Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2017 | Feb. 01, 2018 | |
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) | 32,249,288 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 15,117,544 | $ 12,803,887 |
Short-term marketable securities | 3,602,254 | 4,359,542 |
Accounts receivable, net | 5,678,220 | 5,681,882 |
Inventories, net | 5,259,934 | 5,257,234 |
Prepaid expenses and other | 589,561 | 983,322 |
Total current assets | 30,247,513 | 29,085,867 |
Long-term marketable securities | 1,005,660 | 711,124 |
Deferred tax assets, net | 5,622,112 | 8,331,000 |
Property and equipment, net | 505,469 | 509,603 |
Intangible assets, net | 53,885 | 55,689 |
Other assets | 117,644 | 164,517 |
Total assets | 37,552,283 | 38,857,800 |
Current liabilities: | ||
Accounts payable | 1,903,001 | 1,112,366 |
Accrued liabilities | 1,858,548 | 2,561,395 |
Total liabilities | 3,761,549 | 3,673,761 |
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; 32,249,288 and 32,158,436 shares issued and outstanding, respectively | 322 | 322 |
Additional paid-in capital | 88,254,818 | 87,956,839 |
Accumulated deficit | (54,455,106) | (52,771,853) |
Accumulated other comprehensive loss | (9,300) | (1,269) |
Total stockholders' equity | 33,790,734 | 35,184,039 |
Total liabilities and stockholders' equity | $ 37,552,283 | $ 38,857,800 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Dec. 31, 2017 | Sep. 30, 2017 |
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) | 32,249,288 | 32,158,436 |
Common stock, outstanding (in shares) | 32,249,288 | 32,158,436 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||
Product sales | $ 7,336,025 | $ 2,701,959 |
Contract and other | 292,542 | 239,375 |
Total revenues | 7,628,567 | 2,941,334 |
Cost of revenues | 3,671,027 | 1,716,824 |
Gross profit | 3,957,540 | 1,224,510 |
Operating expenses: | ||
Selling, general and administrative | 2,188,398 | 1,966,436 |
Research and development | 778,037 | 587,410 |
Total operating expenses | 2,966,435 | 2,553,846 |
Income (loss) from operations | 991,105 | (1,329,336) |
Other income | 34,530 | 30,128 |
Income (loss) from operations before income taxes | 1,025,635 | (1,299,208) |
Income tax expense (benefit) | 2,708,888 | (486,528) |
Net loss | $ (1,683,253) | $ (812,680) |
Net loss per common share - basic and diluted (in dollars per share) | $ (0.05) | $ (0.03) |
Weighted average common shares outstanding: - basic and diluted (in shares) | 32,236,039 | 31,800,103 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net loss | $ (1,683,253) | $ (812,680) |
Other comprehensive loss, net of tax: | ||
Unrealized loss on marketable securities, net of tax | (8,031) | (6,310) |
Other comprehensive loss | (8,031) | (6,310) |
Comprehensive loss | $ (1,691,284) | $ (818,990) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | ||
Net loss | $ (1,683,253) | $ (812,680) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 60,105 | 32,506 |
Warranty provision | 12,361 | 9,696 |
Inventory obsolescence | 40,301 | 24 |
Share-based compensation | 138,461 | 464,749 |
Deferred income taxes | 2,708,888 | (486,528) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,662 | 1,929,765 |
Inventories | (43,001) | (327,680) |
Prepaid expenses and other | 393,761 | 80,378 |
Other assets | 46,874 | 46,871 |
Accounts payable | 790,635 | 500,042 |
Accrued and other liabilities | (715,209) | (8,857) |
Net cash provided by operating activities | 1,753,585 | 1,428,286 |
Investing Activities: | ||
Purchases of marketable securities | (1,673,295) | (1,470,704) |
Proceeds from maturities of marketable securities | 2,128,016 | 1,555,314 |
Capital expenditures | (54,167) | (13,863) |
Patent costs paid | (1,721) | |
Net cash provided by investing activities | 400,554 | 69,026 |
Financing Activities: | ||
Proceeds from exercise of stock options | 159,518 | |
Net cash provided by financing activities | 159,518 | |
Net increase in cash | 2,313,657 | 1,497,312 |
Cash and cash equivalents, beginning of period | 12,803,887 | 13,466,711 |
Cash and cash equivalents, end of period | 15,117,544 | 14,964,023 |
Noncash investing activities: | ||
Change in unrealized loss on marketable securities | $ (8,031) | $ (6,310) |
Note 1 - Operations
Note 1 - Operations | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
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 X not September 30, 2017 10 December 13, 2017. September 30, 2017 September 30, 2017 10 not 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, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. In March 2016, No. 2016 09, Compensation – Stock Compensation (Topic 718 no first 2018. $1.1 not In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016 02, Leases (Topic 842 12 October 1, 2019. In May 2014, the FASB issued ASU No. 2014 09, Revenue from Contracts with Customers 2014 09” 2014 09 In July 2015, one October 1, 2018. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 3 Months Ended |
Dec. 31, 2017 | |
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 three 3 Level 1: Level 2: not Level 3: The fair value of the Company’s cash equivalents and marketable securities was determined based on Level 1 2 not 3 December 31, 2017 September 30, 2017. Instruments Measured at Fair Value The following table s 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, 2017 September 30, 2017. December 31, 2017 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 531,566 $ - $ 531,566 $ 531,566 $ - $ - Level 2: Certificates of deposit $ 936,801 $ - $ 936,801 $ - $ 437,801 $ 499,000 Municipal securities 86,186 (198 ) 85,988 - 85,988 - Corporate bonds 3,594,227 (9,102 ) 3,585,125 - 3,078,465 506,660 Subtotal 4,617,214 (9,300 ) 4,607,914 - 3,602,254 1,005,660 Total $ 5,148,780 $ (9,300 ) $ 5,139,480 $ 531,566 $ 3,602,254 $ 1,005,660 September 30, 2017 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 55,257 $ - $ 55,257 $ 55,257 $ - $ - Level 2: Certificates of deposit 2,436,647 - 2,436,647 - 1,937,647 499,000 Municipal securities 25,315 (12 ) 25,303 - 25,303 - Corporate bonds 2,609,973 (1,257 ) 2,608,716 - 2,396,592 212,124 Subtotal 5,071,935 (1,269 ) 5,070,666 - 4,359,542 711,124 Total $ 5,127,192 $ (1,269 ) $ 5,125,923 $ 55,257 $ 4,359,542 $ 711,124 |
Note 5 - Inventories
Note 5 - Inventories | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5 . INVENTORIES Inventories consisted of the following: December 31, September 30, 2017 2017 Raw materials $ 4,619,587 $ 3,784,935 Finished goods 900,645 1,742,960 Work in process 198,535 147,871 Inventories, gross 5,718,767 5,675,766 Reserve for obsolescence (458,833 ) (418,532 ) Inventories, net $ 5,259,934 $ 5,257,234 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 2017 Office furniture and equipment $ 1,097,619 $ 1,093,502 Machinery and equipment 1,044,206 994,157 Leasehold improvements 76,138 76,138 Property and equipment, gross 2,217,963 2,163,797 Accumulated depreciation (1,712,494 ) (1,654,194 ) Property and equipment, net $ 505,469 $ 509,603 Three months ended December 31, 2017 2016 Depreciation expense $ 58,301 $ 30,684 |
Note 7 - Accrued Liabilities
Note 7 - Accrued Liabilities | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Current and Noncurrent Accrued Liabilities [Text Block] | 7 . ACCRUED LIABILITIES Accrued liabilities consisted of the following: December 31, September 30, 2017 2017 Payroll and related $ 847,042 $ 1,870,579 Deferred revenue 446,913 268,580 Accrued contract costs 345,551 197,034 Warranty reserve 188,308 179,101 Deferred rent 30,734 46,101 Total $ 1,858,548 $ 2,561,395 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 2017 2016 Beginning balance $ 179,101 $ 356,984 Warranty provision 12,361 9,696 Warranty settlements (3,154 ) (12,742 ) Ending balance $ 188,308 $ 353,938 Accrued contract costs The Company has contracted with a third March 26. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8 . INCOME TAXES The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% 21% January 1, 2018. 118, not one . Accordingly, the Company remeasured its net deferred tax assets on a provisional basis based on the rates at which they are expected to be realized in the future, which is generally 21% $2,474,000 December 31, 2017. . For the three December 31, 2017, $234,888 22.9% $2,474,000 three December 31, 2016, $486,528 37.4%. For the three December 31, 2017, 2016, Accounting Standards Codification (“ASC”) 740, Accounting for Uncertainty in Income Taxes may not not |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9 . COMMITMENTS AND CONTINGENCIES Litigation The Company may ’s estimation, record adequate reserves in the Company’s consolidated financial statements for pending litigation. Currently, there are no Bonus Plan The Company has an incentive bonus plan for fiscal year 201 8 25% 75% may three 50% 100% 200% 2018 Included in such calculation is the cost of the incentive plan. During the three December 31, 2017 2016, $405,267 $185,086, |
Note 10 - Share-based Compensat
Note 10 - Share-based Compensation | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10 . SHARE-BASED COMPENSATION Stock Option Plans At December 31, 2017, two 2005 “2005 March 2015, 2015 “2015 December 6, 2016 March 14, 2017. 2015 5,000,000 December 31, 2017, 2,216,002 2,279,315 2005 2015 Stock Option Activity The following table summarizes information about stock option activity during the three December 31, 2017: Number Weighted Average of Shares Exercise Price Outstanding October 1, 2017 4,663,502 $ 2.16 Granted 3,500 $ 2.21 Forfeited/expired (80,833 ) $ 2.84 Exercised (90,852 ) $ 1.76 Outstanding December 31, 2017 4,495,317 $ 2.15 Exercisable December 31, 2017 3,251,811 $ 2.24 Options outstanding are exercisable at prices ranging from $0. 93 $3.17 2018 2024 4.6 December 31, 2017 $1,780,084 $1,368,424, During the quarter ended December 31, 2016, $3 07,324 June 30, 2016 December 31, 2016 24 December 31, 2016 718 20 35. Performance-Based Stock Options On August 1, 2016, 750,000 ’s common stock to a key executive, with a contractual term of seven 2019 2020 375,000 four Additionally, vesting is subject to the executive being employed by the Company at the time the Company achieves such financial targets. The Company has made the assumption that the lowest performance target level for each of the years will be met, and therefore 187,500 are assumed to vest. The weighted average grant date fair value for the PVO was $0.81 Restricted Stock Units During the quarter ended December 31, 2016, grant of 25,000 Amended and Restated 2015 2017 20,000 2016 first 2016 May 17, 2017. As a result of the stockholders approval of the Amended and Restated 2015 2017 March 14, 2017, $197,500 May 17, 2017 On March 14, 2017, 25,000 first $197,500, March 14, 2018 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, 2017 2016 Cost of revenues $ 6,209 $ 5,877 Selling, general and administrative 109,322 435,497 Research and development 22,930 23,375 Total $ 138,461 $ 464,749 The employee stock option s granted in the three December 31, 2017 2016 $0.89 $0.71 Three months ended December 31, 2017 2016 Volatility 45.4% 52.4% - 53.7% Risk-free interest rate 2.2% 1.7% - 2.0% Forfeiture rate 10.0% 10. 0% Dividend yield 0.0% 0. 0% Expected life in years 4.6 3.8 - 4.6 The Company did not December 31, 2017 2016. Since the Company has a net operating loss carryforward as of December 31, 2017, no three December 31, 2017 2016. December 31, 2017, $600,000 2.1 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 1 1 . STOCKHOLDERS’ EQUITY Summary The following table summarizes changes in the components of stockholders ’ equity during the three December 31, 2017: Accumulated Additional Other Total Common Stock Paid-in Accumulated Comprehensive Stockholders' Shares Amount Capital Deficit Loss Equity Balances, September 30, 2017 32,158,436 $ 322 $ 87,956,839 $ (52,771,853 ) $ (1,269 ) $ 35,184,039 Share-based compensation expense - - 138,461 - - 138,461 Issuance of common stock upon exercise of stock options, net 90,852 - 159,518 159,518 Other comprehensive loss - - - - (8,031 ) (8,031 ) Net loss - - - (1,683,253 ) (1,683,253 ) Balances, December 31, 2017 32,249,288 $ 322 $ 88,254,818 $ (54,455,106 ) $ (9,300 ) $ 33,790,734 Share Buyback Program The Board of Directors approved a share buyback program in 2013 $4 no uring the quarters ended December 31, 2017 2016 December 31, 2017, December 2017, December 31, 2018. Dividends There were no declared in the three December 31, 2017 2016. |
Note 12 - Net Loss Per Share
Note 12 - Net Loss Per Share | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 1 2 . NET LOSS PER SHARE The following table sets forth the computation of basic and diluted loss per share: Three months ended December 31, 2017 2016 Numerator: Loss available to common stockholders $ (1,683,253 ) $ (812,680 ) Denominator: Weighted average common shares outstanding 32,236,039 31,800,103 Basic loss per common share $ (0.05 ) $ (0.03 ) Diluted loss per common share $ (0.05 ) $ (0.03 ) Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 3,289,067 4,849,002 |
Note 13 - Major Customers
Note 13 - Major Customers | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 1 3 . MAJOR CUSTOMERS For the three December 31, 2017, two 31% 26% no 10% December 31, 2017, one 42% no 10% For the three December 31, 2016, one 11% no 10% December 31, 2016, two 40% 19% no 10% The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer ’s delivery location. Three months ended December 31, 2017 2016 Americas $ 6,053,038 $ 1,622,357 Asia Pacific 1,021,906 984,600 Europe, Middle East and Africa 553,623 334,377 Total Revenues $ 7,628,567 $ 2,941,334 |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 3 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 4 . SUBSEQUENT EVENTS On January 18, 2018, acquired all of the issued and outstanding shares of capital stock of Genasys Holdings, S.L. and its subsidiaries (“Genasys”), pursuant to a Stock Purchase Agreement, dated January 18, 2018. 3.1 $3.8 1.2 $1.5 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
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 X not September 30, 2017 10 December 13, 2017. September 30, 2017 September 30, 2017 10 not |
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, No. 2016 09, Compensation – Stock Compensation (Topic 718 no first 2018. $1.1 not In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016 02, Leases (Topic 842 12 October 1, 2019. In May 2014, the FASB issued ASU No. 2014 09, Revenue from Contracts with Customers 2014 09” 2014 09 In July 2015, one October 1, 2018. |
Note 4 - Fair Value Measureme22
Note 4 - Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | December 31, 2017 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 531,566 $ - $ 531,566 $ 531,566 $ - $ - Level 2: Certificates of deposit $ 936,801 $ - $ 936,801 $ - $ 437,801 $ 499,000 Municipal securities 86,186 (198 ) 85,988 - 85,988 - Corporate bonds 3,594,227 (9,102 ) 3,585,125 - 3,078,465 506,660 Subtotal 4,617,214 (9,300 ) 4,607,914 - 3,602,254 1,005,660 Total $ 5,148,780 $ (9,300 ) $ 5,139,480 $ 531,566 $ 3,602,254 $ 1,005,660 September 30, 2017 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 55,257 $ - $ 55,257 $ 55,257 $ - $ - Level 2: Certificates of deposit 2,436,647 - 2,436,647 - 1,937,647 499,000 Municipal securities 25,315 (12 ) 25,303 - 25,303 - Corporate bonds 2,609,973 (1,257 ) 2,608,716 - 2,396,592 212,124 Subtotal 5,071,935 (1,269 ) 5,070,666 - 4,359,542 711,124 Total $ 5,127,192 $ (1,269 ) $ 5,125,923 $ 55,257 $ 4,359,542 $ 711,124 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, September 30, 2017 2017 Raw materials $ 4,619,587 $ 3,784,935 Finished goods 900,645 1,742,960 Work in process 198,535 147,871 Inventories, gross 5,718,767 5,675,766 Reserve for obsolescence (458,833 ) (418,532 ) Inventories, net $ 5,259,934 $ 5,257,234 |
Note 6 - Property and Equipme24
Note 6 - Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, September 30, 2017 2017 Office furniture and equipment $ 1,097,619 $ 1,093,502 Machinery and equipment 1,044,206 994,157 Leasehold improvements 76,138 76,138 Property and equipment, gross 2,217,963 2,163,797 Accumulated depreciation (1,712,494 ) (1,654,194 ) Property and equipment, net $ 505,469 $ 509,603 |
Depreciation Expense [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Three months ended December 31, 2017 2016 Depreciation expense $ 58,301 $ 30,684 |
Note 7 - Accrued Liabilities (T
Note 7 - Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 31, September 30, 2017 2017 Payroll and related $ 847,042 $ 1,870,579 Deferred revenue 446,913 268,580 Accrued contract costs 345,551 197,034 Warranty reserve 188,308 179,101 Deferred rent 30,734 46,101 Total $ 1,858,548 $ 2,561,395 |
Schedule of Product Warranty Liability [Table Text Block] | Three months ended December 31 2017 2016 Beginning balance $ 179,101 $ 356,984 Warranty provision 12,361 9,696 Warranty settlements (3,154 ) (12,742 ) Ending balance $ 188,308 $ 353,938 |
Note 10 - Share-based Compens26
Note 10 - Share-based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Average of Shares Exercise Price Outstanding October 1, 2017 4,663,502 $ 2.16 Granted 3,500 $ 2.21 Forfeited/expired (80,833 ) $ 2.84 Exercised (90,852 ) $ 1.76 Outstanding December 31, 2017 4,495,317 $ 2.15 Exercisable December 31, 2017 3,251,811 $ 2.24 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three months ended December 31, 2017 2016 Cost of revenues $ 6,209 $ 5,877 Selling, general and administrative 109,322 435,497 Research and development 22,930 23,375 Total $ 138,461 $ 464,749 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended December 31, 2017 2016 Volatility 45.4% 52.4% - 53.7% Risk-free interest rate 2.2% 1.7% - 2.0% Forfeiture rate 10.0% 10. 0% Dividend yield 0.0% 0. 0% Expected life in years 4.6 3.8 - 4.6 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
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, 2017 32,158,436 $ 322 $ 87,956,839 $ (52,771,853 ) $ (1,269 ) $ 35,184,039 Share-based compensation expense - - 138,461 - - 138,461 Issuance of common stock upon exercise of stock options, net 90,852 - 159,518 159,518 Other comprehensive loss - - - - (8,031 ) (8,031 ) Net loss - - - (1,683,253 ) (1,683,253 ) Balances, December 31, 2017 32,249,288 $ 322 $ 88,254,818 $ (54,455,106 ) $ (9,300 ) $ 33,790,734 |
Note 12 - Net Loss Per Share (T
Note 12 - Net Loss Per Share (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended December 31, 2017 2016 Numerator: Loss available to common stockholders $ (1,683,253 ) $ (812,680 ) Denominator: Weighted average common shares outstanding 32,236,039 31,800,103 Basic loss per common share $ (0.05 ) $ (0.03 ) Diluted loss per common share $ (0.05 ) $ (0.03 ) Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 3,289,067 4,849,002 |
Note 13 - Major Customers (Tabl
Note 13 - Major Customers (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three months ended December 31, 2017 2016 Americas $ 6,053,038 $ 1,622,357 Asia Pacific 1,021,906 984,600 Europe, Middle East and Africa 553,623 334,377 Total Revenues $ 7,628,567 $ 2,941,334 |
Note 3 - Recent Accounting Pr30
Note 3 - Recent Accounting Pronouncements (Details Textual) - Accounting Standards Update 2016-09 [Member] $ in Millions | Dec. 31, 2017USD ($) |
Deferred Tax Assets, Gross | $ 1.1 |
Deferred Tax Assets, Valuation Allowance | $ 1.1 |
Note 4 - Fair Value Measureme31
Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value, Inputs, Level 3 [Member] | ||
Marketable Securities | $ 0 | $ 0 |
Note 4 - Fair Value Measureme32
Note 4 - Fair Value Measurements - Fair Value by Major Security Type (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Short-term marketable securities | $ 3,602,254 | $ 4,359,542 |
Long-term marketable securities | 1,005,660 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | 5,148,780 | 5,127,192 |
Unrealized Gains (Losses) | (9,300) | (1,269) |
Fair Value | 5,139,480 | 5,125,923 |
Cash Equivalents | 531,566 | 55,257 |
Short-term marketable securities | 3,602,254 | 4,359,542 |
Long-term marketable securities | 1,005,660 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cost Basis | 531,566 | 55,257 |
Unrealized Gains (Losses) | ||
Fair Value | 531,566 | 55,257 |
Cash Equivalents | 531,566 | 55,257 |
Short-term marketable securities | ||
Long-term marketable securities | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cost Basis | 4,617,214 | 5,071,935 |
Unrealized Gains (Losses) | (9,300) | (1,269) |
Fair Value | 4,607,914 | 5,070,666 |
Cash Equivalents | ||
Short-term marketable securities | 3,602,254 | 4,359,542 |
Long-term marketable securities | 1,005,660 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Cost Basis | 936,801 | 2,436,647 |
Unrealized Gains (Losses) | ||
Fair Value | 936,801 | 2,436,647 |
Cash Equivalents | ||
Short-term marketable securities | 437,801 | 1,937,647 |
Long-term marketable securities | 499,000 | 499,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Cost Basis | 86,186 | 25,315 |
Unrealized Gains (Losses) | (198) | (12) |
Fair Value | 85,988 | 25,303 |
Cash Equivalents | ||
Short-term marketable securities | 85,988 | 25,303 |
Long-term marketable securities | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Cost Basis | 3,594,227 | 2,609,973 |
Unrealized Gains (Losses) | (9,102) | (1,257) |
Fair Value | 3,585,125 | 2,608,716 |
Cash Equivalents | ||
Short-term marketable securities | 3,078,465 | 2,396,592 |
Long-term marketable securities | $ 506,660 | $ 212,124 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Raw materials | $ 4,619,587 | $ 3,784,935 |
Finished goods | 900,645 | 1,742,960 |
Work in process | 198,535 | 147,871 |
Inventories, gross | 5,718,767 | 5,675,766 |
Reserve for obsolescence | (458,833) | (418,532) |
Inventories, net | $ 5,259,934 | $ 5,257,234 |
Note 6 - Property and Equipme34
Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Property and equipment | $ 2,217,963 | $ 2,163,797 |
Accumulated depreciation | (1,712,494) | (1,654,194) |
Property and equipment, net | 505,469 | 509,603 |
Furniture and Fixtures [Member] | ||
Property and equipment | 1,097,619 | 1,093,502 |
Machinery and Equipment [Member] | ||
Property and equipment | 1,044,206 | 994,157 |
Leasehold Improvements [Member] | ||
Property and equipment | $ 76,138 | $ 76,138 |
Note 6 - Property and Equipme35
Note 6 - Property and Equipment - Property and Equipment, Depreciation Expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Depreciation expense | $ 58,301 | $ 30,684 |
Note 7 - Accrued Liabilities -
Note 7 - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Payroll and related | $ 847,042 | $ 1,870,579 |
Deferred revenue | 446,913 | 268,580 |
Accrued contract costs | 345,551 | 197,034 |
Warranty reserve | 188,308 | 179,101 |
Deferred rent | 30,734 | 46,101 |
Total | $ 1,858,548 | $ 2,561,395 |
Note 7 - Accrued Liabilities 37
Note 7 - Accrued Liabilities - Changes in Warranty Reserve (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ 179,101 | $ 356,984 |
Warranty provision | 12,361 | 9,696 |
Warranty settlements | (3,154) | (12,742) |
Ending balance | $ 188,308 | $ 353,938 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 2,474,000 | ||
Income Tax Expense (Benefit), Excluding Adjustment of Deferred Tax (Asset) Liability | $ 234,888 | ||
Effective Income Tax Rate Reconciliation, Percent | 22.90% | 37.40% | |
Income Tax Expense (Benefit) | $ 2,708,888 | $ (486,528) | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | ||
Scenario, Forecast [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 9 - Commitments and Cont39
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Target Bonus Amounts of Percentage of Employee Base Salary, Minimum | 25.00% | |
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 | $ 405,267 | $ 185,086 |
Note 10 - Share-based Compens40
Note 10 - Share-based Compensation (Details Textual) - USD ($) | Mar. 14, 2017 | Aug. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,495,317 | 4,663,502 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.15 | $ 2.16 | |||
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 | $ 1,780,084 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 1,368,424 | ||||
Allocated Share-based Compensation Expense | 138,461 | $ 464,749 | |||
Share-based Compensation | $ 138,461 | $ 464,749 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.89 | $ 0.71 | |||
Dividends | $ 0 | $ 0 | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 0 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 600,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 36 days | ||||
Employee Stock Option [Member] | |||||
Allocated Share-based Compensation Expense | $ 307,324 | ||||
Performance Shares [Member] | Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 750,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Performance Criteria, Maximum Vested Per Year, Number | 375,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 187,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 0.81 | ||||
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 | 25,000 | |||
Share-based Compensation | $ 197,500 | ||||
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 | 2,279,315 | ||||
2005 Equity Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,216,002 |
Note 10 - Share-based Compens41
Note 10 - Share-based Compensation - Stock Option Activity (Details) | 3 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Shares Outstanding, Beginning Balance (in shares) | shares | 4,663,502 |
Weighted Average Exercise Price, Shares Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 2.16 |
Number of Shares Granted (in shares) | shares | 3,500 |
Weighted Average Exercise Price, Shares Granted (in dollars per share) | $ / shares | $ 2.21 |
Number of Shares Forfeited/expired (in shares) | shares | (80,833) |
Weighted Average Exercise Price, Shares Forfeited/expired (in dollars per share) | $ / shares | $ 2.84 |
Number of Shares Exercised (in shares) | shares | (90,852) |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ / shares | $ 1.76 |
Number of Shares Outstanding, Ending Balance (in shares) | shares | 4,495,317 |
Weighted Average Exercise Price, Shares Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 2.15 |
Number of Shares Exercisable (in shares) | shares | 3,251,811 |
Weighted Average Exercise Price, Shares Exercisable (in dollars per share) | $ / shares | $ 2.24 |
Note 10 - Share-based Compens42
Note 10 - Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allocated Share-based Compensation Expense | $ 138,461 | $ 464,749 |
Cost of Sales [Member] | ||
Allocated Share-based Compensation Expense | 6,209 | 5,877 |
Selling, General and Administrative Expenses [Member] | ||
Allocated Share-based Compensation Expense | 109,322 | 435,497 |
Research and Development Expense [Member] | ||
Allocated Share-based Compensation Expense | $ 22,930 | $ 23,375 |
Note 10 - Share-based Compens43
Note 10 - Share-based Compensation - Weighted-average Assumptions (Details) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Volatility | 45.40% | |
Risk-free interest rate | 2.20% | |
Forfeiture rate | 10.00% | 10.00% |
Dividend yield | 0.00% | 0.00% |
Expected life in years (Year) | 4 years 219 days | |
Minimum [Member] | ||
Volatility | 52.40% | |
Risk-free interest rate | 1.70% | |
Expected life in years (Year) | 3 years 292 days | |
Maximum [Member] | ||
Volatility | 53.70% | |
Risk-free interest rate | 2.00% | |
Expected life in years (Year) | 4 years 219 days |
Note 11 - Stockholders' Equit44
Note 11 - Stockholders' Equity (Details Textual) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Common Stock, Dividends, Per Share, Declared | $ 0 | $ 0 |
Share Buyback Program [Member] | ||
Stock Repurchase Program, Authorized Amount | $ 4 | |
Stock Repurchased and Retired During Period, Shares | 0 | 0 |
Note 11 - Stockholders' Equit45
Note 11 - Stockholders' Equity - Summary of Changes in Stockholders' Equity (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balances | $ 35,184,039 | |
Share-based compensation expense | $ 138,461 | |
Issuance of common stock upon exercise of stock options, net (in shares) | 90,852 | |
Issuance of common stock upon exercise of stock options, net | $ 159,518 | |
Other comprehensive loss | (8,031) | $ (6,310) |
Net loss | (1,683,253) | $ (812,680) |
Balances | $ 33,790,734 | |
Common Stock [Member] | ||
Balances (in shares) | 32,158,436 | |
Balances | $ 322 | |
Issuance of common stock upon exercise of stock options, net (in shares) | 90,852 | |
Balances (in shares) | 32,249,288 | |
Balances | $ 322 | |
Additional Paid-in Capital [Member] | ||
Balances | 87,956,839 | |
Share-based compensation expense | 138,461 | |
Issuance of common stock upon exercise of stock options, net | 159,518 | |
Balances | 88,254,818 | |
Retained Earnings [Member] | ||
Balances | (52,771,853) | |
Net loss | (1,683,253) | |
Balances | (54,455,106) | |
AOCI Attributable to Parent [Member] | ||
Balances | (1,269) | |
Other comprehensive loss | (8,031) | |
Balances | $ (9,300) |
Note 12 - Net Loss Per Share -
Note 12 - Net Loss Per Share - Basic and Diluted Loss Per Share (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | ||
Loss available to common stockholders | $ (1,683,253) | $ (812,680) |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 32,236,039 | 31,800,103 |
Basic loss per common share (in dollars per share) | $ (0.05) | $ (0.03) |
Diluted loss per common share (in dollars per share) | $ (0.05) | $ (0.03) |
Employee Stock Option [Member] | ||
Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: | ||
Options (in shares) | 3,289,067 | 4,849,002 |
Note 13 - Major Customers (Deta
Note 13 - Major Customers (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Sales Revenue, Net [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 31.00% | 11.00% |
Sales Revenue, Net [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 26.00% | |
Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Accounts Receivable [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 42.00% | 40.00% |
Accounts Receivable [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 19.00% |
Note 13 - Major Customers - Sch
Note 13 - Major Customers - Schedule of Major Customers (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 7,628,567 | $ 2,941,334 |
Americas [Member] | ||
Revenues | 6,053,038 | 1,622,357 |
EMEA [Member] | ||
Revenues | 1,021,906 | 984,600 |
Asia Pacific [Member] | ||
Revenues | $ 553,623 | $ 334,377 |
Note 14 - Subsequent Events (De
Note 14 - Subsequent Events (Details Textual) - Jan. 18, 2018 - Subsequent Event [Member] - Genasys Acquisition [Member] € in Millions, $ in Millions | USD ($) | EUR (€) |
Business Combination, Consideration Transferred | $ 3.8 | € 3.1 |
Business Combination, Consideration Transferred, Liabilities Incurred | $ 1.5 | € 1.2 |