Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Feb. 01, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | LRAD Corp | |
Entity Central Index Key | 924,383 | |
Trading Symbol | lrad | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 31,800,103 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 14,964,023 | $ 13,466,711 |
Short-term marketable securities | 3,110,608 | 2,936,124 |
Accounts receivable | 1,479,147 | 3,408,912 |
Inventories, net | 5,091,565 | 4,763,909 |
Prepaid expenses and other | 515,260 | 595,638 |
Total current assets | 25,160,603 | 25,171,294 |
Long-term marketable securities | 1,922,132 | 2,187,536 |
Deferred tax assets | 9,013,528 | 8,527,000 |
Property and equipment, net | 456,523 | 473,344 |
Intangible assets, net | 62,804 | 62,905 |
Other assets | 344,583 | 391,454 |
Total assets | 36,960,173 | 36,813,533 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 1,074,608 | 574,566 |
Accrued liabilities | 1,529,766 | 1,503,044 |
Total current liabilities | 2,604,374 | 2,077,610 |
Other liabilities, noncurrent | 139,155 | 165,038 |
Total liabilities | 2,743,529 | 2,242,648 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
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; 31,800,103 shares issued and outstanding | 318 | 318 |
Additional paid-in capital | 86,931,964 | 86,467,215 |
Accumulated deficit | (52,707,779) | (51,895,099) |
Accumulated other comprehensive loss | (7,859) | (1,549) |
Total stockholders' equity | 34,216,644 | 34,570,885 |
Total liabilities and stockholders' equity | $ 36,960,173 | $ 36,813,533 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Dec. 31, 2016 | Sep. 30, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 31,800,103 | 31,800,103 |
Common stock, outstanding (in shares) | 31,800,103 | 31,800,103 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||
Product sales | $ 2,701,959 | $ 2,563,807 |
Contract and other | 239,375 | 257,725 |
Total revenues | 2,941,334 | 2,821,532 |
Cost of revenues | 1,716,824 | 1,523,170 |
Gross profit | 1,224,510 | 1,298,362 |
Operating expenses: | ||
Selling, general and administrative | 1,966,436 | 1,460,092 |
Research and development | 587,410 | 561,202 |
Total operating expenses | 2,553,846 | 2,021,294 |
Loss from operations | (1,329,336) | (722,932) |
Other income | 30,128 | 33,264 |
Loss from operations before income taxes | (1,299,208) | (689,668) |
Income tax benefit | (486,528) | (309,595) |
Net loss | $ (812,680) | $ (380,073) |
Net loss per common share - basic and diluted (in dollars per share) | $ (0.03) | $ (0.01) |
Weighted average common shares outstanding: - basic and diluted (in shares) | 31,800,103 | 32,462,220 |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0.01 |
Consolated Statements of Compre
Consolated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss | $ (812,680) | $ (380,073) |
Other comprehensive loss, net of tax: | ||
Unrealized loss on marketable securities, net of tax | (6,310) | (4,208) |
Other comprehensive loss | (6,310) | (4,208) |
Comprehensive loss | $ (818,990) | $ (384,281) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | ||
Net loss | $ (812,680) | $ (380,073) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 32,506 | 56,884 |
Warranty provision | 9,696 | (22,267) |
Inventory obsolescence | 24 | 6,081 |
Share-based compensation | 464,749 | 147,940 |
Deferred income taxes | (486,528) | (311,195) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,929,765 | 174,339 |
Inventories | (327,680) | (294,426) |
Prepaid expenses and other | 80,378 | 118,028 |
Other assets | 46,871 | 46,871 |
Accounts payable | 500,042 | (226,055) |
Payroll and related | 180,766 | 1,459 |
Warranty settlements | (12,742) | (972) |
Accrued and other liabilities | (176,881) | 289,243 |
Net cash provided by (used in) operating activities | 1,428,286 | (394,143) |
Investing Activities: | ||
Sales (purchases) of marketable securities | 84,610 | (623,604) |
Capital expenditures | (13,863) | (71,150) |
Patent costs paid | (1,721) | (1,205) |
Net cash provided by (used in) investing activities | 69,026 | (695,959) |
Financing Activities: | ||
Repurchase of common stock | (1,643,120) | |
Net cash used in financing activities | (1,643,120) | |
Net increase (decrease) in cash | 1,497,312 | (2,733,222) |
Cash and cash equivalents, beginning of period | 13,466,711 | 18,316,103 |
Cash and cash equivalents, end of period | $ 14,964,023 | $ 15,582,881 |
Note 1 - Operations
Note 1 - Operations | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. LRAD ® |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. General The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10 8 September 30, 2016 10 December 7, 2016. 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 Pron
Note 3 - Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. In March 2016, 2016 09, Compensation – Stock Compensation (Topic 718): October 1, 2017. In February 2016, 2016 02, Leases (Topic 842) 12 October 1, 2019. In July 2015, 2015 11, Inventory (Topic 330): Simplifying the Measurement of Inventory first first October 1, 2017. In May 2014, 2014 09, Revenue from Contracts with Customers 2014 09”), 2014 09 In July 2015, one October 1, 2018, October 1, 2017. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. FAIR VALUE MEASUREMENTS The Company’s 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 3 Level 1: Level 2: Level 3: The fair value of the Company’s cash equivalents and marketable securities was determined based on Level 1 2 3 December 31, 2016 September 30, 2016. Instruments Measured at Fair Value The following tables present the Company’s cash equivalents and marketable securities’ costs, gross unrealized gains and losses, and fair value by major security type recorded as cash equivalents or short-term or long-term marketable securities as of December 31, 2016 September 30, 2016. December 31, 2016 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ - $ - $ 45,984 $ 45,984 $ - $ - Level 2: Certificates of deposit $ 2,237,189 $ - $ 2,237,189 $ - $ 1,800,000 $ 437,189 Municipal securities 40,313 - 40,313 - 40,313 - Corporate bonds 2,763,097 (7,859 ) 2,755,238 - 1,270,295 1,484,943 Subtotal 5,040,599 (7,859 ) 5,032,740 - 3,110,608 1,922,132 Total $ 5,040,599 $ (7,859 ) $ 5,078,724 $ 45,984 $ 3,110,608 $ 1,922,132 September 30, 2016 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ - $ - $ 95,538 $ 95,538 $ - $ - Level 2: Certificates of deposit $ 3,236,168 $ - $ 3,236,168 $ - $ 1,299,133 $ 1,937,035 Municipal securities 140,637 - 140,637 - 140,637 - Corporate bonds 1,748,404 (1,549 ) 1,746,855 - 1,496,354 250,501 Subtotal 5,125,209 (1,549 ) 5,123,660 - 2,936,124 2,187,536 Total $ 5,125,209 $ (1,549 ) $ 5,219,198 $ 95,538 $ 2,936,124 $ 2,187,536 |
Note 5 - Inventories
Note 5 - Inventories | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Inventories consisted of the following: December 31, September 30, 2016 2016 Raw materials $ 4,129,237 $ 4,393,928 Finished goods 1,051,735 775,628 Work in process 490,749 174,485 Inventories, gross 5,671,721 5,344,041 Reserve for obsolescence (580,156 ) (580,132 ) Inventories, net $ 5,091,565 $ 4,763,909 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6 . PROPERTY AND EQUIPMENT Property and equipment consisted of the following: December 31, September 30, 2016 2016 Machinery and equipment $ 955,226 $ 957,829 Office furniture and equipment 988,922 976,856 Leasehold improvements 76,138 71,738 Property and equipment, gross 2,020,286 2,006,423 Accumulated depreciation (1,563,763 ) (1,533,079 ) Property and equipment, net $ 456,523 $ 473,344 Three months ended December 31, 2016 2015 Depreciation expense $ 30,684 $ 55,245 |
Note 7 - Accrued Liabilities an
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Current and Noncurrent Accrued Liabilities [Text Block] | 7 . ACCRUED LIABILITIES AND OTHER LIABILITIES—NONCURRENT Accrued liabilities consisted of the following: December 31, September 30, 2016 2016 Payroll and related $ 563,611 $ 382,845 Deferred revenue 373,028 637,763 Warranty reserve 297,576 285,402 Accrued contract costs 295,551 197,034 Total $ 1,529,766 $ 1,503,044 Other liabilities - noncurrent consisted of the following: Deferred rent $ 82,793 $ 93,456 Extended warranty 56,362 71,582 Total $ 139,155 $ 165,038 Payroll and related Payroll and related consists primarily of accrued vacation, bonus, sales commissions, and benefits. Deferred Revenue Deferred revenue consists primarily of prepayments from customers in advance of product shipment. Warranty Reserve Changes in the warranty reserve and extended warranty were as follows: Three months ended December 31, 2016 2015 Beginning balance $ 356,984 $ 315,618 Warranty provision 9,696 (22,267 ) Warranty settlements (12,742 ) (972 ) Ending balance $ 353,938 $ 292,379 December 31, September 30, 2016 2016 Short-term warranty reserve $ 297,576 $ 285,402 Long-term warranty reserve 56,362 71,582 Total warranty reserve $ 353,938 $ 356,984 Accrued contract costs We have contracted with a third March 26. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. At December 31, 2016, $188,000 $8,339,000 September 30, 2016 2015, $ 12,109,000 September 30, 2016 December 31, 2016 The Company recorded an income tax benefit of $486,528 $309,595, 37.4% 44.9% three December 31, 2016 2015, two Accounting Standard Codification (“ASC”) 740, Accounting for Uncertainty in Income Taxes may |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9. Litigation The Company may Bonus Plan The Company has an incentive bonus plan for fiscal year 2017 10% 75% may three 50% 100% 200% 2017 Included in such calculation is the cost of the incentive plan. During the three December 31, 2016 2015, $185,086 $0, |
Note 10 - Share-based Compensat
Note 10 - Share-based Compensation | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. Stock Option Plans At December 31, 2016, two 2005 (“2005 March 2015, 2015 (“2015 January 19, 2015 March 18, 2015. 2015 5,000,000 December 31, 2016, 2,477,502 2,371,500 2005 2015 Stock Option Activity The following table summarizes information about stock option activity during the three December 31, 2016: Number Weighted Average of Shares Exercise Price Outstanding October 1, 2016 4,404,002 $ 2.18 Granted 448,500 $ 1.70 Forfeited/expired (3,500 ) $ 2.20 Outstanding December 31, 2016 4,849,002 $ 2.14 Exercisable December 31, 2016 3,148,103 $ 2.26 Options outstanding are exercisable at prices ranging from $0.93 $3.17 2018 2023 4.6 December 31, 2016 $149,619 $127,298, During the quarter ended December 31, 2016, $307,324 June 30, 2016 December 31, 2016 24 December 31, 2016 718 20 35. During the quarter ended December 31, 2016, 25,000 Amended and Restated 2015 2017 20,000 2016 first 2016 May 17, 2017. 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, 2016 2015 Cost of revenues $ 5,877 $ 5,637 Selling, general and administrative 435,497 117,955 Research and development 23,375 24,348 Total $ 464,749 $ 147,940 The employee stock options granted in the three December 31, 2016 2015 $0.71 $0.63 Three months ended December 31, 2016 2015 Volatility 52.4% - 53.7% 51.0% - 52.0% Risk-free interest rate 1.7% - 2.0% 1.5% - 1.7% Forfeiture rate 10.0% 10.0% Dividend yield 0.0% 2.2% - 2.7% Expected life in years 3.8 - 4.6 3.8 - 4.6 The Company declared a dividend for the quarter ended December 31, 2015, December 31, 2016. Since the Company has an NOL carryforward as of December 31, 2016, no three December 31, 2016 2015. December 31, 2016, $900,000 2.2 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 11 . STOCKHOLDERS’ EQUITY Summary The following table summarizes changes in the components of stockholders’ equity during the three December 31, 2016: Accumulated Additional Other Total Common Stock Paid-in Accumulated Comprehensive Stockholders' Shares Amount Capital Deficit Loss Equity Balances, September 30, 2016 31,800,103 $ 318 $ 86,467,215 $ (51,895,099 ) $ (1,549 ) $ 34,570,885 Share-based compensation expense - - 464,749 - - 464,749 Other comprehensive loss - - - - (6,310 ) (6,310 ) Net loss - - - (812,680 ) - (812,680 ) Balances, December 31, 2016 31,800,103 $ 318 $ 86,931,964 $ (52,707,779 ) $ (7,859 ) $ 34,216,644 Share Buyback Program The Board of Directors approved a share buyback program in 2015 $4 December 31, 2016 December 2016, December 31, 2017. no three December 31, 2016. three December 31, 2015, 1,031,208 $1,643,120 Dividends On December 3, 2015, $0.01 January 29, 2016 January 15, 2016. no three December 31, 2016. |
Note 12 - Loss Per Share
Note 12 - Loss Per Share | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 12. LOSS PER SHARE The following table sets forth the computation of basic and diluted loss per share: Three months ended December 31, 2016 2015 Numerator: Loss available to common stockholders $ (812,680 ) $ (380,073 ) Denominator: Weighted average common shares outstanding 31,800,103 32,462,220 Basic and diluted loss per common share $ (0.03 ) $ (0.01 ) Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 4,849,002 2,999,002 Warrants - 1,627,945 Total 4,849,002 4,626,947 |
Note 13 - Major Customers
Note 13 - Major Customers | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 13. For the three December 31, 2016, one 11% no 10% December 31, 2016, two 40% 19% no 10% For the three December 31, 2015, two 16% 11% no 10% December 31, 2015, three 30%, 13% 12% no 10% |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | General The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10 8 September 30, 2016 10 December 7, 2016. |
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 March 2016, 2016 09, Compensation – Stock Compensation (Topic 718): October 1, 2017. In February 2016, 2016 02, Leases (Topic 842) 12 October 1, 2019. In July 2015, 2015 11, Inventory (Topic 330): Simplifying the Measurement of Inventory first first October 1, 2017. In May 2014, 2014 09, Revenue from Contracts with Customers 2014 09”), 2014 09 In July 2015, one October 1, 2018, October 1, 2017. |
Note 4 - Fair Value Measureme21
Note 4 - Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | December 31, 2016 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ - $ - $ 45,984 $ 45,984 $ - $ - Level 2: Certificates of deposit $ 2,237,189 $ - $ 2,237,189 $ - $ 1,800,000 $ 437,189 Municipal securities 40,313 - 40,313 - 40,313 - Corporate bonds 2,763,097 (7,859 ) 2,755,238 - 1,270,295 1,484,943 Subtotal 5,040,599 (7,859 ) 5,032,740 - 3,110,608 1,922,132 Total $ 5,040,599 $ (7,859 ) $ 5,078,724 $ 45,984 $ 3,110,608 $ 1,922,132 September 30, 2016 Unrealized Fair Cash Short-term Long-term Cost Basis Gains/(Losses) Value Equivalents Securities Securities Level 1: Money Market Funds $ - $ - $ 95,538 $ 95,538 $ - $ - Level 2: Certificates of deposit $ 3,236,168 $ - $ 3,236,168 $ - $ 1,299,133 $ 1,937,035 Municipal securities 140,637 - 140,637 - 140,637 - Corporate bonds 1,748,404 (1,549 ) 1,746,855 - 1,496,354 250,501 Subtotal 5,125,209 (1,549 ) 5,123,660 - 2,936,124 2,187,536 Total $ 5,125,209 $ (1,549 ) $ 5,219,198 $ 95,538 $ 2,936,124 $ 2,187,536 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, September 30, 2016 2016 Raw materials $ 4,129,237 $ 4,393,928 Finished goods 1,051,735 775,628 Work in process 490,749 174,485 Inventories, gross 5,671,721 5,344,041 Reserve for obsolescence (580,156 ) (580,132 ) Inventories, net $ 5,091,565 $ 4,763,909 |
Note 6 - Property and Equipme23
Note 6 - Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, September 30, 2016 2016 Machinery and equipment $ 955,226 $ 957,829 Office furniture and equipment 988,922 976,856 Leasehold improvements 76,138 71,738 Property and equipment, gross 2,020,286 2,006,423 Accumulated depreciation (1,563,763 ) (1,533,079 ) Property and equipment, net $ 456,523 $ 473,344 |
Depreciation Expense [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Three months ended December 31, 2016 2015 Depreciation expense $ 30,684 $ 55,245 |
Note 7 - Accrued Liabilities 24
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 31, September 30, 2016 2016 Payroll and related $ 563,611 $ 382,845 Deferred revenue 373,028 637,763 Warranty reserve 297,576 285,402 Accrued contract costs 295,551 197,034 Total $ 1,529,766 $ 1,503,044 Other liabilities - noncurrent consisted of the following: Deferred rent $ 82,793 $ 93,456 Extended warranty 56,362 71,582 Total $ 139,155 $ 165,038 |
Schedule of Product Warranty Liability [Table Text Block] | Three months ended December 31, 2016 2015 Beginning balance $ 356,984 $ 315,618 Warranty provision 9,696 (22,267 ) Warranty settlements (12,742 ) (972 ) Ending balance $ 353,938 $ 292,379 |
Warranty Reserves [Member] | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | December 31, September 30, 2016 2016 Short-term warranty reserve $ 297,576 $ 285,402 Long-term warranty reserve 56,362 71,582 Total warranty reserve $ 353,938 $ 356,984 |
Note 10 - Share-based Compens25
Note 10 - Share-based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Average of Shares Exercise Price Outstanding October 1, 2016 4,404,002 $ 2.18 Granted 448,500 $ 1.70 Forfeited/expired (3,500 ) $ 2.20 Outstanding December 31, 2016 4,849,002 $ 2.14 Exercisable December 31, 2016 3,148,103 $ 2.26 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three months ended December 31, 2016 2015 Cost of revenues $ 5,877 $ 5,637 Selling, general and administrative 435,497 117,955 Research and development 23,375 24,348 Total $ 464,749 $ 147,940 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended December 31, 2016 2015 Volatility 52.4% - 53.7% 51.0% - 52.0% Risk-free interest rate 1.7% - 2.0% 1.5% - 1.7% Forfeiture rate 10.0% 10.0% Dividend yield 0.0% 2.2% - 2.7% Expected life in years 3.8 - 4.6 3.8 - 4.6 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Accumulated Additional Other Total Common Stock Paid-in Accumulated Comprehensive Stockholders' Shares Amount Capital Deficit Loss Equity Balances, September 30, 2016 31,800,103 $ 318 $ 86,467,215 $ (51,895,099 ) $ (1,549 ) $ 34,570,885 Share-based compensation expense - - 464,749 - - 464,749 Other comprehensive loss - - - - (6,310 ) (6,310 ) Net loss - - - (812,680 ) - (812,680 ) Balances, December 31, 2016 31,800,103 $ 318 $ 86,931,964 $ (52,707,779 ) $ (7,859 ) $ 34,216,644 |
Note 12 - Loss Per Share (Table
Note 12 - Loss Per Share (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended December 31, 2016 2015 Numerator: Loss available to common stockholders $ (812,680 ) $ (380,073 ) Denominator: Weighted average common shares outstanding 31,800,103 32,462,220 Basic and diluted loss per common share $ (0.03 ) $ (0.01 ) Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 4,849,002 2,999,002 Warrants - 1,627,945 Total 4,849,002 4,626,947 |
Note 4 - Fair Value Measureme28
Note 4 - Fair Value Measurements - Fair Value by Major Security Type (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Short-term marketable securities | $ 3,110,608 | $ 2,936,124 |
Long-term marketable securities | 1,922,132 | 2,187,536 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | 5,040,599 | 5,125,209 |
Unrealized Gains (Losses) | (7,859) | (1,549) |
Fair Value | 5,078,724 | 5,219,198 |
Cash Equivalents | 45,984 | 95,538 |
Short-term marketable securities | 3,110,608 | 2,936,124 |
Long-term marketable securities | 1,922,132 | 2,187,536 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | ||
Unrealized Gains (Losses) | ||
Fair Value | 45,984 | 95,538 |
Cash Equivalents | 45,984 | 95,538 |
Short-term marketable securities | ||
Long-term marketable securities | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | 5,040,599 | 5,125,209 |
Unrealized Gains (Losses) | (7,859) | (1,549) |
Fair Value | 5,032,740 | 5,123,660 |
Cash Equivalents | ||
Short-term marketable securities | 3,110,608 | 2,936,124 |
Long-term marketable securities | 1,922,132 | 2,187,536 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Certificates of Deposit [Member] | ||
Cost Basis | 2,237,189 | 3,236,168 |
Unrealized Gains (Losses) | ||
Fair Value | 2,237,189 | 3,236,168 |
Short-term marketable securities | 1,800,000 | 1,299,133 |
Long-term marketable securities | 437,189 | 1,937,035 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Cost Basis | 40,313 | 140,637 |
Unrealized Gains (Losses) | ||
Fair Value | 40,313 | 140,637 |
Cash Equivalents | ||
Short-term marketable securities | 40,313 | 140,637 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Corporate Debt Securities [Member] | ||
Cost Basis | 2,763,097 | 1,748,404 |
Unrealized Gains (Losses) | (7,859) | (1,549) |
Fair Value | 2,755,238 | 1,746,855 |
Short-term marketable securities | 1,270,295 | 1,496,354 |
Long-term marketable securities | $ 1,484,943 | $ 250,501 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Raw materials | $ 4,129,237 | $ 4,393,928 |
Finished goods | 1,051,735 | 775,628 |
Work in process | 490,749 | 174,485 |
Inventories, gross | 5,671,721 | 5,344,041 |
Reserve for obsolescence | (580,156) | (580,132) |
Inventories, net | $ 5,091,565 | $ 4,763,909 |
Note 6 - Property and Equipme30
Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Property and equipment | $ 2,020,286 | $ 2,006,423 |
Accumulated depreciation | (1,563,763) | (1,533,079) |
Property and equipment, net | 456,523 | 473,344 |
Machinery and Equipment [Member] | ||
Property and equipment | 955,226 | 957,829 |
Furniture and Fixtures [Member] | ||
Property and equipment | 988,922 | 976,856 |
Leasehold Improvements [Member] | ||
Property and equipment | $ 76,138 | $ 71,738 |
Note 6 - Property and Equipme31
Note 6 - Property and Equipment - Property and Equipment, Depreciation Expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation expense | $ 30,684 | $ 55,245 |
Note 7 - Accrued Liabilities 32
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent - Summary of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Payroll and related | $ 563,611 | $ 382,845 |
Deferred revenue | 373,028 | 637,763 |
Warranty reserve | 297,576 | 285,402 |
Accrued contract costs | 295,551 | 197,034 |
Total | 1,529,766 | 1,503,044 |
Deferred rent | 82,793 | 93,456 |
Extended warranty | 56,362 | 71,582 |
Total | $ 139,155 | $ 165,038 |
Note 7 - Accrued Liabilities 33
Note 7 - Accrued Liabilities and Other Liabilities - Changes in Warranty Reserve (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Beginning balance | $ 356,984 | $ 315,618 |
Warranty provision | 9,696 | (22,267) |
Warranty settlements | (12,742) | (972) |
Ending balance | $ 353,938 | $ 292,379 |
Note 7 - Accrued Liabilities 34
Note 7 - Accrued Liabilities and Other Liabilities - Noncurrent - Short-term and Long-term Warranty Reserves (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Short-term warranty reserve | $ 297,576 | $ 285,402 | ||
Long-term warranty reserve | 56,362 | 71,582 | ||
Total warranty reserve | $ 353,938 | $ 356,984 | $ 292,379 | $ 315,618 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (8,339,000) | $ (188,000) | ||
Deferred Tax Assets, Valuation Allowance | $ 12,109,000 | $ 12,109,000 | ||
Income Tax Expense (Benefit) | $ (486,528) | $ (309,595) | ||
Effective Income Tax Rate Reconciliation, Percent | 37.40% | 44.90% |
Note 9 - Commitments and Cont36
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Target Bonus Amounts of Percentage of Employee Base Salary, Minimum | 10.00% | |
Target Bonus Amounts of Percentage of Employee Base Salary Maximum | 75.00% | |
Payment of Bonus as Percentage, Level 1 | 50.00% | |
Payment of Bonus as Percentage, Level 2 | 100.00% | |
Payment of Bonus as Percentage, Level 3 | 200.00% | |
Bonuses and Related Payroll Tax Expense [Member] | ||
Increase (Decrease) in Other Employee-Related Liabilities | $ 185,086 | $ 0 |
Note 10 - Share-based Compens37
Note 10 - Share-based Compensation (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,849,002 | 4,404,002 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.14 | $ 2.18 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 219 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 149,619 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 127,298 | ||
Allocated Share-based Compensation Expense | $ 464,749 | $ 147,940 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.71 | $ 0.63 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0 | $ 0 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 900,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 73 days | ||
Employee Stock Option [Member] | |||
Allocated Share-based Compensation Expense | $ 307,324 | ||
Restricted Stock Units (RSUs) [Member] | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Per Person | 25,000 | ||
Non-employee Stock Option [Member] | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, that Would Have Been Granted in Period | 20,000 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0.93 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 3.17 | ||
2015 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 5,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,371,500 | ||
2005 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,477,502 |
Note 10 - Share-based Compens38
Note 10 - Share-based Compensation - Stock Option Activity (Details) | 3 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of Shares Outstanding, Beginning Balance (in shares) | shares | 4,404,002 |
Weighted Average Exercise Price, Shares Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 2.18 |
Number of Shares Granted (in shares) | shares | 448,500 |
Weighted Average Exercise Price, Shares Granted (in dollars per share) | $ / shares | $ 1.70 |
Number of Shares Forfeited/expired (in shares) | shares | (3,500) |
Weighted Average Exercise Price, Shares Forfeited/expired (in dollars per share) | $ / shares | $ 2.20 |
Number of Shares Outstanding, Ending Balance (in shares) | shares | 4,849,002 |
Weighted Average Exercise Price, Shares Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 2.14 |
Number of Shares Exercisable (in shares) | shares | 3,148,103 |
Weighted Average Exercise Price, Shares Exercisable (in dollars per share) | $ / shares | $ 2.26 |
Note 10 - Share-based Compens39
Note 10 - Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allocated Share-based Compensation Expense | $ 464,749 | $ 147,940 |
Cost of Sales [Member] | ||
Allocated Share-based Compensation Expense | 5,877 | 5,637 |
Selling, General and Administrative Expenses [Member] | ||
Allocated Share-based Compensation Expense | 435,497 | 117,955 |
Research and Development Expense [Member] | ||
Allocated Share-based Compensation Expense | $ 23,375 | $ 24,348 |
Note 10 - Share-based Compens40
Note 10 - Share-based Compensation - Weighted-average Assumptions (Details) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Volatility | ||
Risk-free interest rate | ||
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | |
Expected life in years (Year) | ||
Minimum [Member] | ||
Volatility | 52.40% | 51.00% |
Risk-free interest rate | 1.70% | 1.50% |
Forfeiture rate | ||
Dividend yield | 2.20% | |
Expected life in years (Year) | 3 years 292 days | 3 years 292 days |
Maximum [Member] | ||
Volatility | 53.70% | 52.00% |
Risk-free interest rate | 2.00% | 1.70% |
Forfeiture rate | ||
Dividend yield | 2.70% | |
Expected life in years (Year) | 4 years 219 days | 4 years 219 days |
Note 11 - Stockholders' Equit41
Note 11 - Stockholders' Equity (Details Textual) - USD ($) | Dec. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Stock Repurchased and Retired During Period, Shares | 0 | 1,031,208 | |
Stock Repurchased During Period, Value | $ 1,643,120 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0 | $ 0.01 |
Share Buyback Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 4,000,000 |
Note 11 - Stockholders' Equit42
Note 11 - Stockholders' Equity - Summary of Changes in Stockholders' Equity (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balances | $ 34,570,885 | |
Share-based compensation expense | 464,749 | |
Other comprehensive loss | (6,310) | $ (4,208) |
Net loss | (812,680) | $ (380,073) |
Balances | $ 34,216,644 | |
Common Stock [Member] | ||
Balances (in shares) | 31,800,103 | |
Balances | $ 318 | |
Balances (in shares) | 31,800,103 | |
Balances | $ 318 | |
Additional Paid-in Capital [Member] | ||
Balances | 86,467,215 | |
Share-based compensation expense | 464,749 | |
Balances | 86,931,964 | |
Retained Earnings [Member] | ||
Balances | (51,895,099) | |
Net loss | (812,680) | |
Balances | (52,707,779) | |
AOCI Attributable to Parent [Member] | ||
Balances | (1,549) | |
Other comprehensive loss | (6,310) | |
Balances | $ (7,859) |
Note 12 - Loss Per Share - Basi
Note 12 - Loss Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||
Loss available to common stockholders | $ (812,680) | $ (380,073) |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 31,800,103 | 32,462,220 |
Net loss per common share - basic and diluted (in dollars per share) | $ (0.03) | $ (0.01) |
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Potentially dilutive securities (in shares) | 4,849,002 | 4,626,947 |
Equity Option [Member] | ||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Potentially dilutive securities (in shares) | 4,849,002 | 2,999,002 |
Warrant [Member] | ||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Potentially dilutive securities (in shares) | 1,627,945 |
Note 13 - Major Customers (Deta
Note 13 - Major Customers (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Sales Revenue, Net [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 11.00% | 16.00% |
Sales Revenue, Net [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 11.00% | |
Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Accounts Receivable [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 40.00% | 30.00% |
Accounts Receivable [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 19.00% | 13.00% |
Accounts Receivable [Member] | Customer 3 [Member] | ||
Concentration Risk, Percentage | 12.00% |