Genasys (GNSS) 10-Q 8 Feb 17 2017 Q1 Quarterly report Financial data

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%