarizes information about stock options outstanding at September 30, 2013: | |||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||||
Prices | Remaining | Exercise | Exercise | ||||||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||||
Life | |||||||||||||||||||||||||
$0.46 | - | $1.00 | 333,976 | 0.3 | $ | 0.49 | 329,976 | $ | 0.48 | ||||||||||||||||
$1.01 | - | $1.50 | 906,500 | 4.26 | $ | 1.27 | 776,843 | $ | 1.26 | ||||||||||||||||
$1.51 | - | $2.00 | 12,500 | 6.88 | $ | 1.57 | 6,156 | $ | 1.63 | ||||||||||||||||
$2.01 | - | $2.50 | 276,000 | 7.22 | $ | 2.26 | 274,125 | $ | 2.26 | ||||||||||||||||
$2.51 | - | $3.13 | 865,500 | 7.78 | $ | 2.95 | 672,156 | $ | 2.94 | ||||||||||||||||
$0.46 | - | $3.13 | 2,394,476 | 5.34 | $ | 1.89 | 2,059,256 | $ | 1.82 | ||||||||||||||||
Under the Stipulation of Settlement, Thomas R. Brown agreed to increase the exercise price of the option granted to Mr. Brown in May 2012 for 750,000 shares from $1.33 to $3.00 per share. This price change was effective on September 10, 2013. The remaining exercise period and term did not change, and as per ASC 718 “Compensation—Stock Compensation”, the Company is required to recognize compensation cost for an equity award at least equal to the fair value of the award at the grant date. As a result, compensation expense was not reduced as a result of this change. | |||||||||||||||||||||||||
The Company recorded non-cash share-based compensation expense for employees, directors and consultants of $736,378 and $684,451, respectively, for the fiscal years ended September 30, 2013 and 2012. The amounts of share-based compensation expense are classified in the consolidated statements of operations as follows: | |||||||||||||||||||||||||
Years Ended September 30, | 2013 | 2012 | |||||||||||||||||||||||
Cost of revenue | $ | 7,336 | $ | 21,662 | |||||||||||||||||||||
Selling, general and administrative | 681,147 | 603,989 | |||||||||||||||||||||||
Research and development | 47,895 | 58,800 | |||||||||||||||||||||||
Total | $ | 736,378 | $ | 684,451 | |||||||||||||||||||||
Note_13_Stockholders_Equity
Note 13 - Stockholders' Equity | 12 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
13. STOCKHOLDERS’ EQUITY | |
Common Stock Activity | |
During the year ended September 30, 2013, the Company issued 526,206 shares of common stock and obtained gross proceeds of $340,450 in connection with the exercise of stock options. | |
Preferred Stock | |
The Company is authorized under its certificate of incorporation and bylaws to issue 5,000,000 shares of preferred stock, $0.00001 par value, without any further action by the stockholders. The board of directors has the authority to divide any and all shares of preferred stock into series and to fix and determine the relative rights and preferences of the preferred stock, such as the designation of series and the number of shares constituting such series, dividend rights, redemption and sinking fund provisions, liquidation and dissolution preferences, conversion or exchange rights and voting rights, if any. Issuance of preferred stock by the board of directors could result in such shares having dividend and or liquidation preferences senior to the rights of the holders of common stock and could dilute the voting rights of the holders of common stock. | |
No shares of preferred stock were outstanding during the fiscal years ended September 30, 2013 or 2012. | |
Stock Purchase Warrants | |
At September 30, 2013 and 2012, the Company had 1,627,945 shares purchasable under outstanding warrants at an exercise price of $2.67 which are exercisable through February 4, 2016. |
Note_14_Net_Income_Per_Share
Note 14 - Net Income Per Share | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
14. NET INCOME PER SHARE | |||||||||
Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period increased to include the number of dilutive potential common shares outstanding during the period. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method, which assumes that the proceeds from the exercise of the outstanding options and warrants are used to repurchase common stock at market value. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. If the Company has losses for the period, the inclusion of potential common stock instruments outstanding would be anti-dilutive. In addition, under the treasury stock method, the inclusion of stock options and warrants with an exercise price greater than the per-share market value, would be antidilutive. Potential common shares that would be antidilutive are excluded from the calculation of diluted income per share. | |||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
Basic | |||||||||
Income available to common stockholders | $ | 1,262,812 | $ | 1,462,020 | |||||
Weighted average common shares outstanding | 32,464,935 | 32,374,499 | |||||||
Basic income per common share | $ | 0.04 | $ | 0.05 | |||||
Diluted | |||||||||
Income available to common stockholders | $ | 1,262,812 | $ | 1,462,020 | |||||
Weighted average common shares outstanding | 32,464,935 | 32,374,499 | |||||||
Assumed exercise of dilutive options and warrants | 455,084 | 641,456 | |||||||
Weighted average dilutive shares outstanding | 32,920,019 | 33,015,955 | |||||||
Diluted income per common share | $ | 0.04 | $ | 0.04 | |||||
Potentially dilutive securities outstanding at period end excluded from | |||||||||
the diluted computation as the inclusion would have been antidilutive: | |||||||||
Options | 2,057,000 | 800,700 | |||||||
Warrants | 1,627,945 | 1,627,945 | |||||||
Total | 3,684,945 | 2,428,645 | |||||||
Note_15_Major_Customers_Suppli
Note 15 - Major Customers, Suppliers, Segment and Related Information | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Major Customers [Abstract] | ' | |||||||||
Major Customers [Text Block] | ' | |||||||||
15. MAJOR CUSTOMERS, SUPPLIERS, SEGMENT AND RELATED INFORMATION | ||||||||||
Major Customers | ||||||||||
For the fiscal year ended September 30, 2013, revenues from three customers accounted for 15%, 14% and 10% of total revenues. No other single customer represented more than 10% of total revenues. For the fiscal year ended September 30, 2012, revenues from one customer accounted for 36% of total revenues with no other single customer accounting for more than 10% of total revenues. | ||||||||||
Suppliers | ||||||||||
The Company has a large number of components and sub-assemblies produced by outside suppliers, some of which are sourced from a single supplier, which can magnify the risk of shortages and decrease the Company’s ability to negotiate with suppliers on the basis of price. In particular, the Company depends on one supplier of compression drivers for its LRAD products. If supplier shortages occur, or quality problems arise, then production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows. | ||||||||||
Segment and Related Information | ||||||||||
The Company presents its business as one reportable segment due to the similarity in nature of products marketed, financial performance measures (revenue growth and gross margin), methods of distribution (direct and indirect) and customer markets (each product is sold by the same personnel to government and commercial customers, domestically and internationally). The Company’s chief operating decision making officer reviews financial information on sound products on a consolidated basis. | ||||||||||
The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer location. | ||||||||||
Years Ended September 30, | 2013 | 2012 | ||||||||
Revenues | ||||||||||
United States | $ | 7,096,257 | $ | 9,358,311 | ||||||
Other | 9,991,673 | 5,434,027 | ||||||||
Total Revenues | $ | 17,087,930 | $ | 14,792,338 | ||||||
Note_16_Related_Party
Note 16 - Related Party | 12 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
16. RELATED PARTY | |
Elwood G. Norris was previously an officer and Chairman of the Board of the Company. The Company entered into a consulting arrangement with Mr. Norris on June 4, 2010, concurrent with him resigning from the Board, whereby he provided consulting and advisory services to the Company in exchange for a quarterly consulting fee of $5,000 through May 31, 2012. The Company paid Mr. Norris consulting fees of $13,333 during the year ended September 30, 2012. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
PRINCIPLES OF CONSOLIDATION | |
The Company has a currently inactive wholly owned subsidiary, LRAD International Corporation, previously American Technology Holdings, Inc., which the Company formed to conduct international marketing, sales and distribution activities. The consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts. | |
Use of Estimates, Policy [Policy Text Block] | ' |
USE OF ESTIMATES | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued bonus and valuation allowance related to deferred tax assets) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
CONCENTRATION OF CREDIT RISK | |
The Company maintains cash and cash equivalent accounts with Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. Under provisions of the Dodd Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank Act”), unlimited FDIC insurance was provided for all funds in non-interest bearing transaction accounts through December 31, 2012. Beginning on January 1, 2013, the FDIC covers all deposit accounts up to $250,000 per depositor for each insured bank. The Company’s exposure for amounts in excess of FDIC insured limits at September 30, 2013 was approximately $15,600,000. The Company has not experienced any losses in such accounts. | |
The Company sells its products to a large number of geographically diverse customers. The Company routinely assesses the financial strength of its customers and generally does not require collateral or other security to support customer receivables. At September 30, 2013, accounts receivable from two customers accounted for 36% each of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. At September 30, 2012, accounts receivable from one customer accounted for 65% of total accounts receivable with no other single customer accounting for more than 10% of the accounts receivable balance. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | |
The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. | |
The Company considers any amounts pledged as collateral or otherwise restricted for use in current operations to be restricted cash. Restricted cash is classified as a current asset unless amounts are not expected to be released and available for use in operations within one year. | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' |
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
The Company carries its accounts receivable at their historical cost, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts for estimated losses considering the following factors when determining if collection of a receivable is reasonably assured: customer credit-worthiness, past transaction history with the customer, current economic industry trends and changes in customer payment terms. If the Company has no previous experience with the customer, the Company may obtain reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. There was no deferred revenue at September 30, 2013 or 2012 as a result of collection issues. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The Company determines allowances on a customer specific. The Company had allowances for doubtful accounts of $3,772 and $4,372 for the years ended September 30, 2013 or 2012. | |
Contract Manufacturers [Policy Text Block] | ' |
CONTRACT MANUFACTURERS | |
The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time, but recognizes no revenue or markup on such transactions. During fiscal 2013, the Company performed assembly of products in-house using components and sub-assemblies from a variety of contract manufacturers and suppliers. | |
Inventory, Policy [Policy Text Block] | ' |
INVENTORIES | |
Inventories are valued at the lower of cost or net realizable value. Cost is determined using a standard cost system whereby differences between the standard cost and purchase price are recorded as a purchase price variance in cost of revenues. Inventory is comprised of raw materials, assemblies and finished products intended for sale. The Company periodically makes judgments and estimates regarding the future utility and carrying value of inventory. The carrying value of inventory is periodically reviewed and impairments, if any, are recognized when the expected net realizable value is less than carrying value. The Company has inventory reserves for estimated obsolescence or unmarketable inventory, which is equal to the difference between the cost of inventory and the estimated market value, based upon assumptions about future demand and market conditions. The Company decreased its inventory reserve by $143,686 and increased its inventory reserve by $154,109 during the years ended September 30, 2013 and 2012, respectively, based on expected usage of components resulting from changes in product lines and customer demand. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
EQUIPMENT AND DEPRECIATION | |
Equipment is stated at cost. Depreciation on machinery and equipment and office furniture and equipment is computed over the estimated useful lives of three to five years using the straight-line method. Leasehold improvements are amortized over the life of the lease. Upon retirement or disposition of equipment, the related cost and accumulated depreciation is removed, and a gain or loss is recorded. | |
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' |
INTANGIBLES | |
Intangible assets, which consist of patents and trademarks, are carried at cost less accumulated amortization. Intangible assets are amortized over their estimated useful lives, which have been estimated to be 15 years. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value. | |
Lease, Policy [Policy Text Block] | ' |
LEASES | |
Leases entered into are classified as either capital or operating leases. At the time a capital lease is entered into, an asset is recorded, together with its related long-term obligation to reflect the purchase and financing. At September 30, 2013 and 2012, the Company had no capital lease obligations. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
REVENUE RECOGNITION | |
The Company derives its revenue primarily from two sources: (i) product revenues, and (ii) contracts, license fees, other services, and freight. | |
Product revenues from customers, including resellers and system integrators, are recognized in the periods that products are shipped (FOB shipping point) or received by customers (FOB destination), when the fee is fixed or determinable, when collection of resulting receivables is reasonably assured, and there are no remaining obligations for the Company. Most revenues to resellers and system integrators are based on firm commitments from the end user; as a result, resellers and system integrators carry little or no inventory. Revenues from associated engineering and installation contracts are recognized based on milestones or completion of the contracted services. The Company’s customers do not have the right to return product unless the product is found to be defective. | |
The Company licenses its technology to third parties. Revenues from up-front license fees are evaluated for multiple elements, but are generally recognized ratably over the specified term of the particular license or agreement. Revenues from ongoing per unit license fees are earned based on units shipped and are recognized in the period when the ultimate customer accepts the product, and collection is reasonably assured. | |
The Company also sells extended repair and maintenance contracts with terms ranging from one to several years which provide repair and maintenance services after expiration of the original one year warranty term. Revenues from separately priced extended repair and maintenance contracts are recognized on a straight-line basis over the contract period and classified as contract and other revenues. | |
Shipping and Handling Cost, Policy [Policy Text Block] | ' |
SHIPPING AND HANDLING COSTS | |
Shipping and handling costs are included in cost of revenues. The amount of shipping and handling costs invoiced to customers is included in revenue. Actual shipping and handling costs were $142,453 and $127,392 for the fiscal years ended September 30, 2013 and 2012, respectively. | |
Advertising Costs, Policy [Policy Text Block] | ' |
ADVERTISING | |
Advertising costs are charged to expense as incurred. The Company expensed $74,452 and $62,663 for the years ended September 2013 and 2012, respectively, for advertising costs. | |
Research and Development Expense, Policy [Policy Text Block] | ' |
RESEARCH AND DEVELOPMENT COSTS | |
Research and development costs are expensed as incurred. | |
Standard Product Warranty, Policy [Policy Text Block] | ' |
WARRANTY RESERVES | |
The Company warrants its products to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. Some agreements with OEM customers, from time to time, may require that certain quantities of product be made available for use as warranty replacements. International market warranties are generally similar to the U.S. market. The Company also sells extended warranty contracts and maintenance agreements. | |
The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. In the fiscal year ended September 30, 2013, the Company increased its reserve by $8,446. The warranty reserve was $212,759 and $204,313 at September 30, 2013 and 2012, respectively. | |
Income Tax, Policy [Policy Text Block] | ' |
INCOME TAXES | |
The Company determines its income tax provision using the asset and liability method. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. A valuation allowance is recorded by the Company to the extent it is more likely than not that a deferred tax asset will not be realized. Additional information regarding income taxes appears in Note 10, Income Taxes. | |
Property, Plant and Equipment, Impairment [Policy Text Block] | ' |
IMPAIRMENT OF LONG-LIVED ASSETS | |
Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset, or if changes in facts and circumstances indicate this, an impairment loss is measured and recognized using the asset’s fair value. | |
Segment Reporting, Policy [Policy Text Block] | ' |
SEGMENT INFORMATION | |
The Company presents its business as one reportable segment due to the similarity in nature of products provided, financial performance measures (revenue growth and gross margin), methods of distribution (direct and indirect) and customer markets (each product is sold by the same personnel to government and commercial customers, domestically and internationally). The Company’s chief operating decision making officer reviews financial information on sound products on a consolidated basis. See Note 15, Major Customers, Suppliers, Segment and Related Information, for additional information. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
NET INCOME PER SHARE | |
Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution of securities that could occur if outstanding securities convertible into common stock were exercised or converted. See Note 14, Net Income Per Share, for additional information. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
FOREIGN CURRENCY TRANSLATION | |
The Company’s functional currency is U.S. dollars as substantially all of the Company’s operations use this denomination. Foreign sales to date have been denominated in U.S. dollars. Transactions undertaken in other currencies, which have not been material, are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the statements of operations. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
SHARE-BASED COMPENSATION | |
The Company recognized share-based compensation expense related to non-qualified stock options issued to employees and directors over the expected vesting term of the stock-based instrument based on the grant date fair value. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates or if the Company updates its estimated forfeiture rate. From time to time, the Company grants stock options to directors and non-employee service providers. See Note 12, Share-based Compensation, for additional information. | |
Registration Payment Arrangements [Policy Text Block] | ' |
REGISTRATION PAYMENT ARRANGEMENTS | |
In connection with the issuance of warrants on February 4, 2011 (“2011 Warrants”), the Company entered into a Registration Rights Agreement with the warrant holders (“Warrant Holders”), whereby the Company agreed to prepare and file, within 30 days following the issuance of the 2011 Warrants, a registration statement covering the resale of the shares of common stock issuable upon exercise of the 2011 Warrants. If the registration statement had not been declared effective within 90 days following the date of issuance of the securities, or the Warrant Holders are otherwise unable to re-sell the shares purchased upon exercise of the 2011 Warrants, the Company would be obligated to pay liquidated damages to the purchasers in the amount of $0.01335 per day per applicable share until 180 days after the date the registration statement is required to be filed, and $0.0267 per day per applicable share thereafter, but not to exceed a total of $0.534 per applicable share or a maximum of $869,323. This obligation will be effective for the five year term of the Warrants, or until all 2011 Warrants have been exercised. The Company filed a registration statement on Form S-3 within 30 days of issuance, which became effective on April 7, 2011 in satisfaction of the initial 90 day effectiveness obligation. No liquidated damages have been accrued as of September 30, 2012 as it was not deemed to be probable that any such damages will be incurred. | |
Reclassification, Policy [Policy Text Block] | ' |
RECLASSIFICATIONS | |
Where necessary, the prior year’s information has been reclassified to conform to the fiscal 2013 statement presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit. | |
Subsequent Events, Policy [Policy Text Block] | ' |
SUBSEQUENT EVENTS | |
Management has evaluated events subsequent to September 30, 2013 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission and noted that there have been no events or transactions which would affect the Company’s consolidated financial statements for the year ended September 30, 2013. |
Note_5_Inventories_Tables
Note 5 - Inventories (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,941,203 | $ | 2,693,753 | |||||
Finished goods | 605,240 | 818,082 | |||||||
Work in process | 358,826 | 61,859 | |||||||
4,905,269 | 3,573,694 | ||||||||
Reserve for obsolescence | (317,519 | ) | (461,205 | ) | |||||
$ | 4,587,750 | $ | 3,112,489 |
Note_6_Property_And_Equipment_
Note 6 - Property And Equipment (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Note 6 - Property And Equipment (Tables) [Line Items] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Office furniture and equipment | $ | 769,799 | $ | 716,625 | |||||
Machinery and equipment | 607,803 | 525,020 | |||||||
Leasehold improvements | 55,298 | 55,298 | |||||||
1,432,900 | 1,296,943 | ||||||||
Accumulated depreciation | (1,195,523 | ) | (1,084,080 | ) | |||||
$ | 237,377 | $ | 212,863 | ||||||
Depreciation Expense [Member] | ' | ||||||||
Note 6 - Property And Equipment (Tables) [Line Items] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
Depreciation expense | $ | 122,990 | $ | 64,409 |
Note_7_Intangible_Assets_Table
Note 7 - Intangible Assets (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Cost | $ | 93,938 | $ | 358,925 | |||||
Accumulated amortization | (42,288 | ) | (200,468 | ) | |||||
$ | 51,650 | $ | 158,457 | ||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
Amortization expense | $ | 23,317 | $ | 29,522 | |||||
Loss on sale or impairment of patents | 81,307 | 41,621 | |||||||
Net sale or impairment of patents | $ | 104,624 | $ | 71,143 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||
Estimated Amortization Expense Years Ended September 30, | |||||||||
2014 | $ | 6,269 | |||||||
2015 | 6,269 | ||||||||
2016 | 6,269 | ||||||||
2017 | 6,269 | ||||||||
2018 | 6,269 | ||||||||
Thereafter | 20,305 | ||||||||
$ | 51,650 |
Note_9_Accrued_Liabilities_And1
Note 9 - Accrued Liabilities And Other Liabilities - Noncurrent (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Current And Noncurrent Accrued Liabilities [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Payroll and related | $ | 650,125 | $ | 272,212 | |||||
Accrued contract costs | 197,034 | 197,032 | |||||||
Warranty reserve | 189,277 | 154,069 | |||||||
Deferred revenue and other | 18,532 | 429 | |||||||
Total | $ | 1,054,968 | $ | 623,742 | |||||
Other liabilities - noncurrent consisted of the following: | |||||||||
Deferred rent | $ | 122,627 | $ | 43,433 | |||||
Extended warranty | 23,482 | 50,244 | |||||||
Deferred revenue - noncurrent | - | 270,140 | |||||||
Total | $ | 146,109 | $ | 363,817 | |||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||
Years Ended September 30, | 2013 | 2012 | |||||||
Beginning balance | $ | 204,313 | $ | 272,261 | |||||
Warranty provision | 19,254 | (33,566 | ) | ||||||
Warranty settlements | (10,808 | ) | (34,382 | ) | |||||
Ending balance | $ | 212,759 | $ | 204,313 | |||||
Short-term warranty reserve | $ | 189,277 | $ | 154,069 | |||||
Long-term warranty reserve | 23,482 | 50,244 | |||||||
$ | 212,759 | $ | 204,313 |
Note_10_Income_Taxes_Tables
Note 10 - Income Taxes (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
Years Ended September 30, | 2013 | 2012 | |||||||
Current tax (benefit) expense | |||||||||
Federal | $ | - | $ | (155,000 | ) | ||||
State | 2,000 | 4,000 | |||||||
2,000 | (151,000 | ) | |||||||
Deferred (benefit) expense | |||||||||
Federal | (779,000 | ) | (1,583,000 | ) | |||||
State | (138,000 | ) | (279,000 | ) | |||||
(917,000 | ) | (1,862,000 | ) | ||||||
Change in valuation allowance | 917,000 | 1,862,000 | |||||||
Provision for income taxes | $ | 2,000 | $ | (151,000 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
Years Ended September 30, | 2013 | 2012 | |||||||
Income taxes computed at the federal statutory rate | $ | 430,000 | $ | 446,000 | |||||
Change in valuation allowance | (917,000 | ) | (1,862,000 | ) | |||||
Nondeductible compensation, interest expense and other | 8,000 | 6,000 | |||||||
State income taxes, net of federal tax benefit | 70,000 | 72,000 | |||||||
Change in R&D credit carryover | (56,000 | ) | 53,000 | ||||||
Stock options and other prior year true-ups | 462,000 | 1,389,000 | |||||||
State business credit utilization | (4,000 | ) | (100,000 | ) | |||||
Prior year tax adjustments | 9,000 | (155,000 | ) | ||||||
$ | 2,000 | $ | (151,000 | ) | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
At September 30, | |||||||||
Deferred tax assets: | 2013 | 2012 | |||||||
Net operating loss carryforwards | $ | 19,576,000 | $ | 20,350,000 | |||||
Research and development credit | 2,257,000 | 2,206,000 | |||||||
Share-based compensation | 526,000 | 600,000 | |||||||
Equipment | (18,000 | ) | - | ||||||
Patents | 230,000 | 229,000 | |||||||
Accruals and other | 463,000 | 509,000 | |||||||
State tax deduction | (2,000 | ) | (2,000 | ) | |||||
Federal AMT Credit | 49,000 | 49,000 | |||||||
Allowances | 127,000 | 184,000 | |||||||
Gross deferred tax asset | 23,208,000 | 24,125,000 | |||||||
Less valuation allowance | (23,208,000 | ) | (24,125,000 | ) | |||||
$ | - | $ | - |
Note_11_Commitments_and_Contin1
Note 11 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Years ending September 30: | |||||
2014 | 337,848 | ||||
2015 | 341,659 | ||||
2016 | 374,731 | ||||
2017 | 389,276 | ||||
2018 | 285,804 | ||||
2019 | - | ||||
$ | 1,729,318 |
Note_12_Sharebased_Compensatio1
Note 12 - Share-based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Volatility | 74.0% | - | 81.00% | 81.0% | - | 82.00% | |||||||||||||||||||
Risk-free interest rate | 0.93% | - | 1.70% | 0.8% | - | 1.10% | |||||||||||||||||||
Forfeiture rate | 10.00% | 10.00% | |||||||||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||||||||||
Expected life in years | 6.4 | 5.4 | - | 6.4 | |||||||||||||||||||||
Weighted average fair value of options granted during the period | $0.86 | $0.88 | |||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||||||
of Shares | Exercise Price | ||||||||||||||||||||||||
Fiscal 2012: | |||||||||||||||||||||||||
Outstanding October 1, 2011 | 4,181,339 | $ | 2.4 | ||||||||||||||||||||||
Granted | 1,237,500 | $ | 1.33 | ||||||||||||||||||||||
Forfeited/expired | (1,955,500 | ) | $ | 3.67 | |||||||||||||||||||||
Outstanding September 30, 2012 | 3,463,339 | $ | 1.31 | ||||||||||||||||||||||
Exercisable September 30, 2012 | 2,575,857 | $ | 1.25 | ||||||||||||||||||||||
Fiscal 2013: | |||||||||||||||||||||||||
Outstanding October 1, 2012 | 3,463,339 | $ | 1.31 | ||||||||||||||||||||||
Granted | 804,500 | $ | 2.88 | ||||||||||||||||||||||
Forfeited/expired | (1,347,157 | ) | $ | 1.48 | |||||||||||||||||||||
Exercised | (526,206 | ) | $ | 0.65 | |||||||||||||||||||||
Outstanding September 30, 2013 | 2,394,476 | $ | 1.89 | ||||||||||||||||||||||
Exercisable September 30, 2013 | 2,059,256 | $ | 1.82 | ||||||||||||||||||||||
Weighted average fair value of options granted during the year | $ | 0.86 | |||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||||
Prices | Remaining | Exercise | Exercise | ||||||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||||
Life | |||||||||||||||||||||||||
$0.46 | - | $1.00 | 333,976 | 0.3 | $ | 0.49 | 329,976 | $ | 0.48 | ||||||||||||||||
$1.01 | - | $1.50 | 906,500 | 4.26 | $ | 1.27 | 776,843 | $ | 1.26 | ||||||||||||||||
$1.51 | - | $2.00 | 12,500 | 6.88 | $ | 1.57 | 6,156 | $ | 1.63 | ||||||||||||||||
$2.01 | - | $2.50 | 276,000 | 7.22 | $ | 2.26 | 274,125 | $ | 2.26 | ||||||||||||||||
$2.51 | - | $3.13 | 865,500 | 7.78 | $ | 2.95 | 672,156 | $ | 2.94 | ||||||||||||||||
$0.46 | - | $3.13 | 2,394,476 | 5.34 | $ | 1.89 | 2,059,256 | $ | 1.82 | ||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||||||||||
Years Ended September 30, | 2013 | 2012 | |||||||||||||||||||||||
Cost of revenue | $ | 7,336 | $ | 21,662 | |||||||||||||||||||||
Selling, general and administrative | 681,147 | 603,989 | |||||||||||||||||||||||
Research and development | 47,895 | 58,800 | |||||||||||||||||||||||
Total | $ | 736,378 | $ | 684,451 |
Note_14_Net_Income_Per_Share_T
Note 14 - Net Income Per Share (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
Basic | |||||||||
Income available to common stockholders | $ | 1,262,812 | $ | 1,462,020 | |||||
Weighted average common shares outstanding | 32,464,935 | 32,374,499 | |||||||
Basic income per common share | $ | 0.04 | $ | 0.05 | |||||
Diluted | |||||||||
Income available to common stockholders | $ | 1,262,812 | $ | 1,462,020 | |||||
Weighted average common shares outstanding | 32,464,935 | 32,374,499 | |||||||
Assumed exercise of dilutive options and warrants | 455,084 | 641,456 | |||||||
Weighted average dilutive shares outstanding | 32,920,019 | 33,015,955 | |||||||
Diluted income per common share | $ | 0.04 | $ | 0.04 | |||||
Potentially dilutive securities outstanding at period end excluded from | |||||||||
the diluted computation as the inclusion would have been antidilutive: | |||||||||
Options | 2,057,000 | 800,700 | |||||||
Warrants | 1,627,945 | 1,627,945 | |||||||
Total | 3,684,945 | 2,428,645 |
Note_15_Major_Customers_Suppli1
Note 15 - Major Customers, Suppliers, Segment and Related Information (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Major Customers [Abstract] | ' | |||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | |||||||||
Years Ended September 30, | 2013 | 2012 | ||||||||
Revenues | ||||||||||
United States | $ | 7,096,257 | $ | 9,358,311 | ||||||
Other | 9,991,673 | 5,434,027 | ||||||||
Total Revenues | $ | 17,087,930 | $ | 14,792,338 |
Note_2_Basis_Of_Presentation_A1
Note 2 - Basis Of Presentation And Significant Acounting Policies (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Note 2 - Basis Of Presentation And Significant Acounting Policies (Details) [Line Items] | ' | ' | ' |
Cash, FDIC Insured Amount (in Dollars) | $250,000 | ' | ' |
Cash, Uninsured Amount (in Dollars) | 15,600,000 | ' | ' |
Number of Majo rCustomers Accounted for Accounts Receivable | 2 | 1 | ' |
Allowance for Doubtful Accounts Receivable (in Dollars) | 3,772 | 4,372 | ' |
Inventory Valuation Reserves Increase (Decrease) (in Dollars) | -143,686 | 154,109 | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years | ' | ' |
Shipping, Handling and Transportation Costs (in Dollars) | 142,453 | 127,392 | ' |
Advertising Expense (in Dollars) | 74,452 | 62,663 | ' |
Product Warranty Period | '1 year | ' | ' |
Product Warranty Accrual, Period Increase (Decrease) (in Dollars) | 8,446 | ' | ' |
Product Warranty Accrual (in Dollars) | 212,759 | 204,313 | 272,261 |
Number of Reportable Segments | 1 | ' | ' |
Warrant Registration Statement Filing Period | '30 days | ' | ' |
Maximum Period for Declaring Registration Statement Effective | '90 days | ' | ' |
Initial Liquidated Damages Payable to Warrant Holders per Day (in Dollars per share) | $0.01 | ' | ' |
Period for Which Initial Liquidated Damages Payable to Warrant Holders | '180 days | ' | ' |
Liquidated Damages Payable to Warrant Holders per Day Thereafter (in Dollars per share) | $0.03 | ' | ' |
Maximum Liquidated Damages Payable to Warrant Holders per Share (in Dollars per share) | $0.53 | ' | ' |
Maximum Amount of Liquidated Damages Payable to Warrant Holders (in Dollars) | $869,323 | ' | ' |
Term of Warrants | '5 years | ' | ' |
Customer 1 [Member] | Accounts Receivable [Member] | ' | ' | ' |
Note 2 - Basis Of Presentation And Significant Acounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 36.00% | 65.00% | ' |
Customer 2 [Member] | Accounts Receivable [Member] | ' | ' | ' |
Note 2 - Basis Of Presentation And Significant Acounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 36.00% | ' | ' |
Accounts Receivable [Member] | ' | ' | ' |
Note 2 - Basis Of Presentation And Significant Acounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | 10.00% | ' |
Minimum [Member] | ' | ' | ' |
Note 2 - Basis Of Presentation And Significant Acounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Note 2 - Basis Of Presentation And Significant Acounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Note_5_Inventories_Details
Note 5 - Inventories (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Note 5 - Inventories (Details) [Line Items] | ' | ' |
Inventory, Raw Materials, Gross | $3,941,203 | $2,693,753 |
Held at Supplier Location [Member] | ' | ' |
Note 5 - Inventories (Details) [Line Items] | ' | ' |
Inventory, Raw Materials, Gross | $63,429 | $144,674 |
Note_5_Inventories_Details_Inv
Note 5 - Inventories (Details) - Inventories (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Inventories [Abstract] | ' | ' |
Raw materials | $3,941,203 | $2,693,753 |
Finished goods | 605,240 | 818,082 |
Work in process | 358,826 | 61,859 |
4,905,269 | 3,573,694 | |
Reserve for obsolescence | -317,519 | -461,205 |
$4,587,750 | $3,112,489 |
Note_6_Property_And_Equipment_1
Note 6 - Property And Equipment (Details) - Property and Equipment (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Property and Equipment [Abstract] | ' | ' |
Office furniture and equipment | $769,799 | $716,625 |
Machinery and equipment | 607,803 | 525,020 |
Leasehold improvements | 55,298 | 55,298 |
1,432,900 | 1,296,943 | |
Accumulated depreciation | -1,195,523 | -1,084,080 |
$237,377 | $212,863 |
Note_6_Property_And_Equipment_2
Note 6 - Property And Equipment (Details) - Property and Equipment, depreciation expense (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Property and Equipment, depreciation expense [Abstract] | ' | ' |
Depreciation expense | $122,990 | $64,409 |
Note_7_Intangible_Assets_Detai
Note 7 - Intangible Assets (Details) - Intangible assets (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Intangible assets [Abstract] | ' | ' |
Cost | $93,938 | $358,925 |
Accumulated amortization | -42,288 | -200,468 |
51,650 | 158,457 | |
Amortization expense | 23,317 | 29,522 |
Loss on sale or impairment of patents | 81,307 | 41,621 |
Net sale or impairment of patents | $104,624 | $71,143 |
Note_7_Intangible_Assets_Detai1
Note 7 - Intangible Assets (Details) - Estimated amortization expense (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Estimated amortization expense [Abstract] | ' | ' |
2014 | $6,269 | ' |
2015 | 6,269 | ' |
2016 | 6,269 | ' |
2017 | 6,269 | ' |
2018 | 6,269 | ' |
Thereafter | 20,305 | ' |
$51,650 | $158,457 |
Note_8_Prepaid_Maintenance_Agr1
Note 8 - Prepaid Maintenance Agreement (Details) (USD $) | 1 Months Ended | ||
Mar. 31, 2011 | Sep. 30, 2013 | Mar. 31, 2011 | |
Third Party Service Provider [Member] | Third Party Service Provider [Member] | ||
Note 8 - Prepaid Maintenance Agreement (Details) [Line Items] | ' | ' | ' |
Prepaid Expense | ' | ' | $1,500,000 |
Amortization Period of Prepaid Maintenance Agreement | '8 years | ' | ' |
Prepaid Expense, Current | ' | 187,500 | ' |
Prepaid Expense, Noncurrent | ' | $843,750 | ' |
Note_9_Accrued_Liabilities_And2
Note 9 - Accrued Liabilities And Other Liabilities - Noncurrent (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Current And Noncurrent Accrued Liabilities [Abstract] | ' | ' |
Product Warranty Accrual, Period Increase (Decrease) | $8,446 | ' |
Deferred Revenue | $18,532 | $270,559 |
Note_9_Accrued_Liabilities_And3
Note 9 - Accrued Liabilities And Other Liabilities - Noncurrent (Details) - Summary of Accrued Liabilities (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of Accrued Liabilities [Abstract] | ' | ' |
Payroll and related | $650,125 | $272,212 |
Accrued contract costs | 197,034 | 197,032 |
Warranty reserve | 189,277 | 154,069 |
Deferred revenue and other | 18,532 | 429 |
Total | 1,054,968 | 623,742 |
Deferred rent | 122,627 | 43,433 |
Extended warranty | 23,482 | 50,244 |
Deferred revenue - noncurrent | ' | 270,140 |
Total | $146,109 | $363,817 |
Note_9_Accrued_Liabilities_And4
Note 9 - Accrued Liabilities And Other Liabilities - Noncurrent (Details) - Changes in Warranty Reserve (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Changes in Warranty Reserve [Abstract] | ' | ' |
Beginning balance | $204,313 | $272,261 |
Warranty provision | 19,254 | -33,566 |
Warranty settlements | -10,808 | -34,382 |
Ending balance | 212,759 | 204,313 |
Short-term warranty reserve | 189,277 | 154,069 |
Long-term warranty reserve | $23,482 | $50,244 |
Note_10_Income_Taxes_Details
Note 10 - Income Taxes (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Note 10 - Income Taxes (Details) [Line Items] | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ' |
Deferred Tax Assets, Net | $23,208,000 | ' |
Operating Loss Carryforwards | 51,722,000 | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 386,000 | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 2,257,000 | 2,206,000 |
Effective Income Tax Rate Reconciliation, Percent | 0.00% | ' |
Federal Income Tax Expense (Benefit), Continuing Operations | ' | -152,333 |
Proceeds from Income Tax Refunds | 40,324 | 112,009 |
Tax Years 2008 and 2009 [Member] | ' | ' |
Note 10 - Income Taxes (Details) [Line Items] | ' | ' |
Tax Credit Carryforward, Limitations on Use as a Percentage of Net Tax | 50.00% | ' |
Internal Revenue Service (IRS) [Member] | ' | ' |
Note 10 - Income Taxes (Details) [Line Items] | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 1,741,000 | ' |
State and Local Jurisdiction [Member] | ' | ' |
Note 10 - Income Taxes (Details) [Line Items] | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Research | $728,000 | ' |
Note_10_Income_Taxes_Details_I
Note 10 - Income Taxes (Details) - Income taxes consisted of the following: (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Current tax (benefit) expense | ' | ' |
Federal | ' | ($155,000) |
State | 2,000 | 4,000 |
2,000 | -151,000 | |
Deferred (benefit) expense | ' | ' |
Federal | -779,000 | -1,583,000 |
State | -138,000 | -279,000 |
-917,000 | -1,862,000 | |
Change in valuation allowance | 917,000 | 1,862,000 |
Provision for income taxes | $1,902 | ($150,816) |
Note_10_Income_Taxes_Details_R
Note 10 - Income Taxes (Details) - Reconciliation of income taxes at the federal statutory rate of 34% to the effective tax rate was (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Reconciliation of income taxes at the federal statutory rate of 34% to the effective tax rate was [Abstract] | ' | ' |
Income taxes computed at the federal statutory rate | $430,000 | $446,000 |
Change in valuation allowance | -917,000 | -1,862,000 |
Nondeductible compensation, interest expense and other | 8,000 | 6,000 |
State income taxes, net of federal tax benefit | 70,000 | 72,000 |
Change in R&D credit carryover | -56,000 | 53,000 |
Stock options and other prior year true-ups | 462,000 | 1,389,000 |
State business credit utilization | -4,000 | -100,000 |
Prior year tax adjustments | 9,000 | -155,000 |
$1,902 | ($150,816) |
Note_10_Income_Taxes_Details_S
Note 10 - Income Taxes (Details) - Significant portion of net deferred tax asset (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Significant portion of net deferred tax asset [Abstract] | ' | ' |
Net operating loss carryforwards | $19,576,000 | $20,350,000 |
Research and development credit | 2,257,000 | 2,206,000 |
Share-based compensation | 526,000 | 600,000 |
Equipment | -18,000 | ' |
Patents | 230,000 | 229,000 |
Accruals and other | 463,000 | 509,000 |
State tax deduction | -2,000 | -2,000 |
Federal AMT Credit | 49,000 | 49,000 |
Allowances | 127,000 | 184,000 |
Gross deferred tax asset | 23,208,000 | 24,125,000 |
Less valuation allowance | ($23,208,000) | ($24,125,000) |
Note_11_Commitments_and_Contin2
Note 11 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Nov. 29, 2011 | Sep. 30, 2013 | Sep. 30, 2006 | |
sqft | Change of Control Severance Benefit Plan [Member] | President and Chief Executive Officer [Member] | |||
Note 11 - Commitments and Contingencies (Details) [Line Items] | ' | ' | ' | ' | ' |
Area of Leased Facility (in Square Feet) | ' | ' | 31,360 | ' | ' |
Lease Commencement Date | ' | 1-Jul-12 | ' | ' | ' |
Lease Expiration Date | ' | 30-Jun-18 | ' | ' | ' |
Operating Leases, Average Monthly Payments Due, Current | ' | $16,306 | ' | ' | ' |
Operating Leases, Average Monthly Payments, Due in Second Year | ' | 25,088 | ' | ' | ' |
Operating Leases, Average Monthly Payments, Due in Third Year | ' | 26,656 | ' | ' | ' |
Operating Leases, Average Monthly Payments, Due in Fourth Year | ' | 28,224 | ' | ' | ' |
Operating Leases, Average Monthly Payments, Due in Fifth Year | ' | 29,792 | ' | ' | ' |
Operating Leases, Average Monthly Payments, Due in Sixth Year | ' | 31,360 | ' | ' | ' |
Operating Leases, Rent Expense, Net | 269,273 | 209,401 | ' | ' | ' |
Maximum Number of Months Salary Paid as Severance Benefit | ' | ' | ' | ' | '6 months |
Lump Sum Payment of Base Salary | ' | ' | ' | '24 months | ' |
Continuation of Health Benefits | ' | ' | ' | '24 months | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $124,391 | $170,321 | ' | ' | ' |
Note_11_Commitments_and_Contin3
Note 11 - Commitments and Contingencies (Details) - Obligations under all operating leases (USD $) | Sep. 30, 2013 |
Obligations under all operating leases [Abstract] | ' |
2014 | $337,848 |
2015 | 341,659 |
2016 | 374,731 |
2017 | 389,276 |
2018 | 285,804 |
$1,729,318 |
Note_12_Sharebased_Compensatio2
Note 12 - Share-based Compensation (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-12 | Sep. 30, 2013 | |
Employee Stock Option [Member] | 2005 Equity Incentive Plan [Member] | President and Chief Executive Officer [Member] | President and Chief Executive Officer [Member] | ||||
Note 12 - Share-based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | ' | ' | ' | ' | 3,250,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | 4,999,564 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 2,394,476 | 3,463,339 | 4,181,339 | ' | 2,394,476 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | ' | ' | ' | ' | 1,512,634 | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award, Number of Shares Remaining in Plan (in Shares) | ' | ' | ' | ' | 3,907,110 | ' | ' |
Share-based Compensation | $736,378 | $684,451 | ' | ' | ' | ' | ' |
Contractual term of options | '10 years | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | 400,000 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | '1 year 73 days | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | ' | ' | ' | ' | 750,000 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $2.88 | $1.33 | ' | ' | ' | $1.33 | $3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 483,392 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 464,364 | ' | ' | ' | ' | ' | ' |
Share Price (in Dollars per share) | $1.45 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 391,238 | ' | ' | ' | ' | ' | ' |
Proceeds from Stock Options Exercised (in Dollars) | 340,450 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $391,238 | ' | ' | ' | ' | ' | ' |
Note_12_Sharebased_Compensatio3
Note 12 - Share-based Compensation (Details) - Weighted-average assumptions (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Note 12 - Share-based Compensation (Details) - Weighted-average assumptions [Line Items] | ' | ' |
Weighted average fair value of options granted during the period (in Dollars per share) | $0.86 | ' |
Minimum [Member] | ' | ' |
Note 12 - Share-based Compensation (Details) - Weighted-average assumptions [Line Items] | ' | ' |
Volatility | 74.00% | 81.00% |
Risk-free interest rate | 0.93% | 0.80% |
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | 0.00% |
Expected life in years | '6 years 146 days | '5 years 146 days |
Weighted average fair value of options granted during the period (in Dollars per share) | $0.86 | $0.88 |
Maximum [Member] | ' | ' |
Note 12 - Share-based Compensation (Details) - Weighted-average assumptions [Line Items] | ' | ' |
Volatility | 81.00% | 82.00% |
Risk-free interest rate | 1.70% | 1.10% |
Expected life in years | ' | '6 years 146 days |
Note_12_Sharebased_Compensatio4
Note 12 - Share-based Compensation (Details) - Share-based Compensation (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Fiscal 2012: | ' | ' |
Number of Shares (in Shares) | 3,463,339 | 4,181,339 |
Weighted Average Exercise Price | $1.31 | $2.40 |
Outstanding (in Shares) | 2,394,476 | 3,463,339 |
Outstanding | $1.89 | $1.31 |
Exercisable (in Shares) | 2,059,256 | 2,575,857 |
Exercisable | $1.82 | $1.25 |
Weighted average fair value of options granted during the year | $0.86 | ' |
Granted (in Shares) | 804,500 | 1,237,500 |
Granted | $2.88 | $1.33 |
Forfeited/expired (in Shares) | -1,347,157 | -1,955,500 |
Forfeited/expired | $1.48 | $3.67 |
Exercised (in Shares) | -526,206 | ' |
Exercised | $0.65 | ' |
Note_12_Sharebased_Compensatio5
Note 12 - Share-based Compensation (Details) - Stock options outstanding (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Range1 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, Lower Limit | $0.46 |
Exercise Prices,Upper Limit | $1 |
Number Outstanding (in Shares) | 333,976 |
Weighted Average Remaining Contractual Life | '109 days |
Weighted Average Exercise Price | $0.49 |
Number Exercisable (in Shares) | 329,976 |
Weighted Average Exercise Price | $0.48 |
Range 2 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, Lower Limit | $1.01 |
Exercise Prices,Upper Limit | $1.50 |
Number Outstanding (in Shares) | 906,500 |
Weighted Average Remaining Contractual Life | '4 years 94 days |
Weighted Average Exercise Price | $1.27 |
Number Exercisable (in Shares) | 776,843 |
Weighted Average Exercise Price | $1.26 |
Range 3 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, Lower Limit | $1.51 |
Exercise Prices,Upper Limit | $2 |
Number Outstanding (in Shares) | 12,500 |
Weighted Average Remaining Contractual Life | '6 years 321 days |
Weighted Average Exercise Price | $1.57 |
Number Exercisable (in Shares) | 6,156 |
Weighted Average Exercise Price | $1.63 |
Range 4 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, Lower Limit | $2.01 |
Exercise Prices,Upper Limit | $2.50 |
Number Outstanding (in Shares) | 276,000 |
Weighted Average Remaining Contractual Life | '7 years 80 days |
Weighted Average Exercise Price | $2.26 |
Number Exercisable (in Shares) | 274,125 |
Weighted Average Exercise Price | $2.26 |
Range 5 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, Lower Limit | $2.51 |
Exercise Prices,Upper Limit | $3.13 |
Number Outstanding (in Shares) | 865,500 |
Weighted Average Remaining Contractual Life | '7 years 284 days |
Weighted Average Exercise Price | $2.95 |
Number Exercisable (in Shares) | 672,156 |
Weighted Average Exercise Price | $2.94 |
Range 6 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, Lower Limit | $0.46 |
Exercise Prices,Upper Limit | $3.13 |
Number Outstanding (in Shares) | 2,394,476 |
Weighted Average Remaining Contractual Life | '5 years 124 days |
Weighted Average Exercise Price | $1.89 |
Number Exercisable (in Shares) | 2,059,256 |
Weighted Average Exercise Price | $1.82 |
Note_12_Sharebased_Compensatio6
Note 12 - Share-based Compensation (Details) - Summary of Share-based Compensation Expense (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | $736,378 | $684,451 |
Cost of revenue [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | 7,336 | 21,662 |
Selling, General and Administrative Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | 681,147 | 603,989 |
Research and Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | $47,895 | $58,800 |
Note_13_Stockholders_Equity_De
Note 13 - Stockholders' Equity (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Note 13 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 526,206 | ' |
Proceeds from Stock Options Exercised (in Dollars) | $340,450 | ' |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,627,945 | 1,627,945 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | 2.67 | 2.67 |
Warrant [Member] | ' | ' |
Note 13 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 4-Feb-16 | ' |
Note_14_Net_Income_Per_Share_D
Note 14 - Net Income Per Share (Details) - Basic and diluted earnings per share (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Basic | ' | ' |
Income available to common stockholders (in Dollars) | $1,262,812 | $1,462,020 |
Weighted average common shares outstanding | 32,464,935 | 32,374,499 |
Assumed exercise of dilutive options and warrants | 455,084 | 641,456 |
Weighted average dilutive shares outstanding | 32,920,019 | 33,015,955 |
Diluted income per common share (in Dollars per share) | $0.04 | $0.04 |
the diluted computation as the inclusion would have been antidilutive: | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 3,684,945 | 2,428,645 |
Basic income per common share (in Dollars per share) | $0.04 | $0.05 |
Options [Member] | ' | ' |
the diluted computation as the inclusion would have been antidilutive: | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 2,057,000 | 800,700 |
Warrant [Member] | ' | ' |
the diluted computation as the inclusion would have been antidilutive: | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 1,627,945 | 1,627,945 |
Note_15_Major_Customers_Suppli2
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details) [Line Items] | ' | ' |
Number of customers, recorded more than 10% of revenue | 3 | 1 |
Minimum percentage of accounts receivable required to be disclosed as major customer | 10.00% | ' |
Number of Reportable Segments | 1 | ' |
Customer 1 [Member] | Sales [Member] | ' | ' |
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 15.00% | 36.00% |
Minimum percentage of revenue required to be disclosed as major customer | ' | 10.00% |
Customer 2 [Member] | Sales [Member] | ' | ' |
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 14.00% | ' |
Customer 3 [Member] | Sales [Member] | ' | ' |
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 10.00% | ' |
Supplier Concentration Risk [Member] | ' | ' |
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details) [Line Items] | ' | ' |
Number of Major Suppliers | 1 | ' |
Note_15_Major_Customers_Suppli3
Note 15 - Major Customers, Suppliers, Segment and Related Information (Details) - Revenues by geographic region (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues | ' | ' |
Total Revenues | $17,087,930 | $14,792,338 |
United States [Member] | ' | ' |
Revenues | ' | ' |
Total Revenues | 7,096,257 | 9,358,311 |
Other Regions[Member] | ' | ' |
Revenues | ' | ' |
Total Revenues | $9,991,673 | $5,434,027 |
Note_16_Related_Party_Details
Note 16 - Related Party (Details) (Consulting Arrangement [Member], USD $) | 12 Months Ended |
Sep. 30, 2012 | |
Consulting Arrangement [Member] | ' |
Note 16 - Related Party (Details) [Line Items] | ' |
Quarterly Consulting Fee for Consulting and Advisory Services | $5,000 |
Related Party Transaction, Expenses from Transactions with Related Party | $13,333 |