Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Jan. 29, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LRAD Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -21 | |
Entity Common Stock, Shares Outstanding | 33,243,156 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 924383 | |
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 | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $20,090,202 | $23,894,744 |
Short-term marketable securities | 626,044 | |
Accounts receivable, net | 2,487,220 | 4,284,051 |
Inventories, net | 4,393,259 | 3,895,736 |
Prepaid expenses and other | 469,583 | 523,947 |
Total current assets | 28,066,308 | 32,598,478 |
Long-term marketable securities | 2,498,147 | |
Property and equipment, net | 378,945 | 360,084 |
Intangible assets, net | 52,537 | 53,835 |
Prepaid expenses and other - noncurrent | 719,551 | 766,423 |
Total assets | 31,715,488 | 33,778,820 |
Current liabilities: | ||
Accounts payable | 936,289 | 830,503 |
Accrued liabilities | 1,285,854 | 4,087,976 |
Total current liabilities | 2,222,143 | 4,918,479 |
Other liabilities - noncurrent | 152,683 | 157,550 |
Total liabilities | 2,374,826 | 5,076,029 |
Commitments and contingencies (Note 9) | ||
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.00001 par value; 50,000,000 shares authorized; 33,236,489 shares issued and outstanding | 332 | 332 |
Additional paid-in capital | 88,180,572 | 88,049,125 |
Accumulated deficit | -58,841,032 | -59,346,666 |
Accumulated other comprehensive income | 790 | 0 |
Total stockholders' equity | 29,340,662 | 28,702,791 |
Total liabilities and stockholders' equity | $31,715,488 | $33,778,820 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
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 | 33,236,489 | 33,236,489 |
Common stock, shares outstanding | 33,236,489 | 33,236,489 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | ||
Product sales | $4,146,072 | $3,556,062 |
Contract and other | 239,356 | 266,568 |
Total revenues | 4,385,428 | 3,822,630 |
Cost of revenues | 2,026,271 | 1,878,079 |
Gross profit | 2,359,157 | 1,944,551 |
Operating expenses: | ||
Selling, general and administrative | 1,402,021 | 1,424,544 |
Research and development | 477,704 | 393,541 |
Total operating expenses | 1,879,725 | 1,818,085 |
Income from operations | 479,432 | 126,466 |
Other income | 26,202 | 5,197 |
Income from operations before income taxes | 505,634 | 131,663 |
Income tax expense | 100 | |
Net income | $505,634 | $131,563 |
Net income per common share: | ||
Basic (in Dollars per share) | $0.02 | $0 |
Diluted (in Dollars per share) | $0.01 | $0 |
Weighted average common shares outstanding: | ||
Basic (in Shares) | 33,236,489 | 33,028,646 |
Diluted (in Shares) | 33,785,996 | 33,473,582 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income | $505,634 | $131,563 |
Other comprehensive income, net of tax: | ||
Unrealized gains on marketable securities, net of $0 tax | 790 | |
Other comprehensive income | 790 | |
Comprehensive income | $506,424 | $131,563 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $505,634 | $131,563 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 62,084 | 35,203 |
Provision for doubtful accounts | -3,772 | |
Warranty provision | 19,198 | 14,361 |
Inventory obsolescence | -3,534 | -4,414 |
Share-based compensation | 131,447 | 149,814 |
Accounts receivable | 1,796,831 | 3,061,072 |
Inventories | -493,989 | -752,689 |
Prepaid expenses and other | 54,364 | 491,154 |
Prepaid expenses and other - noncurrent | 46,872 | 46,875 |
Accounts payable | 105,786 | -1,027,441 |
Warranty settlements | -8,402 | -11,362 |
Accrued and other liabilities | -2,817,785 | 182,160 |
Net cash (used in) provided by operating activities | -601,494 | 2,312,524 |
Purchases of marketable securities | -3,123,401 | |
Capital expenditures | -79,501 | -124,793 |
Patent costs paid | -146 | -80 |
Net cash used in investing activities | -3,203,048 | -124,873 |
Repurchase of common stock | -99,597 | |
Proceeds from exercise of stock options | 193,064 | |
Net cash provided by financing activities | 93,467 | |
Net (decrease) increase in cash | -3,804,542 | 2,281,118 |
Cash and cash equivalents, beginning of period | 23,894,744 | 15,805,195 |
Cash and cash equivalents, end of period | 20,090,202 | 18,086,313 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for taxes | $100 |
Note_1_Operations
Note 1 - Operations | 3 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | 1. OPERATIONS |
LRAD® Corporation, a Delaware corporation (the “Company”), is engaged in the design, development and commercialization of directed sound technologies and products. The Company sells its proprietary sound reproduction technologies and products in markets around the world. |
Note_2_Basis_of_Presentation_a
Note 2 - Basis of Presentation and Significant Acounting Policies | 3 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
General | |
The Company’s unaudited condensed consolidated financial statements included herein have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In our opinion, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on November 20, 2014. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. | |
Principles of Consolidation | |
The Company has a currently inactive wholly owned subsidiary, LRAD International Corporation, which the Company formed to conduct international marketing, sales and distribution activities. The condensed consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts. | |
Reclassifications | |
Where necessary, the prior year’s information has been reclassified to conform to the current year presentation. |
Note_3_Recent_Accounting_Prono
Note 3 - Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. RECENT ACCOUNTING PRONOUNCEMENTS |
In May 2014, the Financial Accountings Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. ASU 2014-09 is effective for the Company starting in the first quarter of fiscal 2018. Early application is not permitted. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period. The guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. The guidance will be effective for the Company in the fiscal quarter beginning January 1, 2016, and early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40). The guidance requires disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidance will be effective for the Company in the fiscal quarter beginning January 1, 2017. Management is evaluating the significance of the recent accounting pronouncement and has not yet concluded whether the pronouncement will have a significant effect on the Company’s future financial statements. |
Note_4_Fair_Value_Measurements
Note 4 - Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | 4 | FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||
Our financial instruments consist principally of cash equivalents, short and long-term marketable securities, accounts receivable and accounts payable. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | |||||||||||||||||||||||||
Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. | |||||||||||||||||||||||||
Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. | |||||||||||||||||||||||||
Level 3: Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. | |||||||||||||||||||||||||
The fair value of our cash equivalents and marketable securities was determined based on Level 1 and Level 2 inputs. We do not have any marketable securities in the Level 3 category. We believe that the recorded values of all our other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. | |||||||||||||||||||||||||
Instruments Measured at Fair Value | |||||||||||||||||||||||||
The following table presents our cash equivalents and marketable securities’ costs, gross unrealized gains and losses, and fair value by major security type recorded as cash and cash equivalents or short-term or long-term marketable securities as of December 31, 2014. At September 30, 2014, we did not have any financial instruments that are required to be measured at fair value on a recurring basis. | |||||||||||||||||||||||||
Unrealized | Fair | Cash and Cash | Short-term | Long-term | |||||||||||||||||||||
Cost Basis | Gains/(Losses) | Value | Equivalents | Securities | Securities | ||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||
Money Market Funds | $ | 195,114 | $ | 195,114 | $ | 195,114 | |||||||||||||||||||
Level 2: | |||||||||||||||||||||||||
Certificates of deposit | 2,998,147 | 2,998,147 | 250,000 | $ | 250,000 | $ | 2,498,147 | ||||||||||||||||||
Municipal securities | 1,777,908 | $ | 790 | 1,778,698 | 1,402,654 | 376,044 | |||||||||||||||||||
Subtotal | 4,776,055 | 790 | 4,776,845 | 1,652,654 | 626,044 | 2,498,147 | |||||||||||||||||||
Total | $ | 4,971,169 | $ | 790 | $ | 4,971,959 | $ | 1,847,768 | $ | 626,044 | $ | 2,498,147 | |||||||||||||
Note_5_Inventories
Note 5 - Inventories | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory Disclosure [Text Block] | 5. INVENTORIES | ||||||||
Inventories consisted of the following: | |||||||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 3,852,900 | $ | 3,462,869 | |||||
Finished goods | 733,018 | 634,246 | |||||||
Work in process | 158,293 | 153,107 | |||||||
Inventories, gross | 4,744,211 | 4,250,222 | |||||||
Reserve for obsolescence | (350,952 | ) | (354,486 | ) | |||||
Inventories, net | $ | 4,393,259 | $ | 3,895,736 | |||||
Note_6_Property_and_Equipment
Note 6 - Property and Equipment | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consisted of the following: | |||||||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
Machinery and equipment | $ | 935,298 | $ | 903,798 | |||||
Office furniture and equipment | 762,499 | 720,548 | |||||||
Leasehold improvements | 67,913 | 61,863 | |||||||
Property and equipment, gross | 1,765,710 | 1,686,209 | |||||||
Accumulated depreciation | (1,386,765 | ) | (1,326,125 | ) | |||||
Property and equipment, net | $ | 378,945 | $ | 360,084 | |||||
Three months ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Depreciation expense | $ | 60,640 | $ | 33,635 | |||||
Note_7_Accrued_Liabilities_and
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. ACCRUED LIABILITIES AND OTHER LIABILITIES—NONCURRENT | ||||||||
Accrued liabilities consisted of the following: | |||||||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
Payroll and related | $ | 513,692 | $ | 3,033,223 | |||||
Warranty reserve | 302,888 | 288,480 | |||||||
Accrued contract costs | 295,551 | 197,034 | |||||||
Deferred revenue | 170,323 | 567,639 | |||||||
Other | 3,400 | 1,600 | |||||||
Total | $ | 1,285,854 | $ | 4,087,976 | |||||
Other liabilities - noncurrent consisted of the following: | |||||||||
Deferred rent | $ | 130,464 | $ | 131,719 | |||||
Extended warranty | 22,219 | 25,831 | |||||||
Total | $ | 152,683 | $ | 157,550 | |||||
Payroll and related | |||||||||
Payroll and related consists primarily of accrued bonus and related taxes, vacation and outside commissions. | |||||||||
Warranty Reserve | |||||||||
Changes in the warranty reserve were as follows: | |||||||||
Three months ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 314,311 | $ | 212,759 | |||||
Warranty provision | 19,198 | 14,361 | |||||||
Warranty settlements | (8,402 | ) | (11,362 | ) | |||||
Ending balance | $ | 325,107 | $ | 215,758 | |||||
December 31, | September 30, | ||||||||
2014 | 2014 | ||||||||
Short-term warranty reserve | $ | 302,888 | $ | 288,480 | |||||
Long-term warranty reserve | 22,219 | 25,831 | |||||||
Total warranty reserve | $ | 325,107 | $ | 314,311 | |||||
Deferred Revenue | |||||||||
Deferred revenue consists primarily of prepayments from customers in advance of product shipment. |
Note_8_Income_Taxes
Note 8 - Income Taxes | 3 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 8. INCOME TAXES |
At December 31, 2014, the Company had federal net operating losses (“NOLs”) and related state NOLs. In accordance with FASB Accounting Standards Codification Topic 740, “Accounting for Income Taxes” (“ASC 740”), the Company recorded a full valuation allowance as it is more likely than not that some or all of the deferred tax assets will not be realized in the future. | |
The Company did not record a tax provision for California during the three months ended December 31, 2014 as the Company expects its annual effective tax rate to be zero. In addition to the Company’s federal NOLs, it also made an election under Section 172(b)(1)(H) of the Internal Revenue Code of 1986, as amended per the American Recovery and Reinvestment Tax Act of 2009, 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, which offsets the Alternative Minimum Tax in the current tax year. In addition, the state of California has reinstated the NOL carryover deduction for taxable years beginning on or after January 1, 2012, which are expected to offset most state taxes during the 2015 fiscal year. | |
ASC 740 requires the Company to recognize in its financial statements uncertainties in tax positions taken that may not be sustained upon examination by the taxing authorities. If interest or penalties are assessed, the Company would recognize these charges as income tax expense. The Company has not recorded any income tax expense or benefit for uncertain tax positions. |
Note_9_Commitments_and_Conting
Note 9 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 9. COMMITMENTS AND CONTINGENCIES |
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. Currently, there are no pending material legal proceedings to which the Company is a party or to which any of its property is subject. | |
Bonus Plan | |
The Company has an incentive bonus plan for fiscal year 2015 designed to motivate its employees to achieve the Company’s financial objectives. All of the Company’s employees are entitled to participate in the incentive plan. Target Bonus Amounts (“Target”) vary based on a percentage of the employee’s base salary which range from 10% to 50% of base salary and a bonus payment may be made at three levels, including at 50% of Target, at 100% of Target and at 200% of Target, depending upon the achievement by the Company of specified earnings per share goals. Included in such calculation is the cost of the incentive plan. For purposes of the earnings per share calculation, the number of shares outstanding will be held constant as of October 1, 2014. During the three months ended December 31, 2014, the Company accrued $170,279 for bonuses and related payroll tax expenses in connection with the 2015 plan. The Company did not record any bonus expense during the three months ended December 31, 2013 in connection with the 2014 plan. |
Note_10_Sharebased_Compensatio
Note 10 - Share-based Compensation | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. SHARE-BASED COMPENSATION | ||||||||||
Stock Option Plans | |||||||||||
At December 31, 2014, the Company had one equity incentive plan, the 2005 Equity Incentive Plan (“2005 Equity Plan”). The 2005 Equity Plan, as amended, authorizes for issuance as stock options, stock appreciation rights, or stock awards an aggregate of 3,250,000 new shares of common stock to employees, directors or consultants. The total plan reserve includes these new shares and shares reserved under prior plans, allowing for the issuance of up to 4,999,564 shares. At December 31, 2014, there were options outstanding covering 3,091,702 shares of common stock under the 2005 Equity Plan and an additional 202,467 shares of common stock available for grant. | |||||||||||
Stock Option Activity | |||||||||||
The following table summarizes information about stock option activity during the three months ended December 31, 2014: | |||||||||||
Number | Weighted Average | ||||||||||
of Shares | Exercise Price | ||||||||||
Outstanding October 1, 2014 | 2,530,535 | $ | 2.09 | ||||||||
Granted | 574,500 | $ | 2.86 | ||||||||
Forfeited/expired | (13,333 | ) | $ | 2.42 | |||||||
Exercised | - | $ | - | ||||||||
Outstanding December 31, 2014 | 3,091,702 | $ | 2.23 | ||||||||
Exercisable December 31, 2014 | 2,333,863 | $ | 2.2 | ||||||||
Options outstanding are exercisable at prices ranging from $0.93 to $3.17 and expire over the period from 2015 to 2023 with an average life of 5.9 years. The aggregate intrinsic value of options outstanding and exercisable at December 31, 2014 was $1,770,169 and $1,419,573, respectively. | |||||||||||
Share-Based Compensation | |||||||||||
The Company recorded share-based compensation expense and classified it in the condensed consolidated statements of operations as follows: | |||||||||||
Three months ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Cost of revenue | $ | 4,820 | $ | 2,058 | |||||||
Selling, general and administrative | 105,222 | 131,176 | |||||||||
Research and development | 21,405 | 16,580 | |||||||||
Total | $ | 131,447 | $ | 149,814 | |||||||
The employee stock options granted in the three months ended December 31, 2014 and 2013 had a weighted-average estimated fair value of $1.18 per share and $0.85 per share, respectively, using the Black-Scholes option pricing model with the following weighted-average assumptions (annualized percentages): | |||||||||||
Three months ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Volatility | 53.00% | - | 62.00% | 65.00% | - | 76.00% | |||||
Risk-free interest rate | 1.30% | - | 1.60% | 0.60% | - | 2.00% | |||||
Forfeiture rate | 10.00% | 10.00% | |||||||||
Dividend yield | 0.00% | 0.00% | |||||||||
Expected life in years | 3.8 | - | 4.6 | 3.2 | - | 6.5 | |||||
The Company has never paid cash dividends and has no present intention to pay 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 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 or if the Company updates its estimated forfeiture rate. Such amounts will be recorded as a cumulative adjustment in the period in which the estimate is changed. | |||||||||||
Since the Company has an NOL carryforward as of December 31, 2014, no excess tax benefit for the tax deductions related to share-based awards was recognized for the three months ended December 31, 2014 and 2013. As of December 31, 2014, there was approximately $1,000,000 of total unrecognized compensation cost related to non-vested share-based employee compensation arrangements. The cost is expected to be recognized over a weighted-average period of 1.7 years. |
Note_11_Stockholders_Equity
Note 11 - Stockholders' Equity | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | 11. STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Summary | |||||||||||||||||||||||||
The following table summarizes changes in the components of stockholders’ equity during the three months ended December 31, 2014: | |||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||
Additional | Other | Total | |||||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Comprehensive | Stockholders' | |||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income/(Loss) | Equity | ||||||||||||||||||||
Balances, September 30, 2014 | 33,236,489 | $ | 332 | $ | 88,049,125 | $ | (59,346,666 | ) | $ | - | $ | 28,702,791 | |||||||||||||
Share-based compensation expense | - | - | 131,447 | - | - | 131,447 | |||||||||||||||||||
Other comprehensive income | - | - | - | - | 790 | 790 | |||||||||||||||||||
Net income | - | - | - | 505,634 | - | 505,634 | |||||||||||||||||||
Balances, December 31, 2014 | 33,236,489 | $ | 332 | $ | 88,180,572 | $ | (58,841,032 | ) | $ | 790 | $ | 29,340,662 | |||||||||||||
Stock Purchase Warrants | |||||||||||||||||||||||||
At December 31, 2014, 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. | |||||||||||||||||||||||||
Share Buyback Program | |||||||||||||||||||||||||
In July 2013, the Board of Directors approved a share buyback program under which the Company may repurchase up to $3 million of its outstanding common shares. In November 2013, the Board of Directors authorized the repurchase of an additional $1 million of the Company’s outstanding common shares. In November 2014, the expiration of the buyback program was extended from December 31, 2014 to December 31, 2015. During the three months ended December 31, 2014, no shares were repurchased. |
Note_12_Income_Loss_Per_Share
Note 12 - Income (Loss) Per Share | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | 12. INCOME (LOSS) PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Income available to common stockholders | $ | 505,634 | $ | 131,563 | |||||
Denominator: | |||||||||
Weighted average common shares outstanding | 33,236,489 | 33,028,646 | |||||||
Assumed exercise of dilutive options and warrants | 549,507 | 444,936 | |||||||
Weighted average dilutive shares outstanding | 33,785,996 | 33,473,582 | |||||||
Basic income per common share | $ | 0.02 | $ | 0 | |||||
Diluted income per common share | $ | 0.01 | $ | 0 | |||||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | |||||||||
Options | 1,325,750 | 1,751,500 | |||||||
Warrants | - | 1,627,945 | |||||||
Total | 1,325,750 | 3,379,445 | |||||||
Note_13_Major_Customers
Note 13 - Major Customers | 3 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 13. MAJOR CUSTOMERS |
For the three months ended December 31, 2014, revenues from three customers accounted for 23%, 15% and 13% of total revenues, respectively, with no other single customer accounting for more than 10% of revenues. At December 31, 2014, accounts receivable from two customers accounted for 38% and 24% of total accounts receivable, respectively, with no other single customer accounting for more than 10% of the accounts receivable balance. | |
For the three months ended December 31, 2013, revenues from one customer accounted for 11% of total revenues, with no other single customer accounting for more than 10% of revenues. At December 31, 2013, accounts receivable from four customers accounted for 31%, 19%, 11%, and 10% of total accounts receivable, respectively, with no other single customer accounting for more than 10% of the accounts receivable balance. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | General |
The Company’s unaudited condensed consolidated financial statements included herein have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In our opinion, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on November 20, 2014. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
The Company has a currently inactive wholly owned subsidiary, LRAD International Corporation, which the Company formed to conduct international marketing, sales and distribution activities. The condensed consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts. | |
Reclassification, Policy [Policy Text Block] | Reclassifications |
Where necessary, the prior year’s information has been reclassified to conform to the current year presentation. | |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, the Financial Accountings Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. ASU 2014-09 is effective for the Company starting in the first quarter of fiscal 2018. Early application is not permitted. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period. The guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. The guidance will be effective for the Company in the fiscal quarter beginning January 1, 2016, and early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40). The guidance requires disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidance will be effective for the Company in the fiscal quarter beginning January 1, 2017. Management is evaluating the significance of the recent accounting pronouncement and has not yet concluded whether the pronouncement will have a significant effect on the Company’s future financial statements. |
Note_4_Fair_Value_Measurements1
Note 4 - Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | Unrealized | Fair | Cash and Cash | Short-term | Long-term | ||||||||||||||||||||
Cost Basis | Gains/(Losses) | Value | Equivalents | Securities | Securities | ||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||
Money Market Funds | $ | 195,114 | $ | 195,114 | $ | 195,114 | |||||||||||||||||||
Level 2: | |||||||||||||||||||||||||
Certificates of deposit | 2,998,147 | 2,998,147 | 250,000 | $ | 250,000 | $ | 2,498,147 | ||||||||||||||||||
Municipal securities | 1,777,908 | $ | 790 | 1,778,698 | 1,402,654 | 376,044 | |||||||||||||||||||
Subtotal | 4,776,055 | 790 | 4,776,845 | 1,652,654 | 626,044 | 2,498,147 | |||||||||||||||||||
Total | $ | 4,971,169 | $ | 790 | $ | 4,971,959 | $ | 1,847,768 | $ | 626,044 | $ | 2,498,147 |
Note_5_Inventories_Tables
Note 5 - Inventories (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | December 31, | September 30, | |||||||
2014 | 2014 | ||||||||
Raw materials | $ | 3,852,900 | $ | 3,462,869 | |||||
Finished goods | 733,018 | 634,246 | |||||||
Work in process | 158,293 | 153,107 | |||||||
Inventories, gross | 4,744,211 | 4,250,222 | |||||||
Reserve for obsolescence | (350,952 | ) | (354,486 | ) | |||||
Inventories, net | $ | 4,393,259 | $ | 3,895,736 |
Note_6_Property_and_Equipment_
Note 6 - Property and Equipment (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Note 6 - Property and Equipment (Tables) [Line Items] | |||||||||
Property, Plant and Equipment [Table Text Block] | December 31, | September 30, | |||||||
2014 | 2014 | ||||||||
Machinery and equipment | $ | 935,298 | $ | 903,798 | |||||
Office furniture and equipment | 762,499 | 720,548 | |||||||
Leasehold improvements | 67,913 | 61,863 | |||||||
Property and equipment, gross | 1,765,710 | 1,686,209 | |||||||
Accumulated depreciation | (1,386,765 | ) | (1,326,125 | ) | |||||
Property and equipment, net | $ | 378,945 | $ | 360,084 | |||||
Depreciation Expense [Member] | |||||||||
Note 6 - Property and Equipment (Tables) [Line Items] | |||||||||
Property, Plant and Equipment [Table Text Block] | Three months ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Depreciation expense | $ | 60,640 | $ | 33,635 |
Note_7_Accrued_Liabilities_and1
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent (Tables) [Line Items] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | December 31, | September 30, | |||||||
2014 | 2014 | ||||||||
Payroll and related | $ | 513,692 | $ | 3,033,223 | |||||
Warranty reserve | 302,888 | 288,480 | |||||||
Accrued contract costs | 295,551 | 197,034 | |||||||
Deferred revenue | 170,323 | 567,639 | |||||||
Other | 3,400 | 1,600 | |||||||
Total | $ | 1,285,854 | $ | 4,087,976 | |||||
Other liabilities - noncurrent consisted of the following: | |||||||||
Deferred rent | $ | 130,464 | $ | 131,719 | |||||
Extended warranty | 22,219 | 25,831 | |||||||
Total | $ | 152,683 | $ | 157,550 | |||||
Schedule of Product Warranty Liability [Table Text Block] | Three months ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 314,311 | $ | 212,759 | |||||
Warranty provision | 19,198 | 14,361 | |||||||
Warranty settlements | (8,402 | ) | (11,362 | ) | |||||
Ending balance | $ | 325,107 | $ | 215,758 | |||||
Warranty Reserves [Member] | |||||||||
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent (Tables) [Line Items] | |||||||||
Schedule of Product Warranty Liability [Table Text Block] | December 31, | September 30, | |||||||
2014 | 2014 | ||||||||
Short-term warranty reserve | $ | 302,888 | $ | 288,480 | |||||
Long-term warranty reserve | 22,219 | 25,831 | |||||||
Total warranty reserve | $ | 325,107 | $ | 314,311 |
Note_10_Sharebased_Compensatio1
Note 10 - Share-based Compensation (Tables) | 3 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number | Weighted Average | |||||||||
of Shares | Exercise Price | ||||||||||
Outstanding October 1, 2014 | 2,530,535 | $ | 2.09 | ||||||||
Granted | 574,500 | $ | 2.86 | ||||||||
Forfeited/expired | (13,333 | ) | $ | 2.42 | |||||||
Exercised | - | $ | - | ||||||||
Outstanding December 31, 2014 | 3,091,702 | $ | 2.23 | ||||||||
Exercisable December 31, 2014 | 2,333,863 | $ | 2.2 | ||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three months ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Cost of revenue | $ | 4,820 | $ | 2,058 | |||||||
Selling, general and administrative | 105,222 | 131,176 | |||||||||
Research and development | 21,405 | 16,580 | |||||||||
Total | $ | 131,447 | $ | 149,814 | |||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Volatility | 53.00% | - | 62.00% | 65.00% | - | 76.00% | |||||
Risk-free interest rate | 1.30% | - | 1.60% | 0.60% | - | 2.00% | |||||
Forfeiture rate | 10.00% | 10.00% | |||||||||
Dividend yield | 0.00% | 0.00% | |||||||||
Expected life in years | 3.8 | - | 4.6 | 3.2 | - | 6.5 |
Note_11_Stockholders_Equity_Ta
Note 11 - Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | Accumulated | ||||||||||||||||||||||||
Additional | Other | Total | |||||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Comprehensive | Stockholders' | |||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income/(Loss) | Equity | ||||||||||||||||||||
Balances, September 30, 2014 | 33,236,489 | $ | 332 | $ | 88,049,125 | $ | (59,346,666 | ) | $ | - | $ | 28,702,791 | |||||||||||||
Share-based compensation expense | - | - | 131,447 | - | - | 131,447 | |||||||||||||||||||
Other comprehensive income | - | - | - | - | 790 | 790 | |||||||||||||||||||
Net income | - | - | - | 505,634 | - | 505,634 | |||||||||||||||||||
Balances, December 31, 2014 | 33,236,489 | $ | 332 | $ | 88,180,572 | $ | (58,841,032 | ) | $ | 790 | $ | 29,340,662 |
Note_12_Income_Loss_Per_Share_
Note 12 - Income (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Income available to common stockholders | $ | 505,634 | $ | 131,563 | |||||
Denominator: | |||||||||
Weighted average common shares outstanding | 33,236,489 | 33,028,646 | |||||||
Assumed exercise of dilutive options and warrants | 549,507 | 444,936 | |||||||
Weighted average dilutive shares outstanding | 33,785,996 | 33,473,582 | |||||||
Basic income per common share | $ | 0.02 | $ | 0 | |||||
Diluted income per common share | $ | 0.01 | $ | 0 | |||||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | |||||||||
Options | 1,325,750 | 1,751,500 | |||||||
Warrants | - | 1,627,945 | |||||||
Total | 1,325,750 | 3,379,445 |
Note_4_Fair_Value_Measurements2
Note 4 - Fair Value Measurements (Details) - Investments Measured at Fair Value (USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Level 2: | |
Short-term Securities | $626,044 |
Long-term Securites | 2,498,147 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Level 1: | |
Money Market Funds | 195,114 |
Level 2: | |
Cash and Cash Equivalents | 195,114 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Level 1: | |
Money Market Funds | 250,000 |
Level 2: | |
Cost Basis | 2,998,147 |
Fair Value | 2,998,147 |
Cash and Cash Equivalents | 250,000 |
Short-term Securities | 250,000 |
Long-term Securites | 2,498,147 |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Level 1: | |
Money Market Funds | 1,402,654 |
Level 2: | |
Cost Basis | 1,777,908 |
Unrealized Gain/(Losses) | 790 |
Fair Value | 1,778,698 |
Cash and Cash Equivalents | 1,402,654 |
Short-term Securities | 376,044 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Level 1: | |
Money Market Funds | 1,652,654 |
Level 2: | |
Cost Basis | 4,776,055 |
Unrealized Gain/(Losses) | 790 |
Fair Value | 4,776,845 |
Cash and Cash Equivalents | 1,652,654 |
Short-term Securities | 626,044 |
Long-term Securites | 2,498,147 |
Fair Value, Measurements, Nonrecurring [Member] | |
Level 1: | |
Money Market Funds | 1,847,768 |
Level 2: | |
Cost Basis | 4,971,169 |
Unrealized Gain/(Losses) | 790 |
Fair Value | 4,971,959 |
Cash and Cash Equivalents | 1,847,768 |
Short-term Securities | 626,044 |
Long-term Securites | $2,498,147 |
Note_5_Inventories_Details_Inv
Note 5 - Inventories (Details) - Inventories (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Inventories [Abstract] | ||
Raw materials | $3,852,900 | $3,462,869 |
Finished goods | 733,018 | 634,246 |
Work in process | 158,293 | 153,107 |
Inventories, gross | 4,744,211 | 4,250,222 |
Reserve for obsolescence | -350,952 | -354,486 |
Inventories, net | $4,393,259 | $3,895,736 |
Note_6_Property_and_Equipment_1
Note 6 - Property and Equipment (Details) - Property and Equipment (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $1,765,710 | $1,686,209 |
Accumulated depreciation | -1,386,765 | -1,326,125 |
Property and equipment, net | 378,945 | 360,084 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | 935,298 | 903,798 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Office furniture and equipment | 762,499 | 720,548 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | $67,913 | $61,863 |
Note_6_Property_and_Equipment_2
Note 6 - Property and Equipment (Details) - Property and Equipment, Depreciation Expense (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property and Equipment, Depreciation Expense [Abstract] | ||
Depreciation expense | $60,640 | $33,635 |
Note_7_Accrued_Liabilities_and2
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent (Details) - Summary of Accrued Liabilities (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Summary of Accrued Liabilities [Abstract] | ||
Payroll and related | $513,692 | $3,033,223 |
Warranty reserve | 302,888 | 288,480 |
Accrued contract costs | 295,551 | 197,034 |
Deferred revenue | 170,323 | 567,639 |
Other | 3,400 | 1,600 |
Total | 1,285,854 | 4,087,976 |
Deferred rent | 130,464 | 131,719 |
Extended warranty | 22,219 | 25,831 |
Total | $152,683 | $157,550 |
Note_7_Accrued_Liabilities_and3
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent (Details) - Changes in Warranty Reserve (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Warranty Reserve [Abstract] | ||
Beginning balance | $314,311 | $212,759 |
Warranty provision | 19,198 | 14,361 |
Warranty settlements | -8,402 | -11,362 |
Ending balance | $325,107 | $215,758 |
Note_7_Accrued_Liabilities_and4
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent (Details) - Short-term and Long-term Warranty Reserves (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Short-term and Long-term Warranty Reserves [Abstract] | ||||
Short-term warranty reserve | $302,888 | $288,480 | ||
Long-term warranty reserve | 22,219 | 25,831 | ||
Total warranty reserve | $325,107 | $314,311 | $215,758 | $212,759 |
Note_8_Income_Taxes_Details
Note 8 - Income Taxes (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent | 0.00% |
Note_9_Commitments_and_Conting1
Note 9 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||
Target Bonus Amounts of Percentage of Employee Base Salary Minimum | 10.00% | |
Target Bonus Amounts of Percentage of Employee Base Salary Maximum | 50.00% | |
Accrued Bonuses, Current (in Dollars) | 170,279 | $0 |
Level 1 [Member] | ||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||
Payment of Bonus as Percentage | 50.00% | |
Level 2 [Member] | ||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||
Payment of Bonus as Percentage | 100.00% | |
Level 3 [Member] | ||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||
Payment of Bonus as Percentage | 200.00% |
Note_10_Sharebased_Compensatio2
Note 10 - Share-based Compensation (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Note 10 - Share-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 3,091,702 | 2,530,535 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $2.23 | $2.09 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 328 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $1,770,169 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 1,419,573 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $1.18 | $0.85 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 0 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $1,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days | ||
Minimum [Member] | |||
Note 10 - Share-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $0.93 | ||
Maximum [Member] | |||
Note 10 - Share-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $3.17 | ||
2005 Equity Incentive Plan [Member] | |||
Note 10 - 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) | 3,091,702 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 202,467 |
Note_10_Sharebased_Compensatio3
Note 10 - Share-based Compensation (Details) - Share-based Compensation (USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation [Abstract] | |
Outstanding October 1, 2014 | 2,530,535 |
Outstanding October 1, 2014 | $2.09 |
Granted | 574,500 |
Granted | $2.86 |
Forfeited/expired | -13,333 |
Forfeited/expired | $2.42 |
Outstanding December 31, 2014 | 3,091,702 |
Outstanding December 31, 2014 | $2.23 |
Exercisable December 31, 2014 | 2,333,863 |
Exercisable December 31, 2014 | $2.20 |
Note_10_Sharebased_Compensatio4
Note 10 - Share-based Compensation (Details) - Summary of Share-based Compensation Expense (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $131,447 | $149,814 |
Cost of revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 4,820 | 2,058 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 105,222 | 131,176 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $21,405 | $16,580 |
Note_10_Sharebased_Compensatio5
Note 10 - Share-based Compensation (Details) - Weighted-average Assumptions | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 10 - Share-based Compensation (Details) - Weighted-average Assumptions [Line Items] | ||
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Note 10 - Share-based Compensation (Details) - Weighted-average Assumptions [Line Items] | ||
Volatility | 53.00% | 65.00% |
Risk-free interest rate | 1.30% | 0.60% |
Expected life in years | 3 years 292 days | 3 years 73 days |
Maximum [Member] | ||
Note 10 - Share-based Compensation (Details) - Weighted-average Assumptions [Line Items] | ||
Volatility | 62.00% | 76.00% |
Risk-free interest rate | 1.60% | 2.00% |
Expected life in years | 4 years 219 days | 6 years 6 months |
Note_11_Stockholders_Equity_De
Note 11 - Stockholders' Equity (Details) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Nov. 30, 2013 | Jul. 31, 2013 |
Note 11 - Stockholders' Equity (Details) [Line Items] | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,627,945 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.67 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 4-Feb-16 | ||
Stock Repurchased During Period, Shares | 0 | ||
Share Buyback Program [Member] | |||
Note 11 - Stockholders' Equity (Details) [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $1 | $3 |
Note_11_Stockholders_Equity_De1
Note 11 - Stockholders' Equity (Details) - Summary of Changes in Stockholders' Equity (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Changes in Stockholders' Equity [Abstract] | ||
Balances, September 30, 2014 (in Shares) | 33,236,489 | |
Balances, September 30, 2014 | $332 | |
Balances, September 30, 2014 | -59,346,666 | |
Balances, September 30, 2014 | 0 | |
Balances, September 30, 2014 | 88,049,125 | |
Balances, September 30, 2014 | 28,702,791 | |
Share-based compensation expense | 131,447 | |
Other comprehensive income | 790 | |
Net income | 505,634 | 131,563 |
Balances, December 31, 2014 (in Shares) | 33,236,489 | |
Balances, December 31, 2014 | 332 | |
Balances, December 31, 2014 | 88,180,572 | |
Balances, December 31, 2014 | -58,841,032 | |
Balances, December 31, 2014 | 790 | |
Balances, December 31, 2014 | $29,340,662 |
Note_12_Income_Loss_Per_Share_1
Note 12 - Income (Loss) Per Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | ||
Income available to common stockholders (in Dollars) | $505,634 | $131,563 |
Denominator: | ||
Weighted average common shares outstanding | 33,236,489 | 33,028,646 |
Assumed exercise of dilutive options and warrants | 549,507 | 444,936 |
Weighted average dilutive shares outstanding | 33,785,996 | 33,473,582 |
Basic income per common share (in Dollars per share) | $0.02 | $0 |
Diluted income per common share (in Dollars per share) | $0.01 | $0 |
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Antidilutive securities excluded from computation of earnings per share | 1,325,750 | 3,379,445 |
Equity Option [Member] | ||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Antidilutive securities excluded from computation of earnings per share | 1,325,750 | 1,751,500 |
Warrant [Member] | ||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Antidilutive securities excluded from computation of earnings per share | 1,627,945 |
Note_13_Major_Customers_Detail
Note 13 - Major Customers (Details) (Customer Concentration Risk [Member]) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer 2 [Member] | Sales Revenue, Net [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Concentration Risk, Percentage | 15.00% | |
Customer 2 [Member] | Accounts Receivable [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Concentration Risk, Percentage | 24.00% | 19.00% |
Customer 3 [Member] | Sales Revenue, Net [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Concentration Risk, Percentage | 13.00% | |
Customer 3 [Member] | Accounts Receivable [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Concentration Risk, Percentage | 11.00% | |
Customer 1 [Member] | Sales Revenue, Net [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Concentration Risk, Percentage | 11.00% | |
Customer 1 [Member] | Accounts Receivable [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Concentration Risk, Percentage | 38.00% | 31.00% |
Customer 1 [Member] | Sales Revenue, Net [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Concentration Risk, Percentage | 23.00% | |
Customer 4 [Member] | Accounts Receivable [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Minimum percentage of accounts receivable required to be disclosed as major customer | 10.00% | |
Sales Revenue, Net [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Number of customers, recorded more than 10% of revenue | 3 | 1 |
Accounts Receivable [Member] | ||
Note 13 - Major Customers (Details) [Line Items] | ||
Number of customers, recorded more than 10% of accounts receivable | 2 | 4 |