Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Aug. 10, 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) | 32,936,721 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 12,030,076 | $ 12,764,421 |
Short-term Securities | 3,662,471 | 4,359,542 |
Restricted cash | 346,027 | 39,466 |
Accounts receivable, net | 6,583,346 | 5,681,882 |
Inventories, net | 5,404,618 | 5,257,234 |
Prepaid expenses and other | 862,812 | 983,322 |
Total current assets | 28,889,350 | 29,085,867 |
Long-term marketable securities | 1,269,688 | 711,124 |
Long-term restricted cash | 98,455 | |
Deferred tax assets, net | 5,537,410 | 8,331,000 |
Property and equipment, net | 497,483 | 509,603 |
Goodwill | 2,455,611 | |
Intangible assets, net | 1,653,508 | 55,689 |
Other assets | 241,429 | 164,517 |
Total assets | 40,642,934 | 38,857,800 |
Current liabilities: | ||
Accounts payable | 1,754,593 | 1,112,366 |
Accrued liabilities | 3,529,940 | 2,561,395 |
Notes payable, current portion | 532,822 | |
Total current liabilities | 5,817,355 | 3,673,761 |
Notes payable, less current portion | 207,530 | |
Total liabilities | 6,024,885 | 3,673,761 |
Stockholders' equity | ||
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; none issues and outstanding | 0 | 0 |
Common stock, $0.00001 par value; 50,000,000 shares authorized; 32,651,763 and 32,158,436 shares issued and outstanding, respectively | 325 | 322 |
Additional paid-in capital | 88,917,349 | 87,956,839 |
Accumulated deficit | (54,074,417) | (52,771,853) |
Accumulated other comprehensive loss | (225,208) | (1,269) |
Total stockholders' equity | 34,618,049 | 35,184,039 |
Total liabilities and stockholders' equity | $ 40,642,934 | $ 38,857,800 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 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) | 32,651,763 | 32,158,436 |
Common stock, outstanding (in shares) | 32,651,763 | 32,158,436 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Revenues | $ 7,514,068 | $ 4,129,554 | $ 23,011,082 | $ 12,813,280 |
Cost of revenues | 3,815,203 | 2,420,126 | 11,318,697 | 6,945,496 |
Gross Profit | 3,698,865 | 1,709,428 | 11,692,385 | 5,867,784 |
Operating expenses | ||||
Selling, general and administrative | 2,904,135 | 2,039,755 | 7,610,424 | 5,899,235 |
Research and development | 972,857 | 666,244 | 2,664,829 | 1,858,894 |
Total operating expenses | 3,876,992 | 2,705,999 | 10,275,253 | 7,758,129 |
Income (loss) from operations | (178,127) | (996,571) | 1,417,132 | (1,890,345) |
Other income | 24,159 | 32,682 | 73,894 | 94,884 |
Income (loss) from operations before income taxes | (153,968) | (963,889) | 1,491,026 | (1,795,461) |
Income tax expense (benefit) | (73,749) | (435,726) | 2,793,590 | (752,969) |
Net loss | $ (80,219) | $ (528,163) | $ (1,302,564) | $ (1,042,492) |
Net loss per common share - basic and diluted (in dollars per share) | $ 0 | $ (0.02) | $ (0.04) | $ (0.03) |
Weighted average common shares outstanding: | ||||
Basic and diluted (in shares) | 32,306,207 | 31,861,916 | 32,314,038 | 31,820,632 |
Product [Member] | ||||
Revenues: | ||||
Revenues | $ 6,583,865 | $ 3,852,676 | $ 21,045,148 | $ 12,026,248 |
Service [Member] | ||||
Revenues: | ||||
Revenues | $ 930,203 | $ 276,878 | $ 1,965,934 | $ 787,032 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net loss | $ (80,219) | $ (528,163) | $ (1,302,564) | $ (1,042,492) |
Other comprehensive loss, net of tax | ||||
Unrealized gain (loss) on marketable securities, net of tax | 5,805 | 107 | (11,064) | (1,871) |
Unrealized foreign currency loss, net of tax | (217,231) | (212,875) | ||
Comprehensive loss | $ (291,645) | $ (528,056) | $ (1,526,503) | $ (1,044,363) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities: | ||
Net loss | $ (1,302,564) | $ (1,042,492) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 337,200 | 93,859 |
Warranty provision | 12,361 | |
Inventory obsolescence | 91,976 | (186,772) |
Share-based compensation | 433,063 | 943,923 |
Deferred income taxes | 2,793,590 | (754,569) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (496,642) | 1,024,797 |
Inventories, net | (239,360) | (760,351) |
Prepaid expenses and other | 153,576 | (22,923) |
Other assets | (60,615) | 180,063 |
Accounts payable | 376,864 | 1,223,342 |
Accrued liabilities | 54,610 | 291,725 |
Net cash provided by operating activities | 2,154,059 | 990,602 |
Investing Activities: | ||
Purchases of marketable securities | (3,208,197) | (2,304,263) |
Proceeds from maturities of marketable securities | 3,335,639 | 2,402,861 |
Capital expenditures | (166,845) | (171,735) |
Purchase of Genasys, net of cash and restricted cash acquired | (2,246,545) | |
Patent costs paid | (7,789) | |
Net cash used in investing activities | (2,285,948) | (80,926) |
Financing Activities: | ||
Proceeds from exercise of stock options | 1,027,719 | |
Repurchase of common stock | (500,272) | |
Proceeds from the issuance of promissory notes | 63,144 | |
Payments on promissory notes | (786,437) | |
Net cash used in financing activities | (195,846) | |
Effect of foreign exchange rate on cash | (1,594) | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (329,329) | 909,676 |
Cash, cash equivalents and restricted cash, beginning of period | 12,803,887 | 13,466,711 |
Cash, cash equivalents and restricted cash, end of period | 12,474,558 | 14,376,387 |
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 |
Interest paid | 12,235 | |
Noncash investing and financing activities: | ||
Change in unrealized loss on marketable securities | (11,064) | (1,978) |
Business combinations accounted for as a purchase: | ||
Fair value of assets acquired | 5,520,504 | |
Cash paid | (3,011,439) | |
Liabilities assumed | $ 2,509,065 |
Note 1 - Operations
Note 1 - Operations | 9 Months Ended |
Jun. 30, 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 | 9 Months Ended |
Jun. 30, 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 | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. In June 2018, No. 2018 7, Compensation – Stock Compensation (Topic 718 2018 7” 718 2018 7 December 15, 2018, October 1, 2019. In November 2016, No. 2016 18, Statement of Cash Flows (Topic 230 , 230 2016 18 December 15, 2017, 2016 18 January 1, 2018. nine June 30, 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, 606, Revenue from Contracts with Customers 2014 09” 606 July 2015, one October 1, 2018. |
Note 4 - Acquisitions
Note 4 - Acquisitions | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 4 . ACQUISITIONS On January 18, 2018, 17 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 $916,000 $90,000 June 30, 2018. The acquisition consideration consisted of the following: Cash paid $ 2,826,189 Acquisition escrow liability 185,250 Total consideration $ 3,011,439 During the three June 30, 2018, $356,547 June 30, 2018. $119,202 third 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 June 30, 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 were 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 nine June 30, 2018 2017, 2017. not not may Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Net revenues $ 7,610,260 4,646,765 $ 23,833,153 14,326,125 Net loss (48,821 ) (473,480 ) (1,136,331 ) (1,257,072 ) Basic and diluted loss per share $ (0.00 ) $ (0.01 ) $ (0.04 ) $ (0.04 ) The following is a reconciliation of actual net revenue and net income to pro forma net revenue and net income: Three months ended June 30, 2018 2017 Net revenues Net income (loss) Net revenues Net income (loss) LRAD actual results $ 7,012,430 $ 36,450 $ 4,129,554 $ (528,163 ) Genasys actual results 597,830 (116,669 ) 517,211 103,947 Pro forma adjustments - 31,398 - (49,264 ) Pro forma results $ 7,610,260 $ (48,821 ) $ 4,646,765 $ (473,480 ) Nine months ended June 30, 2018 2017 Net revenues Net income (loss) Net revenues Net income (loss) LRAD actual results $ 22,094,790 $ (1,194,052 ) $ 12,813,280 $ (1,042,492 ) Genasys actual results 1,738,363 10,215 1,512,845 (68,793 ) Pro forma adjustments - 47,506 - (145,787 ) Pro forma results $ 23,833,153 $ (1,136,331 ) $ 14,326,125 $ (1,257,072 ) The following table identifies the pro forma adjustments: Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Acquisition costs $ 119,202 - $ 315,531 $ - Depreciation and amortization costs (79,458 ) (79,458 ) (238,374 ) (238,374 ) Tax effect of adjustments (8,346 ) 30,194 (29,651 ) 92,587 Pro forma adjustments $ 31,398 $ (49,264 ) $ 47,506 $ (145,787 ) |
Note 5 - Goodwill and Intangibl
Note 5 - Goodwill and Intangible Assets | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. G OODWILL AND INTANGIBLE ASSETS During the nine June 30, 2018, $1,850,000 $2,603,688 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 350 I ntangibles – Goodwill and Other – Testing Indefinite-Lived Assets for Impairment The Company’s intangible assets consist of the following: June 30, 2018 September 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 650,767 $ (42,610 ) $ 608,157 $ - $ - $ - Customer relationships 622,474 (40,757 ) 581,717 - - - Trade name portfolio 226,354 (20,749 ) 205,605 - - - Non-compete agreements 245,216 (37,464 ) 207,752 - - - Patents 108,247 (57,970 ) 50,277 108,247 (52,558 ) 55,689 $ 1,853,058 $ (199,550 ) $ 1,653,508 $ 108,247 $ (52,558 ) $ 55,689 The amortization expense for the three June 30, 2018 2017 $81,262 $1,922, nine June 30, 2018 2017 $153,026 $5,602, Estimated Future Amortization Expense for the Years Ended September 30, 2018 (July 1, 2018 through September 30, 2018) $ 79,030 2019 316,117 2020 316,117 2021 258,219 2022 234,378 Thereafter 449,647 Total futue estimated amortization expense $ 1,653,508 |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 9 Months Ended |
Jun. 30, 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: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not Level 3: Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The fair value of the Company’s cash equivalents and marketable securities was determined based on Level 1 2 not 3 June 30, 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 June 30, 2018 September 30, 2017. June 30, 2018 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 241,013 $ - $ 241,013 $ 241,013 - - Level 2: Certificates of deposit 688,000 - 688,000 - 189,000 499,000 Municipal securities 150,160 (65 ) 150,095 - 150,095 - Corporate bonds 4,106,332 (12,268 ) 4,094,064 - 3,323,376 770,688 Subtotal 4,944,492 (12,333 ) 4,932,159 - 3,662,471 1,269,688 Total $ 5,185,505 $ (12,333 ) $ 5,173,172 $ 241,013 $ 3,662,471 $ 1,269,688 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 | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 7 . INVENTORIES Inventories consisted of the following: June 30, 2018 September 30, 2017 Raw materials $ 5,119,720 $ 3,784,935 Finished goods 456,899 1,742,960 Work in progress 338,506 147,871 Inventories, gross 5,915,125 5,675,766 Reserve for obsolescence (510,507 ) (418,532 ) Inventories, net $ 5,404,618 $ 5,257,234 |
Note 8 - Property and Equipment
Note 8 - Property and Equipment | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 8 . PROPERTY AND EQUIPMENT Property and equipment consisted of the following: June 30, 2018 September 30, 2017 Office furniture and equipment $ 1,103,861 $ 1,093,502 Machinery and equipment 1,167,712 994,157 Leasehold improvements 76,138 76,138 Property and equipment, gross 2,347,711 2,163,797 Accumulated depreciation (1,850,228 ) (1,654,194 ) Property and equipment, net $ 497,483 $ 509,603 Nine months ended June 30, 2018 2017 Depreciation expense $ 184,174 $ 88,257 |
Note 9 - Accrued Liabilities
Note 9 - Accrued Liabilities | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Current and Noncurrent Accrued Liabilities [Text Block] | 9 . ACCRUED LIABILITIES Accrued liabilities consisted of the following: June 30, September 30, 2018 2017 Payroll and related $ 1,788,948 $ 1,870,579 Deferred revenue 1,175,948 268,580 Accrued contract costs 184,508 197,034 Severance 231,676 - Warranty reserve 148,860 179,101 Deferred rent - 46,101 Total $ 3,529,940 $ 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 Nine months ended June 30, June 30, 2018 2017 2018 2017 Beginning balance $ 169,204 $ 449,141 $ 179,101 $ 356,984 Warranty provision - (2,761 ) 12,361 108,608 Warranty settlements (20,344 ) (46,201 ) (42,602 ) (65,413 ) Ending balance $ 148,860 $ 400,179 $ 148,860 $ 400,179 Accrued contract costs The Company has contracted with a third March 26. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Jun. 30, 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 nine June 30, 2018, $290,590 20.05% $2,503,000 nine June 30, 2017, $752,969 41.9%. nine June 30, 2018, 2017, ASC 740, Accounting for Uncertainty in Income Taxes may not not |
Note 11 - Debt
Note 11 - Debt | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11 . DEBT In connection with the acquisition of Genasys, as described in Note 4, June 30, 2018: Principal Loans with governmental agencies, current portion $ 532,822 Loans with governmental agencies, long-term 207,530 Total debt $ 740,352 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 June 30, 2018 Agency Due Date Interest Rate Principal Ministry of Industry, Tourism, and Commerce December 31, 2018 0.53% $ 69,828 a Ministry of Industry, Tourism, and Commerce December 31, 2019 0.51% 102,036 b Ministry of Industry, Tourism, and Commerce January 31, 2020 3.95% 89,463 c Ministry of Science and Innovation February 2, 2022 0.00% 70,086 Ministry of Science and Innovation February 2, 2024 0.00% 280,243 d Center for Development of Industrial Technology March 31, 2021 0.00% 78,843 European Union Agency for Network and Information Security October 28, 2018 Euribor +2.25% 49,853 $ 740,352 a. This loan is secured by $24,688 June 30, 2018. b. This loan is secured by $38,165 25% June 30, 2018. c. This loan is secured by $60,290 35% June 30, 2018. d. This loan is secured by $280,243 66.6% June 30, 2018. 2018 2018. June 30, 2018. The following is a schedule of future annual payments as of June 30, 2018: July 2018-June 2019 $ 532,822 July 2019-June 2020 134,887 July 2020-June 2021 55,121 July 2021-June 2022 17,522 Thereafter - Total $ 740,352 The Company has pledged $444,482 June 30, 2018. The Company recorded $4,390 $14,205 three nine June 30, 2018, |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
Jun. 30, 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 87% 100% 135% 2018 three June 30, 2018 2017, $475,000 $366,820 nine June 30, 2018 2017, $1,213,543 $745,900 Acquisition Escrow Liability In connection with the acquisition of Genasys the Company recorded an escrow liability of €150,000 $185,250 4. €150,000 $179,265 three June 30, 2018 |
Note 13 - Share-based Compensat
Note 13 - Share-based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 1 3 . SHARE-BASED COMPENSATION Equity Incentive Plans At June 30, 2018, two 2005 “2005 March 2015, 2015 “2015 December 6, 2016 March 14, 2017. 2015 5,000,000 June 30, 2018, 1,724,701 2,275,565 2005 2015 Stock Option Activity The following table summarizes information about stock option activity during the nine June 30, 2018: Number of Shares Weighted Average Exercise Price Outstanding October 1, 2017 4,663,502 $ 2.16 Granted 3,500 $ 2.21 Forfeited/expired (87,083 ) $ 2.79 Exercised (579,653 ) $ 1.77 Outstanding June 30, 2018 4,000,266 $ 2.20 Exercisable June 30, 2018 2,894,363 $ 2.30 Options outstanding are exercisable at prices ranging from $0.93 $3.17 2018 2024 3.1 June 30, 2018 $1,741,162 $1,342,667, During the nine June 30, 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 three June 30, 2018 2017 $10,562 $10,562, nine June 30, 2018 2017 $31,685 $31,685, 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 On March 14, 2017, 25,000 first $197,500, March 14, 2018 On March 20, 2018, 25,000 first $278,750, March 20, 2019 nine June 30, 2018, 93,330 three first 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 Nine months ended June 30, June 30, 2018 2017 2018 2017 Cost of revenues $ 5,111 $ 6,192 $ 16,367 $ 17,943 Selling, general and administrative 123,311 272,118 352,766 856,215 Research and development 20,391 23,462 63,930 69,765 $ 148,813 $ 301,772 $ 433,063 $ 943,923 The employee stock options granted in the nine June 30, 2018 2017 $0.89 $0.71 Nine months ended June 30, 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 nine June 30, 2018 2017. As of June 30, 2018, $730,000 1.7 |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity | 9 Months Ended |
Jun. 30, 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 nine June 30, 2018: Additional Other Total Common Stock Paid-in Accumulated Comprehensive Stockholders' Shares Amount Capital Deficit Loss Equity Balance at September 30, 2017 32,158,436 $ 322 $ 87,956,839 $ (52,771,853 ) $ (1,269 ) $ 35,184,039 Share-based compensation expense - - 433,063 - - 433,063 Issuance of common stock upon exercise of stock options, net 579,653 - 1,027,719 - - 1,027,719 Issuance of common stock upon vesting of restricted stock units 125,000 - - - - - Stock buyback (211,326 ) 3 (500,272 ) - - (500,269 ) Other comprehensive loss - (223,939 ) (223,939 ) Net loss - - - (1,302,564 ) - (1,302,564 ) Balance at June 30, 2018 32,651,763 $ 325 $ 88,917,349 $ (54,074,417 ) $ (225,208 ) $ 34,618,049 Share Buyback Program The Board of Directors approved a share buyback program in 2015 $4 December 2017, December 31, 2018. 211,326 nine June 30, 2018. zero nine June 30, 2017. June 30, 2018, June 30, 2018, $3.4 Dividends There were no nine June 30, 2018 2017. |
Note 15 - Net Loss Per Share
Note 15 - Net Loss Per Share | 9 Months Ended |
Jun. 30, 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 Nine months ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net loss $ (80,219 ) $ (528,163 ) $ (1,302,564 ) $ (1,042,492 ) Denominator: Weighted average common shares outstanding - basic and diluted 32,306,207 31,861,916 32,314,038 31,820,632 Basic loss per common share - basic and diluted $ (0.00 ) $ (0.02 ) $ (0.04 ) $ (0.03 ) Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive: Options 4,000,266 4,853,002 4,000,266 4,853,002 Restricted stock units 218,330 125,000 218,330 125,000 Total 4,218,596 4,978,002 4,218,596 4,978,002 |
Note 16 - Segment Information
Note 16 - Segment Information | 9 Months Ended |
Jun. 30, 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 Nine months ended June 30, 2018 June 30, 2018 Revenue from external customers LRAD $ 7,012,430 $ 22,094,790 Genasys 501,638 916,292 $ 7,514,068 $ 23,011,082 Intercompany revenues LRAD $ - $ - Genasys 96,192 186,010 $ 96,192 $ 186,010 Segment operating income LRAD $ (63,257 ) $ 1,507,264 Genasys (114,870 ) (90,132 ) $ (178,127 ) $ 1,417,132 Other expenses: Depreciation and amortization expense LRAD $ (62,665 ) $ (187,433 ) Genasys (80,804 ) (149,767 ) $ (143,469 ) $ (337,200 ) Interest expense LRAD $ - $ - Genasys (4,388 ) (14,205 ) $ (4,388 ) $ (14,205 ) Income tax expense (benefit) LRAD $ (73,749 ) $ 2,793,590 Genasys - - $ (73,749 ) $ 2,793,590 June 30, 2018 September 30, 2017 Long-lived assets LRAD $ 538,173 $ 565,292 Genasys 4,068,429 - $ 4,606,602 $ 565,292 Total assets LRAD $ 35,520,401 $ 38,857,800 Genasys 5,122,533 - $ 40,642,934 $ 38,857,800 |
Note 17 - Major Customers
Note 17 - Major Customers | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 1 7 . MAJOR CUSTOMERS For the three June 30, 2018, three 15%, 11%, 10% nine June 30, 2018 three 22%, 11% 11% no 10% June 30, 2018, three 15%, 13%, 12% no 10% For the three June 30, 2017, two 47% 13% nine June 30, 2017 two 15% 10% no 10% June 30, 2017, two 41% 25% no 10% The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location. Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Americas $ 3,814,782 $ 1,367,044 $ 14,918,891 $ 5,088,553 Asia Pacific 3,089,770 150,474 6,367,532 1,204,267 Europe, Middle East, and Africa 609,516 2,612,036 1,724,659 6,520,460 Total Revenues $ 7,514,068 $ 4,129,554 $ 23,011,082 $ 12,813,280 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 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 June 2018, No. 2018 7, Compensation – Stock Compensation (Topic 718 2018 7” 718 2018 7 December 15, 2018, October 1, 2019. In November 2016, No. 2016 18, Statement of Cash Flows (Topic 230 , 230 2016 18 December 15, 2017, 2016 18 January 1, 2018. nine June 30, 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, 606, Revenue from Contracts with Customers 2014 09” 606 July 2015, one October 1, 2018. |
Note 4 - Acquisitions (Tables)
Note 4 - Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 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 Nine months ended June 30, June 30, 2018 2017 2018 2017 Net revenues $ 7,610,260 4,646,765 $ 23,833,153 14,326,125 Net loss (48,821 ) (473,480 ) (1,136,331 ) (1,257,072 ) Basic and diluted loss per share $ (0.00 ) $ (0.01 ) $ (0.04 ) $ (0.04 ) |
Business Acquisition, Reconciliation of Actual Net Revenue and Net Income to Pro Forma Net Revenue and Net Income [Table Text Block] | Three months ended June 30, 2018 2017 Net revenues Net income (loss) Net revenues Net income (loss) LRAD actual results $ 7,012,430 $ 36,450 $ 4,129,554 $ (528,163 ) Genasys actual results 597,830 (116,669 ) 517,211 103,947 Pro forma adjustments - 31,398 - (49,264 ) Pro forma results $ 7,610,260 $ (48,821 ) $ 4,646,765 $ (473,480 ) Nine months ended June 30, 2018 2017 Net revenues Net income (loss) Net revenues Net income (loss) LRAD actual results $ 22,094,790 $ (1,194,052 ) $ 12,813,280 $ (1,042,492 ) Genasys actual results 1,738,363 10,215 1,512,845 (68,793 ) Pro forma adjustments - 47,506 - (145,787 ) Pro forma results $ 23,833,153 $ (1,136,331 ) $ 14,326,125 $ (1,257,072 ) |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Acquisition costs $ 119,202 - $ 315,531 $ - Depreciation and amortization costs (79,458 ) (79,458 ) (238,374 ) (238,374 ) Tax effect of adjustments (8,346 ) 30,194 (29,651 ) 92,587 Pro forma adjustments $ 31,398 $ (49,264 ) $ 47,506 $ (145,787 ) |
Note 5 - Goodwill and Intangi26
Note 5 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2018 September 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 650,767 $ (42,610 ) $ 608,157 $ - $ - $ - Customer relationships 622,474 (40,757 ) 581,717 - - - Trade name portfolio 226,354 (20,749 ) 205,605 - - - Non-compete agreements 245,216 (37,464 ) 207,752 - - - Patents 108,247 (57,970 ) 50,277 108,247 (52,558 ) 55,689 $ 1,853,058 $ (199,550 ) $ 1,653,508 $ 108,247 $ (52,558 ) $ 55,689 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated Future Amortization Expense for the Years Ended September 30, 2018 (July 1, 2018 through September 30, 2018) $ 79,030 2019 316,117 2020 316,117 2021 258,219 2022 234,378 Thereafter 449,647 Total futue estimated amortization expense $ 1,653,508 |
Note 6 - Fair Value Measureme27
Note 6 - Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | June 30, 2018 Unrealized Fair Cash Short-term Long-term Cost Basis Losses Value Equivalents Securities Securities Level 1: Money Market Funds $ 241,013 $ - $ 241,013 $ 241,013 - - Level 2: Certificates of deposit 688,000 - 688,000 - 189,000 499,000 Municipal securities 150,160 (65 ) 150,095 - 150,095 - Corporate bonds 4,106,332 (12,268 ) 4,094,064 - 3,323,376 770,688 Subtotal 4,944,492 (12,333 ) 4,932,159 - 3,662,471 1,269,688 Total $ 5,185,505 $ (12,333 ) $ 5,173,172 $ 241,013 $ 3,662,471 $ 1,269,688 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) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2018 September 30, 2017 Raw materials $ 5,119,720 $ 3,784,935 Finished goods 456,899 1,742,960 Work in progress 338,506 147,871 Inventories, gross 5,915,125 5,675,766 Reserve for obsolescence (510,507 ) (418,532 ) Inventories, net $ 5,404,618 $ 5,257,234 |
Note 8 - Property and Equipme29
Note 8 - Property and Equipment (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2018 September 30, 2017 Office furniture and equipment $ 1,103,861 $ 1,093,502 Machinery and equipment 1,167,712 994,157 Leasehold improvements 76,138 76,138 Property and equipment, gross 2,347,711 2,163,797 Accumulated depreciation (1,850,228 ) (1,654,194 ) Property and equipment, net $ 497,483 $ 509,603 |
Depreciation Expense [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Nine months ended June 30, 2018 2017 Depreciation expense $ 184,174 $ 88,257 |
Note 9 - Accrued Liabilities (T
Note 9 - Accrued Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, September 30, 2018 2017 Payroll and related $ 1,788,948 $ 1,870,579 Deferred revenue 1,175,948 268,580 Accrued contract costs 184,508 197,034 Severance 231,676 - Warranty reserve 148,860 179,101 Deferred rent - 46,101 Total $ 3,529,940 $ 2,561,395 |
Schedule of Product Warranty Liability [Table Text Block] | Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Beginning balance $ 169,204 $ 449,141 $ 179,101 $ 356,984 Warranty provision - (2,761 ) 12,361 108,608 Warranty settlements (20,344 ) (46,201 ) (42,602 ) (65,413 ) Ending balance $ 148,860 $ 400,179 $ 148,860 $ 400,179 |
Note 11 - Debt (Tables)
Note 11 - Debt (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | Principal Loans with governmental agencies, current portion $ 532,822 Loans with governmental agencies, long-term 207,530 Total debt $ 740,352 |
Loans With Governmental Agencies [Table Text Block] | Agency Due Date Interest Rate Principal Ministry of Industry, Tourism, and Commerce December 31, 2018 0.53% $ 69,828 a Ministry of Industry, Tourism, and Commerce December 31, 2019 0.51% 102,036 b Ministry of Industry, Tourism, and Commerce January 31, 2020 3.95% 89,463 c Ministry of Science and Innovation February 2, 2022 0.00% 70,086 Ministry of Science and Innovation February 2, 2024 0.00% 280,243 d Center for Development of Industrial Technology March 31, 2021 0.00% 78,843 European Union Agency for Network and Information Security October 28, 2018 Euribor +2.25% 49,853 $ 740,352 |
Schedule of Maturities of Long-term Debt [Table Text Block] | July 2018-June 2019 $ 532,822 July 2019-June 2020 134,887 July 2020-June 2021 55,121 July 2021-June 2022 17,522 Thereafter - Total $ 740,352 |
Note 13 - Share-based Compens32
Note 13 - Share-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Shares Weighted Average Exercise Price Outstanding October 1, 2017 4,663,502 $ 2.16 Granted 3,500 $ 2.21 Forfeited/expired (87,083 ) $ 2.79 Exercised (579,653 ) $ 1.77 Outstanding June 30, 2018 4,000,266 $ 2.20 Exercisable June 30, 2018 2,894,363 $ 2.30 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Cost of revenues $ 5,111 $ 6,192 $ 16,367 $ 17,943 Selling, general and administrative 123,311 272,118 352,766 856,215 Research and development 20,391 23,462 63,930 69,765 $ 148,813 $ 301,772 $ 433,063 $ 943,923 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine months ended June 30, 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) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Additional Other Total Common Stock Paid-in Accumulated Comprehensive Stockholders' Shares Amount Capital Deficit Loss Equity Balance at September 30, 2017 32,158,436 $ 322 $ 87,956,839 $ (52,771,853 ) $ (1,269 ) $ 35,184,039 Share-based compensation expense - - 433,063 - - 433,063 Issuance of common stock upon exercise of stock options, net 579,653 - 1,027,719 - - 1,027,719 Issuance of common stock upon vesting of restricted stock units 125,000 - - - - - Stock buyback (211,326 ) 3 (500,272 ) - - (500,269 ) Other comprehensive loss - (223,939 ) (223,939 ) Net loss - - - (1,302,564 ) - (1,302,564 ) Balance at June 30, 2018 32,651,763 $ 325 $ 88,917,349 $ (54,074,417 ) $ (225,208 ) $ 34,618,049 |
Note 15 - Net Loss Per Share (T
Note 15 - Net Loss Per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net loss $ (80,219 ) $ (528,163 ) $ (1,302,564 ) $ (1,042,492 ) Denominator: Weighted average common shares outstanding - basic and diluted 32,306,207 31,861,916 32,314,038 31,820,632 Basic loss per common share - basic and diluted $ (0.00 ) $ (0.02 ) $ (0.04 ) $ (0.03 ) Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive: Options 4,000,266 4,853,002 4,000,266 4,853,002 Restricted stock units 218,330 125,000 218,330 125,000 Total 4,218,596 4,978,002 4,218,596 4,978,002 |
Note 16 - Segment Information (
Note 16 - Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended Nine months ended June 30, 2018 June 30, 2018 Revenue from external customers LRAD $ 7,012,430 $ 22,094,790 Genasys 501,638 916,292 $ 7,514,068 $ 23,011,082 Intercompany revenues LRAD $ - $ - Genasys 96,192 186,010 $ 96,192 $ 186,010 Segment operating income LRAD $ (63,257 ) $ 1,507,264 Genasys (114,870 ) (90,132 ) $ (178,127 ) $ 1,417,132 Other expenses: Depreciation and amortization expense LRAD $ (62,665 ) $ (187,433 ) Genasys (80,804 ) (149,767 ) $ (143,469 ) $ (337,200 ) Interest expense LRAD $ - $ - Genasys (4,388 ) (14,205 ) $ (4,388 ) $ (14,205 ) Income tax expense (benefit) LRAD $ (73,749 ) $ 2,793,590 Genasys - - $ (73,749 ) $ 2,793,590 June 30, 2018 September 30, 2017 Long-lived assets LRAD $ 538,173 $ 565,292 Genasys 4,068,429 - $ 4,606,602 $ 565,292 Total assets LRAD $ 35,520,401 $ 38,857,800 Genasys 5,122,533 - $ 40,642,934 $ 38,857,800 |
Note 17 - Major Customers (Tabl
Note 17 - Major Customers (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three months ended Nine months ended June 30, June 30, 2018 2017 2018 2017 Americas $ 3,814,782 $ 1,367,044 $ 14,918,891 $ 5,088,553 Asia Pacific 3,089,770 150,474 6,367,532 1,204,267 Europe, Middle East, and Africa 609,516 2,612,036 1,724,659 6,520,460 Total Revenues $ 7,514,068 $ 4,129,554 $ 23,011,082 $ 12,813,280 |
Note 2 - Basis of Presentatio37
Note 2 - Basis of Presentation and Significant Accounting Policies (Details Textual) | Jun. 30, 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 | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018 |
Genasys Acquisition [Member] | ||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 916,000 | |||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (90,000) | |||||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||||||
Genasys Acquisition [Member] | Selling, General and Administrative Expenses [Member] | ||||||||
Business Combination, Acquisition Related Costs | $ 119,202 | $ 151,313 | $ 45,016 | $ 41,016 | $ 356,547 | |||
Genasys [Member] | ||||||||
Entity Number of Employees | 17 | 17 | 17 | 17 |
Note 4 - Acquisitions - Prelimi
Note 4 - Acquisitions - Preliminary Acquisition Consideration (Details) - USD ($) | Jan. 18, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 |
Cash paid | $ 2,246,545 | |||
Assets Acquired | ||||
Goodwill | 2,455,611 | |||
Genasys Acquisition [Member] | ||||
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 |
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 | Jun. 30, 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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net revenues | $ 7,610,260 | $ 4,646,765 | $ 23,833,153 | $ 14,326,125 |
Net loss | $ (48,821) | $ (473,480) | $ (1,136,331) | $ (1,257,072) |
Basic and diluted loss per share (in dollars per share) | $ 0 | $ (0.01) | $ (0.04) | $ (0.04) |
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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pro Forma adjustments, net income | $ 31,398 | $ (49,264) | $ 47,506 | $ (145,787) |
Genasys Acquisition [Member] | ||||
LRAD actual results, net revenues | 7,012,430 | 4,129,554 | 22,094,790 | 12,813,280 |
LRAD actual results, net income | 36,450 | (528,163) | (1,194,052) | (1,042,492) |
Genasys actual results, net revenues | 597,830 | 517,211 | 1,738,363 | 1,512,845 |
Genasys actual results, net income | (116,669) | 103,947 | 10,215 | (68,793) |
Pro Forma adjustments, net revenues | ||||
Pro Forma adjustments, net income | 31,398 | (49,264) | 47,506 | (145,787) |
Pro forma results, net revenues | 7,610,260 | 4,646,765 | 23,833,153 | 14,326,125 |
Pro forma results, net income | $ (48,821) | $ (473,480) | $ (1,136,331) | $ (1,257,072) |
Note 4 - Acquisitions - Summary
Note 4 - Acquisitions - Summary of Pro Forma Adjustments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pro forma adjustments, net income | $ 31,398 | $ (49,264) | $ 47,506 | $ (145,787) |
Acquisition-related Costs [Member] | ||||
Pro forma adjustments, net income | 119,202 | 315,531 | ||
Depreciation and Amortization Costs [Member] | ||||
Pro forma adjustments, net income | (79,458) | (79,458) | (238,374) | (238,374) |
Tax Effect of Adjustments [Member] | ||||
Pro forma adjustments, net income | $ (8,346) | $ 30,194 | $ (29,651) | $ 92,587 |
Note 5 - Goodwill and Intangi45
Note 5 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Amortization of Intangible Assets, Total | $ 81,262 | $ 1,922 | $ 153,026 | $ 5,602 |
Genasys [Member] | ||||
Finite-lived Intangible Assets Acquired | 1,850,000 | |||
Goodwill, Acquired During Period | $ 2,603,688 |
Note 5 - Goodwill and Intangi46
Note 5 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Intangible assets, gross carrying amount | $ 1,853,058 | $ 108,247 |
Intangible assets, accumulated amortization | (199,550) | (52,558) |
Intangible assets, net | 1,653,508 | 55,689 |
Technology-Based Intangible Assets [Member] | ||
Intangible assets, gross carrying amount | 650,767 | |
Intangible assets, accumulated amortization | (42,610) | |
Intangible assets, net | 608,157 | |
Customer Relationships [Member] | ||
Intangible assets, gross carrying amount | 622,474 | |
Intangible assets, accumulated amortization | (40,757) | |
Intangible assets, net | 581,717 | |
Trade Names [Member] | ||
Intangible assets, gross carrying amount | 226,354 | |
Intangible assets, accumulated amortization | (20,749) | |
Intangible assets, net | 205,605 | |
Noncompete Agreements [Member] | ||
Intangible assets, gross carrying amount | 245,216 | |
Intangible assets, accumulated amortization | (37,464) | |
Intangible assets, net | 207,752 | |
Patents [Member] | ||
Intangible assets, gross carrying amount | 108,247 | 108,247 |
Intangible assets, accumulated amortization | (57,970) | (52,558) |
Intangible assets, net | $ 50,277 | $ 55,689 |
Note 5 - Goodwill and Intangi47
Note 5 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Jun. 30, 2018USD ($) |
Estimated Future Amortization Expense for the Years Ended September 30, 2018 (July 1, 2018 through September 30, 2018) | $ 79,030 |
2,019 | 316,117 |
2,020 | 316,117 |
2,021 | 258,219 |
2,022 | 234,378 |
Thereafter | 449,647 |
Total futue estimated amortization expense | $ 1,653,508 |
Note 6 - Fair Value Measureme48
Note 6 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Jun. 30, 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 ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Short-term Securities | $ 3,662,471 | $ 4,359,542 |
Long-term Securities | 1,269,688 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Cost Basis | 5,185,505 | 5,127,192 |
Unrealized Gains (Losses) | (12,333) | (1,269) |
Fair Value | 5,173,172 | 5,125,923 |
Cash Equivalents | 241,013 | 55,257 |
Short-term Securities | 3,662,471 | 4,359,542 |
Long-term Securities | 1,269,688 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cost Basis | 241,013 | 55,257 |
Unrealized Gains (Losses) | ||
Fair Value | 241,013 | 55,257 |
Cash Equivalents | 241,013 | 55,257 |
Short-term Securities | ||
Long-term Securities | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cost Basis | 4,944,492 | 5,071,935 |
Unrealized Gains (Losses) | (12,333) | (1,269) |
Fair Value | 4,932,159 | 5,070,666 |
Cash Equivalents | ||
Short-term Securities | 3,662,471 | 4,359,542 |
Long-term Securities | 1,269,688 | 711,124 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Cost Basis | 688,000 | 2,436,647 |
Unrealized Gains (Losses) | ||
Fair Value | 688,000 | 2,436,647 |
Cash Equivalents | ||
Short-term Securities | 189,000 | 1,937,647 |
Long-term 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 | 150,160 | 25,315 |
Unrealized Gains (Losses) | (65) | (12) |
Fair Value | 150,095 | 25,303 |
Cash Equivalents | ||
Short-term Securities | 150,095 | 25,303 |
Long-term Securities | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Cost Basis | 4,106,332 | 2,609,973 |
Unrealized Gains (Losses) | (12,268) | (1,257) |
Fair Value | 4,094,064 | 2,608,716 |
Cash Equivalents | ||
Short-term Securities | 3,323,376 | 2,396,592 |
Long-term Securities | $ 770,688 | $ 212,124 |
Note 7 - Inventories - Schedule
Note 7 - Inventories - Schedule of Inventory (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Raw materials | $ 5,119,720 | $ 3,784,935 |
Finished goods | 456,899 | 1,742,960 |
Work in progress | 338,506 | 147,871 |
Inventories, gross | 5,915,125 | 5,675,766 |
Reserve for obsolescence | (510,507) | (418,532) |
Inventories, net | $ 5,404,618 | $ 5,257,234 |
Note 8 - Property and Equipme51
Note 8 - Property and Equipment - Property and Equipment (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Property and equipment | $ 2,347,711 | $ 2,163,797 |
Accumulated depreciation | (1,850,228) | (1,654,194) |
Property and equipment, net | 497,483 | 509,603 |
Furniture and Fixtures [Member] | ||
Property and equipment | 1,103,861 | 1,093,502 |
Machinery and Equipment [Member] | ||
Property and equipment | 1,167,712 | 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 ($) | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Depreciation expense | $ 184,174 | $ 88,257 |
Note 9 - Accrued Liabilities -
Note 9 - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Payroll and related | $ 1,788,948 | $ 1,870,579 |
Deferred revenue | 1,175,948 | 268,580 |
Accrued contract costs | 184,508 | 197,034 |
Severance | 231,676 | |
Warranty reserve | 148,860 | 179,101 |
Deferred rent | 46,101 | |
Total | $ 3,529,940 | $ 2,561,395 |
Note 9 - Accrued Liabilities 54
Note 9 - Accrued Liabilities - Changes in Warranty Reserve (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Beginning balance | $ 169,204 | $ 449,141 | $ 179,101 | $ 356,984 |
Warranty provision | (2,761) | 12,361 | 108,608 | |
Warranty settlements | (20,344) | (46,201) | (42,602) | (65,413) |
Ending balance | $ 148,860 | $ 400,179 | $ 148,860 | $ 400,179 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2019 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 2,474,000 | $ 2,503,000 | ||||||
Income Tax Expense (Benefit), Excluding Adjustment of Deferred Tax (Asset) Liability | $ 290,590 | |||||||
Effective Income Tax Rate Reconciliation, Percent, Total | 20.05% | 41.90% | ||||||
Income Tax Expense (Benefit), Total | $ (73,749) | $ (435,726) | $ 2,793,590 | $ (752,969) | $ 2,793,590 | $ (752,969) | ||
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) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Term Loans [Member] | ||
Interest Expense, Debt, Total | $ 4,390 | $ 14,205 |
Collateral Pledged [Member] | Term Loans [Member] | ||
Restricted Cash, Total | 444,482 | 444,482 |
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 | 24,688 | 24,688 |
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 | $ 38,165 | $ 38,165 |
Cash Pledged as Collateral, Percentage of the Original Principal Received | 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 | $ 60,290 | $ 60,290 |
Cash Pledged as Collateral, Percentage of the Original Principal Received | 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 | $ 280,243 | $ 280,243 |
Cash Pledged as Collateral, Percentage of the Original Principal Received | 66.60% | 66.60% |
Note 11 - Debt - Debt From Acqu
Note 11 - Debt - Debt From Acquisition (Details) | Jun. 30, 2018USD ($) |
Total | $ 740,352 |
Loans With Governmental Agencies [Member] | |
Total | 740,352 |
Genasys Acquisition [Member] | Loans With Governmental Agencies [Member] | |
Debt, current portion | 532,822 |
Debt, long-term | 207,530 |
Total | $ 740,352 |
Note 11 - Debt - Loans With Gov
Note 11 - Debt - Loans With Governmental Agencies (Details) | 9 Months Ended | |
Jun. 30, 2018USD ($) | ||
Principal, loans with governmental agencies | $ 740,352 | |
Loans With Governmental Agencies [Member] | ||
Principal, loans with governmental agencies | $ 740,352 | |
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 | $ 69,828 | [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 | $ 102,036 | [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 | $ 89,463 | [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 | $ 70,086 | |
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 | $ 280,243 | [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 | $ 78,843 | |
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 | |
Principal, loans with governmental agencies | $ 49,853 | |
Loans With Governmental Agencies [Member] | European Union Agency for Network and Information Security, Debt, Due October 28, 2018 [Member] | Euribor [Member] | ||
Spread on variable interest rate, loans with governmental agencies | 2.25% | |
[1] | This loan is secured by $24,688 of cash pledged as collateral by Genasys. This amount is included in restricted cash at June 30, 2018. The cash will be released upon repayment of the loan. | |
[2] | This loan is secured by $38,165 of cash pledged as collateral by Genasys, which represents 25% of the original principal received. This amount is included in restricted cash at June 30, 2018. The cash will be released upon repayment of the loan. | |
[3] | This loan is secured by $60,290 of cash pledged as collateral by Genasys, which represents 35% of the original principal received. This amount is included in restricted cash at June 30, 2018. The cash will be released upon repayment of the loan. | |
[4] | This loan is secured by $280,243 of cash pledged as collateral by Genasys, which is the current balance of the loan. This amount represents 66.6% of the original principal received. This amount is included in restricted cash at June 30, 2018. The Company expects the Ministry of Science and Innovation to declare the terms of the loan satisfied within fiscal year 2018 and that the outstanding balance of the loan will be paid in full during fiscal year 2018. Accordingly, this has been included in the current portion of notes payable as of June 30, 2018. |
Note 11 - Debt - Future Annual
Note 11 - Debt - Future Annual Payments (Details) | Jun. 30, 2018USD ($) |
July 2018-June 2019 | $ 532,822 |
July 2019-June 2020 | 134,887 |
July 2020-June 2021 | 55,121 |
July 2021-June 2022 | 17,522 |
Thereafter | |
Total | $ 740,352 |
Note 12 - Commitments and Con60
Note 12 - Commitments and Contingencies (Details Textual) | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jan. 18, 2018USD ($) | Jan. 18, 2018EUR (€) | |
Target Bonus Amounts of Percentage of Employee Base Salary, Minimum | 25.00% | 25.00% | 25.00% | ||||
Target Bonus Amounts of Percentage of Employee Base Salary Maximum | 75.00% | 75.00% | 75.00% | ||||
Payment of Bonus as Percentage, Level 1 | 87.00% | ||||||
Payment of Bonus as Percentage, Level 2 | 100.00% | ||||||
Payment of Bonus as Percentage, Level 3 | 135.00% | ||||||
Genasys [Member] | |||||||
Business Combination, Contingent Consideration, Liability, Current | $ 185,250 | € 150,000 | |||||
Payment for Contingent Consideration Liability, Investing Activities | $ 179,265 | € 150,000 | |||||
Bonuses and Related Payroll Tax Expense [Member] | |||||||
Increase (Decrease) in Other Employee-Related Liabilities | $ 475,000 | $ 366,820 | $ 1,213,543 | $ 745,900 |
Note 13 - Share-based Compens61
Note 13 - Share-based Compensation (Details Textual) - USD ($) | Mar. 20, 2018 | Mar. 14, 2017 | Aug. 01, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 4,000,266 | 4,000,266 | 4,663,502 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 2.20 | $ 2.20 | $ 2.16 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 36 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1,741,162 | $ 1,741,162 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 1,342,667 | 1,342,667 | |||||||
Allocated Share-based Compensation Expense, Total | 148,813 | $ 301,772 | 433,063 | $ 943,923 | |||||
Share-based Compensation, Total | $ 433,063 | $ 943,923 | |||||||
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 | 730,000 | $ 730,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days | ||||||||
Employee Stock Option [Member] | |||||||||
Allocated Share-based Compensation Expense, Total | 307,324 | ||||||||
Performance Shares [Member] | Chief Executive Officer [Member] | |||||||||
Allocated Share-based Compensation Expense, Total | $ 10,562 | $ 10,562 | $ 31,685 | $ 31,685 | |||||
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 | 2,275,565 | 2,275,565 | |||||||
2005 Equity Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 1,724,701 | 1,724,701 |
Note 13 - Share-based Compens62
Note 13 - Share-based Compensation - Stock Option Activity (Details) | 9 Months Ended |
Jun. 30, 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 | (87,083) |
Weighted Average Exercise Price, Shares Forfeited/expired (in dollars per share) | $ / shares | $ 2.79 |
Number of Shares Exercised (in shares) | shares | (579,653) |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ / shares | $ 1.77 |
Number of Shares Outstanding, Ending Balance (in shares) | shares | 4,000,266 |
Weighted Average Exercise Price, Shares Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 2.20 |
Number of Shares Exercisable (in shares) | shares | 2,894,363 |
Weighted Average Exercise Price, Shares Exercisable (in dollars per share) | $ / shares | $ 2.30 |
Note 13 - Share-based Compens63
Note 13 - Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allocated Share-based Compensation Expense, Total | $ 148,813 | $ 301,772 | $ 433,063 | $ 943,923 |
Cost of Sales [Member] | ||||
Allocated Share-based Compensation Expense, Total | 5,111 | 6,192 | 16,367 | 17,943 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated Share-based Compensation Expense, Total | 123,311 | 272,118 | 352,766 | 856,215 |
Research and Development Expense [Member] | ||||
Allocated Share-based Compensation Expense, Total | $ 20,391 | $ 23,462 | $ 63,930 | $ 69,765 |
Note 13 - Share-based Compens64
Note 13 - Share-based Compensation - Weighted-average Assumptions (Details) | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 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' Equit65
Note 14 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Thousands, $ in Millions | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 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 | 211,326 | 0 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3.4 |
Note 14 - Stockholders' Equit66
Note 14 - Stockholders' Equity - Summary of Changes in Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Balance | $ 35,184,039 | |||||
Share-based compensation expense | $ 433,063 | |||||
Issuance of common stock upon exercise of stock options, net (in shares) | 579,653 | |||||
Issuance of common stock upon exercise of stock options, net | $ 1,027,719 | |||||
Issuance of common stock upon vesting of restricted stock units | ||||||
Stock buyback | (500,269) | |||||
Other comprehensive loss | (223,939) | |||||
Net loss | $ (80,219) | $ (528,163) | $ (1,302,564) | $ (1,042,492) | (1,302,564) | $ (1,042,492) |
Balance | $ 34,618,049 | $ 34,618,049 | $ 34,618,049 | |||
Common Stock [Member] | ||||||
Balance (in shares) | 32,158,436 | |||||
Balance | $ 322 | |||||
Issuance of common stock upon exercise of stock options, net (in shares) | 579,653 | |||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 125,000 | |||||
Issuance of common stock upon vesting of restricted stock units | ||||||
Stock buyback (in shares) | (211,326) | |||||
Stock buyback | $ 3 | |||||
Balance (in shares) | 32,651,763 | 32,651,763 | 32,651,763 | |||
Balance | $ 325 | $ 325 | $ 325 | |||
Additional Paid-in Capital [Member] | ||||||
Balance | 87,956,839 | |||||
Share-based compensation expense | 433,063 | |||||
Issuance of common stock upon exercise of stock options, net | 1,027,719 | |||||
Issuance of common stock upon vesting of restricted stock units | ||||||
Stock buyback | (500,272) | |||||
Balance | 88,917,349 | 88,917,349 | 88,917,349 | |||
Retained Earnings [Member] | ||||||
Balance | (52,771,853) | |||||
Issuance of common stock upon vesting of restricted stock units | ||||||
Stock buyback | ||||||
Net loss | (1,302,564) | |||||
Balance | (54,074,417) | (54,074,417) | (54,074,417) | |||
AOCI Attributable to Parent [Member] | ||||||
Balance | (1,269) | |||||
Issuance of common stock upon vesting of restricted stock units | ||||||
Stock buyback | ||||||
Other comprehensive loss | (223,939) | |||||
Balance | $ (225,208) | $ (225,208) | $ (225,208) |
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 | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||||
Net loss | $ (80,219) | $ (528,163) | $ (1,302,564) | $ (1,042,492) | $ (1,302,564) | $ (1,042,492) |
Denominator: | ||||||
Basic and diluted (in shares) | 32,306,207 | 31,861,916 | 32,314,038 | 31,820,632 | 32,314,038 | 31,820,632 |
Net loss per common share - basic and diluted (in dollars per share) | $ 0 | $ (0.02) | $ (0.04) | $ (0.03) | $ (0.04) | $ (0.03) |
Antidilutive securities (in shares) | 4,218,596 | 4,978,002 | 4,218,596 | 4,978,002 | ||
Employee Stock Option [Member] | ||||||
Denominator: | ||||||
Antidilutive securities (in shares) | 4,000,266 | 4,853,002 | 4,000,266 | 4,853,002 | ||
Restricted Stock Units (RSUs) [Member] | ||||||
Denominator: | ||||||
Antidilutive securities (in shares) | 218,330 | 125,000 | 218,330 | 125,000 |
Note 16 - Segment Information68
Note 16 - Segment Information (Details Textual) | 9 Months Ended |
Jun. 30, 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 | 9 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Revenues | $ 7,514,068 | $ 4,129,554 | $ 23,011,082 | $ 12,813,280 | $ 23,011,082 | $ 12,813,280 | |
Operating Income | (178,127) | (996,571) | 1,417,132 | (1,890,345) | 1,417,132 | ||
Depreciation and amortization | (143,469) | (337,200) | |||||
Interest expense | (4,388) | (14,205) | |||||
Income tax expense (benefit) | (73,749) | $ (435,726) | 2,793,590 | $ (752,969) | 2,793,590 | $ (752,969) | |
Long-lived assets | 4,606,602 | 4,606,602 | 4,606,602 | $ 565,292 | |||
Total assets | 40,642,934 | 40,642,934 | 40,642,934 | 38,857,800 | |||
Intersegment Eliminations [Member] | |||||||
Revenues | 96,192 | 186,010 | |||||
LRAD Segment [Member] | |||||||
Revenues | 7,012,430 | 22,094,790 | |||||
Operating Income | (63,257) | 1,507,264 | |||||
Depreciation and amortization | (62,665) | (187,433) | |||||
Interest expense | |||||||
Income tax expense (benefit) | (73,749) | 2,793,590 | |||||
Long-lived assets | 538,173 | 538,173 | 538,173 | 565,292 | |||
Total assets | 35,520,401 | 35,520,401 | 35,520,401 | 38,857,800 | |||
LRAD Segment [Member] | Intersegment Eliminations [Member] | |||||||
Revenues | |||||||
Genasys Segment [Member] | |||||||
Revenues | 501,638 | 916,292 | |||||
Operating Income | (114,870) | (90,132) | |||||
Depreciation and amortization | (80,804) | (149,767) | |||||
Interest expense | (4,388) | (14,205) | |||||
Income tax expense (benefit) | |||||||
Long-lived assets | 4,068,429 | 4,068,429 | 4,068,429 | ||||
Total assets | 5,122,533 | $ 5,122,533 | 5,122,533 | ||||
Genasys Segment [Member] | Intersegment Eliminations [Member] | |||||||
Revenues | $ 96,192 | $ 186,010 |
Note 17 - Major Customers (Deta
Note 17 - Major Customers (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Sales Revenue, Net [Member] | Customer 1 [Member] | ||||
Concentration Risk, Percentage | 15.00% | 47.00% | 22.00% | 15.00% |
Sales Revenue, Net [Member] | Customer 2 [Member] | ||||
Concentration Risk, Percentage | 11.00% | 13.00% | 11.00% | 10.00% |
Sales Revenue, Net [Member] | Customer 3 [Member] | ||||
Concentration Risk, Percentage | 10.00% | 11.00% | ||
Accounts Receivable [Member] | Customer 1 [Member] | ||||
Concentration Risk, Percentage | 15.00% | 41.00% | ||
Accounts Receivable [Member] | Customer 2 [Member] | ||||
Concentration Risk, Percentage | 13.00% | 25.00% | ||
Accounts Receivable [Member] | Customer 3 [Member] | ||||
Concentration Risk, Percentage | 12.00% |
Note 17 - Major Customers - Sch
Note 17 - Major Customers - Schedule of Major Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 7,514,068 | $ 4,129,554 | $ 23,011,082 | $ 12,813,280 | $ 23,011,082 | $ 12,813,280 |
Americas [Member] | ||||||
Revenues | 3,814,782 | 1,367,044 | 14,918,891 | 5,088,553 | ||
Asia Pacific [Member] | ||||||
Revenues | 3,089,770 | 150,474 | 6,367,532 | 1,204,267 | ||
Europe, Middle East and Africa [Member] | ||||||
Revenues | $ 609,516 | $ 2,612,036 | $ 1,724,659 | $ 6,520,460 |
Uncategorized Items - lrad-2018
Label | Element | Value |
us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 98,455 |
us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 39,466 |
us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | 346,027 |
us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue |