Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2018 | May 11, 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) | 32,394,288 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 12,732,882 | $ 12,764,421 |
Short-term marketable securities | 4,063,109 | 4,359,542 |
Restricted cash | 363,745 | 39,466 |
Accounts receivable, net | 5,718,396 | 5,681,882 |
Inventories, net | 5,443,342 | 5,257,234 |
Prepaid expenses and other | 845,831 | 983,322 |
Total current assets | 29,167,305 | 29,085,867 |
Long-term marketable securities | 991,178 | 711,124 |
Deferred tax assets, net | 5,463,661 | 8,331,000 |
Long-term restricted cash | 104,146 | |
Property and equipment, net | 483,467 | 509,603 |
Goodwill | 2,603,687 | |
Intangible assets, net | 1,833,847 | 55,689 |
Other assets | 242,196 | 164,517 |
Total assets | 40,889,487 | 38,857,800 |
Current liabilities: | ||
Accounts payable | 1,890,427 | 1,112,366 |
Accrued liabilities | 3,414,362 | 2,561,395 |
Notes payable, current portion | 896,317 | |
Total current liabilities | 6,201,106 | 3,673,761 |
Notes payable, less current portion | 269,231 | |
Total liabilities | 6,470,337 | 3,673,761 |
Commitments and contingencies (Note 12) | ||
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; 32,394,288 and 32,158,436 shares issued and outstanding, respectively | 322 | 322 |
Additional paid-in capital | 88,426,807 | 87,956,839 |
Accumulated deficit | (53,994,197) | (52,771,853) |
Accumulated other comprehensive loss | (13,782) | (1,269) |
Total stockholders' equity | 34,419,150 | 35,184,039 |
Total liabilities and stockholders' equity | $ 40,889,487 | $ 38,857,800 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2018 | 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) | 32,394,288 | 32,158,436 |
Common stock, outstanding (in shares) | 32,394,288 | 32,158,436 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||||
Revenues | $ 7,868,448 | $ 5,742,391 | $ 15,497,015 | $ 8,683,726 |
Cost of revenues | 3,832,468 | 2,808,546 | 7,503,494 | 4,525,370 |
Gross profit | 4,035,980 | 2,933,845 | 7,993,521 | 4,158,356 |
Operating expenses: | ||||
Selling, general and administrative | 2,517,891 | 1,893,045 | 4,706,289 | 3,859,480 |
Research and development | 913,935 | 605,239 | 1,691,972 | 1,192,650 |
Total operating expenses | 3,431,826 | 2,498,284 | 6,398,261 | 5,052,130 |
Income (loss) from operations | 604,154 | 435,561 | 1,595,260 | (893,774) |
Other income | 15,205 | 32,074 | 49,735 | 62,202 |
Income (loss) before income taxes | 619,359 | 467,635 | 1,644,995 | (831,572) |
Income tax expense (benefit) | 158,451 | 169,285 | 2,867,339 | (317,243) |
Net income (loss) | $ 460,908 | $ 298,350 | $ (1,222,344) | $ (514,329) |
Net income (loss) per common share - basic and diluted (in dollars per share) | $ 0.01 | $ 0.01 | $ (0.04) | $ (0.02) |
Weighted average common shares outstanding: - basic and diluted | ||||
Basic (in shares) | 32,275,647 | 31,800,103 | 32,212,286 | 31,800,103 |
Diluted (in shares) | 33,299,206 | 31,863,902 | 32,212,286 | 31,800,103 |
Product [Member] | ||||
Revenues: | ||||
Revenues | $ 7,125,258 | $ 5,471,613 | $ 14,461,283 | $ 8,173,572 |
Service [Member] | ||||
Revenues: | ||||
Revenues | $ 743,190 | $ 270,778 | $ 1,035,732 | $ 510,154 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ 460,908 | $ 298,350 | $ (1,222,344) | $ (514,329) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on marketable securities, net of tax | (8,837) | 4,332 | (16,868) | (1,978) |
Unrealized foreign currency gain, net of tax | 4,355 | 4,355 | ||
Comprehensive income (loss) | $ 456,426 | $ 302,682 | $ (1,234,857) | $ (516,307) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net (loss) | $ (1,222,344) | $ (514,329) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 193,809 | 62,834 |
Warranty provision | 12,361 | 111,369 |
Inventory obsolescence | 85,435 | (181,486) |
Share-based compensation | 284,250 | 642,151 |
Deferred income taxes | 2,867,339 | (317,243) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 389,434 | 168,183 |
Inventories, net | (271,543) | (174,720) |
Prepaid expenses and other | 174,589 | (101,304) |
Other assets | (60,614) | 133,188 |
Accounts payable | 502,933 | 707,549 |
Accrued and other liabilities | (56,313) | 521,375 |
Net cash provided by operating activities | 2,899,336 | 1,057,567 |
Investing Activities: | ||
Purchases of marketable securities | (2,402,346) | (1,773,530) |
Proceeds from maturities of marketable securities | 2,401,856 | 1,874,823 |
Capital expenditures | (90,135) | (57,473) |
Patent costs paid | (4,286) | |
Purchase of Genasys, net of cash and restricted cash acquired | (2,246,545) | |
Net cash (used in) provided by investing activities | (2,337,170) | 39,534 |
Financing Activities: | ||
Proceeds from exercise of stock options | 185,718 | |
Proceeds from issuance of unsecured promissory notes | 63,144 | |
Payments on unsecured promissory notes | (414,477) | |
Net cash used in financing activities | (165,615) | |
Effect of foreign exchange rate on cash | 335 | |
Net increase in cash, cash equivalents and restricted cash | 396,886 | 1,097,101 |
Cash, cash equivalents and restricted cash, beginning of period | 12,803,887 | 13,466,711 |
Cash, cash equivalents and restricted cash, end of period | 13,200,773 | 14,563,812 |
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets: | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | 12,803,887 | 13,466,711 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 9,186 | |
Noncash investing and financing activities: | ||
Change in unrealized loss on marketable securities | (16,868) | (1,978) |
Business combinations accounted for as a purchase: | ||
Fair value of assets acquired | 5,520,504 | |
Cash paid or payable | (3,011,439) | |
Liabilities assumed | $ 2,509,065 |
Note 1 - Operations
Note 1 - Operations | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. LRAD ® On January 18, 2018, January 18, 2018. 4 |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2018 | |
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 four two 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 | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. In November 2016, No. 2016 18, Statement of Cash Flows (Topic 230 2016 18" 230 2016 18 December 15, 2017, 2016 18 January 1, 2018. six March 31, 2018, 4. not In March 2016, No. 2016 09, Compensation – Stock Compensation (Topic 718 no first 2018. $1.1 not In February 2016, 2016 02, Leases (Topic 842 12 October 1, 2019. In May 2014, No. 2014 09, Revenue from Contracts with Customers 2014 09” 2014 09 July 2015, one October 1, 2018. |
Note 4 - Acquisitions
Note 4 - Acquisitions | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 4 . ACQUISITIONS On January 18, 2018, 16 The Company believes the combination of Genasys’ mass messaging solutions and software development capabilities will enable the Company to enhance existing product offerings through integrated mass messaging solutions as well as provide growth opportunities in new markets. Genasys’ operating results were included in the Company’s consolidated financial statements beginning January 18, 2018 $415,000 $25,000, March 31, 2018. The preliminary acquisition consideration consisted of the following: Cash paid $ 2,826,189 Acquisition escrow liability 185,250 Total consideration $ 3,011,439 As of March 31, 2018, three June 30, 2018. $237,345 March 31, 2018. $151,313 second 2018, $45,016 first 2018 $41,016 fourth 2017. Purchase Price Allocation and Other Items The determination of the purchase price allocation to specific assets acquired and liabilities assumed is preliminary as of March 31, 2018. Assets Acquired Cash and restricted cash acquired $ 579,644 Accounts receivable 426,940 Fixed assets 5,712 Intangible assets 1,850,000 Goodwill 2,603,688 Other assets 54,520 Total assets acquired 5,520,504 Liabilities assumed Accounts payable 275,653 Accrued expenses and other liabilities 315,817 Severance obligation 397,558 Debt 1,520,037 Total liabilities assumed 2,509,065 Net assets acquired $ 3,011,439 The estimated fair value of identifiable intangible assets acquired, and their estimated useful lives are as follows: Fair Value Useful Lives (in years) Technology $ 690,000 7 Customer relationships 660,000 7 Trade name portfolio 240,000 5 Non-compete agreements 260,000 3 $ 1,850,000 Identifiable intangible assets are amortized over their useful lives based upon a number of assumptions including the estimated period of economic benefit and utilization. The weighted average amortization period for identifiable intangible assets acquired is 6 The goodwill for Genasys is attributable to combining the mass messaging solutions and software development capabilities with existing LRAD products for enhanced offerings and the skill level of the acquired workforce. The Company will continue to analyze the transaction and refine its calculations, as appropriate during the measurement period, which could affect the value of goodwill. Goodwill from the Genasys acquisition will not Pro Forma Information The following table provides the unaudited pro forma results of operations for the three six March 31, 2018 2017, 2017. not not may Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Net revenues $ 8,042,879 $ 6,034,248 $ 16,222,894 $ 9,474,427 Net income 529,094 276,048 (1,081,478 ) (788,438 ) Basic and diluted earnings per share $ 0.02 $ 0.01 $ (0.03 ) $ (0.02 ) The following is a reconciliation of actual net revenue and net income to pro forma net revenue and net income: Three months ended March 31, 2018 2017 Net revenues Net income Net revenues Net income LRAD actual results $ 7,453,794 $ 384,516 $ 5,742,391 $ 298,350 Genasys actual results 589,085 89,727 291,857 79,067 Pro Forma adjustments - 54,851 - (101,369 ) Pro forma results $ 8,042,879 $ 529,094 $ 6,034,248 $ 276,048 Six months ended March 31, 2018 2017 Net revenues Net income Net revenues Net income LRAD actual results $ 15,082,361 $ (1,298,736 ) $ 8,683,726 $ (514,329 ) Genasys actual results 1,140,533 126,844 790,701 (172,740 ) Pro Forma adjustments - 90,414 - (101,369 ) Pro forma results $ 16,222,894 $ (1,081,478 ) $ 9,474,427 $ (788,438 ) The following table identifies the pro forma adjustments: Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Acquisition costs $ 151,313 $ - $ 196,329 $ - Depreciation and amortization costs (81,881 ) (163,762 ) (81,881 ) (163,762 ) Tax effect of adjustments (14,581 ) 62,393 (24,034 ) 62,393 Pro forma adjustmenst $ 54,851 $ (101,369 ) $ 90,414 $ (101,369 ) |
Note 5 - Goodwill and Intangibl
Note 5 - Goodwill and Intangible Assets | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. G OODWILL AND INTANGIBLE ASSETS During the three March 31, 2018, $1,850,000 $2,603,687 4. Identifiable intangible assets are amortized over their useful lives based upon a number of assumptions including the estimated period of economic benefit and utilization. The Company will assess the impairment of identifiable amortized intangible assets when events and circumstances indicate the carrying value of the assets might not The goodwill attributable to the acquisition of Genasys is due to combining the mass messaging solutions and software development capabilities with existing LRAD products for enhanced offerings and the skill level of the acquired workforce. The Company will continue to analyze the transaction and refine its calculations, as appropriate during the measurement period, which could affect the value of goodwill. Subsequent to the measurement period, the Company will periodically review goodwill for impairment in accordance with ASC Topic 350 I ntangibles – Goodwill and Other – Testing Indefinite-Lived Assets for Impairment The Company’s intangible assets consist of the following: March 31, 2018 September 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 690,000 $ (20,536 ) $ 669,464 $ - $ - $ - Customer relationships 660,000 (19,642 ) 640,358 - - - Trade name portfolio 240,000 (10,000 ) 230,000 - - - Non-compete agreements 260,000 (18,056 ) 241,944 - - - Patents 108,247 (56,166 ) 52,081 108,247 (52,558 ) 55,689 $ 1,958,247 $ (124,400 ) $ 1,833,847 $ 108,247 $ (52,558 ) $ 55,689 The amortization expense for the three March 31, 2018 2017 $70,038 $1,859, six March 31, 2018 2017 $71,842 $3,681, Estimated Future Amortization Expense Years Ended September 30, 2018 (April 1, 2018 through September 30, 2018) $ 166,689 2019 333,771 2020 333,448 2021 271,771 2022 246,363 Thereafter 481,805 Total estimated amortization expense $ 1,833,847 |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6. 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 March 31, 2018 September 30, 2017. 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 March 31, 2018 September 30, 2017. March 31, 2018 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 98,539 $ - $ 98,539 $ 98,539 $ - $ - Level 2: Certificates of deposit $ 936,952 $ - $ 936,952 $ - $ 437,952 $ 499,000 Municipal securities 85,626 (168 ) 85,459 - 85,459 - Corporate bonds 4,049,846 (17,970 ) 4,031,876 - 3,539,698 492,178 Subtotal 5,072,424 (18,138 ) 5,054,287 - 4,063,109 991,178 Total $ 5,170,963 $ (18,138 ) $ 5,152,826 $ 98,539 $ 4,063,109 $ 991,178 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 7 - Inventories
Note 7 - Inventories | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 7 . INVENTORIES Inventories consisted of the following: March 31, September 30, 2018 2017 Raw materials $ 5,135,966 $ 3,784,935 Finished goods 417,587 1,742,960 Work in process 393,756 147,871 Inventories, gross 5,947,309 5,675,766 Reserve for obsolescence (503,967 ) (418,532 ) Inventories, net $ 5,443,342 $ 5,257,234 |
Note 8 - Property and Equipment
Note 8 - Property and Equipment | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 8 . PROPERTY AND EQUIPMENT Property and equipment consisted of the following: March 31, September 30, 2018 2017 Office furniture and equipment $ 1,296,249 $ 1,093,502 Machinery and equipment 1,067,802 994,157 Leasehold improvements 76,138 76,138 Property and equipment, gross 2,440,189 2,163,797 Accumulated depreciation (1,956,722 ) (1,654,194 ) Property and equipment, net $ 483,467 $ 509,603 Six months ended March 31, 2018 2017 Depreciation expense $ 121,967 $ 59,153 |
Note 9 - Accrued Liabilities
Note 9 - Accrued Liabilities | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Current and Noncurrent Accrued Liabilities [Text Block] | 9. Accrued liabilities consisted of the following: March 31, September 30, 2018 2017 Payroll and related $ 1,214,039 $ 1,870,579 Deferred revenue 1,028,497 268,580 Accrued contract costs 474,068 197,034 Severance 327,937 - Acquisition escrow liability 185,250 - Warranty reserve 169,204 179,101 Deferred rent 15,367 46,101 Total $ 3,414,362 $ 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 Six months ended March 31, March 31, 2018 2017 2018 2017 Beginning balance $ 188,308 $ 353,938 $ 179,101 $ 356,984 Warranty provision - 101,673 12,361 111,369 Warranty settlements (19,104 ) (6,470 ) (22,258 ) (19,212 ) Ending balance $ 169,204 $ 449,141 $ 169,204 $ 449,141 Accrued contract costs The Company has contracted with a third March 26. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10 . INCOME TAXES The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. 35% 21% January 1, 2018. 118, not one 21%, $2,474,000 December 31, 2017. For the six March 31, 2018, $393,339 25.1% $2,474,000 six March 31, 2017, $317,243 38.1%. six March 31, 2018, 2017, Accounting Standards Codification (“ASC”) 740, Accounting for Uncertainty in Income Taxes may not not |
Note 11 - Debt
Note 11 - Debt | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11 . D EBT In connection with the acquisition of Genasys, as described in Note 4, March 31, 2018: Loans with Governmental Agencies (1) $ 847,215 Revolving Credit Facilities (2) 198,850 Term Loans (3) 119,483 Total debt 1,165,548 Less current portion (896,317 ) Total long-term debt $ 269,231 ( 1 Loans with governmental agencies represents debt granted by ministries within Spain and the European Union for the purpose of stimulating economic development and promoting research and development. Loans with governmental agencies as of March 31, 2018 Agency Due Date Interest Rate Principal Ministry of Industry, Tourism, and Commerce December 31, 2018 0.53% $ 73,865 a Ministry of Industry, Tourism, and Commerce December 31, 2019 0.51% 107,933 b Ministry of Industry, Tourism, and Commerce January 31, 2020 3.95% 94,634 c Ministry of Science and Innovation February 2, 2022 0.00% 74,136 Ministry of Science and Innovation February 2, 2024 0.00% 296,440 d Center for Development of Industrial Technology March 31, 2021 0.00% 94,306 European Union Agency for Network and Information Security October 28, 2018 2.95% 105,902 $ 847,215 a. This loan is secured by $26,113 March 31, 2018. b. This loan is secured by $40,373 25% March 31, 2018. c. This loan is secured by $63,774 35% March 31, 2018. d. This loan is secured by $296,440 66.6% March 31, 2018. 2018, 2018. March 31, 2018. ( 2 Revolving credit facilities were used by Genasys to meet short-term operating needs. Revolving credit facilities as of March 31, 2018 Description Interest Rate Principal Revolving Credit Facility A 3.50% $ 58,092 Revolving Credit Facility B 3.95% 60,811 Revolving Credit Facility C 3.00% 60,199 Other Revolving Credit Facilities 4.20% 19,748 $ 198,850 Borrowing under Revolving Credit Facilities A, B, and C are up to a maximum of €50,000 $61,600 three June 30, 2018. three June 30, 2018. ( 3 Term Loans as of March 31, 2018 Description Due Date Interest Rate Principal Term Loan A October 20, 2018 4.80% $ 12,681 Term Loan B May 27, 2019 Variable 18,549 Term Loan C June 20, 2019 4.29% 39,951 Term Loan D July 12, 2020 Variable 48,302 $ 119,483 Term Loan A 4.80% October 2018 3% 20 th Term Loan B May 2019 3.5%. no 27 th Term L oan C June 2019 no 20 th Term L oan D July 2020 0.5% 2.44% July 2018 2.44%. 12 th The following is a schedule of future annual payments as of March 31, 2018: April 2018-March 2019 $ 896,317 April 2019-March 2020 173,035 April 2020-March 2021 48,796 April 2021-March 2022 47,400 April 2022-March 2023 - Thereafter - Total $ 1,165,548 The Company has pledged $428,425 March 31, 2018. The Company recorded $9,815 three six March 31, 2018 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 1 2 . COMMITMENTS AND CONTINGENCIES Litigation The Company may no Bonus Plan The Company has incentive bonus plans for fiscal year 2018 25% 75% may three 50% 100% 200% 2018 six March 31, 2018 2017, $738,543 $379,080, Acquisition Escrow Liability In connection with the acquisition of Genasys the Company recorded an escrow liability of $185,250, 4. may not March 31, 2018. June 30, 2018. |
Note 13 - Share-based Compensat
Note 13 - Share-based Compensation | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 1 3 . SHARE-BASED COMPENSATION Equity Incentive Plans At March 31, 2018, two 2005 “2005 March 2015, 2015 “2015 December 6, 2016 March 14, 2017. 2015 5,000,000 March 31, 2018, 2,193,502 2,279,315 2005 2015 Stock Option Activity The following table summarizes information about stock option activity during the six March 31, 2018: Number Weighted Average of Shares Exercise Price Outstanding October 1, 2017 4,663,502 $ 2.16 Granted 3,500 $ 2.21 Forfeited/expired (83,333 ) $ 2.84 Exercised (110,852 ) $ 1.68 Outstanding March 31, 2018 4,472,817 $ 2.15 Exercisable March 31, 2018 3,298,533 $ 2.23 Options outstanding are exercisable at prices ranging from $0.93 $3.17 2018 2024 3.0 March 31, 2018 $1,242,236 $990,806, During the six March 31, 2017, $307,324 June 30, 2016 December 31, 2016 24 December 31, 2016 718 20 35. Performance-Based Stock Options On August 1, 2016, 750,000 seven 2019 2020 375,000 four The Company has made the assumption that the lowest performance target level for each of the years will be met, and therefore 187,500 $0.81 Restricted Stock Units During the quarter ended December 31, 2016, 25,000 2015 2017 20,000 2016 first 2016 May 17, 2017. 2015 2017 March 14, 2017, $197,500 May 17, 2017 On March 14, 2017, 25,000 first $197,500, March 14, 2018 On March 20, 2018, 25,000 first $278,750, March 20, 2019 93,330 three $210,176, three 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 Six months ended March 31, March 31, 2018 2017 2018 2017 Cost of revenues $ 5,047 $ 5,874 $ 11,256 $ 11,751 Selling, general and administrative 120,133 148,600 229,455 584,097 Research and development 20,609 22,928 43,539 46,303 Total $ 145,789 $ 177,402 $ 284,250 $ 642,151 The employee stock options granted in the six March 31, 2018 2017 $0.89 $0.71 Six months ended March 31, 2018 2017 Volatility 45.4% 47.5% - 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 six March 31, 2018 2017. As of March 31, 2018, $900,000 1.9 |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 1 4 . STOCKHOLDERS’ EQUITY Summary The following table summarizes changes in the components of stockholders’ equity during the six March 31, 2018: 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 - - 284,250 - - 284,250 Issuance of common stock upon exercise of stock options, net 110,852 - 185,718 185,718 Issuance of common stock upon vesting of restricted stock units 125,000 - - - - - Other comprehensive loss - - - - (12,513 ) (12,513 ) Net loss - - - (1,222,344 ) (1,222,344 ) Balances, March 31, 2018 32,394,288 $ 322 $ 88,426,807 $ (53,994,197 ) $ (13,782 ) $ 34,419,150 Share Buyback Program The Board of Directors approved a share buyback program in 2015 $4 no six March 31, 2018 2017 March 31, 2018, December 2017, December 31, 2018. March 31, 2018, $3.9 Dividends There were no six March 31, 2018 2017. |
Note 15 - Net Loss Per Share
Note 15 - Net Loss Per Share | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 1 5 . NET LOSS PER SHARE The following table sets forth the computation of basic and diluted loss per share: Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Numerator: Net income (loss) $ 460,908 $ 298,350 $ (1,222,344 ) $ (514,329 ) Denominator: Weighted average common shares outstanding - basic and diluted 32,275,647 31,800,103 32,212,286 31,800,103 Assumed exercise of dilutive options and warrants 1,023,559 63,799 - - Weighted average dilutive shares outstanding 33,299,206 31,863,902 32,212,286 31,800,103 Basic income (loss) per common share - basic and diluted $ 0.01 $ 0.01 $ (0.04 ) $ (0.02 ) Diluted income (loss) per common share $ 0.01 $ 0.01 $ (0.04 ) $ (0.02 ) Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 1,766,250 3,061,836 2,706,567 2,989,836 Restricted stock units 218,330 250,000 218,330 250,000 Total 1,984,580 3,311,836 2,924,897 3,239,836 |
Note 16 - Segment Information
Note 16 - Segment Information | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 16. EGMENT INFORMATION The Company is engaged in the design, development and commercialization of directed and multidirectional sound technologies, voice broadcast products and location-based mass messaging solutions for emergency warning and workforce management. The Company operates in two two not The following table presents the Company’s segment disclosures: Three Months Ended Six Months Ended March 31, 2018 March 31, 2018 Revenues from external customers LRAD $ 7,453,794 $ 15,082,361 Genasys 414,654 414,654 $ 7,868,448 $ 15,497,015 Intercompany revenues LRAD $ - $ - Genasys 89,818 89,818 $ 89,818 $ 89,818 Segment Operating Income LRAD $ 579,498 $ 1,570,604 Genasys 24,656 24,656 $ 604,154 $ 1,595,260 Other expenses: Depreciation and amortization expense LRAD $ (64,660 ) $ (124,765 ) Genasys (69,044 ) (69,044 ) $ (133,704 ) $ (193,809 ) Interest expense LRAD $ - $ - Genasys (9,815 ) (9,815 ) $ (9,815 ) $ (9,815 ) Income tax expense LRAD $ (158,451 ) $ (2,867,339 ) Genasys - - $ (158,451 ) $ (2,867,339 ) March 31, 2018 September 30, 2017 Long-lived assets: LRAD $ 527,872 $ 565,292 Genasys 4,393,129 - Total $ 4,921,001 $ 565,292 Total Assets LRAD $ 35,471,343 $ 38,857,800 Genasys 5,418,144 - Total $ 40,889,487 $ 38,857,800 |
Note 17 - Major Customers
Note 17 - Major Customers | 6 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 1 7 . MAJOR CUSTOMERS For the three March 31, 2018, three 40%, 15% 14% six March 31, 2018 two 33% 16% no 10% March 31, 2018, one 56% no 10% For the three March 31, 2017, two 23% 11% six March 31, 2017 two 15% 10% no 10% March 31, 2017, three 41%, 24% 14% no 10% The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location. Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Americas $ 5,051,072 $ 2,099,151 $ 11,104,110 $ 3,721,509 Asia Pacific 2,255,856 2,923,825 3,277,762 3,908,425 Europe, Middle East and Africa 561,520 719,415 1,115,143 1,053,792 Total Revenues $ 7,868,448 $ 5,742,391 $ 15,497,015 $ 8,683,726 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2018 | |
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 four two |
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 November 2016, No. 2016 18, Statement of Cash Flows (Topic 230 2016 18" 230 2016 18 December 15, 2017, 2016 18 January 1, 2018. six March 31, 2018, 4. not In March 2016, No. 2016 09, Compensation – Stock Compensation (Topic 718 no first 2018. $1.1 not In February 2016, 2016 02, Leases (Topic 842 12 October 1, 2019. In May 2014, No. 2014 09, Revenue from Contracts with Customers 2014 09” 2014 09 July 2015, one October 1, 2018. |
Note 4 - Acquisitions (Tables)
Note 4 - Acquisitions (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash paid $ 2,826,189 Acquisition escrow liability 185,250 Total consideration $ 3,011,439 Assets Acquired Cash and restricted cash acquired $ 579,644 Accounts receivable 426,940 Fixed assets 5,712 Intangible assets 1,850,000 Goodwill 2,603,688 Other assets 54,520 Total assets acquired 5,520,504 Liabilities assumed Accounts payable 275,653 Accrued expenses and other liabilities 315,817 Severance obligation 397,558 Debt 1,520,037 Total liabilities assumed 2,509,065 Net assets acquired $ 3,011,439 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Fair Value Useful Lives (in years) Technology $ 690,000 7 Customer relationships 660,000 7 Trade name portfolio 240,000 5 Non-compete agreements 260,000 3 $ 1,850,000 |
Business Acquisition, Pro Forma Information [Table Text Block] | Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Net revenues $ 8,042,879 $ 6,034,248 $ 16,222,894 $ 9,474,427 Net income 529,094 276,048 (1,081,478 ) (788,438 ) Basic and diluted earnings per share $ 0.02 $ 0.01 $ (0.03 ) $ (0.02 ) |
Business Acquisition, Reconciliation of Actual Net Revenue and Net Income to Pro Forma Net Revenue and Net Income [Table Text Block] | Three months ended March 31, 2018 2017 Net revenues Net income Net revenues Net income LRAD actual results $ 7,453,794 $ 384,516 $ 5,742,391 $ 298,350 Genasys actual results 589,085 89,727 291,857 79,067 Pro Forma adjustments - 54,851 - (101,369 ) Pro forma results $ 8,042,879 $ 529,094 $ 6,034,248 $ 276,048 Six months ended March 31, 2018 2017 Net revenues Net income Net revenues Net income LRAD actual results $ 15,082,361 $ (1,298,736 ) $ 8,683,726 $ (514,329 ) Genasys actual results 1,140,533 126,844 790,701 (172,740 ) Pro Forma adjustments - 90,414 - (101,369 ) Pro forma results $ 16,222,894 $ (1,081,478 ) $ 9,474,427 $ (788,438 ) |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Acquisition costs $ 151,313 $ - $ 196,329 $ - Depreciation and amortization costs (81,881 ) (163,762 ) (81,881 ) (163,762 ) Tax effect of adjustments (14,581 ) 62,393 (24,034 ) 62,393 Pro forma adjustmenst $ 54,851 $ (101,369 ) $ 90,414 $ (101,369 ) |
Note 5 - Goodwill and Intangi26
Note 5 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2018 September 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 690,000 $ (20,536 ) $ 669,464 $ - $ - $ - Customer relationships 660,000 (19,642 ) 640,358 - - - Trade name portfolio 240,000 (10,000 ) 230,000 - - - Non-compete agreements 260,000 (18,056 ) 241,944 - - - Patents 108,247 (56,166 ) 52,081 108,247 (52,558 ) 55,689 $ 1,958,247 $ (124,400 ) $ 1,833,847 $ 108,247 $ (52,558 ) $ 55,689 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated Future Amortization Expense Years Ended September 30, 2018 (April 1, 2018 through September 30, 2018) $ 166,689 2019 333,771 2020 333,448 2021 271,771 2022 246,363 Thereafter 481,805 Total estimated amortization expense $ 1,833,847 |
Note 6 - Fair Value Measureme27
Note 6 - Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | March 31, 2018 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 98,539 $ - $ 98,539 $ 98,539 $ - $ - Level 2: Certificates of deposit $ 936,952 $ - $ 936,952 $ - $ 437,952 $ 499,000 Municipal securities 85,626 (168 ) 85,459 - 85,459 - Corporate bonds 4,049,846 (17,970 ) 4,031,876 - 3,539,698 492,178 Subtotal 5,072,424 (18,138 ) 5,054,287 - 4,063,109 991,178 Total $ 5,170,963 $ (18,138 ) $ 5,152,826 $ 98,539 $ 4,063,109 $ 991,178 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 7 - Inventories (Tables)
Note 7 - Inventories (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, September 30, 2018 2017 Raw materials $ 5,135,966 $ 3,784,935 Finished goods 417,587 1,742,960 Work in process 393,756 147,871 Inventories, gross 5,947,309 5,675,766 Reserve for obsolescence (503,967 ) (418,532 ) Inventories, net $ 5,443,342 $ 5,257,234 |
Note 8 - Property and Equipme29
Note 8 - Property and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | March 31, September 30, 2018 2017 Office furniture and equipment $ 1,296,249 $ 1,093,502 Machinery and equipment 1,067,802 994,157 Leasehold improvements 76,138 76,138 Property and equipment, gross 2,440,189 2,163,797 Accumulated depreciation (1,956,722 ) (1,654,194 ) Property and equipment, net $ 483,467 $ 509,603 |
Depreciation Expense [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Six months ended March 31, 2018 2017 Depreciation expense $ 121,967 $ 59,153 |
Note 9 - Accrued Liabilities (T
Note 9 - Accrued Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | March 31, September 30, 2018 2017 Payroll and related $ 1,214,039 $ 1,870,579 Deferred revenue 1,028,497 268,580 Accrued contract costs 474,068 197,034 Severance 327,937 - Acquisition escrow liability 185,250 - Warranty reserve 169,204 179,101 Deferred rent 15,367 46,101 Total $ 3,414,362 $ 2,561,395 |
Schedule of Product Warranty Liability [Table Text Block] | Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Beginning balance $ 188,308 $ 353,938 $ 179,101 $ 356,984 Warranty provision - 101,673 12,361 111,369 Warranty settlements (19,104 ) (6,470 ) (22,258 ) (19,212 ) Ending balance $ 169,204 $ 449,141 $ 169,204 $ 449,141 |
Note 11 - Debt (Tables)
Note 11 - Debt (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | Loans with Governmental Agencies (1) $ 847,215 Revolving Credit Facilities (2) 198,850 Term Loans (3) 119,483 Total debt 1,165,548 Less current portion (896,317 ) Total long-term debt $ 269,231 |
Loans With Governmental Agencies [Table Text Block] | Agency Due Date Interest Rate Principal Ministry of Industry, Tourism, and Commerce December 31, 2018 0.53% $ 73,865 a Ministry of Industry, Tourism, and Commerce December 31, 2019 0.51% 107,933 b Ministry of Industry, Tourism, and Commerce January 31, 2020 3.95% 94,634 c Ministry of Science and Innovation February 2, 2022 0.00% 74,136 Ministry of Science and Innovation February 2, 2024 0.00% 296,440 d Center for Development of Industrial Technology March 31, 2021 0.00% 94,306 European Union Agency for Network and Information Security October 28, 2018 2.95% 105,902 $ 847,215 |
Schedule of Line of Credit Facilities [Table Text Block] | Description Interest Rate Principal Revolving Credit Facility A 3.50% $ 58,092 Revolving Credit Facility B 3.95% 60,811 Revolving Credit Facility C 3.00% 60,199 Other Revolving Credit Facilities 4.20% 19,748 $ 198,850 |
Term Loans [Table Text Block] | Description Due Date Interest Rate Principal Term Loan A October 20, 2018 4.80% $ 12,681 Term Loan B May 27, 2019 Variable 18,549 Term Loan C June 20, 2019 4.29% 39,951 Term Loan D July 12, 2020 Variable 48,302 $ 119,483 |
Schedule of Maturities of Long-term Debt [Table Text Block] | April 2018-March 2019 $ 896,317 April 2019-March 2020 173,035 April 2020-March 2021 48,796 April 2021-March 2022 47,400 April 2022-March 2023 - Thereafter - Total $ 1,165,548 |
Note 13 - Share-based Compens32
Note 13 - Share-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
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 (83,333 ) $ 2.84 Exercised (110,852 ) $ 1.68 Outstanding March 31, 2018 4,472,817 $ 2.15 Exercisable March 31, 2018 3,298,533 $ 2.23 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Cost of revenues $ 5,047 $ 5,874 $ 11,256 $ 11,751 Selling, general and administrative 120,133 148,600 229,455 584,097 Research and development 20,609 22,928 43,539 46,303 Total $ 145,789 $ 177,402 $ 284,250 $ 642,151 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six months ended March 31, 2018 2017 Volatility 45.4% 47.5% - 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 14 - Stockholders' Equity
Note 14 - Stockholders' Equity (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
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 - - 284,250 - - 284,250 Issuance of common stock upon exercise of stock options, net 110,852 - 185,718 185,718 Issuance of common stock upon vesting of restricted stock units 125,000 - - - - - Other comprehensive loss - - - - (12,513 ) (12,513 ) Net loss - - - (1,222,344 ) (1,222,344 ) Balances, March 31, 2018 32,394,288 $ 322 $ 88,426,807 $ (53,994,197 ) $ (13,782 ) $ 34,419,150 |
Note 15 - Net Loss Per Share (T
Note 15 - Net Loss Per Share (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Numerator: Net income (loss) $ 460,908 $ 298,350 $ (1,222,344 ) $ (514,329 ) Denominator: Weighted average common shares outstanding - basic and diluted 32,275,647 31,800,103 32,212,286 31,800,103 Assumed exercise of dilutive options and warrants 1,023,559 63,799 - - Weighted average dilutive shares outstanding 33,299,206 31,863,902 32,212,286 31,800,103 Basic income (loss) per common share - basic and diluted $ 0.01 $ 0.01 $ (0.04 ) $ (0.02 ) Diluted income (loss) per common share $ 0.01 $ 0.01 $ (0.04 ) $ (0.02 ) Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive: Options 1,766,250 3,061,836 2,706,567 2,989,836 Restricted stock units 218,330 250,000 218,330 250,000 Total 1,984,580 3,311,836 2,924,897 3,239,836 |
Note 16 - Segment Information (
Note 16 - Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended March 31, 2018 March 31, 2018 Revenues from external customers LRAD $ 7,453,794 $ 15,082,361 Genasys 414,654 414,654 $ 7,868,448 $ 15,497,015 Intercompany revenues LRAD $ - $ - Genasys 89,818 89,818 $ 89,818 $ 89,818 Segment Operating Income LRAD $ 579,498 $ 1,570,604 Genasys 24,656 24,656 $ 604,154 $ 1,595,260 Other expenses: Depreciation and amortization expense LRAD $ (64,660 ) $ (124,765 ) Genasys (69,044 ) (69,044 ) $ (133,704 ) $ (193,809 ) Interest expense LRAD $ - $ - Genasys (9,815 ) (9,815 ) $ (9,815 ) $ (9,815 ) Income tax expense LRAD $ (158,451 ) $ (2,867,339 ) Genasys - - $ (158,451 ) $ (2,867,339 ) March 31, 2018 September 30, 2017 Long-lived assets: LRAD $ 527,872 $ 565,292 Genasys 4,393,129 - Total $ 4,921,001 $ 565,292 Total Assets LRAD $ 35,471,343 $ 38,857,800 Genasys 5,418,144 - Total $ 40,889,487 $ 38,857,800 |
Note 17 - Major Customers (Tabl
Note 17 - Major Customers (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Americas $ 5,051,072 $ 2,099,151 $ 11,104,110 $ 3,721,509 Asia Pacific 2,255,856 2,923,825 3,277,762 3,908,425 Europe, Middle East and Africa 561,520 719,415 1,115,143 1,053,792 Total Revenues $ 7,868,448 $ 5,742,391 $ 15,497,015 $ 8,683,726 |
Note 2 - Basis of Presentatio37
Note 2 - Basis of Presentation and Significant Accounting Policies (Details Textual) | Mar. 31, 2018 |
Number of Wholly Owned Subsidiaries | 4 |
Number of Additional Inactive Subsidiaries | 2 |
Note 3 - Recent Accounting Pr38
Note 3 - Recent Accounting Pronouncements (Details Textual) - Accounting Standards Update 2016-09 [Member] $ in Millions | Jan. 01, 2018USD ($) |
Deferred Tax Assets, Valuation Allowance, Total | $ 1.1 |
Deferred Tax Assets, Gross, Total | $ 1.1 |
Note 4 - Acquisitions (Details
Note 4 - Acquisitions (Details Textual) | Jan. 18, 2018 | Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) |
Genasys Acquisition [Member] | ||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 415,000 | |||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 25,000 | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||||
Genasys Acquisition [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Business Combination, Acquisition Related Costs | $ 151,313 | $ 45,016 | $ 41,016 | $ 237,345 | ||
Genasys [Member] | ||||||
Entity Number of Employees | 16 | 16 | 16 |
Note 4 - Acquisitions - Prelimi
Note 4 - Acquisitions - Preliminary Acquisition Consideration (Details) - USD ($) | Jan. 18, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 |
Cash paid | $ 2,246,545 | |||
Goodwill | 2,603,687 | |||
Genasys Acquisition [Member] | ||||
Cash paid | $ 2,826,189 | |||
Acquisition escrow liability | 185,250 | |||
Total consideration | $ 3,011,439 | |||
Cash and restricted cash acquired | 579,644 | |||
Accounts receivable | 426,940 | |||
Fixed assets | 5,712 | |||
Intangible assets | 1,850,000 | |||
Goodwill | 2,603,688 | |||
Other assets | 54,520 | |||
Total assets acquired | 5,520,504 | |||
Accounts payable | 275,653 | |||
Accrued expenses and other liabilities | 315,817 | |||
Severance obligation | 397,558 | |||
Debt | 1,520,037 | |||
Total liabilities assumed | 2,509,065 | |||
Net assets acquired | $ 3,011,439 |
Note 4 - Acquisitions - Estimat
Note 4 - Acquisitions - Estimated Fair Value and Estimated Useful Lives of Identifiable Intangible Assets Acquired (Details) - Genasys Acquisition [Member] - USD ($) | Jan. 18, 2018 | Mar. 31, 2018 |
Intangible assets acquired, fair value | $ 1,850,000 | |
Intangible assets acquired, useful lives (Year) | 6 years | |
Technology-Based Intangible Assets [Member] | ||
Intangible assets acquired, fair value | $ 690,000 | |
Intangible assets acquired, useful lives (Year) | 7 years | |
Customer Relationships [Member] | ||
Intangible assets acquired, fair value | $ 660,000 | |
Intangible assets acquired, useful lives (Year) | 7 years | |
Trade Names [Member] | ||
Intangible assets acquired, fair value | $ 240,000 | |
Intangible assets acquired, useful lives (Year) | 5 years | |
Noncompete Agreements [Member] | ||
Intangible assets acquired, fair value | $ 260,000 | |
Intangible assets acquired, useful lives (Year) | 3 years |
Note 4 - Acquisitions - Unaudit
Note 4 - Acquisitions - Unaudited Pro Forma Results of Operations (Details) - Genasys Acquisition [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net revenues | $ 8,042,879 | $ 6,034,248 | $ 16,222,894 | $ 9,474,427 |
Net income | $ 529,094 | $ 276,048 | $ (1,081,478) | $ (788,438) |
Basic and diluted earnings per share (in dollars per share) | $ 0.02 | $ 0.01 | $ (0.03) | $ (0.02) |
Note 4 - Acquisitions - Reconci
Note 4 - Acquisitions - Reconciliation of Actual Net Revenue and Net Income to Pro Forma Net Revenue and Net Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Pro Forma adjustments, net income | $ 54,851 | $ (101,369) | $ 90,414 | $ (101,369) |
Genasys Acquisition [Member] | ||||
LRAD actual results, net revenues | 7,453,794 | 5,742,391 | 15,082,361 | 8,683,726 |
LRAD actual results, net income | 384,516 | 298,350 | (1,298,736) | (514,329) |
Genasys actual results, net revenues | 589,085 | 291,857 | 1,140,533 | 790,701 |
Genasys actual results, net income | 89,727 | 79,067 | 126,844 | (172,740) |
Pro Forma adjustments, net revenues | ||||
Pro Forma adjustments, net income | 54,851 | (101,369) | 90,414 | (101,369) |
Pro forma results, net revenues | 8,042,879 | 6,034,248 | 16,222,894 | 9,474,427 |
Pro forma results, net income | $ 529,094 | $ 276,048 | $ (1,081,478) | $ (788,438) |
Note 4 - Acquisitions - Summary
Note 4 - Acquisitions - Summary of Pro Forma Adjustments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Pro forma adjustments, net income | $ 54,851 | $ (101,369) | $ 90,414 | $ (101,369) |
Acquisition-related Costs [Member] | ||||
Pro forma adjustments, net income | 151,313 | 196,329 | ||
Depreciation and Amortization Costs [Member] | ||||
Pro forma adjustments, net income | (81,881) | (163,762) | (81,881) | (163,762) |
Tax Effect of Adjustments [Member] | ||||
Pro forma adjustments, net income | $ (14,581) | $ 62,393 | $ (24,034) | $ 62,393 |
Note 5 - Goodwill and Intangi45
Note 5 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Amortization of Intangible Assets, Total | $ 70,038 | $ 1,859 | $ 71,842 | $ 3,681 |
Genasys [Member] | ||||
Finite-lived Intangible Assets Acquired | 1,850,000 | |||
Goodwill, Acquired During Period | $ 2,603,687 |
Note 5 - Goodwill and Intangi46
Note 5 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Intangible assets, gross carrying amount | $ 1,958,247 | $ 108,247 |
Intangible assets, accumulated amortization | (124,400) | (52,558) |
Intangible assets, net | 1,833,847 | 55,689 |
Technology-Based Intangible Assets [Member] | ||
Intangible assets, gross carrying amount | 690,000 | |
Intangible assets, accumulated amortization | (20,536) | |
Intangible assets, net | 669,464 | |
Customer Relationships [Member] | ||
Intangible assets, gross carrying amount | 660,000 | |
Intangible assets, accumulated amortization | (19,642) | |
Intangible assets, net | 640,358 | |
Trade Names [Member] | ||
Intangible assets, gross carrying amount | 240,000 | |
Intangible assets, accumulated amortization | (10,000) | |
Intangible assets, net | 230,000 | |
Noncompete Agreements [Member] | ||
Intangible assets, gross carrying amount | 260,000 | |
Intangible assets, accumulated amortization | (18,056) | |
Intangible assets, net | 241,944 | |
Patents [Member] | ||
Intangible assets, gross carrying amount | 108,247 | 108,247 |
Intangible assets, accumulated amortization | (56,166) | (52,558) |
Intangible assets, net | $ 52,081 | $ 55,689 |
Note 5 - Goodwill and Intangi47
Note 5 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Mar. 31, 2018USD ($) |
2018 (April 1, 2018 through September 30, 2018) | $ 166,689 |
2,019 | 333,771 |
2,020 | 333,448 |
2,021 | 271,771 |
2,022 | 246,363 |
Thereafter | 481,805 |
Total estimated amortization expense | $ 1,833,847 |
Note 6 - Fair Value Measureme48
Note 6 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 30, 2017 |
Fair Value, Inputs, Level 3 [Member] | ||
Marketable Securities, Total | $ 0 | $ 0 |
Note 6 - Fair Value Measureme49
Note 6 - Fair Value Measurements - Fair Value by Major Security Type (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Short-term marketable securities | $ 4,063,109 | $ 4,359,542 |
Long-term marketable securities | 991,178 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | 5,170,963 | 5,127,192 |
Unrealized Gains (Losses) | (18,138) | (1,269) |
Fair Value | 5,152,826 | 5,125,923 |
Cash Equivalents | 98,539 | 55,257 |
Short-term marketable securities | 4,063,109 | 4,359,542 |
Long-term marketable securities | 991,178 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cost Basis | 98,539 | 55,257 |
Unrealized Gains (Losses) | ||
Fair Value | 98,539 | 55,257 |
Cash Equivalents | 98,539 | 55,257 |
Short-term marketable securities | ||
Long-term marketable securities | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cost Basis | 5,072,424 | 5,071,935 |
Unrealized Gains (Losses) | (18,138) | (1,269) |
Fair Value | 5,054,287 | 5,070,666 |
Cash Equivalents | ||
Short-term marketable securities | 4,063,109 | 4,359,542 |
Long-term marketable securities | 991,178 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Cost Basis | 936,952 | 2,436,647 |
Unrealized Gains (Losses) | ||
Fair Value | 936,952 | 2,436,647 |
Cash Equivalents | ||
Short-term marketable securities | 437,952 | 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 | 85,626 | 25,315 |
Unrealized Gains (Losses) | (168) | (12) |
Fair Value | 85,459 | 25,303 |
Cash Equivalents | ||
Short-term marketable securities | 85,459 | 25,303 |
Long-term marketable securities | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Cost Basis | 4,049,846 | 2,609,973 |
Unrealized Gains (Losses) | (17,970) | (1,257) |
Fair Value | 4,031,876 | 2,608,716 |
Cash Equivalents | ||
Short-term marketable securities | 3,539,698 | 2,396,592 |
Long-term marketable securities | $ 492,178 | $ 212,124 |
Note 7 - Inventories - Schedule
Note 7 - Inventories - Schedule of Inventory (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Raw materials | $ 5,135,966 | $ 3,784,935 |
Finished goods | 417,587 | 1,742,960 |
Work in process | 393,756 | 147,871 |
Inventories, gross | 5,947,309 | 5,675,766 |
Reserve for obsolescence | (503,967) | (418,532) |
Inventories, net | $ 5,443,342 | $ 5,257,234 |
Note 8 - Property and Equipme51
Note 8 - Property and Equipment - Property and Equipment (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Property and equipment | $ 2,440,189 | $ 2,163,797 |
Accumulated depreciation | (1,956,722) | (1,654,194) |
Property and equipment, net | 483,467 | 509,603 |
Furniture and Fixtures [Member] | ||
Property and equipment | 1,296,249 | 1,093,502 |
Machinery and Equipment [Member] | ||
Property and equipment | 1,067,802 | 994,157 |
Leasehold Improvements [Member] | ||
Property and equipment | $ 76,138 | $ 76,138 |
Note 8 - Property and Equipme52
Note 8 - Property and Equipment - Property and Equipment, Depreciation Expense (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Depreciation expense | $ 121,967 | $ 59,153 |
Note 9 - Accrued Liabilities -
Note 9 - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
Payroll and related | $ 1,214,039 | $ 1,870,579 |
Deferred revenue | 1,028,497 | 268,580 |
Accrued contract costs | 474,068 | 197,034 |
Severance | 327,937 | |
Business Combination, Contingent Consideration, Liability, Current | 185,250 | |
Warranty reserve | 169,204 | 179,101 |
Deferred rent | 15,367 | 46,101 |
Total | $ 3,414,362 | $ 2,561,395 |
Note 9 - Accrued Liabilities 54
Note 9 - Accrued Liabilities - Changes in Warranty Reserve (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Beginning balance | $ 188,308 | $ 353,938 | $ 179,101 | $ 356,984 |
Warranty provision | 101,673 | 12,361 | 111,369 | |
Warranty settlements | (19,104) | (6,470) | (22,258) | (19,212) |
Ending balance | $ 169,204 | $ 449,141 | $ 169,204 | $ 449,141 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | 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 | $ 393,339 | |||||
Effective Income Tax Rate Reconciliation, Percent, Total | 25.10% | 38.10% | ||||
Income Tax Expense (Benefit), Total | $ 158,451 | $ 169,285 | $ 2,867,339 | $ (317,243) | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | $ 0 | |||||
Scenario, Forecast [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 11 - Debt (Details Textual
Note 11 - Debt (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2018 | Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018 | Mar. 31, 2018EUR (€) | |
Term Loans [Member] | |||||
Interest Expense, Debt, Total | $ 9,815 | $ 9,815 | |||
Revolving Credit Facility A [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 61,600 | $ 61,600 | € 50,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% | ||
Term Loan A [Member] | Term Loans [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | 4.80% | 4.80% | ||
Debt Instrument, Prepayment Penalty, Percentage | 3.00% | 3.00% | 3.00% | ||
Term Loan B [Member] | Term Loans [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | |||||
Debt Instrument, Prepayment Penalty, Percentage | 0.00% | 0.00% | 0.00% | ||
Term Loan B [Member] | Term Loans [Member] | Euribor [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||
Term Loan C [Member] | Term Loans [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.29% | 4.29% | 4.29% | ||
Debt Instrument, Prepayment Penalty, Percentage | 0.00% | 0.00% | 0.00% | ||
Term Loan D [Member] | Term Loans [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | |||||
Term Loan D [Member] | Term Loan C [Member] | |||||
Debt Instrument, Prepayment Penalty, Percentage | 0.50% | 0.50% | 0.50% | ||
Term Loan D [Member] | Term Loan C [Member] | Scenario, Forecast [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.44% | ||||
Term Loan D [Member] | Term Loan C [Member] | Euribor [Member] | Scenario, Forecast [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.44% | ||||
Revolving Credit Facility B [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 61,600 | $ 61,600 | € 50,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | 3.95% | ||
Revolving Credit Facility C [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 61,600 | $ 61,600 | € 50,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | 3.00% | ||
Collateral Pledged [Member] | Term Loans [Member] | |||||
Restricted Cash, Total | $ 428,425 | $ 428,425 | |||
Collateral Pledged [Member] | Loan with Ministry of Industry, Tourism, and Commerce, Due December 31, 2018 [Member] | Genasys Acquisition [Member] | Loans With Governmental Agencies [Member] | |||||
Restricted Cash, Total | 26,113 | 26,113 | |||
Collateral Pledged [Member] | Loan with Ministry of Industry, Tourism, and Commerce, Due December 31, 2019 [Member] | Genasys Acquisition [Member] | Loans With Governmental Agencies [Member] | |||||
Restricted Cash, Total | $ 40,373 | $ 40,373 | |||
Cash Pledged as Collateral, Percentage of the Original Principal Received | 25.00% | 25.00% | 25.00% | ||
Collateral Pledged [Member] | Loan with Ministry of Industry, Tourism, and Commerce, Due January 31, 2020 [Member] | Genasys Acquisition [Member] | Loans With Governmental Agencies [Member] | |||||
Restricted Cash, Total | $ 63,774 | $ 63,774 | |||
Cash Pledged as Collateral, Percentage of the Original Principal Received | 35.00% | 35.00% | 35.00% | ||
Collateral Pledged [Member] | Loan with Ministry of Science and Innovation, Due February 2, 2024 [Member] | Genasys Acquisition [Member] | Loans With Governmental Agencies [Member] | |||||
Restricted Cash, Total | $ 296,440 | $ 296,440 | |||
Cash Pledged as Collateral, Percentage of the Original Principal Received | 66.60% | 66.60% | 66.60% |
Note 11 - Debt - Debt From Acqu
Note 11 - Debt - Debt From Acquisition (Details) | Mar. 31, 2018USD ($) | |
Debt | $ 1,165,548 | |
Debt | 1,165,548 | |
Revolving Credit Facility [Member] | ||
Revolving Credit Facilities (2) | 198,850 | |
Loans With Governmental Agencies [Member] | ||
Debt | 847,215 | |
Debt | 847,215 | |
Term Loans [Member] | ||
Debt | 119,483 | |
Debt | 119,483 | |
Genasys Acquisition [Member] | ||
Debt | 1,165,548 | |
Debt | 1,165,548 | |
Less current portion | (896,317) | |
Total long-term debt | 269,231 | |
Genasys Acquisition [Member] | Revolving Credit Facility [Member] | ||
Revolving Credit Facilities (2) | 198,850 | [1] |
Genasys Acquisition [Member] | Loans With Governmental Agencies [Member] | ||
Debt | 847,215 | [2] |
Debt | 847,215 | [2] |
Genasys Acquisition [Member] | Term Loans [Member] | ||
Debt | 119,483 | [3] |
Debt | $ 119,483 | [3] |
[1] | Revolving credit facilities were used by Genasys to meet short-term operating needs. Revolving credit facilities as of March 31, 2018 are as follows: | |
[2] | Loans with governmental agencies represents debt granted by ministries within Spain and the European Union for the purpose of stimulating economic development and promoting research and development. Loans with governmental agencies as of March 31, 2018 are as follows: | |
[3] | Term Loans as of March 31, 2018 are as follows: |
Note 11 - Debt - Loans With Gov
Note 11 - Debt - Loans With Governmental Agencies (Details) | 6 Months Ended | |
Mar. 31, 2018USD ($) | ||
Principal, loans with governmental agencies | $ 1,165,548 | |
Loans With Governmental Agencies [Member] | ||
Principal, loans with governmental agencies | $ 847,215 | |
Loans With Governmental Agencies [Member] | Ministry of Industry, Tourism, and Commerce, Debt, Due December 31, 2018 [Member] | ||
Due date, loans with governmental agencies | Dec. 31, 2018 | [1] |
Interest rate, loans with governmental agencies | 0.53% | [1] |
Principal, loans with governmental agencies | $ 73,865 | [1] |
Loans With Governmental Agencies [Member] | Ministry of Industry, Tourism, and Commerce, Debt, Due December 31, 2019 [Member] | ||
Due date, loans with governmental agencies | Dec. 31, 2019 | [2] |
Interest rate, loans with governmental agencies | 0.51% | [2] |
Principal, loans with governmental agencies | $ 107,933 | [2] |
Loans With Governmental Agencies [Member] | Ministry of Industry, Tourism, and Commerce, Debt, Due January 31, 2020 [Member] | ||
Due date, loans with governmental agencies | Jan. 31, 2020 | [3] |
Interest rate, loans with governmental agencies | 3.95% | [3] |
Principal, loans with governmental agencies | $ 94,634 | [3] |
Loans With Governmental Agencies [Member] | Ministry of Science and Innovation, Debt, Due February 2, 2022 [Member] | ||
Due date, loans with governmental agencies | Feb. 2, 2022 | |
Interest rate, loans with governmental agencies | 0.00% | |
Principal, loans with governmental agencies | $ 74,136 | |
Loans With Governmental Agencies [Member] | Ministry of Science and Innovation, Debt, Due February 2, 2024 [Member] | ||
Due date, loans with governmental agencies | Feb. 2, 2024 | [4] |
Interest rate, loans with governmental agencies | 0.00% | [4] |
Principal, loans with governmental agencies | $ 296,440 | [4] |
Loans With Governmental Agencies [Member] | Center for Development of Industrial Technology, Debt, Due March 31, 2021 [Member] | ||
Due date, loans with governmental agencies | Mar. 31, 2021 | |
Interest rate, loans with governmental agencies | 0.00% | |
Principal, loans with governmental agencies | $ 94,306 | |
Loans With Governmental Agencies [Member] | European Union Agency for Network and Information Security, Debt, Due October 28, 2018 [Member] | ||
Due date, loans with governmental agencies | Oct. 28, 2018 | |
Interest rate, loans with governmental agencies | 2.95% | |
Principal, loans with governmental agencies | $ 105,902 | |
[1] | This loan is secured by $26,113 of cash pledged as collateral by Genasys. This amount is included in restricted cash at March 31, 2018. The cash will be released upon repayment of the loan. | |
[2] | This loan is secured by $40,373 of cash pledged as collateral by Genasys, which represents 25% of the original principal received. This amount is included in restricted cash at March 31, 2018. The cash will be released upon repayment of the loan. | |
[3] | This loan is secured by $63,774 of cash pledged as collateral by Genasys, which represents 35% of the original principal received. This amount is included in restricted cash at March 31, 2018. The cash will be released upon repayment of the loan. | |
[4] | This loan is secured by $296,440 of cash pledged as collateral by Genasys, which is the current balance of the loan. This amount represents 66.6% of the original principal received. This amount is included in restricted cash at March 31, 2018. The Company expects the Ministry of Science and Innovation to declare the terms of the loan satisfied within fiscal year 2018, accordingly, this has been included in the current portion of notes payable as of March 31, 2018. |
Note 11 - Debt - Revolving Cred
Note 11 - Debt - Revolving Credit Facilities (Details) - Revolving Credit Facility [Member] | Mar. 31, 2018USD ($) |
Principal, credit facility | $ 198,850 |
Revolving Credit Facility A [Member] | |
Interest rate, loans with governmental agencies | 3.50% |
Principal, credit facility | $ 58,092 |
Revolving Credit Facility B [Member] | |
Interest rate, loans with governmental agencies | 3.95% |
Principal, credit facility | $ 60,811 |
Revolving Credit Facility C [Member] | |
Interest rate, loans with governmental agencies | 3.00% |
Principal, credit facility | $ 60,199 |
Other Revolving Credit Facilities [Member] | |
Interest rate, loans with governmental agencies | 4.20% |
Principal, credit facility | $ 19,748 |
Note 11 - Debt - Term Loans (De
Note 11 - Debt - Term Loans (Details) | 6 Months Ended |
Mar. 31, 2018USD ($) | |
Principal, loans with governmental agencies | $ 1,165,548 |
Term Loans [Member] | |
Principal, loans with governmental agencies | $ 119,483 |
Term Loans [Member] | Term Loan A [Member] | |
Due date, loans with governmental agencies | Oct. 20, 2018 |
Interest rate, loans with governmental agencies | 4.80% |
Principal, loans with governmental agencies | $ 12,681 |
Term Loans [Member] | Term Loan B [Member] | |
Due date, loans with governmental agencies | May 27, 2019 |
Interest rate, loans with governmental agencies | |
Principal, loans with governmental agencies | $ 18,549 |
Term Loans [Member] | Term Loan C [Member] | |
Due date, loans with governmental agencies | Jun. 20, 2019 |
Interest rate, loans with governmental agencies | 4.29% |
Principal, loans with governmental agencies | $ 39,951 |
Term Loans [Member] | Term Loan D [Member] | |
Due date, loans with governmental agencies | Jul. 12, 2020 |
Interest rate, loans with governmental agencies | |
Principal, loans with governmental agencies | $ 48,302 |
Note 11 - Debt - Future Annual
Note 11 - Debt - Future Annual Payments (Details) | Mar. 31, 2018USD ($) |
April 2018-March 2019 | $ 896,317 |
April 2019-March 2020 | 173,035 |
April 2020-March 2021 | 48,796 |
April 2021-March 2022 | 47,400 |
April 2022-March 2023 | |
Thereafter | |
Debt | $ 1,165,548 |
Note 12 - Commitments and Con62
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 18, 2018 | Sep. 30, 2017 | |
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% | |||
Business Combination, Contingent Consideration, Liability, Current | $ 185,250 | |||
Genasys [Member] | ||||
Business Combination, Contingent Consideration, Liability, Current | $ 185,250 | |||
Bonuses and Related Payroll Tax Expense [Member] | ||||
Increase (Decrease) in Other Employee-Related Liabilities | $ 738,543 | $ 379,080 |
Note 13 - Share-based Compens63
Note 13 - Share-based Compensation (Details Textual) - USD ($) | Mar. 20, 2018 | Mar. 14, 2017 | Aug. 01, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 4,472,817 | 4,472,817 | 4,663,502 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 2.15 | $ 2.15 | $ 2.16 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1,242,236 | $ 1,242,236 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 990,806 | 990,806 | |||||||
Allocated Share-based Compensation Expense, Total | 145,789 | $ 177,402 | 284,250 | $ 642,151 | |||||
Share-based Compensation, Total | $ 284,250 | $ 642,151 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.89 | $ 0.71 | |||||||
Dividends, Total | $ 0 | $ 0 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | 900,000 | $ 900,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 328 days | ||||||||
Employee Stock Option [Member] | |||||||||
Allocated Share-based Compensation Expense, Total | $ 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, Option, Nonvested, Weighted Average Exercise Price, Ending Balance | $ 0.81 | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation, Total | $ 210,176 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 93,330 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||
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 | 25,000 | ||||||
Share-based Compensation, Total | $ 278,750 | $ 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, Ending Balance | $ 0.93 | $ 0.93 | |||||||
Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 3.17 | $ 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, Ending Balance | 2,279,315 | 2,279,315 | |||||||
2005 Equity Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 2,193,502 | 2,193,502 |
Note 13 - Share-based Compens64
Note 13 - Share-based Compensation - Stock Option Activity (Details) | 6 Months Ended |
Mar. 31, 2018$ / 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 | (83,333) |
Weighted Average Exercise Price, Shares Forfeited/expired (in dollars per share) | $ / shares | $ 2.84 |
Number of Shares Exercised (in shares) | shares | (110,852) |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ / shares | $ 1.68 |
Number of Shares Outstanding, Ending Balance (in shares) | shares | 4,472,817 |
Weighted Average Exercise Price, Shares Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 2.15 |
Number of Shares Exercisable (in shares) | shares | 3,298,533 |
Weighted Average Exercise Price, Shares Exercisable (in dollars per share) | $ / shares | $ 2.23 |
Note 13 - Share-based Compens65
Note 13 - Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Allocated Share-based Compensation Expense, Total | $ 145,789 | $ 177,402 | $ 284,250 | $ 642,151 |
Cost of Sales [Member] | ||||
Allocated Share-based Compensation Expense, Total | 5,047 | 5,874 | 11,256 | 11,751 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated Share-based Compensation Expense, Total | 120,133 | 148,600 | 229,455 | 584,097 |
Research and Development Expense [Member] | ||||
Allocated Share-based Compensation Expense, Total | $ 20,609 | $ 22,928 | $ 43,539 | $ 46,303 |
Note 13 - Share-based Compens66
Note 13 - Share-based Compensation - Weighted-average Assumptions (Details) | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 47.50% | |
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 14 - Stockholders' Equit67
Note 14 - Stockholders' Equity (Details Textual) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Millions | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 30, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
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 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3.9 |
Note 14 - Stockholders' Equit68
Note 14 - Stockholders' Equity - Summary of Changes in Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Balances | $ 35,184,039 | |||
Share-based compensation expense | $ 284,250 | |||
Issuance of common stock upon exercise of stock options, net (in shares) | 110,852 | |||
Issuance of common stock upon exercise of stock options, net | $ 185,718 | |||
Issuance of common stock upon vesting of restricted stock units | ||||
Other comprehensive loss | (12,513) | |||
Net (loss) | $ 460,908 | $ 298,350 | (1,222,344) | $ (514,329) |
Balances | $ 34,419,150 | $ 34,419,150 | ||
Common Stock [Member] | ||||
Balances (in shares) | 32,158,436 | |||
Balances | $ 322 | |||
Issuance of common stock upon exercise of stock options, net (in shares) | 110,852 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 125,000 | |||
Issuance of common stock upon vesting of restricted stock units | ||||
Balances (in shares) | 32,394,288 | 32,394,288 | ||
Balances | $ 322 | $ 322 | ||
Additional Paid-in Capital [Member] | ||||
Balances | 87,956,839 | |||
Share-based compensation expense | 284,250 | |||
Issuance of common stock upon exercise of stock options, net | 185,718 | |||
Issuance of common stock upon vesting of restricted stock units | ||||
Balances | 88,426,807 | 88,426,807 | ||
Retained Earnings [Member] | ||||
Balances | (52,771,853) | |||
Issuance of common stock upon vesting of restricted stock units | ||||
Net (loss) | (1,222,344) | |||
Balances | (53,994,197) | (53,994,197) | ||
AOCI Attributable to Parent [Member] | ||||
Balances | (1,269) | |||
Issuance of common stock upon vesting of restricted stock units | ||||
Other comprehensive loss | (12,513) | |||
Balances | $ (13,782) | $ (13,782) |
Note 15 - Net Loss Per Share -
Note 15 - Net Loss Per Share - Basic and Diluted Loss Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||||
Net income (loss) | $ 460,908 | $ 298,350 | $ (1,222,344) | $ (514,329) |
Denominator: | ||||
Weighted average common shares outstanding - basic and diluted (in shares) | 32,275,647 | 31,800,103 | 32,212,286 | 31,800,103 |
Assumed exercise of dilutive options and warrants (in shares) | 1,023,559 | 63,799 | ||
Diluted (in shares) | 33,299,206 | 31,863,902 | 32,212,286 | 31,800,103 |
Net income (loss) per common share - basic and diluted (in dollars per share) | $ 0.01 | $ 0.01 | $ (0.04) | $ (0.02) |
Diluted income (loss) per common share (in dollars per share) | $ 0.01 | $ 0.01 | $ (0.04) | $ (0.02) |
Antidilutive securities (in shares) | 1,984,580 | 3,311,836 | 2,924,897 | 3,239,836 |
Employee Stock Option [Member] | ||||
Denominator: | ||||
Antidilutive securities (in shares) | 1,766,250 | 3,061,836 | 2,706,567 | 2,989,836 |
Restricted Stock Units (RSUs) [Member] | ||||
Denominator: | ||||
Antidilutive securities (in shares) | 218,330 | 250,000 | 218,330 | 250,000 |
Note 16 - Segment Information70
Note 16 - Segment Information (Details Textual) | 6 Months Ended |
Mar. 31, 2018 | |
Number of Reportable Segments | 2 |
Number of Operating Segments | 2 |
Note 16 - Segment Information -
Note 16 - Segment Information - Segment Disclosures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Revenues | $ 7,868,448 | $ 5,742,391 | $ 15,497,015 | $ 8,683,726 | |
Operating Income | 604,154 | 435,561 | 1,595,260 | (893,774) | |
Depreciation and amortization | (133,704) | (193,809) | |||
Interest expense | (9,815) | (9,815) | |||
Income tax expense | (158,451) | $ (169,285) | (2,867,339) | $ 317,243 | |
Long-lived assets | 4,921,001 | 4,921,001 | $ 565,292 | ||
Total assets | 40,889,487 | 40,889,487 | 38,857,800 | ||
Intersegment Eliminations [Member] | |||||
Revenues | 89,818 | 89,818 | |||
LRAD Segment [Member] | |||||
Revenues | 7,453,794 | 15,082,361 | |||
Operating Income | 579,498 | 1,570,604 | |||
Depreciation and amortization | (64,660) | (124,765) | |||
Interest expense | |||||
Income tax expense | (158,451) | (2,867,339) | |||
Long-lived assets | 527,872 | 527,872 | 565,292 | ||
Total assets | 35,471,343 | 35,471,343 | 38,857,800 | ||
LRAD Segment [Member] | Intersegment Eliminations [Member] | |||||
Revenues | |||||
Genasys Segment [Member] | |||||
Revenues | 414,654 | 414,654 | |||
Operating Income | 24,656 | 24,656 | |||
Depreciation and amortization | (69,044) | (69,044) | |||
Interest expense | (9,815) | (9,815) | |||
Income tax expense | |||||
Long-lived assets | 4,393,129 | 4,393,129 | |||
Total assets | 5,418,144 | 5,418,144 | |||
Genasys Segment [Member] | Intersegment Eliminations [Member] | |||||
Revenues | $ 89,818 | $ 89,818 |
Note 17 - Major Customers (Deta
Note 17 - Major Customers (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Sales Revenue, Net [Member] | Customer 1 [Member] | ||||
Concentration Risk, Percentage | 40.00% | 23.00% | 33.00% | 15.00% |
Sales Revenue, Net [Member] | Customer 2 [Member] | ||||
Concentration Risk, Percentage | 15.00% | 11.00% | 16.00% | 10.00% |
Sales Revenue, Net [Member] | Customer 3 [Member] | ||||
Concentration Risk, Percentage | 14.00% | |||
Accounts Receivable [Member] | Customer 1 [Member] | ||||
Concentration Risk, Percentage | 41.00% | |||
Accounts Receivable [Member] | Customer 2 [Member] | ||||
Concentration Risk, Percentage | 24.00% | |||
Accounts Receivable [Member] | Customer 3 [Member] | ||||
Concentration Risk, Percentage | 56.00% | 14.00% |
Note 17 - Major Customers - Sch
Note 17 - Major Customers - Schedule of Major Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 7,868,448 | $ 5,742,391 | $ 15,497,015 | $ 8,683,726 |
Americas [Member] | ||||
Revenues | 5,051,072 | 2,099,151 | 11,104,110 | 3,721,509 |
Asia Pacific [Member] | ||||
Revenues | 2,255,856 | 2,923,825 | 3,277,762 | 3,908,425 |
Europe, Middle East and Africa [Member] | ||||
Revenues | $ 561,520 | $ 719,415 | $ 1,115,143 | $ 1,053,792 |
Uncategorized Items - lrad-2018
Label | Element | Value |
us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 363,745 |
us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | 39,466 |
us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 104,146 |
us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent |