Genasys (GNSS) 10-Q 9 Feb 18 2018 Q1 Quarterly report Financial data

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