Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 17, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SRDX | ||
Security Exchange Name | NASDAQ | ||
Entity Registrant Name | Surmodics, Inc | ||
Entity Central Index Key | 0000924717 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, $0.05 par value | ||
Entity File Number | 0-23837 | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-1356149 | ||
Entity Address, Address Line One | 9924 West 74th Street | ||
Entity Address, City or Town | Eden Prairie | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55344 | ||
City Area Code | 952 | ||
Local Phone Number | 500-7000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 14,156,000 | ||
Entity Public Float | $ 310 | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Minneapolis, Minnesota | ||
Auditor Firm ID | 34 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s Proxy Statement for the Registrant’s 2024 Annual Meeting of Shareholders are incorporated by reference into Part III. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 41,419 | $ 18,998 |
Available-for-sale securities | 3,933 | |
Accounts receivable, net of allowances of $80 and $81 as of September 30, 2023 and 2022, respectively | 10,850 | 10,452 |
Contract assets — royalties and license fees | 7,796 | 7,116 |
Inventories, net | 14,839 | 11,819 |
Income tax receivable | 491 | 2,438 |
Prepaids and other | 7,363 | 6,764 |
Total Current Assets | 86,691 | 57,587 |
Property and equipment, net | 26,026 | 27,148 |
Intangible assets, net | 26,206 | 28,145 |
Goodwill | 42,946 | 40,710 |
Other assets | 3,864 | 4,769 |
Total Assets | 185,733 | 158,359 |
Current Liabilities: | ||
Accounts payable | 2,993 | 3,136 |
Accrued liabilities: | ||
Compensation | 10,139 | 8,929 |
Accrued other | 6,444 | 5,854 |
Short-term borrowings | 10,000 | |
Deferred revenue | 4,378 | 4,160 |
Total Current Liabilities | 23,954 | 32,079 |
Long-term debt, net | 29,405 | |
Deferred revenue, less current portion | 2,400 | 5,088 |
Deferred income taxes | 2,004 | 2,027 |
Other long-term liabilities | 8,060 | 10,773 |
Total Liabilities | 65,823 | 49,967 |
Commitments and Contingencies (Note 11) | ||
Stockholders’ Equity: | ||
Series A preferred stock — $.05 par value, 450 shares authorized; no shares issued and outstanding | ||
Common stock - $.05 par value, 45,000 shares authorized; 14,155 and 14,029 shares issued and outstanding, as of September 30, 2023 and 2022, respectively | 708 | 701 |
Additional paid-in capital | 36,706 | 28,774 |
Accumulated other comprehensive loss | (4,759) | (9,874) |
Retained earnings | 87,255 | 88,791 |
Total Stockholders’ Equity | 119,910 | 108,392 |
Total Liabilities and Stockholders’ Equity | $ 185,733 | $ 158,359 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances (accounts receivable) | $ 80 | $ 81 |
Series A preferred stock, par value | $ 0.05 | $ 0.05 |
Series A preferred stock, shares authorized | 450,000 | 450,000 |
Series A preferred stock, shares issued | 0 | 0 |
Series A preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 14,155,000 | 14,029,000 |
Common stock, shares outstanding | 14,155,000 | 14,029,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | |||
Total revenue | $ 132,584 | $ 99,951 | $ 105,136 |
Operating costs and expenses: | |||
Cost, Product and Service [Extensible Enumeration] | Product Sales [Member] | Product Sales [Member] | Product Sales [Member] |
Product costs | $ 24,965 | $ 20,342 | $ 17,177 |
Research and development | 46,595 | 50,609 | 46,734 |
Selling, general and administrative | 51,884 | 46,935 | 30,677 |
Acquired intangible asset amortization | 3,537 | 4,150 | 2,793 |
Restructuring expense | 1,282 | ||
Contingent consideration (gain) expense | (829) | 12 | 3 |
Acquisition transaction, integration and other costs | 1,049 | ||
Total operating costs and expenses | 127,434 | 122,048 | 98,433 |
Operating income (loss) | 5,150 | (22,097) | 6,703 |
Other expense: | |||
Interest expense, net | (3,489) | (598) | (310) |
Foreign exchange (loss) gain | (251) | 103 | (170) |
Investment income, net | 1,077 | 99 | 123 |
Other expense, net | (2,663) | (396) | (357) |
Income (loss) before income taxes | 2,487 | (22,493) | 6,346 |
Income tax expense | (4,023) | (4,781) | (2,109) |
Net (loss) income | $ (1,536) | $ (27,274) | $ 4,237 |
Basic net (loss) income per share | $ (0.11) | $ (1.96) | $ 0.31 |
Diluted net (loss) income per share | $ (0.11) | $ (1.96) | $ 0.30 |
Weighted average number of shares outstanding: | |||
Basic | 14,031 | 13,916 | 13,765 |
Diluted | 14,031 | 13,916 | 13,989 |
Product Sales [Member] | |||
Revenue: | |||
Total revenue | $ 60,614 | $ 54,621 | $ 46,478 |
Royalties and License Fees [Member] | |||
Revenue: | |||
Total revenue | 62,398 | 36,248 | 47,056 |
Research, Development and Other [Member] | |||
Revenue: | |||
Total revenue | $ 9,572 | $ 9,082 | $ 11,602 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ (1,536) | $ (27,274) | $ 4,237 |
Derivative instruments: | |||
Unrealized net gain | 260 | ||
Net gain reclassified to earnings | (77) | ||
Net changes related to available-for-sale securities, net of tax | (6) | (1) | 1 |
Foreign currency translation adjustments | 4,938 | (11,600) | (1,448) |
Other comprehensive income (loss) | 5,115 | (11,601) | (1,447) |
Comprehensive income (loss) | $ 3,579 | $ (38,875) | $ 2,790 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2020 | $ 131,055 | $ 684 | $ 15,369 | $ 3,174 | $ 111,828 |
Beginning balance, shares at Sep. 30, 2020 | 13,672,000 | ||||
Net income (loss) | 4,237 | 4,237 | |||
Other comprehensive income (loss) | (1,447) | (1,447) | |||
Issuance of common stock | 619 | $ 5 | 614 | ||
Issuance of common stock, shares | 100,000 | ||||
Common stock options exercised, net | $ 2,509 | $ 7 | 2,502 | ||
Common stock options exercised, net, shares | 248,000 | 146,000 | |||
Purchase of common stock to pay employee taxes | $ (2,751) | $ (1) | (2,750) | ||
Purchase of common stock to pay employee taxes, shares | (19,000) | ||||
Stock-based compensation | 5,863 | 5,863 | |||
Ending balance at Sep. 30, 2021 | 140,085 | $ 695 | 21,598 | 1,727 | 116,065 |
Ending balance, shares at Sep. 30, 2021 | 13,899,000 | ||||
Net income (loss) | (27,274) | (27,274) | |||
Other comprehensive income (loss) | (11,601) | (11,601) | |||
Issuance of common stock | 832 | $ 6 | 826 | ||
Issuance of common stock, shares | 124,000 | ||||
Common stock options exercised, net | $ 414 | $ 1 | 413 | ||
Common stock options exercised, net, shares | 45,000 | 27,000 | |||
Purchase of common stock to pay employee taxes | $ (1,121) | $ (1) | (1,120) | ||
Purchase of common stock to pay employee taxes, shares | (21,000) | ||||
Stock-based compensation | 7,057 | 7,057 | |||
Ending balance at Sep. 30, 2022 | 108,392 | $ 701 | 28,774 | (9,874) | 88,791 |
Ending balance, shares at Sep. 30, 2022 | 14,029,000 | ||||
Net income (loss) | (1,536) | (1,536) | |||
Other comprehensive income (loss) | 5,115 | 5,115 | |||
Issuance of common stock | 850 | $ 7 | 843 | ||
Issuance of common stock, shares | 133,000 | ||||
Common stock options exercised, net | $ 402 | $ 1 | 401 | ||
Common stock options exercised, net, shares | 20,000 | 19,000 | |||
Purchase of common stock to pay employee taxes | $ (918) | $ (1) | (917) | ||
Purchase of common stock to pay employee taxes, shares | (26,000) | ||||
Stock-based compensation | 7,605 | 7,605 | |||
Ending balance at Sep. 30, 2023 | $ 119,910 | $ 708 | $ 36,706 | $ (4,759) | $ 87,255 |
Ending balance, shares at Sep. 30, 2023 | 14,155,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities: | |||
Net (loss) income | $ (1,536) | $ (27,274) | $ 4,237 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 8,522 | 9,142 | 8,017 |
Stock-based compensation | 7,605 | 7,057 | 5,863 |
Noncash lease expense | 652 | 529 | 308 |
Amortization of debt issuance costs | 365 | 46 | 46 |
Provision for credit losses | 37 | 5 | (11) |
Contingent consideration (gain) expense | (829) | 12 | 3 |
Deferred taxes | (181) | 5,268 | 1,651 |
Other | 115 | 268 | 132 |
Change in operating assets and liabilities | |||
Accounts receivable and contract assets | (977) | (1,522) | (2,480) |
Inventories | (3,020) | (5,060) | (818) |
Prepaids and other | (665) | (2,391) | |
Accounts payable | (183) | 1,608 | 264 |
Accrued liabilities | (1,024) | 132 | 1,406 |
Income taxes | 3,438 | (1,069) | 210 |
Deferred revenue | (2,470) | (5,700) | (1,048) |
Net cash provided by (used in) operating activities | 10,514 | (17,223) | 15,389 |
Investing Activities: | |||
Purchases of property and equipment | (2,918) | (3,370) | (5,279) |
Payment for acquisition of intangible assets | (1,000) | ||
Purchases of available-for-sale securities | (3,904) | (22,723) | |
Maturities of available-for-sale securities | 9,600 | 43,317 | |
Purchase of business, net of acquired cash | (39,553) | ||
Net cash (used in) provided by investing activities | (6,822) | 6,230 | (25,238) |
Financing Activities: | |||
Proceeds from short-term borrowings | 10,000 | ||
Payments on short-term borrowings | (10,000) | ||
Proceeds from issuance of long-term debt | 29,664 | ||
Payment of debt issuance costs | (614) | ||
Issuance of common stock | 1,252 | 1,246 | 3,128 |
Payments for taxes related to net share settlement of equity awards | (918) | (1,121) | (2,751) |
Payments for acquisition of in-process research and development | (978) | (500) | (150) |
Net cash provided by (used in) financing activities | 18,406 | (375) | 10,227 |
Effect of exchange rate changes on cash | 323 | (787) | (10) |
Net change in cash and cash equivalents | 22,421 | (12,155) | 368 |
Cash and Cash Equivalents: | |||
Beginning of year | 18,998 | 31,153 | 30,785 |
End of year | 41,419 | 18,998 | 31,153 |
Supplemental Information: | |||
Cash paid for income taxes | 2,851 | 416 | 160 |
Cash paid for interest | 2,919 | 415 | 74 |
Noncash financing and investing activities: | |||
Acquisition of property and equipment, net of refundable credits in other current assets and liabilities | $ 116 | 70 | 211 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,725 | 234 | |
Deferred and contingent consideration assumed in business acquisition | $ 4,071 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (1,536) | $ (27,274) | $ 4,237 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization
Organization | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization Description of Business Surmodics, Inc. and subsidiaries (referred to as “Surmodics,” the “Company,” “we,” “us,” “our” and other like terms) is a leading provider of performance coating technologies for intravascular medical devices and chemical and biological components for in vitro diagnostic (“IVD”) immunoassay tests and microarrays. Surmodics develops and commercializes highly differentiated vascular intervention medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the Company’s expertise in proprietary surface modification and drug-delivery coating technologies, along with its device design, development and manufacturing capabilities. The Company’s mission is to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota. Basis of Presentation and Principles of Consolidation The consolidated financial statements include all accounts and wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All intercompany transactions have been eliminated. The Company operates on a fiscal year ending on September 30. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information | 2 . Summary of Significant Accounting Policies and Supplemental Balance Sheet Information Cash and Cash Equivalents Cash and cash equivalents consist of financial instruments with maturities of three months or less at the Company’s acquisition date of the security. Cash is stated at cost, which approximates fair value. Cash equivalents are stated at fair value. Cash and cash equivalents may include money market instruments, certificates of deposit, repurchase agreements and commercial paper instruments. Investments — Available-for-sale Securities As of September 30, 2023 and 2022 , investments in available-for-sale debt securities totaled $ 3.9 million and $ 0.0 million, respectively, on the consolidated balance sheets. As of September 30, 2023, investments consisted of commercial paper and corporate bond securities, were classified as available-for-sale, and were reported at fair value. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in investment income, net within other expense. Realized gains and losses from the sales of debt securities, which are included in investment income, net, are determined using the specific identification method. Investment purchases are accounted for on the date the trade is executed, which may not be the same as the date the transaction is cash settled. Unrealized gains and losses, net of tax, are excluded from the consolidated statements of operations and reported on the consolidated statements of comprehensive income (loss) and also as a separate component of stockholders’ equity on the consolidated balance sheets. For investments in an unrealized loss position, we make the following assessments. If it is more likely than not we will sell the investment before recovery of its amortized cost basis, we write down the security’s amortized cost basis to fair value and reclassify the net unrealized loss from accumulated other comprehensive (loss) income to investment income, net on the consolidated statements of operations. If the decline in fair value is deemed to be due to a credit loss, we recognize an allowance for the expected credit loss to reduce the cost basis to fair value, with a corresponding adjustment to investment income, net. As of September 30, 2023, the amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows. There were no available-for-sale securities as of September 30, 2022. (In thousands) Amortized Unrealized Unrealized Fair Commercial paper and corporate bonds $ 3,936 $ — $ ( 3 ) $ 3,933 Available-for-sale securities $ 3,936 $ — $ ( 3 ) $ 3,933 There were no held-to-maturity debt securities as of September 30, 2023 and 2022 . There were no realized gains or losses on sales of available-for-sale securities for fiscal 2023, 2022 or 2021. Accounts Receivable We grant credit to customers in the normal course of business and maintain an allowance for credit losses. The allowance for credit losses reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. We consider various factors in establishing, monitoring and adjusting the allowance for credit losses including the aging of accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. We base our estimates of credit loss reserves on historical experience and adjust, as necessary, to reflect current conditions using reasonable and supportable forecasts not already reflected in the historical loss information. Inventories Inventories are principally stated at the lower of cost or net realizable value using the specific identification method and include direct labor, materials and overhead, with cost of product sales determined on a first-in, first-out basis. Inventories, net of reserves of $ 1.8 million and $ 1.1 million as of September 30, 2023 and 2022, respectively, consisted of the following components: September 30, (In thousands) 2023 2022 Raw materials $ 8,063 $ 6,102 Work-in process 2,607 1,595 Finished products 4,169 4,122 Inventories, net $ 14,839 $ 11,819 We regularly review inventory quantities, and when appropriate, record reserves for excess and obsolete inventory to reduce the balance of inventories, net on the consolidated balance sheets, with corresponding charges to product costs on the consolidated statements of operations. We write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value, and inventory in excess of expected requirements based on future demand and as compared to remaining shelf life. The estimate of excess quantities is subjective and primarily dependent on our estimates of future demand for a particular product. Prepaids and Other Assets, Current Prepaids and other current assets consisted of the following: September 30, (In thousands) 2023 2022 Prepaid expenses $ 2,600 $ 2,570 Irish research and development credits receivable 1,322 753 CARES Act employee retention credit receivable (1) 3,441 3,441 Prepaids and other $ 7,363 $ 6,764 (1) Receivable consisted of anticipated reimbursement of personnel expenses incurred in fiscal periods prior to fiscal 2022 as a result of our eligibility for the employee retention credit under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). Property and Equipment Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $ 4.7 million, $ 4.7 million and $ 4.9 million in fiscal 2023, 2022 and 2021, respectively. The September 30, 2023 and 2022 balances in construction-in-progress include the cost of equipment and building improvements not yet placed in service. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful life of the asset. Expenditures for maintenance and repairs and minor renewals and betterments that do not extend or improve the life of the respective assets are expensed as incurred. Property and equipment consisted of the following components: Useful Life September 30, (Dollars in thousands) (Years) 2023 2022 Land N/A $ 4,413 $ 4,409 Laboratory fixtures and equipment 3 to 10 33,120 28,810 Buildings and improvements 3 to 20 26,964 26,373 Leasehold improvements 5 to 10 6,499 6,499 Office furniture and equipment 3 to 10 9,561 9,205 Construction-in-progress 1,936 3,175 Less: Accumulated depreciation ( 56,467 ) ( 51,323 ) Property and equipment, net $ 26,026 $ 27,148 Intangible Assets Intangible assets consisted of the following: September 30, 2023 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 9.3 $ 11,260 $ ( 9,435 ) $ 1,825 Developed technology 11.9 33,929 ( 11,048 ) 22,881 Patents and other 14.9 2,338 ( 1,418 ) 920 Total definite-lived intangible assets 47,527 ( 21,901 ) 25,626 Unamortized intangible assets: Trademarks and trade names 580 — 580 Intangible assets, net $ 48,107 $ ( 21,901 ) $ 26,206 September 30, 2022 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 9.3 $ 10,454 $ ( 7,927 ) $ 2,527 Developed technology 11.9 31,943 ( 7,994 ) 23,949 Patents and other 14.9 2,338 ( 1,249 ) 1,089 Total definite-lived intangible assets 44,735 ( 17,170 ) 27,565 Unamortized intangible assets: Trademarks and trade names 580 — 580 Intangible assets, net $ 45,315 $ ( 17,170 ) $ 28,145 The Company recorded amortization expense of $ 3.8 million, $ 4.4 million and $ 3.1 million in fiscal 2023, 2022 and 2021, respectively. Based on the intangible assets in service as of September 30, 2023, estimated amortization expense for future fiscal years is as follows: (In thousands) 2024 $ 3,691 2025 3,656 2026 2,780 2027 2,534 2028 2,524 Thereafter 10,441 Definite-lived intangible assets $ 25,626 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, changes in amortization periods, foreign currency exchange rates or other factors. The Company defines in-process research and development (“IPR&D”) as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business combination is recognized at fair value and is capitalized as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. In cases where the IPR&D projects are abandoned, the related IPR&D assets are written off. The Company performs its annual assessment of indefinite-lived assets for impairment annually as of July 1st of each fiscal year and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment assessment, the indefinite-lived assets impairment assessment requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. No impairment charges were recorded in fiscal 2023, 2022 and 2021 . Goodwill Goodwill in the Medical Device reporting unit represents the gross value from the fiscal 2021 acquisition of Vetex Medical Limited (“Vetex”) and the fiscal 2016 acquisitions of Creagh Medical, Ltd. (“Creagh Medical”) and NorMedix, Inc. (“NorMedix”). Goodwill in the In Vitro Diagnostics reporting unit represents the gross value from the acquisition of BioFX Laboratories, Inc. in 2007. Refer to Note 13 Acquisitions for further disclosures for Vetex. Changes in the carrying amount of goodwill by segment were as follows: (In thousands) In Vitro Medical Device Total Goodwill as of September 30, 2021 $ 8,010 $ 37,596 $ 45,606 Foreign currency translation adjustment — ( 5,173 ) ( 5,173 ) Measurement period adjustments (1) — 277 277 Goodwill as of September 30, 2022 8,010 32,700 40,710 Foreign currency translation adjustment — 2,236 2,236 Goodwill as of September 30, 2023 $ 8,010 $ 34,936 $ 42,946 (1) In fiscal 2022, measurement period adjustments were recorded to finalize the allocation of purchase consideration for the fiscal 2021 Vetex acquisition (Note 13). Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to the assets purchased and liabilities assumed. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s reporting units are the Medical Device and In Vitro Diagnostics reportable segments. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations, as well as the Company’s strategic plans with regard to its operations. When utilizing a quantitative assessment, the Company determines fair value at the reporting unit level based on a combination of an income approach and market approach. The income approach is based on estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant, while the market approach is based on sales and/or earnings multiples of similar companies. These approaches use significant estimates and assumptions, including projected future cash flows and the timing of those cash flows, discount rates reflecting risks inherent in future cash flows, perpetual growth rates, and determination of appropriate market comparables. The Company performs its assessment of goodwill for impairment as of July 1 st of each fiscal year. Goodwill was not impaired in either reporting unit based on the outcome of the fiscal 2023 annual impairment test, which utilized a quantitative assessment. No goodwill impairment charges were recorded in fiscal 2023, 2022 and 2021 . Other Assets, Noncurrent Other noncurrent assets consisted of the following: September 30, (In thousands) 2023 2022 Operating lease right-of-use assets $ 2,987 $ 3,633 Other 877 1,136 Other assets, noncurrent $ 3,864 $ 4,769 Valuation of Long-lived Assets The Company periodically evaluates whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment, right-of-use assets, and definite-lived intangible assets. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. In fiscal 2023, 2022 and 2021 , no impairment charges were recorded related to the Company’s long-lived assets. Accrued Other Liabilities Accrued other liabilities consisted of the following: September 30, (In thousands) 2023 2022 Accrued professional fees $ 178 $ 279 Accrued clinical study expense 1,056 1,425 Accrued purchases 1,142 1,655 Deferred consideration (1) 2,661 981 Operating lease liability, current portion 872 963 Other 535 551 Accrued other liabilities $ 6,444 $ 5,854 (1) Deferred consideration consisted of the present value of guaranteed payments to be made in connection with the fiscal 2021 Vetex ac quisition (Note 13) and with an asset acquisition in fiscal 2019 (Note 11). Other Long-term Liabilities Other long-term liabilities consisted of the following: September 30, (In thousands) 2023 2022 Deferred consideration (1) $ 1,754 $ 4,260 Contingent consideration (2) — 829 Unrecognized tax benefits (3) 3,332 1,841 Operating lease liabilities (4) 2,974 3,843 Other long-term liabilities $ 8,060 $ 10,773 (1) Deferred consideration consisted of the present value of a guaranteed payment to be made in connection with the fiscal 2021 Vetex acquisition (Note 13). (2) Contingent consideration consisted of the fair value of contingent consideration liabilities associated with the fiscal 2021 Vetex acquisition (Note 5 and Note 13). (3) Unrecognized tax benefits (Note 9) included accrued interest and penalties, if applicable. (4) Operating lease liabilities consisted of the non-current portion of the net present value of future minimum lease payments, reduced by the discounted value of leasehold improvement incentives paid or payable to the Company. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. The Company primarily sells or licenses its products, technologies and services to other medical device and diagnostics companies. Revenue is recorded net of taxes collected from customers, and taxes collected are recorded as current liabilities until remitted to the relevant government authority. The amount of foreign taxes imposed on specific revenue producing transactions that is the responsibility of the Company is expensed as incurred and reported in income tax expense on the consolidated statements of operations. For contracts that have an original duration of one year or less, the Company uses the practical expedient applicable to such contracts and does not adjust the transaction price for the time value of money. Performance Obligations We derive our revenue from three primary sources: Product Sales Royalties and License Fees Research, Development and Other IVD chemical and biological components, including protein stabilizers, substrates, surface coatings and antigens to the diagnostic and biomedical research markets (IVD segment) Performance coating royalties and license fees from licensing of our proprietary performance coating technologies to medical device manufacturers (Medical Device segment) Contract coating services and commercial development feasibility services (Medical Device segment) Performance coating reagents, the chemicals used in performance coatings by licensees (Medical Device segment) SurVeil DCB license fees associated with the Abbott Agreement (Medical Device segment) Commercial development services (IVD segment) Vascular intervention medical devices and related products to original equipment manufacturer suppliers and distributors, as well as directly to healthcare providers (Medical Device segment) The Company recognizes revenue when control is transferred to the customer. The transfer of control varies by revenue classification and is described below. If a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price. Product Sales . Revenue from product sales is recognized at the point in time control of the products is transferred, generally upon shipment based upon the standard contract terms. Shipping and handling activities are considered to be fulfillment activities rather than promised services and are not, therefore, considered to be separate performance obligations. The amount of revenue recognized is based on the transaction price, which generally represents the invoiced amount, net of administrative fees where applicable. The Company’s sales terms provide no right of return outside of a standard warranty policy, and returns are generally not significant. Payment terms for product sales are generally set at 30 - 45 days after shipment. Royalties . Royalties revenue consists of sales-based and recurring minimum royalties earned under licenses of our performance coating technologies. Performance obligations under these licenses, which consist of the right to use the Company’s proprietary technology, are satisfied at a point in time corresponding with delivery of the underlying technology rights to the customer, which is generally upon transfer of the licensed technology to the customer. Sales-based royalties revenue represents variable consideration under the license agreements and is recognized in the period a customer sells products incorporating the Company’s licensed technologies. Our customers generally report sales subject to royalties to us in the quarter after those sales occur. The Company estimates sales-based royalties revenue earned but unpaid at each reporting period using the expected value method based on historical sales information, adjusted for known changes such as product launches and patent expirations. The Company also considers macroeconomic factors affecting the medical device market. The Company's license arrangements also often provide for recurring fees (minimum royalties), which the Company recognizes at the later of the satisfaction of the underlying performance obligation or upon renewal of the contract, which generally occurs on a quarterly basis. Sales-based and minimum royalties are generally due within 45 days after the end of each quarter. License Fees . For distinct license performance obligations, upfront license fees are recognized when the Company satisfies the underlying performance obligation. This generally occurs upon transfer of the right to use the Company’s licensed technology to the customer, with the exception of the license of the Company’s SurVeil drug-coated balloon (the “ SurVeil DCB”) disclosed below. Certain license arrangements include contingent milestone payments, which are due following achievement by our customers of specified sales or regulatory milestones. Contingent milestone payment terms vary by contract. The Company has generally fulfilled its performance obligation prior to achievement of these milestones. However, because of the uncertainty of the milestone achievement, and/or the dependence on sales of our customers, variable consideration for contingent milestones is fully constrained and excluded from the contract price until the milestone is achieved by our customer, to the extent collectability is reasonably certain. The Company has a collaborative arrangement contract with Abbott Vascular, Inc. (“Abbott”) disclosed in Note 4 Collaborative Arrangement (the “Abbott Agreement”). As of September 30, 2023 , the Company has received payments totaling $ 87.8 million under the Abbott Agreement, and there are no remaining contingent milestone payments under the Abbott Agreement. The performance obligation identified in the Abbott Agreement includes delivery of our licensed technology and completion of research and development activities, primarily clinical trial activities (together, “R&D and Clinical Activities”). These promises are not distinct performance obligations because the product necessary for completion of the R&D and Clinical Activities is currently only able to be manufactured by the Company due to the exclusive proprietary know-how and certain regulatory requirements associated with the manufacture of the product. The customer, Abbott, simultaneously receives and consumes the benefits of the R&D and Clinical Activities as study data are generated to support regulatory approval submissions. Control is effectively transferred over time as we complete the TRANSCEND clinical study of the SurVeil DCB and related regulatory activities. License fee revenue related to this contract is recognized using the cost-to-cost method which measures progress based on costs incurred to date relative to the expected total cost of the services, as the Company believes this represents a faithful depiction of the satisfaction of its performance obligation. Use of the cost-to-cost method requires significant estimates, including the total cost of the TRANSCEND study, which is expected to be completed over the next two years . Revenue is recorded based on the cost-to-cost completion estimate relative to the transaction price, which is equal to the total upfront fee plus the expected value of the clinical and regulatory milestones. Revenue from the upfront fee and contingent clinical and regulatory milestone payments, once the underlying contingencies are achieved, is recognized within royalties and license fees on the consolidated statements of operations as the clinical and regulatory activities are performed on a proportional performance basis. Performance is measured based on actual costs incurred relative to the expected total cost of the underlying activities, most notably the completion of the TRANSCEND clinical trial. A significant component of the cost of this trial is the cost of the Company’s outsourced clinical trial clinical research organization (“CRO”) consultants, which is estimated based on executed statements of work, project budgets, and patient enrollment timing, among other factors. A significant change to the Company’s estimate of the costs to complete the TRANSCEND clinical trial could have a material effect on the Company’s results of operations. Significant judgment is used to estimate total revenue and cost at completion for this contract. To account for the Abbott Agreement, the Company applied the guidance in ASC Topic 808 (Collaborative Arrangements) as the parties are active participants and are exposed to significant risks and rewards dependent on commercial success of the collaborative activity. See Note 4 Collaborative Arrangement for further disclosures related to the Abbott Agreement. Research and Development . The Company performs research and development (“R&D”) activities as a service to customers, which are typically charged to customers on a time-and-materials basis. Generally, revenue for R&D services is recorded over time as the services are provided to the customer in the amount to which the Company has the right to invoice. These services are generally charged to the customer as they are provided. Payment terms for R&D services are generally set at 30 - 45 days. Contract Assets, Deferred Revenue and Remaining Performance Obligations Contract assets are generally short in duration given the nature of products produced and services provided by the Company. Contract assets consist of sales-based and minimum royalties revenue earned for which unconditional right to payment does not exist as of the balance sheet date. These assets are comprised of estimated sales-based royalties earned, but not yet reported by the Company’s customers, minimum royalties on non-cancellable contracts, and contingent milestones earned, but not yet billable based on the terms of the contract. See Note 3 Revenue for further contract asset disclosures. The Company records a contract liability, or deferred revenue, when there is an obligation to provide a product or service to the customer, and payment is received or due in advance of performance, or when payment is received for a period outside the contract term. See Note 4 Collaborative Arrangement for further deferred revenue disclosures. Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts. For contracts that have an original duration of one year or less, the Company has elected the practical expedient applicable to such contracts and does not disclose the transaction price for remaining performance obligations at the end of each reporting period or the expecting timing of recognition of related revenue. See Note 4 Collaborative Arrangement for further performance obligation disclosures. Product Costs Product costs consist primarily of the cost of raw materials, components, direct labor and manufacturing overhead. Overhead costs include the cost of quality assurance and control, materials procurement, inventory control, facilities, and manufacturing supervision and management, including stock-based compensation. Product costs also includes depreciation expense for production equipment and facilities, charges for excess and obsolete inventory, and certain direct costs such as shipping and handling costs. Leases The Company leases facilities for research, office, manufacturing and warehousing. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement, the Company recognizes a right-of-use asset and lease liability based on the net present value of the future minimum lease payments over the lease term at the commencement date. The net present value of future minimum lease payments recorded upon lease commencement is reduced by the discounted value of any leasehold improvement incentives payable to the Company considered to be in-substance fixed payments. The unamortized balance of leasehold improvement incentives in the form of tenant allowances represents the primary difference between the balance of the right-of-use assets and operating lease liabilities. As the Company’s leases typically do not provide an implicit rate, the Company’s lease liabilities are measured on a discounted basis using the Company's incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. The consolidated balance sheets do not include recognized assets or liabilities for leases that, at the commencement date, have a term of twelve months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised. The Company recognizes such leases on the consolidated statements of operations on a straight-line basis over the lease term. The Company’s leases include one or more options to renew and extend the lease term at the Company’s discretion. These renewal options are not included in right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options, and when they are reasonably certain to be exercised, the renewal period is included in the lease term. As of September 30, 2023, operating lease maturities were as follows: (In thousands) 2024 $ 1,217 2025 1,214 2026 1,132 2027 1,135 2028 574 Total expected operating lease payments 5,272 Less: Imputed interest ( 1,426 ) Total operating lease liabilities $ 3,846 Operating lease cost was $ 1.4 million, $ 1.1 million and $ 0.8 million for fiscal 2023, 2022 and 2021, respectively. Cash paid for operating lease liabilities approximated operating lease cost for fiscal 2023, 2022 and 2021. As of September 30, 2023 , the weighted average remaining lease term for operating leases was 4.4 years, and the weighted average discount rate used to determine operating lease liabilities was 3.9 %. Stock-based Compensation We measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. Share-based payments are expensed based on their grant-date fair values on a straight-line basis over the requisite service period of the total award, less estimated forfeitures based on historical experience. Shares awarded under the Company’s stock-based compensation plans, with the exception of restricted stock awards, are not considered issued or outstanding common stock of the Company until they vest and the shares are released. New awards and forfeitures of unvested restricted stock result in an increase (decrease), respectively, in common stock issued and outstanding. Research and Development R&D expenses include costs associated with the design, development, testing, enhancement and regulatory approval of the Company’s products. R&D expenses include employee compensation (including stock-based compensation), internal and external costs associated with our regulatory compliance and quality assurance functions, the costs of product used in development and clinical trials, consulting expenses, and facilities overhead. The Company also incurs significant R&D expenses to operate clinical trials. R&D costs are expensed as incurred. Certain R&D costs are related to customer contracts, and the related revenue is recognized as described in “Revenue Recognition” in this Note 2. Costs associated with customer-related R&D include specific project direct labor and materials expenses, as well as an allocation of overhead costs based on direct labor costs. Clinical Trial Costs. The Company sponsors clinical trials intended to obtain the necessary clinical data required to obtain approval from various regulatory agencies to market medical devices developed by the Company. Costs associated with clinical trials include trial design and management expenses, clinical site reimbursements and third-party fees, among other costs. The Company’s clinical trials may be administered by third-party CROs. These CROs generally bill monthly for certain services performed, as well as upon achievement of certain milestones. The Company monitors patient enrollment, the progress of clinical studies, and related activities through internal reviews of data reported to the Company by the CROs and correspondence with the CROs. We periodically evaluate our estimates to determine if adjustments are necessary or appropriate based on information received. These estimates often require significant judgment on the part of the Company’s management. Derivative Financial Instruments We periodically enter into interest rate swaps with major financial institutions of high credit quality to mitigate exposure to changes in interest rates on our floating-rate indebtedness. Since the fair value of these interest rate swaps is derived from current market rates, they are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. When the Company has multiple der |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue The following is a disaggregation of revenue within each reportable segment: Fiscal Year (In thousands) 2023 2022 2021 Medical Device Product sales $ 34,126 $ 27,930 $ 21,777 Royalties & license fees – performance coatings 32,812 30,547 31,007 License fees – SurVeil DCB 29,586 5,701 16,049 Research, development and other 9,259 8,211 9,420 Medical Device revenue 105,783 72,389 78,253 In Vitro Diagnostics Product sales 26,488 26,691 24,701 Research, development and other 313 871 2,182 In Vitro Diagnostics revenue 26,801 27,562 26,883 Total Revenue $ 132,584 $ 99,951 $ 105,136 Contract assets totaled $ 7.8 million and $ 7.1 million as of September 30, 2023 and 2022, respectively, on the consolidated balance sheets. Fluctuations in the balance of contract assets result primarily from changes in sales-based and minimum royalties earned, but not collected at each balance sheet date due to payment timing and contractual changes in the normal course of business. For discussion of contract liability (deferred revenue) balances and remaining performance obligations, see Note 4 Collaborative Arrangement. Revenue from customers that equaled or exceeded 10% of total revenue was as follows: Fiscal Year 2023 2022 2021 Abbott 27 % 11 % 21 % Medtronic 10 % 13 % 13 % Revenue by geographic region was as follows: Fiscal Year 2023 2022 2021 Domestic 82 % 74 % 79 % Foreign 18 % 26 % 21 % |
Collaborative Arrangement
Collaborative Arrangement | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative Arrangement | 4. Collaborative Arrangement On February 26, 2018, we entered into the Abbott Agreement under which Abbott has exclusive worldwide commercialization rights for Surmodics' SurVeil DCB to treat the superficial femoral artery. In June 2023, we received premarket approval (“PMA”) for the SurVeil DCB from the U.S. Food and Drug Administration (“FDA”), and the product may now be marketed and sold in the U.S. by Abbott. Under the Abbott Agreement, Abbott has the right to purchase commercial units of the SurVeil DCB from us. Upon shipment of SurVeil DCB units to Abbott, Surmodics will realize product revenue, which will include (i) an agreed-upon transfer price, and (ii) a share of net profits resulting from product sales by Abbott to third parties. As of September 30, 2023, Surmodics had not yet recognized any such SurVeil DCB product revenue on the consolidated statements of operations. Timing of commercialization in the U.S. is at the discretion of Abbott. Under the Abbott Agreement, Surmodics is responsible for conducting all necessary clinical trials, including completion of the ongoing, five-year, TRANSCEND pivotal clinical trial. Abbott and Surmodics participate on a joint development committee charged with providing guidance on the Company’s clinical and regulatory activities with regard to the SurVeil DCB product. As of September 30, 2023 , Surmodics had received payments totaling $ 87.8 million under the Abbott Agreement, which consisted of the following: (i) $ 25 million upfront fee in fiscal 2018, (ii) $ 10 million milestone payment in fiscal 2019 upon completion of enrollment in the TRANSCEND clinical trial, (iii) $ 10.8 million milestone payment in fiscal 2020 upon receipt of Conformité Européenne Mark (“CE Mark”) approval prerequisite for commercialization of the SurVeil DCB in the European Union, (iv) $ 15 million milestone payment in fiscal 2021 upon receipt by Abbott of the clinical study report and related materials from the TRANSCEND pivotal trial that demonstrated the primary safety and primary clinical endpoints were non-inferior to the control device, and (v) final milestone payment of $ 27 million in fiscal 2023 upon receipt of PMA for the SurVeil DCB from the FDA. Refer to Note 3 for SurVeil DCB license fee revenue recognized in fiscal 2023, 2022 and 2021. As of September 30, 2023, the Company had recognized total SurVeil DCB license fee revenue of $ 81.2 million on the total $ 87.8 million in upfront and milestone payments received under the Abbott Agreement. As of September 30, 2023 and 2022 , deferred revenue of $ 6.6 million and $ 9.2 million, respectively, was recorded on the consolidated balance sheets from the upfront and milestone payments received under the Abbott Agreement. Revenue recognized from the Abbott Agreement, which was included in the respective beginning of fiscal year balances of deferred revenue on the consolidated balance sheets, totaled $ 4.6 million, $ 5.7 million and $ 4.7 million for fiscal 2023, 2022 and 2021, respectively. As of September 30, 2023 , the estimated revenue expected to be recognized in future periods totaled approximately $ 6.6 million related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more. These remaining performance obligations related to the Abbott Agreement and are expected to be recognized over the next two years as the services, which are primarily comprised of the R&D and Clinical Activities performance obligation in the Abbott Agreement, are completed. As of September 30, 2023 , we expected to recognize approximately $ 4.2 million of these remaining performance obligations as revenue within one year , with the remaining $ 2.4 million over the subsequent, final year of the TRANSCEND trial follow-up and clinical reporting period. See Note 2 for further information regarding SurVeil DCB license fee revenue recognition. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements In determining the fair value of financial assets and liabilities, we utilize market data or other assumptions that we believe market participants would use in pricing the asset or liability in the principal or most advantageous market and adjust for non-performance and/or other risk associated with the company as well as counterparties, as appropriate. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those with fair value measurements that are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. In valuing Level 3 assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The hierarchy gives the highest priority to Level 1, as this level provides the most reliable measure of fair value, while giving the lowest priority to Level 3. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis by level of the fair value hierarchy were as follows: September 30, 2023 (In thousands) Quoted Prices in Significant Significant Total Fair Assets Cash equivalents (1) $ — $ 36,255 $ — $ 36,255 Available-for-sale securities (1) — 3,933 — 3,933 Interest rate swap (2) — 183 — 183 Total assets $ — $ 40,371 $ — $ 40,371 September 30, 2022 (In thousands) Quoted Prices in Significant Significant Total Fair Assets Cash equivalents (1) $ — $ 2,035 $ — $ 2,035 Total assets $ — $ 2,035 $ — $ 2,035 Liabilities Contingent consideration (3) $ — $ — $ 829 $ 829 Total liabilities $ — $ — $ 829 $ 829 (1) Fair value of cash equivalents (money market funds) and available-for-sale securities (commercial paper and corporate bond securities) was based on quoted vendor prices and broker pricing where all significant inputs were observable. (2) Fair value of interest rate swap was based on forward-looking, one-month term secured overnight financing rate (“Term SOFR”) spot rates and interest rate curves (Note 7). (3) Fair value of contingent consideration liabilities was determined based on discounted cash flow analyses that included probability and timing of development and regulatory milestone achievements and a discount rate, which were considered significant unobservable inputs. Contingent consideration liabilities are remeasured to fair value each reporting period using discount rates, probabilities of payment and projected payment dates. Increases or decreases in the fair value of the contingent consideration liability can result from changes in the timing or likelihood of achieving milestones and changes in discount periods and rates. Projected contingent payment amounts are discounted back to the current period using a discount cash flow model. Interest accretion and fair value adjustments associated with contingent consideration liabilities are reported in contingent consideration (gain) expense on the consolidated statements of operations. Changes in the contingent consideration liabilities measured at fair value using Level 3 inputs were as follows: (In thousands) Contingent consideration liability at September 30, 2021 $ 817 Additions — Fair value adjustments — Settlements — Interest accretion 12 Foreign currency translation — Contingent consideration liability at September 30, 2022 829 Additions — Fair value adjustments ( 835 ) Settlements — Interest accretion 6 Foreign currency translation — Contingent consideration liability at September 30, 2023 $ — Assets and Liabilities Measured at Fair Value on a Non-recurring Basis We measure certain assets at fair value on a non-recurring basis, primarily goodwill, intangible assets, and long-lived assets. These assets were initially measured and recognized at amounts equal to the fair value determined as of the date of acquisition or purchase and are subject to changes in value only for foreign currency translation and impairment. See Note 2 for additional information on impairment assessments and related Level 3 inputs for goodwill, indefinite-lived intangible assets and long-lived assets. Assets and Liabilities Not Measured at Fair Value Certain financial instruments are not measured at fair value but are recorded at carrying amounts approximating fair value based on their short-term nature. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximated fair value as of September 30, 2023 and 2022 . |
Debt
Debt | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Debt consisted of the following: September 30, (In thousands) 2023 2022 Short-term borrowings $ — $ 10,000 Revolving Credit Facility, Term SOFR + 3.00 % , maturing October 1, 2027 $ 5,000 $ — Tranche 1 Term Loans, Term SOFR + 5.75 % , maturing October 1, 2027 25,000 — Long-term debt, gross 30,000 — Less: Unamortized debt issuance costs ( 595 ) — Long-term debt, net $ 29,405 $ — MidCap Revolving Credit Facility and Term Loans On October 14, 2022, the Company entered into a secured revolving credit facility and secured term loan facilities pursuant to a Credit, Security and Guaranty Agreement (the “MidCap Credit Agreement”) with Mid Cap Funding IV Trust, as agent, and MidCap Financial Trust, as term loan servicer and the lenders from time to time party thereto. The MidCap Credit Agreement provides for availability under a secured revolving line of credit of up to $ 25.0 million (the “Revolving Credit Facility”). Availability under the Revolving Credit Facility is subject to a borrowing base. The MidCap Credit Agreement also provides for up to $ 75.0 million in term loans (the “Term Loans”), consisting of a $ 25.0 million Tranche 1 (“Tranche 1”) and a $ 50.0 million Tranche 2 (“Tranche 2”), which may be drawn in increments of at least $ 10.0 million. In addition, after the closing and prior to December 31, 2024, the Term Loan lenders may, in their sole discretion, fund an additional tranche of Term Loans of up to $ 25.0 million upon the written request of the Company. Upon closing, the Company borrowed $ 25.0 million of Tranche 1, borrowed $ 5.0 million on the Revolving Credit Facility, and used approximately $ 10.0 million of the proceeds to repay borrowings under a preexisting revolving credit facility with Bridgewater Bank. The Company used the remaining proceeds to fund working capital needs and for other general corporate purposes, as permitted under the MidCap Credit Agreement. Until December 31, 2024, the Company will be eligible to borrow Tranche 2 at the Company’s option upon meeting certain conditions set forth in the MidCap Credit Agreement, including having no less than $ 60.0 million of rolling-four-quarter core net revenue as of the end of the prior fiscal quarter. Core net revenue is defined in the MidCap Credit Agreement as the sum of revenue from our In Vitro Diagnostics segment and revenues from performance coating technologies in our Medical Device segment. Pursuant to the MidCap Credit Agreement, the Company provided a first priority security interest in all existing and future acquired assets, including intellectual property and real estate, owned by the Company. The MidCap Credit Agreement contains certain covenants that limit the Company’s ability to engage in certain transactions. Subject to certain limited exceptions, these covenants limit the Company’s ability to, among other things: • create, incur, assume or permit to exist any additional indebtedness, or create, incur, allow or permit to exist any additional liens; • enter into any amendment or other modification of certain agreements; • effect certain changes in the Company’s business, fiscal year, management, entity name or business locations; • liquidate or dissolve, merge with or into, or consolidate with, any other company; • pay cash dividends on, make any other distributions in respect of, or redeem, retire or repurchase, any shares of the Company’s capital stock; • make certain investments, other than limited permitted acquisitions; and • enter into transactions with the Company’s affiliates. The MidCap Credit Agreement also contains customary indemnification obligations and customary events of default, including, among other things, (i) non-payment, (ii) breach of warranty, (iii) non-performance of covenants and obligations, (iv) default on other indebtedness, (v) judgments, (vi) change of control, (vii) bankruptcy and insolvency, (viii) impairment of security, (ix) termination of a pension plan, (x) regulatory matters, and (xi) material adverse effect. In addition, the Company must maintain minimum core net revenue levels tested quarterly to the extent that Term Loans advanced under the MidCap Credit Agreement exceed $ 25.0 million. In the event of default under the MidCap Credit Agreement, the Company would be required to pay interest on principal and all other due and unpaid obligations at the current rate in effect plus 2 %. Borrowings under the MidCap Credit Agreement bear interest at the forward-looking, one-month secured overnight financing rate (“Term SOFR”) as published by CME Group Benchmark Administration Limited plus 0.10 % (“Adjusted Term SOFR”). The Revolving Credit Facility bears interest at an annual rate equal to 3.00 % plus the greater of Adjusted Term SOFR or 1.50 %, and the Term Loans bear interest at an annual rate equal to 5.75 % plus the greater of Adjusted Term SOFR or 1.50 %. The Company is required to make monthly interest payments on the Revolving Credit Facility with the entire principal payment due at maturity. The Company is required to make 48 monthly interest payments on the Term Loans beginning on November 1, 2022 (the “Interest-Only Period”). If the Company is in covenant compliance at the end of the Interest-Only Period, the Company will have the option to extend the Interest-Only Period through maturity with the entire principal payment due at maturity. If the Company is not in covenant compliance at the end of the Interest-Only Period, the Company is required to make 12 months of straight-line amortization payments with the entire principal amount due at maturity. Subject to certain limitations, the Term Loans have a prepayment fee for payments made prior to the maturity date equal to 2.0 % of the prepaid principal amount for the second year following the closing date and 1.0 % of the prepaid principal amount for the third year following the closing date and thereafter. In addition, if the Revolving Credit Facility is terminated in whole or in part prior to the maturity date, the Company must pay a prepayment fee equal to 2.0 % of the terminated commitment amount for the second year following the closing date of the MidCap Credit Agreement and 1.0 % of the terminated commitment amount for the third year following the closing date and thereafter. The Company is also required to pay a full exit fee at the time of maturity or full prepayment event equal to 2.5 % of the aggregate principal amount of the Term Loans made pursuant to the MidCap Credit Agreement and a partial exit fee at the time of any partial prepayment event equal to 2.5 % of the amount prepaid. This exit fee is accreted over the remaining term of the Term Loans. The Company also is obligated to pay customary origination fees at the time of each funding of the Term Loans and a customary annual administrative fee based on the amount borrowed under the Term Loan, due on an annual basis. The customary fees on the Revolving Credit Facility include (i) an origination fee based on th e commitment amount, which was paid on the closing date; (ii) an annual collateral management fee of 0.50 % per annum based on the outstanding balance of the Revolving Credit Facility, payable monthly in arrears; and (iii) an unused line fee of 0.50 % per annum based on the average unused portion of the Revolving Credit Facility, payable monthly in arrears. The Company must also maintain a minimum balance of no less than 20 % of availability under the Revolving Credit Facility or a minimum balance fee applies of 0.50 % per annum. Expenses recognized for fees for the Revolving Credit Facility and Term Loans are reported in interest expense, net on the consolidated statements of operations. Bridgewater Revolving Credit Facility (Short-term Borrowings) On September 14, 2020, the Company entered into a secured revolving credit facility pursuant to a Loan and Security Agreement, which was amended by a First Amendment on July 2, 2021 and by a Second Amendment on March 7, 2022 (as amended, the "Bridgewater Loan Agreement") with Bridgewater Bank. The Bridgewater Loan Agreement provided for availability under a secured revolving line of credit of up to $ 25 million (the "Bridgewater Revolving Credit Facility"). As of September 30, 2022, the outstanding balance on the Bridgewater Revolving Credit Facility of $ 10.0 million was reported in short-term borrowings on the consolidated balance sheets. As described above, on October 14, 2022, in connection with the Company’s entry into the MidCap Credit Agreement, the Company paid the $ 10.0 million outstanding balance under the Bridgewater Loan Agreement and terminated the Bridgewater Loan Agreement. The Company's obligations under the Bridgewater Loan Agreement were secured by substantially all of the Company’s and its material subsidiaries' assets, other than intellectual property, real estate and foreign assets, including equity in foreign subsidiaries. The Company also pledged the stock of certain of its subsidiaries to secure such obligations. Interest under the Bridgewater Loan Agreement accrued at a rate per annum equal to the greater of (i) 3.25 %, and (ii) the 90-day interest rate yield for U.S. Government Treasury Securities plus 2.75 %. A facility fee was payable on unused commitments at a rate of 0.075 % quarterly . As of September 30, 2022, the weighted average interest rate on outstanding borrowings on the Bridgewater Revolving Credit Facility was 6.1 %. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. Derivative Financial Instruments Cash Flow Hedge — Interest Rate Swap On October 14, 2022, we entered into a floating-to-fixed interest rate swap agreement to mitigate exposure to interest rate increases related to our Term Loans. See Note 6 Debt for further information on our financing arrangements. The total notional amount of the interest rate swap was $ 25 million as of September 30, 2023 . The interest rate swap agreement expires October 1, 2027 . As a result of this agreement, every month we pay fixed interest at 4.455 % in exchange for interest received at Term SOFR, and the fixed interest rate per annum on the first $ 25 million of notional value of the Term Loans will be 10.205 % through its maturity. The interest rate swap agreement requires the Company to make deposits of cash collateral, which may increase or be refunded commensurate with fluctuations in current and forecasted interest rates. We have the contractual right to reclaim this cash collateral receivable. The interest rate swap has been designated as a cash flow hedge. Consequently, changes in the fair value of the interest rate swap are recorded in accumulated other comprehensive loss ("AOCL") within stockholders' equity on the consolidated balance sheets. The unrealized gains (losses) on the interest rate swap associated with the interest payments on the Term Loans that are still forecasted to occur are included in AOCL. These gains (losses) will be reclassified into interest expense on the consolidated statements of operations over the life of the swap agreement as the hedged interest payments occur. Upon termination of the derivative instrument or a change in the hedged item, any remaining fair value recorded on the consolidated balance sheets will be recorded as interest expense consistent with the cash flows associated with the underlying hedged item. Cash flows associated with the interest rate swap are included in cash flows from operating activities on the consolidated statements of cash flows. The net fair value of designated hedge derivatives subject to master netting arrangements reported on the consolidated balance sheets was as follows: Asset (Liability) (In thousands) Gross Recognized Amount Gross Offset Amount Net Amount Presented Cash Collateral Receivable Net Amount Reported Balance Sheet Location September 30, 2023 Interest rate swap $ 183 $ — $ 183 $ — $ 183 Other long-term assets September 30, 2022 — $ — $ — $ — $ — $ — — The pre-tax amounts recognized in AOCL on the interest rate swap were as follows: Fiscal Year (In thousands) 2023 2022 2021 Beginning unrealized net gain (loss) in AOCL $ — $ — $ — Net gain (loss) recognized in other comprehensive income (loss) 260 — — Reclassification of net (gain) loss to interest expense ( 77 ) — — Ending unrealized net gain (loss) in AOCL $ 183 $ — $ — |
Stock-based Compensation Plans
Stock-based Compensation Plans | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation Plans | 8. Stock-based Compensation Plans The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, restricted stock units and deferred stock units. Stock-based compensation expense was reported as follows on the consolidated statements of operations: Fiscal Year (In thousands) 2023 2022 2021 Product costs $ 279 $ 234 $ 122 Research and development 1,417 1,424 1,298 Selling, general and administrative 5,909 5,399 4,443 Total stock-based compensation expense $ 7,605 $ 7,057 $ 5,863 As of September 30, 2023 , approximately $ 10.7 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.2 years. As of September 30, 2023 , under the amended 2019 Equity Incentive Plan (“2019 Plan”), the Company is authorized to issue 2,340,000 shares, plus the number of shares pursuant to any awards granted under the 2009 Equity Incentive Plan (“2009 Plan”) that were outstanding on the effective date of the 2019 Plan that expire, are cancelled or forfeited, or are settled for cash. As of September 30, 2023 , there were approximately 912,000 shares available for future equity awards under the 2019 Plan, including stock options, restricted stock, restricted stock units and deferred stock units. Stock Option Awards The Company grants non-qualified stock options at fair market value on the grant date to certain key employees and members of the Board. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options as of the date of each grant. Weighted average stock option fair value assumptions and the weighted average grant date fair value of stock options granted were as follows: Fiscal Year 2023 2022 2021 Stock option fair value assumptions: Risk-free interest rate 3.76 % 1.49 % 0.40 % Expected life (years) 4.7 4.6 4.6 Expected volatility 45 % 43 % 43 % Dividend yield — % — % — % Weighted average grant date fair value of stock options granted $ 15.03 $ 15.96 $ 14.71 The risk-free interest rate assumption is based on the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the awards. The expected life of options granted is determined based on the Company’s experience. Expected volatility is based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend yields are expected to be zero for the expected life of the options. With respect to members of the Board, non-qualified stock options generally become exercisable on a monthly pro-rata basis within the one-year period following the date of grant. With respect to employees, non-qualified stock options generally become exercisable at a 25 % rate on each of the first four anniversaries following the grant date. Non-qualified stock options generally expire in seven years or upon, or shortly after, termination of employment or service as a Board member. The stock-based compensation expense table above includes stock option expenses recognized related to these awards, which totaled $ 3.7 million, $ 3.4 million and $ 2.8 million in fiscal 2023, 2022 and 2021, respectively. As of September 30, 2023 , the aggregate intrinsic value of the option shares outstanding was $ 0.8 million, and the aggregate intrinsic value of option shares exercisable was $ 0.6 million. As of September 30, 2023 , the weighted average remaining contractual life of options outstanding and options exercisable was 4.0 years and 2.9 years, respectively. The total pre-tax intrinsic value of options exercised was $ 0.3 million, $ 1.0 million and $ 7.1 million in fiscal 2023, 2022 and 2021, respectively. The intrinsic value represents the difference between the exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal year end. Stock option activity was as follows: (In thousands, except per share data) Number of Weighted Options outstanding at September 30, 2020 940 $ 35.18 Granted 274 40.95 Exercised ( 248 ) 24.22 Forfeited and expired ( 44 ) 44.58 Options outstanding at September 30, 2021 922 39.39 Granted 342 42.10 Exercised ( 45 ) 21.24 Forfeited and expired ( 58 ) 43.99 Options outstanding at September 30, 2022 1,161 40.66 Granted 311 34.73 Exercised ( 20 ) 21.50 Forfeited and expired ( 90 ) 41.77 Options outstanding at September 30, 2023 1,362 39.52 Options vested and exercisable at September 30, 2023 724 $ 40.47 Restricted Stock Awards The Company has entered into restricted stock agreements with certain key employees covering the issuance of common stock (“Restricted Stock”). Restricted Stock generally vests at a 33 % rate on each of the first three anniversaries following the grant date. Restricted Stock is released to employees if they are employed by the Company at the end of the vesting period. Restricted Stock is valued based on the market value of the shares as of the date of grant with the value allocated to expense evenly over the vesting period. The stock-based compensation expense table above includes Restricted Stock expenses recognized related to these awards, which totaled $ 3.1 million, $ 2.7 million and $ 2.2 million in fiscal 2023, 2022 and 2021, respectively. Restricted Stock activity was as follows: (In thousands, except per share data) Number of Weighted Average Unvested restricted stock awards at September 30, 2020 100 $ 44.16 Granted 71 38.83 Vested ( 48 ) 44.07 Forfeited ( 4 ) 40.45 Unvested restricted stock awards at September 30, 2021 119 41.14 Granted 99 42.35 Vested ( 55 ) 42.98 Forfeited ( 5 ) 41.83 Unvested restricted stock awards at September 30, 2022 158 41.24 Granted 103 35.75 Vested ( 69 ) 40.96 Forfeited ( 19 ) 39.31 Unvested restricted stock awards at September 30, 2023 173 $ 38.30 Restricted Stock Units and Deferred Stock Units The Company has entered into restricted stock unit agreements with certain key employees in foreign jurisdictions and members of the Board, covering the issuance of common stock (“RSUs”). With respect to employees, RSUs generally vest at a 33 % rate on each of the first three anniversaries following the grant date, and RSUs are settled in shares and issued to the employees if they are employed by the Company at the end of the vesting period. With respect to members of the Board, RSUs vest on a monthly pro-rata basis within the one-year period following the date of grant, and RSUs are settled in shares and generally issued upon termination of service as a Board member. RSUs are valued based on the market value of the shares as of the date of grant with the value allocated to expense evenly over the vesting period. The Company awarded approximately 16,000 , 14,000 and 17,000 RSUs in fiscal 2023, 2022 and 2021, respectively. As of September 30, 2023 and 2022 , outstanding RSUs (including unvested units and vested units not yet settled) totaled approximately 74,000 and 65,000 units, respectively, with a weighted average grant date fair value per unit of $ 32.18 and $ 33.14 , respectively. The stock-based compensation table above includes RSU expenses recognized related to these awards, which totaled $ 0.5 million in each of fiscal 2023, 2022 and 2021. Directors may elect to receive their annual fees for services to the Board in deferred stock units (“DSUs”). DSUs are fully vested and expensed upon grant at the market value of the shares on the grant date. DSUs are settled in shares and issued to the Director upon termination of service as a Board member. As of September 30, 2023 and 2022 , outstanding, fully vested DSUs totaled approximately 38,000 and 36,000 units, respectively, with a weighted average grant date fair value per unit of $ 30.86 and $ 30.97 , respectively. The stock-based compensation expense table above includes DSU expenses recognized related to these awards, which totaled $ 0.1 million per year in each of fiscal 2023, 2022 and 2021. 1999 Employee Stock Purchase Plan Under the amended 1999 Employee Stock Purchase Plan (“ESPP”), the Company is authorized to issue up to 600,000 shares of common stock. All full-time and part-time U.S. employees can elect to have up to 10 % of their annual compensation withheld, with an annual limit of $ 25,000 , to purchase the Company’s common stock at purchase prices defined within the provisions of the ESPP. ESPP share awards are valued based on the value of the discount feature plus the fair value of the optional features as of the date of grant using the Black-Scholes valuation model. The value of these share awards is allocated to expense evenly over each six-month purchase period. Employee contributions to the ESPP included in accrued compensation on the consolidated balance sheets totaled $ 0.1 million as of each of September 30, 2023 and 2022 . The stock-based compensation expense table above includes expenses recognized related to the ESPP, which totaled $ 0.3 million, $ 0.3 million and $ 0.2 million for fiscal 2023, 2022 and 2021 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income taxes on the consolidated statements of operations consisted of the following: Fiscal Year (In thousands) 2023 2022 2021 Current expense (benefit): U.S. Federal $ 3,363 $ ( 510 ) $ 263 U.S. State 591 ( 143 ) 108 International 250 166 87 Total current expense (benefit) 4,204 ( 487 ) 458 Deferred (benefit) expense: U.S. Federal — 5,200 1,851 U.S. State — 515 ( 62 ) International ( 181 ) ( 447 ) ( 138 ) Total deferred (benefit) expense ( 181 ) 5,268 1,651 Total income tax expense $ 4,023 $ 4,781 $ 2,109 The difference between amounts calculated at the statutory U.S. federal income tax rate of 21 % and the Company’s effective tax rate was as follows: Fiscal Year (In thousands) 2023 2022 2021 Amount at statutory U.S. federal income tax rate $ 522 $ ( 4,724 ) $ 1,333 Change because of the following items: State income taxes, net of federal benefit ( 632 ) ( 897 ) ( 273 ) Foreign and state rate differential 495 628 596 U.S. federal and foreign R&D credits ( 1,544 ) ( 1,511 ) ( 920 ) Valuation allowance change (1) 4,083 10,978 1,059 Stock-based compensation (2) 1,003 481 ( 544 ) U.S. Federal and state rate change ( 152 ) — ( 35 ) Tax reserve change 734 ( 123 ) ( 150 ) Foreign-derived income deduction ( 403 ) — — Contingent consideration ( 164 ) 13 3 Impact of CARES Act (3) — — 735 Acquisition-related transaction costs — — 187 Other 81 ( 64 ) 118 Income tax expense $ 4,023 $ 4,781 $ 2,109 (1) In fiscal 2023, the valuation allowance increased primarily as a result of the incremental deferred tax assets recorded during fiscal 2023 related to capitalized U.S. R&D expenses and Ireland net operating losses (“NOLs”). In fiscal 2022, the valuation allowance increased primarily as a result of the establishment of a full valuation allowance against U.S. net deferred tax assets as of September 30, 2022. In fiscal 2021, the valuation allowance increased primarily as a result of the incremental deferred tax assets recorded during fiscal 2021 related to U.S. state R&D tax credit carryforwards and Ireland NOLs. (2) Includes non-deductible stock-based compensation. (3) Related to the remeasurement of deferred tax assets and liabilities associated with the CARES Act. Under the temporary provisions of CARES Act, NOL carryforwards and carrybacks could offset 100% of taxable income for taxable years beginning before 2021. In addition, NOLs arising in 2018, 2019 and 2020 taxable years could be carried back to each of the preceding five years to generate a refund. Excess tax benefits related to stock-based compensation expense are recorded within income tax expense on the consolidated statements of operations and totaled less than $ 0.1 million, $ 0.2 million and $ 0.9 million for fiscal 2023, 2022 and 2021, respectively. The components of deferred income taxes, net, consisted of the following and resulted from differences in the recognition of transactions for income tax and financial reporting purposes: September 30, (In thousands) 2023 2022 Depreciable assets $ ( 3,802 ) $ ( 3,995 ) Deferred revenue 1,082 2,103 Accruals and reserves 2,052 1,615 Stock-based compensation 2,665 2,443 Impaired strategic investments 1,829 1,787 NOL carryforwards (1) 4,578 6,379 U.S. Federal and state R&D credits (2) 2,973 4,465 Capitalized R&D expenses 7,976 — Other 648 848 Valuation allowance ( 22,005 ) ( 17,672 ) Deferred taxes, net $ ( 2,004 ) $ ( 2,027 ) (1) As of September 30, 2023, NOL carryforwards consisted of U.S. state NOL carryforwards of $ 0.3 million and Ireland NOL carryforwards of $ 4.2 million. U.S. state NOL carryforwards begin to expire in fiscal 2028 . Irel and NOL carryforwards have an unlimited carryforward period. (2) As of September 30, 2023, U.S. federal and state R&D credits begin to expire in fiscal 2 028 . As of September 30, 2023 and 2022 , valuation allowances against deferred tax assets, net, totaled $ 22.0 million and $ 17.7 million, respectively. Deferred tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise from NOLs and tax credits and are primarily a result of temporary differences between the financial reporting and tax bases of assets and liabilities. We evaluate the recoverability of deferred tax assets by assessing all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. A valuation allowance is established if it is more likely than not (defined as a likelihood of more than 50%) that all or a portion of deferred tax assets will not be realized. The determination of whether a valuation allowance should be established, as well as the amount of such allowance, requires significant judgment and estimates, including estimates of future earnings. In evaluating the realizability of our net deferred tax assets, we perform an assessment each reporting period of both positive and negative evidence. • As of September 30, 2023, we identified negative evidence that included the existence of forecasted, short-term future losses. Additionally, we identified positive evidence that included (i) the existence of three-year cumulative U.S. pre-tax income adjusted for permanent adjustments, though this was primarily driven by revenue recognized on the final milestone payment received under the Abbott Agreement; (ii) our forecast of long-term future earnings; and (iii) future reversal of taxable temporary differences and carryforwards, though these did not provide sufficient evidence to support realization of the deferred tax assets. • As of September 30, 2022, we identified negative evidence that included the existence of three-year cumulative U.S. pre-tax losses adjusted for permanent adjustments and short-term future losses. Additionally, we identified positive evidence that included (i) our forecast of long-term future earnings, and (ii) future reversal of taxable temporary differences and carryforwards, though these did not provide sufficient evidence to support realization of the deferred tax assets. We apply judgment to consider the relative impact of negative and positive evidence, and the weight given to negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified. Objective historical evidence, such as cumulative three-year pre-tax income (losses) adjusted for permanent adjustments, is given greater weight than subjective positive evidence, such as forecasts of future earnings. The more objective negative evidence that exists limits our ability to consider other, potentially positive, subjective evidence, such as our future earnings projections. Based on our evaluation of all available positive and negative evidence, and by placing greater weight on the objectively verifiable evidence, we determined, as of September 30, 2023 and 2022, that it is more likely than not that our net U.S. deferred tax assets will not be realized. Accordingly, in fiscal 2022, we recorded a full valuation allowance against our net U.S. deferred tax assets as of September 30, 2022, resulting in a non-cash charge to income tax expense of $ 10.2 million in the fourth quarter of fiscal 2022. In fiscal 2023, we maintained the full valuation allowance against our net U.S. deferred tax assets. Due to significant estimates used to establish the valuation allowance and the potential for changes in facts and circumstances, it is reasonably possible that we will be required to record additional adjustments to the valuation allowance in future reporting periods that could have a material effect on our results of operations. Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes pursuant to accounting guidance. The following is a reconciliation of the changes in unrecognized tax benefits, excluding interest and penalties: Fiscal Year (In thousands) 2023 2022 2021 Unrecognized tax benefits, beginning balance $ 2,793 $ 2,887 $ 2,871 Increases in tax positions for prior years — 53 15 Decreases in tax positions for prior years ( 4 ) ( 35 ) ( 8 ) Increases in tax positions for current year 836 519 458 Lapse of the statute of limitations ( 182 ) ( 631 ) ( 449 ) Unrecognized tax benefits, ending balance $ 3,443 $ 2,793 $ 2,887 The total amount of unrecognized tax benefits excluding interest and penalties that, if recognized, would affect the effective tax rate was $ 3.1 million and $ 2.5 million as of September 30, 2023 and 2022, respectively. As of September 30, 2023, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months and has classified the above balances on the consolidated balance sheets in other noncurrent liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense on the consolidated statements of operations. As of September 30, 2023 and 2022 , the gross amount accrued for interest and penalties on unrecognized tax benefits was $ 0.5 million and $ 0.3 million, respectively. The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions, as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service commenced an examination of the Company’s fiscal 2019 U.S. federal tax return during fiscal 2022; the examination has not been completed. U.S. federal income tax returns for years prior to fiscal 2019 are no longer subject to examination by federal tax authorities. For tax returns for U.S. state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2013. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2019. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical, NorMedix and Vetex for periods prior to the respective acquisition dates, pursuant to the terms of the related share purchase agreements. As of September 30, 2023 and 2022 , there were no undistributed earnings in foreign subsidiaries. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plans | 10. Defined Contribution Plans The Company has a 401(k) retirement and savings plan for the benefit of qualifying U.S. employees, as well as a defined contribution Personal Retirement Savings Account plan for the benefit of qualifying Ireland employees. For eligible U.S. employees, effective January 1, 2022, the Company makes matching contributions of up to 4 % of eligible compensation; prior to January 1, 2022, the Company made matching contributions of up to 3 % of eligible compensation on employee contributions of up to 6 % of eligible compensation. For eligible Ireland employees, the Company makes contributions of up to 8 % of eligible compensation on employee contributions of up to 6 % of eligible compensation. Expense recognized for Company contributions to defined contribution plans totaled $ 1.9 million, $ 1.7 million and $ 1.1 million in fiscal 2023, 2022 and 2021 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Clinical Trials. The Company has engaged CRO consultants to assist with the administration of its ongoing clinical trials. The Company has executed separate contracts with two CROs for services rendered in connection with the TRANSCEND pivotal clinical trial for the SurVeil DCB, including pass-through expenses paid by the CROs, of up to approximately $ 27 million in the aggregate. As of September 30, 2023 , an estimated $ 2 million remains to be paid on one of these contracts, which may vary depending on actual pass-through expenses incurred to execute the trial. The Company estimates that the total cost of the TRANSCEND clinical trial will be in the range of $ 39 million to $ 41 million from inception to completion. In the event the Company were to terminate any trial, it may incur certain financial penalties, which would become payable to the CRO for costs to wind down the terminated trial. Asset Acquisitions. In fiscal 2018, the Company acquired certain intellectual property assets of Embolitech, LLC (the “Embolitech Transaction”). As part of the Embolitech Transaction, the Company paid the sellers $ 5.0 million in fiscal 2018, $ 1.0 million in fiscal 2020, $ 1.0 million in fiscal 2021, $ 0.5 million in fiscal 2022 and $ 1.0 million in fiscal 2023. The Company is obligated to pay an additional installment of $ 0.9 million in fiscal 2024 , which may be accelerated upon the occurrence of certain sales and regulatory milestones. An additional $ 1.0 million payment is contingent upon the achievement of a certain regulatory milestone within a contingency period ending in 2033 . Business Combinations. See Note 13 Acquisitions for disclosure of the fiscal 2021 acquisition of Vetex and associated deferred and contingent consideration liabilities. |
Restructuring
Restructuring | 12 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 12. Restructuring In the second quarter of fiscal 2023, we initiated a spending reduction plan intended to preserve capital and more closely align our capital allocation priorities with our strategic objectives, which included a workforce restructuring in our Medical Device segment. As a result, in fiscal 2023, we recorded $ 1.3 million in severance and related charges in restructuring expense on our consolidated statements of operations. All associated expenses have been paid as of September 30, 2023 . |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | 13. Acquisitions Vetex Medical Limited On July 2, 2021, Surmodics acquired all of the outstanding shares of Vetex Medical Limited (“Vetex”). Vetex, which was formerly privately held and is based in Galway, Ireland, develops and manufactures medical devices focused on venous clot removal solutions. The transaction expanded Surmodics’ thrombectomy portfolio with a second FDA 510(k)-cleared device, a mechanical venous thrombectomy device. The acquisition was accounted for as a business combination. The acquired assets, liabilities and operating results of Vetex have been included on our consolidated financial statements within the Medical Device segment from the date of acquisition. Surmodics acquired Vetex with an upfront cash payment of $ 39.9 million funded using cash on hand and $ 10.0 million from the revolving credit facility in place during the period. The Company is obligated to pay two installments, each in the amount of $ 1.8 million, in the fourth quarter of fiscal 2024 and fiscal 2027. These payments may be accelerated upon the occurrence of certain product development and regulatory milestones. An additional $3.5 million in payments is contingent upon the achievement of certain product development and regulatory milestones within a contingency period ending in fiscal 2027 . The acquisition date fair value of purchase consideration was as follows: (In thousands) Consideration paid at closing $ 39,985 Deferred consideration 3,257 Contingent consideration 814 Total purchase consideration 44,056 Less: Cash acquired ( 432 ) Total purchase consideration, net of cash acquired $ 43,624 The fair value of contingent consideration was derived using a discounted cash flow approach based on Level 3 inputs. See Note 5 Fair Value Measurements for additional disclosures regarding contingent consideration. The final allocation of purchase consideration as of the acquisition date was as follows: (In thousands) Asset (Liability) Current assets $ 18 Property and equipment 37 Intangible assets 27,600 Other non-current assets 37 Accrued compensation ( 236 ) Other accrued liabilities ( 111 ) Deferred income taxes ( 3,087 ) Net assets acquired 24,258 Goodwill 19,366 Total purchase consideration, net of cash acquired $ 43,624 In fiscal 2022, the Company recorded measurement adjustments to provisional amounts previously recognized, which resulted in a $ 0.3 million increase in goodwill and a corresponding decrease in net identifiable assets acquired. The Company finalized the accounting for the Vetex acquisition in fiscal 2022. Acquired intangible assets consist of developed technology. We used the income approach, specifically the discounted cash flow method and the incremental cash flow approach using Level 3 inputs, to derive the fair value of the developed technology. The developed technology is amortized on a straight-line basis over its estimated useful life of 12 years. The amortization of the acquired intangible assets is tax deductible. The goodwill recorded from the Vetex acquisition is a result of expected synergies from integrating the Vetex business into the Company’s Medical Device segment and from acquiring and retaining the existing Vetex workforce. The goodwill is not deductible for tax purposes. In the year of acquisition, fiscal 2021, we reported zero revenue and $( 0.9 ) million net loss from Vetex in our consolidated statements of operations. In addition, in fiscal 2021, we recognized $ 1.0 million in acquisition transaction, integration and other costs related to the Vetex acquisition on the consolidated statements of operations. The pro forma impact of business combinations during fiscal 2021 was not significant, neither individually nor in the aggregate, to the consolidated results of the Company. |
Reportable Segment Information
Reportable Segment Information | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | 14. Reportable Segment Information Reportable segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, who is the Company’s Chief Executive Officer, in deciding how to allocate resources and in assessing performance. We operate two reportable segments: • Medical Device: Manufacture of performance coatings, including surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices and drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device, with end markets that include neurovascular, peripheral, coronary, and structural heart, among others; and the manufacture of vascular intervention medical devices, including drug-coated balloons, mechanical thrombectomy devices, and radial access balloon catheters and guide sheaths. • In Vitro Diagnostics: Manufacture of chemical and biological components used in in vitro diagnostic immunoassay and molecular tests within the diagnostic and biomedical research markets. Component products include protein stabilizers, substrates, surface coatings and antigens. Segment revenue, operating income (loss), and depreciation and amortization were as follows: Fiscal Year (In thousands) 2023 2022 2021 Revenue: Medical Device $ 105,783 $ 72,389 $ 78,253 In Vitro Diagnostics 26,801 27,562 26,883 Total revenue $ 132,584 $ 99,951 $ 105,136 Operating income (loss): Medical Device $ 5,084 $ ( 22,923 ) $ 4,683 In Vitro Diagnostics 12,637 13,073 13,770 Total segment operating income (loss) 17,721 ( 9,850 ) 18,453 Corporate ( 12,571 ) ( 12,247 ) ( 11,750 ) Total operating income (loss) $ 5,150 $ ( 22,097 ) $ 6,703 Depreciation and amortization: Medical Device $ 7,874 $ 8,368 $ 7,224 In Vitro Diagnostics 321 355 395 Corporate 327 419 398 Total depreciation and amortization $ 8,522 $ 9,142 $ 8,017 The Corporate category includes expenses that are not fully allocated to the Medical Device and In Vitro Diagnostics segments. These Corporate costs are related to administrative corporate functions, such as executive management, corporate accounting, information technology, legal, human resources and Board of Directors. Corporate may also include expenses, such as acquisition-related costs and litigation, which are not specific to a segment and thus not allocated to the reportable segments. Asset information by segment is not presented because the Company does not provide its chief operating decision maker assets by segment, as the data is not readily available. Long-lived assets by country, including property and equipment and intangible assets net of accumulated depreciation and amortization, respectively, were as follows: September 30, (In thousands) 2023 2022 U.S. $ 23,525 $ 24,788 Ireland 28,707 30,505 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Surmodics, Inc. Schedule II – Valuation and Qualifying Accounts (In thousands) Balance at Additions: Deductions: Balance at Allowance for credit losses: Fiscal year ended September 30, 2021 $ 130 ( 11 ) — (a) $ 119 Fiscal year ended September 30, 2022 119 5 ( 43 ) (a) 81 Fiscal year ended September 30, 2023 81 37 ( 38 ) (a) 80 (a) Primarily consists of uncollectible accounts written off, less recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of financial instruments with maturities of three months or less at the Company’s acquisition date of the security. Cash is stated at cost, which approximates fair value. Cash equivalents are stated at fair value. Cash and cash equivalents may include money market instruments, certificates of deposit, repurchase agreements and commercial paper instruments. |
Investments - Available-for-sale Securities | Investments — Available-for-sale Securities As of September 30, 2023 and 2022 , investments in available-for-sale debt securities totaled $ 3.9 million and $ 0.0 million, respectively, on the consolidated balance sheets. As of September 30, 2023, investments consisted of commercial paper and corporate bond securities, were classified as available-for-sale, and were reported at fair value. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in investment income, net within other expense. Realized gains and losses from the sales of debt securities, which are included in investment income, net, are determined using the specific identification method. Investment purchases are accounted for on the date the trade is executed, which may not be the same as the date the transaction is cash settled. Unrealized gains and losses, net of tax, are excluded from the consolidated statements of operations and reported on the consolidated statements of comprehensive income (loss) and also as a separate component of stockholders’ equity on the consolidated balance sheets. For investments in an unrealized loss position, we make the following assessments. If it is more likely than not we will sell the investment before recovery of its amortized cost basis, we write down the security’s amortized cost basis to fair value and reclassify the net unrealized loss from accumulated other comprehensive (loss) income to investment income, net on the consolidated statements of operations. If the decline in fair value is deemed to be due to a credit loss, we recognize an allowance for the expected credit loss to reduce the cost basis to fair value, with a corresponding adjustment to investment income, net. As of September 30, 2023, the amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows. There were no available-for-sale securities as of September 30, 2022. (In thousands) Amortized Unrealized Unrealized Fair Commercial paper and corporate bonds $ 3,936 $ — $ ( 3 ) $ 3,933 Available-for-sale securities $ 3,936 $ — $ ( 3 ) $ 3,933 There were no held-to-maturity debt securities as of September 30, 2023 and 2022 . There were no realized gains or losses on sales of available-for-sale securities for fiscal 2023, 2022 or 2021. |
Accounts Receivable | Accounts Receivable We grant credit to customers in the normal course of business and maintain an allowance for credit losses. The allowance for credit losses reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. We consider various factors in establishing, monitoring and adjusting the allowance for credit losses including the aging of accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. We base our estimates of credit loss reserves on historical experience and adjust, as necessary, to reflect current conditions using reasonable and supportable forecasts not already reflected in the historical loss information. |
Inventories | Inventories Inventories are principally stated at the lower of cost or net realizable value using the specific identification method and include direct labor, materials and overhead, with cost of product sales determined on a first-in, first-out basis. Inventories, net of reserves of $ 1.8 million and $ 1.1 million as of September 30, 2023 and 2022, respectively, consisted of the following components: September 30, (In thousands) 2023 2022 Raw materials $ 8,063 $ 6,102 Work-in process 2,607 1,595 Finished products 4,169 4,122 Inventories, net $ 14,839 $ 11,819 We regularly review inventory quantities, and when appropriate, record reserves for excess and obsolete inventory to reduce the balance of inventories, net on the consolidated balance sheets, with corresponding charges to product costs on the consolidated statements of operations. We write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value, and inventory in excess of expected requirements based on future demand and as compared to remaining shelf life. The estimate of excess quantities is subjective and primarily dependent on our estimates of future demand for a particular product. |
Prepaids and Other Current Assets, Current | Prepaids and Other Assets, Current Prepaids and other current assets consisted of the following: September 30, (In thousands) 2023 2022 Prepaid expenses $ 2,600 $ 2,570 Irish research and development credits receivable 1,322 753 CARES Act employee retention credit receivable (1) 3,441 3,441 Prepaids and other $ 7,363 $ 6,764 (1) Receivable consisted of anticipated reimbursement of personnel expenses incurred in fiscal periods prior to fiscal 2022 as a result of our eligibility for the employee retention credit under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $ 4.7 million, $ 4.7 million and $ 4.9 million in fiscal 2023, 2022 and 2021, respectively. The September 30, 2023 and 2022 balances in construction-in-progress include the cost of equipment and building improvements not yet placed in service. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful life of the asset. Expenditures for maintenance and repairs and minor renewals and betterments that do not extend or improve the life of the respective assets are expensed as incurred. Property and equipment consisted of the following components: Useful Life September 30, (Dollars in thousands) (Years) 2023 2022 Land N/A $ 4,413 $ 4,409 Laboratory fixtures and equipment 3 to 10 33,120 28,810 Buildings and improvements 3 to 20 26,964 26,373 Leasehold improvements 5 to 10 6,499 6,499 Office furniture and equipment 3 to 10 9,561 9,205 Construction-in-progress 1,936 3,175 Less: Accumulated depreciation ( 56,467 ) ( 51,323 ) Property and equipment, net $ 26,026 $ 27,148 |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: September 30, 2023 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 9.3 $ 11,260 $ ( 9,435 ) $ 1,825 Developed technology 11.9 33,929 ( 11,048 ) 22,881 Patents and other 14.9 2,338 ( 1,418 ) 920 Total definite-lived intangible assets 47,527 ( 21,901 ) 25,626 Unamortized intangible assets: Trademarks and trade names 580 — 580 Intangible assets, net $ 48,107 $ ( 21,901 ) $ 26,206 September 30, 2022 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 9.3 $ 10,454 $ ( 7,927 ) $ 2,527 Developed technology 11.9 31,943 ( 7,994 ) 23,949 Patents and other 14.9 2,338 ( 1,249 ) 1,089 Total definite-lived intangible assets 44,735 ( 17,170 ) 27,565 Unamortized intangible assets: Trademarks and trade names 580 — 580 Intangible assets, net $ 45,315 $ ( 17,170 ) $ 28,145 The Company recorded amortization expense of $ 3.8 million, $ 4.4 million and $ 3.1 million in fiscal 2023, 2022 and 2021, respectively. Based on the intangible assets in service as of September 30, 2023, estimated amortization expense for future fiscal years is as follows: (In thousands) 2024 $ 3,691 2025 3,656 2026 2,780 2027 2,534 2028 2,524 Thereafter 10,441 Definite-lived intangible assets $ 25,626 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, changes in amortization periods, foreign currency exchange rates or other factors. The Company defines in-process research and development (“IPR&D”) as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business combination is recognized at fair value and is capitalized as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. In cases where the IPR&D projects are abandoned, the related IPR&D assets are written off. The Company performs its annual assessment of indefinite-lived assets for impairment annually as of July 1st of each fiscal year and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment assessment, the indefinite-lived assets impairment assessment requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. No impairment charges were recorded in fiscal 2023, 2022 and 2021 . |
Goodwill | Goodwill Goodwill in the Medical Device reporting unit represents the gross value from the fiscal 2021 acquisition of Vetex Medical Limited (“Vetex”) and the fiscal 2016 acquisitions of Creagh Medical, Ltd. (“Creagh Medical”) and NorMedix, Inc. (“NorMedix”). Goodwill in the In Vitro Diagnostics reporting unit represents the gross value from the acquisition of BioFX Laboratories, Inc. in 2007. Refer to Note 13 Acquisitions for further disclosures for Vetex. Changes in the carrying amount of goodwill by segment were as follows: (In thousands) In Vitro Medical Device Total Goodwill as of September 30, 2021 $ 8,010 $ 37,596 $ 45,606 Foreign currency translation adjustment — ( 5,173 ) ( 5,173 ) Measurement period adjustments (1) — 277 277 Goodwill as of September 30, 2022 8,010 32,700 40,710 Foreign currency translation adjustment — 2,236 2,236 Goodwill as of September 30, 2023 $ 8,010 $ 34,936 $ 42,946 (1) In fiscal 2022, measurement period adjustments were recorded to finalize the allocation of purchase consideration for the fiscal 2021 Vetex acquisition (Note 13). Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to the assets purchased and liabilities assumed. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s reporting units are the Medical Device and In Vitro Diagnostics reportable segments. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations, as well as the Company’s strategic plans with regard to its operations. When utilizing a quantitative assessment, the Company determines fair value at the reporting unit level based on a combination of an income approach and market approach. The income approach is based on estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant, while the market approach is based on sales and/or earnings multiples of similar companies. These approaches use significant estimates and assumptions, including projected future cash flows and the timing of those cash flows, discount rates reflecting risks inherent in future cash flows, perpetual growth rates, and determination of appropriate market comparables. The Company performs its assessment of goodwill for impairment as of July 1 st of each fiscal year. Goodwill was not impaired in either reporting unit based on the outcome of the fiscal 2023 annual impairment test, which utilized a quantitative assessment. No goodwill impairment charges were recorded in fiscal 2023, 2022 and 2021 . |
Other Assets, Noncurrent | Other Assets, Noncurrent Other noncurrent assets consisted of the following: September 30, (In thousands) 2023 2022 Operating lease right-of-use assets $ 2,987 $ 3,633 Other 877 1,136 Other assets, noncurrent $ 3,864 $ 4,769 |
Valuation of Long-lived Assets | Valuation of Long-lived Assets The Company periodically evaluates whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment, right-of-use assets, and definite-lived intangible assets. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. In fiscal 2023, 2022 and 2021 , no impairment charges were recorded related to the Company’s long-lived assets. |
Accrued Other Liabilities | Accrued Other Liabilities Accrued other liabilities consisted of the following: September 30, (In thousands) 2023 2022 Accrued professional fees $ 178 $ 279 Accrued clinical study expense 1,056 1,425 Accrued purchases 1,142 1,655 Deferred consideration (1) 2,661 981 Operating lease liability, current portion 872 963 Other 535 551 Accrued other liabilities $ 6,444 $ 5,854 (1) Deferred consideration consisted of the present value of guaranteed payments to be made in connection with the fiscal 2021 Vetex ac quisition (Note 13) and with an asset acquisition in fiscal 2019 (Note 11). |
Other Long-term Liabilities | Other Long-term Liabilities Other long-term liabilities consisted of the following: September 30, (In thousands) 2023 2022 Deferred consideration (1) $ 1,754 $ 4,260 Contingent consideration (2) — 829 Unrecognized tax benefits (3) 3,332 1,841 Operating lease liabilities (4) 2,974 3,843 Other long-term liabilities $ 8,060 $ 10,773 (1) Deferred consideration consisted of the present value of a guaranteed payment to be made in connection with the fiscal 2021 Vetex acquisition (Note 13). (2) Contingent consideration consisted of the fair value of contingent consideration liabilities associated with the fiscal 2021 Vetex acquisition (Note 5 and Note 13). (3) Unrecognized tax benefits (Note 9) included accrued interest and penalties, if applicable. (4) Operating lease liabilities consisted of the non-current portion of the net present value of future minimum lease payments, reduced by the discounted value of leasehold improvement incentives paid or payable to the Company. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. The Company primarily sells or licenses its products, technologies and services to other medical device and diagnostics companies. Revenue is recorded net of taxes collected from customers, and taxes collected are recorded as current liabilities until remitted to the relevant government authority. The amount of foreign taxes imposed on specific revenue producing transactions that is the responsibility of the Company is expensed as incurred and reported in income tax expense on the consolidated statements of operations. For contracts that have an original duration of one year or less, the Company uses the practical expedient applicable to such contracts and does not adjust the transaction price for the time value of money. Performance Obligations We derive our revenue from three primary sources: Product Sales Royalties and License Fees Research, Development and Other IVD chemical and biological components, including protein stabilizers, substrates, surface coatings and antigens to the diagnostic and biomedical research markets (IVD segment) Performance coating royalties and license fees from licensing of our proprietary performance coating technologies to medical device manufacturers (Medical Device segment) Contract coating services and commercial development feasibility services (Medical Device segment) Performance coating reagents, the chemicals used in performance coatings by licensees (Medical Device segment) SurVeil DCB license fees associated with the Abbott Agreement (Medical Device segment) Commercial development services (IVD segment) Vascular intervention medical devices and related products to original equipment manufacturer suppliers and distributors, as well as directly to healthcare providers (Medical Device segment) The Company recognizes revenue when control is transferred to the customer. The transfer of control varies by revenue classification and is described below. If a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price. Product Sales . Revenue from product sales is recognized at the point in time control of the products is transferred, generally upon shipment based upon the standard contract terms. Shipping and handling activities are considered to be fulfillment activities rather than promised services and are not, therefore, considered to be separate performance obligations. The amount of revenue recognized is based on the transaction price, which generally represents the invoiced amount, net of administrative fees where applicable. The Company’s sales terms provide no right of return outside of a standard warranty policy, and returns are generally not significant. Payment terms for product sales are generally set at 30 - 45 days after shipment. Royalties . Royalties revenue consists of sales-based and recurring minimum royalties earned under licenses of our performance coating technologies. Performance obligations under these licenses, which consist of the right to use the Company’s proprietary technology, are satisfied at a point in time corresponding with delivery of the underlying technology rights to the customer, which is generally upon transfer of the licensed technology to the customer. Sales-based royalties revenue represents variable consideration under the license agreements and is recognized in the period a customer sells products incorporating the Company’s licensed technologies. Our customers generally report sales subject to royalties to us in the quarter after those sales occur. The Company estimates sales-based royalties revenue earned but unpaid at each reporting period using the expected value method based on historical sales information, adjusted for known changes such as product launches and patent expirations. The Company also considers macroeconomic factors affecting the medical device market. The Company's license arrangements also often provide for recurring fees (minimum royalties), which the Company recognizes at the later of the satisfaction of the underlying performance obligation or upon renewal of the contract, which generally occurs on a quarterly basis. Sales-based and minimum royalties are generally due within 45 days after the end of each quarter. License Fees . For distinct license performance obligations, upfront license fees are recognized when the Company satisfies the underlying performance obligation. This generally occurs upon transfer of the right to use the Company’s licensed technology to the customer, with the exception of the license of the Company’s SurVeil drug-coated balloon (the “ SurVeil DCB”) disclosed below. Certain license arrangements include contingent milestone payments, which are due following achievement by our customers of specified sales or regulatory milestones. Contingent milestone payment terms vary by contract. The Company has generally fulfilled its performance obligation prior to achievement of these milestones. However, because of the uncertainty of the milestone achievement, and/or the dependence on sales of our customers, variable consideration for contingent milestones is fully constrained and excluded from the contract price until the milestone is achieved by our customer, to the extent collectability is reasonably certain. The Company has a collaborative arrangement contract with Abbott Vascular, Inc. (“Abbott”) disclosed in Note 4 Collaborative Arrangement (the “Abbott Agreement”). As of September 30, 2023 , the Company has received payments totaling $ 87.8 million under the Abbott Agreement, and there are no remaining contingent milestone payments under the Abbott Agreement. The performance obligation identified in the Abbott Agreement includes delivery of our licensed technology and completion of research and development activities, primarily clinical trial activities (together, “R&D and Clinical Activities”). These promises are not distinct performance obligations because the product necessary for completion of the R&D and Clinical Activities is currently only able to be manufactured by the Company due to the exclusive proprietary know-how and certain regulatory requirements associated with the manufacture of the product. The customer, Abbott, simultaneously receives and consumes the benefits of the R&D and Clinical Activities as study data are generated to support regulatory approval submissions. Control is effectively transferred over time as we complete the TRANSCEND clinical study of the SurVeil DCB and related regulatory activities. License fee revenue related to this contract is recognized using the cost-to-cost method which measures progress based on costs incurred to date relative to the expected total cost of the services, as the Company believes this represents a faithful depiction of the satisfaction of its performance obligation. Use of the cost-to-cost method requires significant estimates, including the total cost of the TRANSCEND study, which is expected to be completed over the next two years . Revenue is recorded based on the cost-to-cost completion estimate relative to the transaction price, which is equal to the total upfront fee plus the expected value of the clinical and regulatory milestones. Revenue from the upfront fee and contingent clinical and regulatory milestone payments, once the underlying contingencies are achieved, is recognized within royalties and license fees on the consolidated statements of operations as the clinical and regulatory activities are performed on a proportional performance basis. Performance is measured based on actual costs incurred relative to the expected total cost of the underlying activities, most notably the completion of the TRANSCEND clinical trial. A significant component of the cost of this trial is the cost of the Company’s outsourced clinical trial clinical research organization (“CRO”) consultants, which is estimated based on executed statements of work, project budgets, and patient enrollment timing, among other factors. A significant change to the Company’s estimate of the costs to complete the TRANSCEND clinical trial could have a material effect on the Company’s results of operations. Significant judgment is used to estimate total revenue and cost at completion for this contract. To account for the Abbott Agreement, the Company applied the guidance in ASC Topic 808 (Collaborative Arrangements) as the parties are active participants and are exposed to significant risks and rewards dependent on commercial success of the collaborative activity. See Note 4 Collaborative Arrangement for further disclosures related to the Abbott Agreement. Research and Development . The Company performs research and development (“R&D”) activities as a service to customers, which are typically charged to customers on a time-and-materials basis. Generally, revenue for R&D services is recorded over time as the services are provided to the customer in the amount to which the Company has the right to invoice. These services are generally charged to the customer as they are provided. Payment terms for R&D services are generally set at 30 - 45 days. Contract Assets, Deferred Revenue and Remaining Performance Obligations Contract assets are generally short in duration given the nature of products produced and services provided by the Company. Contract assets consist of sales-based and minimum royalties revenue earned for which unconditional right to payment does not exist as of the balance sheet date. These assets are comprised of estimated sales-based royalties earned, but not yet reported by the Company’s customers, minimum royalties on non-cancellable contracts, and contingent milestones earned, but not yet billable based on the terms of the contract. See Note 3 Revenue for further contract asset disclosures. The Company records a contract liability, or deferred revenue, when there is an obligation to provide a product or service to the customer, and payment is received or due in advance of performance, or when payment is received for a period outside the contract term. See Note 4 Collaborative Arrangement for further deferred revenue disclosures. Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts. For contracts that have an original duration of one year or less, the Company has elected the practical expedient applicable to such contracts and does not disclose the transaction price for remaining performance obligations at the end of each reporting period or the expecting timing of recognition of related revenue. See Note 4 Collaborative Arrangement for further performance obligation disclosures. |
Product Costs | Product Costs Product costs consist primarily of the cost of raw materials, components, direct labor and manufacturing overhead. Overhead costs include the cost of quality assurance and control, materials procurement, inventory control, facilities, and manufacturing supervision and management, including stock-based compensation. Product costs also includes depreciation expense for production equipment and facilities, charges for excess and obsolete inventory, and certain direct costs such as shipping and handling costs. |
Leases | Leases The Company leases facilities for research, office, manufacturing and warehousing. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement, the Company recognizes a right-of-use asset and lease liability based on the net present value of the future minimum lease payments over the lease term at the commencement date. The net present value of future minimum lease payments recorded upon lease commencement is reduced by the discounted value of any leasehold improvement incentives payable to the Company considered to be in-substance fixed payments. The unamortized balance of leasehold improvement incentives in the form of tenant allowances represents the primary difference between the balance of the right-of-use assets and operating lease liabilities. As the Company’s leases typically do not provide an implicit rate, the Company’s lease liabilities are measured on a discounted basis using the Company's incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. The consolidated balance sheets do not include recognized assets or liabilities for leases that, at the commencement date, have a term of twelve months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised. The Company recognizes such leases on the consolidated statements of operations on a straight-line basis over the lease term. The Company’s leases include one or more options to renew and extend the lease term at the Company’s discretion. These renewal options are not included in right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options, and when they are reasonably certain to be exercised, the renewal period is included in the lease term. As of September 30, 2023, operating lease maturities were as follows: (In thousands) 2024 $ 1,217 2025 1,214 2026 1,132 2027 1,135 2028 574 Total expected operating lease payments 5,272 Less: Imputed interest ( 1,426 ) Total operating lease liabilities $ 3,846 Operating lease cost was $ 1.4 million, $ 1.1 million and $ 0.8 million for fiscal 2023, 2022 and 2021, respectively. Cash paid for operating lease liabilities approximated operating lease cost for fiscal 2023, 2022 and 2021. As of September 30, 2023 , the weighted average remaining lease term for operating leases was 4.4 years, and the weighted average discount rate used to determine operating lease liabilities was 3.9 %. |
Stock-based Compensation | Stock-based Compensation We measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. Share-based payments are expensed based on their grant-date fair values on a straight-line basis over the requisite service period of the total award, less estimated forfeitures based on historical experience. Shares awarded under the Company’s stock-based compensation plans, with the exception of restricted stock awards, are not considered issued or outstanding common stock of the Company until they vest and the shares are released. New awards and forfeitures of unvested restricted stock result in an increase (decrease), respectively, in common stock issued and outstanding. |
Research and Development | Research and Development R&D expenses include costs associated with the design, development, testing, enhancement and regulatory approval of the Company’s products. R&D expenses include employee compensation (including stock-based compensation), internal and external costs associated with our regulatory compliance and quality assurance functions, the costs of product used in development and clinical trials, consulting expenses, and facilities overhead. The Company also incurs significant R&D expenses to operate clinical trials. R&D costs are expensed as incurred. Certain R&D costs are related to customer contracts, and the related revenue is recognized as described in “Revenue Recognition” in this Note 2. Costs associated with customer-related R&D include specific project direct labor and materials expenses, as well as an allocation of overhead costs based on direct labor costs. Clinical Trial Costs. The Company sponsors clinical trials intended to obtain the necessary clinical data required to obtain approval from various regulatory agencies to market medical devices developed by the Company. Costs associated with clinical trials include trial design and management expenses, clinical site reimbursements and third-party fees, among other costs. The Company’s clinical trials may be administered by third-party CROs. These CROs generally bill monthly for certain services performed, as well as upon achievement of certain milestones. The Company monitors patient enrollment, the progress of clinical studies, and related activities through internal reviews of data reported to the Company by the CROs and correspondence with the CROs. We periodically evaluate our estimates to determine if adjustments are necessary or appropriate based on information received. These estimates often require significant judgment on the part of the Company’s management. |
Derivative Financial Instruments | Derivative Financial Instruments We periodically enter into interest rate swaps with major financial institutions of high credit quality to mitigate exposure to changes in interest rates on our floating-rate indebtedness. Since the fair value of these interest rate swaps is derived from current market rates, they are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. When the Company has multiple derivative financial instruments with the same counterparty subject to a master netting arrangement, we have elected to offset (i) amounts recorded as assets and liabilities, and (ii) amounts recognized for the right to reclaim cash collateral we have deposited with the counterparty (i.e., cash collateral receivable). Such offset amounts are presented as either a net asset or liability by counterparty on the consolidated balance sheets. See Note 7 Derivative Financial Instruments for further disclosures. |
Litigation | Litigation From time to time, the Company may become involved in various legal actions involving its operations, products and technologies, including intellectual property and employment disputes. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants may seek damages as well as other relief, including injunctions barring the sale of products that are the subject of the lawsuit, which if granted, could require significant expenditures or result in lost revenue. The Company records a liability on the consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. |
Income Taxes | Income Taxes We record a tax (expense) benefit for the anticipated tax consequences of the reported results of operations. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date of such change. Deferred tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise from net operating losses and tax credits and are primarily a result of temporary differences between the financial reporting and tax bases of assets and liabilities. We evaluate the recoverability of deferred tax assets by assessing all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. A valuation allowance is established if it is more likely than not (defined as a likelihood of more than 50%) that all or a portion of deferred tax assets will not be realized. The determination of whether a valuation allowance should be established, as well as the amount of such allowance, requires significant judgment and estimates, including estimates of future earnings. In evaluating the realizability of our net deferred tax assets, we perform an assessment each reporting period of both positive and negative evidence, including (i) the existence of three-year cumulative U.S. pre-tax income (losses) adjusted for permanent adjustments, (ii) our forecast of future earnings, and (iii) future reversal of taxable temporary differences and carryforwards. We apply judgment to consider the relative impact of negative and positive evidence, and the weight given to negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified. Objective historical evidence, such as cumulative three-year pre-tax income (losses) adjusted for permanent adjustments, is given greater weight than subjective positive evidence such as forecasts of future earnings. The more objective negative evidence that exists limits our ability to consider other, potentially positive, subjective evidence, such as our future earnings projections. Due to significant estimates used to establish the valuation allowance and the potential for changes in facts and circumstances, it is reasonably possible that we will be required to record adjustments to the valuation allowance in future reporting periods that could have a material effect on our results of operations. |
Net (Loss) Income Per Share Data | Net (Loss) Income Per Share Data Basic net (loss) income per common share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s potentially dilutive common shares are those that result from dilutive common stock options and non-vested stock relating to restricted stock awards and restricted stock units. The following table presents the denominator for the computation of diluted weighted average shares outstanding: Fiscal Year (In thousands) 2023 2022 2021 Basic weighted average shares outstanding 14,031 13,916 13,765 Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units — — 224 Diluted weighted average shares outstanding 14,031 13,916 13,989 The calculation of diluted (loss) income per share excluded 0.1 million, 0.1 million and less than 0.1 million in weighted-average shares for fiscal 2023, 2022 and 2021 , respectively, as their effect was anti-dilutive. |
Repurchase of Common Stock | Repurchase of Common Stock Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to stockholders, and depend upon many factors, including the Company’s results of operations, financial condition, capital requirements and contractual restrictions. The Company accounts for repurchases of common stock using the par value method. On November 6, 2015, and on November 5, 2014, the Company’s Board of Directors authorized the repurchase of up to $ 20.0 million and $ 30.0 million, respectively, of the Company’s outstanding common stock in open-market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, tender offers or by any combination of such methods. The authorizations have no fixed expiration date. As of September 30, 2023 , $ 25.3 million remained available to the Company for the purchase of its common stock under outstanding authorizations. However, our credit agreement in effect at September 30, 2023 restricts us from repurchasing outstanding shares of the Company’s common stock. |
Business Combinations | Business Combinations For acquisitions accounted for as business combinations, we record assets and liabilities acquired at their respective fair values as of the acquisition date. Contingent consideration is recognized at fair value as of the acquisition date, and changes in fair value are recognized in earnings until settlement. Acquisition-related transaction costs are expensed as incurred. |
Currency Translation | Currency Translation The Company’s reporting currency is the U.S. dollar. Assets and liabilities of non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the period-end exchange rates, and revenue and expenses are translated at the average quarterly exchange rates during the period. The net effect of these translation adjustments on the consolidated financial statements is recorded as a foreign currency translation adjustment, a component of accumulated other comprehensive loss on the consolidated balance sheets. Realized foreign currency transaction gains and losses are included in other expense, net on the consolidated statements of operations. |
New Accounting Pronouncements | New Accounting Pronouncements As of September 30, 2023, there were no new accounting pronouncements, pending adoption or recently adopted, that have had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Reportable Segment Information | Reportable segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, who is the Company’s Chief Executive Officer, in deciding how to allocate resources and in assessing performance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available for Sale Securities | As of September 30, 2023, the amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows. There were no available-for-sale securities as of September 30, 2022. (In thousands) Amortized Unrealized Unrealized Fair Commercial paper and corporate bonds $ 3,936 $ — $ ( 3 ) $ 3,933 Available-for-sale securities $ 3,936 $ — $ ( 3 ) $ 3,933 |
Components of Inventories, net | Inventories, net of reserves of $ 1.8 million and $ 1.1 million as of September 30, 2023 and 2022, respectively, consisted of the following components: September 30, (In thousands) 2023 2022 Raw materials $ 8,063 $ 6,102 Work-in process 2,607 1,595 Finished products 4,169 4,122 Inventories, net $ 14,839 $ 11,819 |
Summary of Prepaids and Other Current Assets | Prepaids and other current assets consisted of the following: September 30, (In thousands) 2023 2022 Prepaid expenses $ 2,600 $ 2,570 Irish research and development credits receivable 1,322 753 CARES Act employee retention credit receivable (1) 3,441 3,441 Prepaids and other $ 7,363 $ 6,764 (1) Receivable consisted of anticipated reimbursement of personnel expenses incurred in fiscal periods prior to fiscal 2022 as a result of our eligibility for the employee retention credit under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following components: Useful Life September 30, (Dollars in thousands) (Years) 2023 2022 Land N/A $ 4,413 $ 4,409 Laboratory fixtures and equipment 3 to 10 33,120 28,810 Buildings and improvements 3 to 20 26,964 26,373 Leasehold improvements 5 to 10 6,499 6,499 Office furniture and equipment 3 to 10 9,561 9,205 Construction-in-progress 1,936 3,175 Less: Accumulated depreciation ( 56,467 ) ( 51,323 ) Property and equipment, net $ 26,026 $ 27,148 |
Schedule of Intangible Assets | Intangible assets consisted of the following: September 30, 2023 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 9.3 $ 11,260 $ ( 9,435 ) $ 1,825 Developed technology 11.9 33,929 ( 11,048 ) 22,881 Patents and other 14.9 2,338 ( 1,418 ) 920 Total definite-lived intangible assets 47,527 ( 21,901 ) 25,626 Unamortized intangible assets: Trademarks and trade names 580 — 580 Intangible assets, net $ 48,107 $ ( 21,901 ) $ 26,206 September 30, 2022 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 9.3 $ 10,454 $ ( 7,927 ) $ 2,527 Developed technology 11.9 31,943 ( 7,994 ) 23,949 Patents and other 14.9 2,338 ( 1,249 ) 1,089 Total definite-lived intangible assets 44,735 ( 17,170 ) 27,565 Unamortized intangible assets: Trademarks and trade names 580 — 580 Intangible assets, net $ 45,315 $ ( 17,170 ) $ 28,145 |
Estimated Amortization Expense | Based on the intangible assets in service as of September 30, 2023, estimated amortization expense for future fiscal years is as follows: (In thousands) 2024 $ 3,691 2025 3,656 2026 2,780 2027 2,534 2028 2,524 Thereafter 10,441 Definite-lived intangible assets $ 25,626 |
Schedule of Carrying Amount of Goodwill By Reportable Segment | Changes in the carrying amount of goodwill by segment were as follows: (In thousands) In Vitro Medical Device Total Goodwill as of September 30, 2021 $ 8,010 $ 37,596 $ 45,606 Foreign currency translation adjustment — ( 5,173 ) ( 5,173 ) Measurement period adjustments (1) — 277 277 Goodwill as of September 30, 2022 8,010 32,700 40,710 Foreign currency translation adjustment — 2,236 2,236 Goodwill as of September 30, 2023 $ 8,010 $ 34,936 $ 42,946 (1) In fiscal 2022, measurement period adjustments were recorded to finalize the allocation of purchase consideration for the fiscal 2021 Vetex acquisition (Note 13). |
Summary of Other Noncurrent Assets | Other noncurrent assets consisted of the following: September 30, (In thousands) 2023 2022 Operating lease right-of-use assets $ 2,987 $ 3,633 Other 877 1,136 Other assets, noncurrent $ 3,864 $ 4,769 |
Schedule of Accrued Other Liabilities | Accrued other liabilities consisted of the following: September 30, (In thousands) 2023 2022 Accrued professional fees $ 178 $ 279 Accrued clinical study expense 1,056 1,425 Accrued purchases 1,142 1,655 Deferred consideration (1) 2,661 981 Operating lease liability, current portion 872 963 Other 535 551 Accrued other liabilities $ 6,444 $ 5,854 (1) Deferred consideration consisted of the present value of guaranteed payments to be made in connection with the fiscal 2021 Vetex ac quisition (Note 13) and with an asset acquisition in fiscal 2019 (Note 11). |
Schedule of Other Long-term Liabilities | Other long-term liabilities consisted of the following: September 30, (In thousands) 2023 2022 Deferred consideration (1) $ 1,754 $ 4,260 Contingent consideration (2) — 829 Unrecognized tax benefits (3) 3,332 1,841 Operating lease liabilities (4) 2,974 3,843 Other long-term liabilities $ 8,060 $ 10,773 (1) Deferred consideration consisted of the present value of a guaranteed payment to be made in connection with the fiscal 2021 Vetex acquisition (Note 13). (2) Contingent consideration consisted of the fair value of contingent consideration liabilities associated with the fiscal 2021 Vetex acquisition (Note 5 and Note 13). (3) Unrecognized tax benefits (Note 9) included accrued interest and penalties, if applicable. (4) Operating lease liabilities consisted of the non-current portion of the net present value of future minimum lease payments, reduced by the discounted value of leasehold improvement incentives paid or payable to the Company. |
Schedule of Operating Lease Maturities | As of September 30, 2023, operating lease maturities were as follows: (In thousands) 2024 $ 1,217 2025 1,214 2026 1,132 2027 1,135 2028 574 Total expected operating lease payments 5,272 Less: Imputed interest ( 1,426 ) Total operating lease liabilities $ 3,846 |
Denominator for Computation of Diluted Weighted Average Shares Outstanding | The following table presents the denominator for the computation of diluted weighted average shares outstanding: Fiscal Year (In thousands) 2023 2022 2021 Basic weighted average shares outstanding 14,031 13,916 13,765 Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units — — 224 Diluted weighted average shares outstanding 14,031 13,916 13,989 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue Within Reportable Segment | The following is a disaggregation of revenue within each reportable segment: Fiscal Year (In thousands) 2023 2022 2021 Medical Device Product sales $ 34,126 $ 27,930 $ 21,777 Royalties & license fees – performance coatings 32,812 30,547 31,007 License fees – SurVeil DCB 29,586 5,701 16,049 Research, development and other 9,259 8,211 9,420 Medical Device revenue 105,783 72,389 78,253 In Vitro Diagnostics Product sales 26,488 26,691 24,701 Research, development and other 313 871 2,182 In Vitro Diagnostics revenue 26,801 27,562 26,883 Total Revenue $ 132,584 $ 99,951 $ 105,136 |
Revenue from Customers | Revenue from customers that equaled or exceeded 10% of total revenue was as follows: Fiscal Year 2023 2022 2021 Abbott 27 % 11 % 21 % Medtronic 10 % 13 % 13 % |
Revenue by Geographic Region | Revenue by geographic region was as follows: Fiscal Year 2023 2022 2021 Domestic 82 % 74 % 79 % Foreign 18 % 26 % 21 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis by level of the fair value hierarchy were as follows: September 30, 2023 (In thousands) Quoted Prices in Significant Significant Total Fair Assets Cash equivalents (1) $ — $ 36,255 $ — $ 36,255 Available-for-sale securities (1) — 3,933 — 3,933 Interest rate swap (2) — 183 — 183 Total assets $ — $ 40,371 $ — $ 40,371 September 30, 2022 (In thousands) Quoted Prices in Significant Significant Total Fair Assets Cash equivalents (1) $ — $ 2,035 $ — $ 2,035 Total assets $ — $ 2,035 $ — $ 2,035 Liabilities Contingent consideration (3) $ — $ — $ 829 $ 829 Total liabilities $ — $ — $ 829 $ 829 (1) Fair value of cash equivalents (money market funds) and available-for-sale securities (commercial paper and corporate bond securities) was based on quoted vendor prices and broker pricing where all significant inputs were observable. (2) Fair value of interest rate swap was based on forward-looking, one-month term secured overnight financing rate (“Term SOFR”) spot rates and interest rate curves (Note 7). (3) Fair value of contingent consideration liabilities was determined based on discounted cash flow analyses that included probability and timing of development and regulatory milestone achievements and a discount rate, which were considered significant unobservable inputs. |
Schedule of Contingent Consideration Liabilities Measured at Fair Value | Changes in the contingent consideration liabilities measured at fair value using Level 3 inputs were as follows: (In thousands) Contingent consideration liability at September 30, 2021 $ 817 Additions — Fair value adjustments — Settlements — Interest accretion 12 Foreign currency translation — Contingent consideration liability at September 30, 2022 829 Additions — Fair value adjustments ( 835 ) Settlements — Interest accretion 6 Foreign currency translation — Contingent consideration liability at September 30, 2023 $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following: September 30, (In thousands) 2023 2022 Short-term borrowings $ — $ 10,000 Revolving Credit Facility, Term SOFR + 3.00 % , maturing October 1, 2027 $ 5,000 $ — Tranche 1 Term Loans, Term SOFR + 5.75 % , maturing October 1, 2027 25,000 — Long-term debt, gross 30,000 — Less: Unamortized debt issuance costs ( 595 ) — Long-term debt, net $ 29,405 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Fair Value of Designated Hedge Derivatives Subject to Master Netting Arrangements Reported on Consolidated Balance Sheets | The net fair value of designated hedge derivatives subject to master netting arrangements reported on the consolidated balance sheets was as follows: Asset (Liability) (In thousands) Gross Recognized Amount Gross Offset Amount Net Amount Presented Cash Collateral Receivable Net Amount Reported Balance Sheet Location September 30, 2023 Interest rate swap $ 183 $ — $ 183 $ — $ 183 Other long-term assets September 30, 2022 — $ — $ — $ — $ — $ — — |
Schedule of Pre-tax Amounts Recognized in AOCL on Interest Rate Swap | The pre-tax amounts recognized in AOCL on the interest rate swap were as follows: Fiscal Year (In thousands) 2023 2022 2021 Beginning unrealized net gain (loss) in AOCL $ — $ — $ — Net gain (loss) recognized in other comprehensive income (loss) 260 — — Reclassification of net (gain) loss to interest expense ( 77 ) — — Ending unrealized net gain (loss) in AOCL $ 183 $ — $ — |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation Expenses | Stock-based compensation expense was reported as follows on the consolidated statements of operations: Fiscal Year (In thousands) 2023 2022 2021 Product costs $ 279 $ 234 $ 122 Research and development 1,417 1,424 1,298 Selling, general and administrative 5,909 5,399 4,443 Total stock-based compensation expense $ 7,605 $ 7,057 $ 5,863 |
Stock Option Fair Value Assumptions and Weighted Average Grant Date Fair Value of Stock Options Granted | stock option fair value assumptions and the weighted average grant date fair value of stock options granted were as follows: Fiscal Year 2023 2022 2021 Stock option fair value assumptions: Risk-free interest rate 3.76 % 1.49 % 0.40 % Expected life (years) 4.7 4.6 4.6 Expected volatility 45 % 43 % 43 % Dividend yield — % — % — % Weighted average grant date fair value of stock options granted $ 15.03 $ 15.96 $ 14.71 |
Schedule of Stock Option Activity | Stock option activity was as follows: (In thousands, except per share data) Number of Weighted Options outstanding at September 30, 2020 940 $ 35.18 Granted 274 40.95 Exercised ( 248 ) 24.22 Forfeited and expired ( 44 ) 44.58 Options outstanding at September 30, 2021 922 39.39 Granted 342 42.10 Exercised ( 45 ) 21.24 Forfeited and expired ( 58 ) 43.99 Options outstanding at September 30, 2022 1,161 40.66 Granted 311 34.73 Exercised ( 20 ) 21.50 Forfeited and expired ( 90 ) 41.77 Options outstanding at September 30, 2023 1,362 39.52 Options vested and exercisable at September 30, 2023 724 $ 40.47 |
Schedule of Restricted Stock Activity | Restricted Stock activity was as follows: (In thousands, except per share data) Number of Weighted Average Unvested restricted stock awards at September 30, 2020 100 $ 44.16 Granted 71 38.83 Vested ( 48 ) 44.07 Forfeited ( 4 ) 40.45 Unvested restricted stock awards at September 30, 2021 119 41.14 Granted 99 42.35 Vested ( 55 ) 42.98 Forfeited ( 5 ) 41.83 Unvested restricted stock awards at September 30, 2022 158 41.24 Granted 103 35.75 Vested ( 69 ) 40.96 Forfeited ( 19 ) 39.31 Unvested restricted stock awards at September 30, 2023 173 $ 38.30 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Income taxes on the consolidated statements of operations consisted of the following: Fiscal Year (In thousands) 2023 2022 2021 Current expense (benefit): U.S. Federal $ 3,363 $ ( 510 ) $ 263 U.S. State 591 ( 143 ) 108 International 250 166 87 Total current expense (benefit) 4,204 ( 487 ) 458 Deferred (benefit) expense: U.S. Federal — 5,200 1,851 U.S. State — 515 ( 62 ) International ( 181 ) ( 447 ) ( 138 ) Total deferred (benefit) expense ( 181 ) 5,268 1,651 Total income tax expense $ 4,023 $ 4,781 $ 2,109 |
Schedule of Reconciliation Difference of Income Taxes | The difference between amounts calculated at the statutory U.S. federal income tax rate of 21 % and the Company’s effective tax rate was as follows: Fiscal Year (In thousands) 2023 2022 2021 Amount at statutory U.S. federal income tax rate $ 522 $ ( 4,724 ) $ 1,333 Change because of the following items: State income taxes, net of federal benefit ( 632 ) ( 897 ) ( 273 ) Foreign and state rate differential 495 628 596 U.S. federal and foreign R&D credits ( 1,544 ) ( 1,511 ) ( 920 ) Valuation allowance change (1) 4,083 10,978 1,059 Stock-based compensation (2) 1,003 481 ( 544 ) U.S. Federal and state rate change ( 152 ) — ( 35 ) Tax reserve change 734 ( 123 ) ( 150 ) Foreign-derived income deduction ( 403 ) — — Contingent consideration ( 164 ) 13 3 Impact of CARES Act (3) — — 735 Acquisition-related transaction costs — — 187 Other 81 ( 64 ) 118 Income tax expense $ 4,023 $ 4,781 $ 2,109 (1) In fiscal 2023, the valuation allowance increased primarily as a result of the incremental deferred tax assets recorded during fiscal 2023 related to capitalized U.S. R&D expenses and Ireland net operating losses (“NOLs”). In fiscal 2022, the valuation allowance increased primarily as a result of the establishment of a full valuation allowance against U.S. net deferred tax assets as of September 30, 2022. In fiscal 2021, the valuation allowance increased primarily as a result of the incremental deferred tax assets recorded during fiscal 2021 related to U.S. state R&D tax credit carryforwards and Ireland NOLs. (2) Includes non-deductible stock-based compensation. (3) Related to the remeasurement of deferred tax assets and liabilities associated with the CARES Act. Under the temporary provisions of CARES Act, NOL carryforwards and carrybacks could offset 100% of taxable income for taxable years beginning before 2021. In addition, NOLs arising in 2018, 2019 and 2020 taxable years could be carried back to each of the preceding five years to generate a refund. |
Schedule of Deferred Income Taxes, Net | The components of deferred income taxes, net, consisted of the following and resulted from differences in the recognition of transactions for income tax and financial reporting purposes: September 30, (In thousands) 2023 2022 Depreciable assets $ ( 3,802 ) $ ( 3,995 ) Deferred revenue 1,082 2,103 Accruals and reserves 2,052 1,615 Stock-based compensation 2,665 2,443 Impaired strategic investments 1,829 1,787 NOL carryforwards (1) 4,578 6,379 U.S. Federal and state R&D credits (2) 2,973 4,465 Capitalized R&D expenses 7,976 — Other 648 848 Valuation allowance ( 22,005 ) ( 17,672 ) Deferred taxes, net $ ( 2,004 ) $ ( 2,027 ) (1) As of September 30, 2023, NOL carryforwards consisted of U.S. state NOL carryforwards of $ 0.3 million and Ireland NOL carryforwards of $ 4.2 million. U.S. state NOL carryforwards begin to expire in fiscal 2028 . Irel and NOL carryforwards have an unlimited carryforward period. (2) As of September 30, 2023, U.S. federal and state R&D credits begin to expire in fiscal 2 028 . |
Summary of Reconciliation of Changes in Unrecognized Tax Benefits | Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes pursuant to accounting guidance. The following is a reconciliation of the changes in unrecognized tax benefits, excluding interest and penalties: Fiscal Year (In thousands) 2023 2022 2021 Unrecognized tax benefits, beginning balance $ 2,793 $ 2,887 $ 2,871 Increases in tax positions for prior years — 53 15 Decreases in tax positions for prior years ( 4 ) ( 35 ) ( 8 ) Increases in tax positions for current year 836 519 458 Lapse of the statute of limitations ( 182 ) ( 631 ) ( 449 ) Unrecognized tax benefits, ending balance $ 3,443 $ 2,793 $ 2,887 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of Acquisition Date Fair Value of Purchase Consideration | The acquisition date fair value of purchase consideration was as follows: (In thousands) Consideration paid at closing $ 39,985 Deferred consideration 3,257 Contingent consideration 814 Total purchase consideration 44,056 Less: Cash acquired ( 432 ) Total purchase consideration, net of cash acquired $ 43,624 |
Summary of Final Allocation of Purchase Consideration as of Acquisition Date | The final allocation of purchase consideration as of the acquisition date was as follows: (In thousands) Asset (Liability) Current assets $ 18 Property and equipment 37 Intangible assets 27,600 Other non-current assets 37 Accrued compensation ( 236 ) Other accrued liabilities ( 111 ) Deferred income taxes ( 3,087 ) Net assets acquired 24,258 Goodwill 19,366 Total purchase consideration, net of cash acquired $ 43,624 |
Reportable Segment Information
Reportable Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating (Loss) Income and Depreciation and Amortization | Segment revenue, operating income (loss), and depreciation and amortization were as follows: Fiscal Year (In thousands) 2023 2022 2021 Revenue: Medical Device $ 105,783 $ 72,389 $ 78,253 In Vitro Diagnostics 26,801 27,562 26,883 Total revenue $ 132,584 $ 99,951 $ 105,136 Operating income (loss): Medical Device $ 5,084 $ ( 22,923 ) $ 4,683 In Vitro Diagnostics 12,637 13,073 13,770 Total segment operating income (loss) 17,721 ( 9,850 ) 18,453 Corporate ( 12,571 ) ( 12,247 ) ( 11,750 ) Total operating income (loss) $ 5,150 $ ( 22,097 ) $ 6,703 Depreciation and amortization: Medical Device $ 7,874 $ 8,368 $ 7,224 In Vitro Diagnostics 321 355 395 Corporate 327 419 398 Total depreciation and amortization $ 8,522 $ 9,142 $ 8,017 |
Geographic Revenue and Long-lived Assets | Long-lived assets by country, including property and equipment and intangible assets net of accumulated depreciation and amortization, respectively, were as follows: September 30, (In thousands) 2023 2022 U.S. $ 23,525 $ 24,788 Ireland 28,707 30,505 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Additional Information (Detail) - USD ($) shares in Millions | 12 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Nov. 06, 2015 | Nov. 05, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Available-for-sale debt securities | $ 3,933,000 | $ 0 | |||
Held-to-maturity debt securities | 0 | 0 | |||
Realized gains or losses on sales of available-for-sale securities | 0 | 0 | $ 0 | ||
Inventories, net of reserves | 1,800,000 | 1,100,000 | |||
CARES Act employee retention credit receivable | 3,441,000 | 3,441,000 | |||
Depreciation expense | 4,700,000 | 4,700,000 | 4,900,000 | ||
Amortization expense | 3,800,000 | 4,400,000 | 3,100,000 | ||
Impairment loss | 0 | 0 | 0 | ||
Goodwill impairment charges | 0 | 0 | 0 | ||
Impairment charges relating to long-lived assets | $ 0 | $ 0 | $ 0 | ||
Antidilutive options excluded from computation of EPS | 0.1 | 0.1 | 0.1 | ||
ASC Topic 842 adoption, lease liability | $ 3,846,000 | ||||
Remaining amount available for repurchases of shares | 25,300,000 | ||||
Accelerated Share Repurchase Program [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Maximum payments for repurchase of common stock | $ 20,000,000 | $ 30,000,000 | |||
Abbott Agreement [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Collaborative arrangement payment received | 87,800,000 | ||||
Remaining contingent milestone payments | $ 0 | ||||
Abbott Agreement [Member] | TRANSCEND Clinical Trial [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Clinical study completion period | 2 years | ||||
Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Performance obligations, payment terms, royalties | 45 days | ||||
Minimum [Member] | Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Performance obligations, payment terms, product sales | 30 days | ||||
Performance obligations, payment terms, R&D services | 30 days | ||||
Maximum [Member] | Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Performance obligations, payment terms, product sales | 45 days | ||||
Performance obligations, payment terms, R&D services | 45 days | ||||
Leases [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Lease description | The Company leases facilities for research, office, manufacturing and warehousing. | ||||
Lease, existence of option to extend | true | ||||
Lease, option to extend | The Company’s leases include one or more options to renew and extend the lease term at the Company’s discretion. These renewal options are not included in right-of-use assets and lease liabilities as they are not reasonably certain of exercise. | ||||
Operating lease cost | $ 1,400,000 | $ 1,100,000 | $ 800,000 | ||
Weighted average remaining lease term for operating leases | 4 years 4 months 24 days | ||||
Weighted average discount rate used to determine operating lease liabilities | 3.90% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 3,936 | |
Unrealized Losses | (3) | |
Fair Value | 3,933 | $ 0 |
Commercial paper and corporate bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 3,936 | |
Unrealized Losses | (3) | |
Fair Value | $ 3,933 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Components of Inventories, net (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,063 | $ 6,102 |
Work-in process | 2,607 | 1,595 |
Finished products | 4,169 | 4,122 |
Inventories, net | $ 14,839 | $ 11,819 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Summary of Prepaids and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 2,600 | $ 2,570 |
Irish research and development credits receivable | 1,322 | 753 |
CARES Act employee retention credit receivable | 3,441 | 3,441 |
Prepaids and other | $ 7,363 | $ 6,764 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (56,467) | $ (51,323) |
Property and equipment, net | 26,026 | 27,148 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 4,413 | 4,409 |
Laboratory Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 33,120 | 28,810 |
Laboratory Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Laboratory Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 10 years | |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 26,964 | 26,373 |
Building and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Building and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 20 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 6,499 | 6,499 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 10 years | |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 9,561 | 9,205 |
Office Furniture and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Office Furniture and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 10 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 1,936 | $ 3,175 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (21,901) | $ (17,170) |
Definite-lived intangible assets, Net | 25,626 | |
Intangible assets, Gross Carrying Amount | 48,107 | 45,315 |
Intangible assets, Net | $ 26,206 | $ 28,145 |
Customer Lists and Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 9 years 3 months 18 days | 9 years 3 months 18 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 11,260 | $ 10,454 |
Definite-lived intangible assets, Accumulated Amortization | 9,435 | 7,927 |
Definite-lived intangible assets, Net | $ 1,825 | $ 2,527 |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 11 years 10 months 24 days | 11 years 10 months 24 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 33,929 | $ 31,943 |
Definite-lived intangible assets, Accumulated Amortization | (11,048) | (7,994) |
Definite-lived intangible assets, Net | $ 22,881 | $ 23,949 |
Patents and Other [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 14 years 10 months 24 days | 14 years 10 months 24 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 2,338 | $ 2,338 |
Definite-lived intangible assets, Accumulated Amortization | 1,418 | 1,249 |
Definite-lived intangible assets, Net | 920 | 1,089 |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 47,527 | 44,735 |
Definite-lived intangible assets, Accumulated Amortization | (21,901) | (17,170) |
Definite-lived intangible assets, Net | 25,626 | 27,565 |
Trademarks and Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 580 | $ 580 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Estimated Amortization Expense (Detail) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 3,691 |
2025 | 3,656 |
2026 | 2,780 |
2027 | 2,534 |
2028 | 2,524 |
Thereafter | 10,441 |
Definite-lived intangible assets, Net | $ 25,626 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Schedule of Carrying Amount of Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Line Items] | ||
Goodwill as of September 30, 2020 | $ 40,710 | $ 45,606 |
Foreign currency translation adjustment | 2,236 | (5,173) |
Measurement period adjustments | 277 | |
Goodwill as of September 30, 2021 | 42,946 | 40,710 |
In Vitro Diagnostics [Member] | ||
Goodwill [Line Items] | ||
Goodwill as of September 30, 2020 | 8,010 | 8,010 |
Goodwill as of September 30, 2021 | 8,010 | 8,010 |
Medical Device [Member] | ||
Goodwill [Line Items] | ||
Goodwill as of September 30, 2020 | 32,700 | 37,596 |
Foreign currency translation adjustment | 2,236 | (5,173) |
Measurement period adjustments | 277 | |
Goodwill as of September 30, 2021 | $ 34,936 | $ 32,700 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Summary of Other Noncurrent Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Investments [Line Items] | ||
Other assets, net | $ 3,864 | $ 4,769 |
Operating Lease Right-of-Use Assets [Member] | ||
Schedule of Investments [Line Items] | ||
Other assets, net | 2,987 | 3,633 |
Other [Member] | ||
Schedule of Investments [Line Items] | ||
Other assets, net | $ 877 | $ 1,136 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Schedule of Accrued Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued professional fees | $ 178 | $ 279 |
Accrued clinical study expense | 1,056 | 1,425 |
Accrued purchases | 1,142 | 1,655 |
Deferred consideration | 2,661 | 981 |
Operating lease liability, current portion | $ 872 | $ 963 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued other liabilities | Accrued other liabilities |
Other | $ 535 | $ 551 |
Accrued other liabilities | $ 6,444 | $ 5,854 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Schedule of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Deferred consideration | $ 1,754 | $ 4,260 |
Contingent consideration | 829 | |
Unrecognized tax benefits | 3,332 | 1,841 |
Operating lease liabilities | $ 2,974 | $ 3,843 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Other long-term liabilities | $ 8,060 | $ 10,773 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Schedule of Operating Lease Maturities (Detail) $ in Thousands | Sep. 30, 2023 USD ($) |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |
2024 | $ 1,217 |
2025 | 1,214 |
2026 | 1,132 |
2027 | 1,135 |
2028 | 574 |
Total expected operating lease payments | 5,272 |
Less: Imputed interest | (1,426) |
Total operating lease liabilities | $ 3,846 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies and Supplemental Balance Sheet Information - Denominator for Computation of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Basic weighted average shares outstanding | 14,031 | 13,916 | 13,765 |
Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units | 224 | ||
Diluted weighted average shares outstanding | 14,031 | 13,916 | 13,989 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue Within Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 132,584 | $ 99,951 | $ 105,136 |
Product Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 60,614 | 54,621 | 46,478 |
Royalties & License Fees - Performance Coatings [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 62,398 | 36,248 | 47,056 |
Research, Development and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 9,572 | 9,082 | 11,602 |
Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 132,584 | 99,951 | 105,136 |
Operating Segments [Member] | Medical Device [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 105,783 | 72,389 | 78,253 |
Operating Segments [Member] | Medical Device [Member] | Product Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 34,126 | 27,930 | 21,777 |
Operating Segments [Member] | Medical Device [Member] | Royalties & License Fees - Performance Coatings [Member] | Performance Coatings [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 32,812 | 30,547 | 31,007 |
Operating Segments [Member] | Medical Device [Member] | License Fees - SurVeil DCB [Member] | SurVeil DCB - Abbott Agreement [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 29,586 | 5,701 | 16,049 |
Operating Segments [Member] | Medical Device [Member] | Research, Development and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 9,259 | 8,211 | 9,420 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 26,801 | 27,562 | 26,883 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Product Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 26,488 | 26,691 | 24,701 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Research, Development and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 313 | $ 871 | $ 2,182 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets — royalties and license fees | $ 7,796 | $ 7,116 |
Revenue - Revenue from Customer
Revenue - Revenue from Customers (Detail) - Revenue [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Abbott [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage of revenue | 27% | 11% | 21% |
Medtronic [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage of revenue | 10% | 13% | 13% |
Revenue - Revenue by Geographic
Revenue - Revenue by Geographic Region (Detail) - Revenue [Member] - Geographic Concentration Risk [Member] | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Domestic [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 82% | 74% | 79% |
Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 18% | 26% | 21% |
Collaborative Arrangement - Add
Collaborative Arrangement - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Total revenue | $ 132,584 | $ 99,951 | $ 105,136 | |||
Abbott Agreement [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaborative arrangement payment received | 87,800 | |||||
Total revenue | 87,800 | |||||
Upfront and milestone fee payment included in deferred revenue | 6,600 | 9,200 | ||||
Collaboration revenue recognized included in balance at beginning of period | 4,600 | $ 5,700 | 4,700 | |||
Abbott Agreement [Member] | Contract Life to Date [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Total revenue | 81,200 | |||||
Abbott Agreement [Member] | Upfront Payment [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaborative arrangement payment received | $ 25,000 | |||||
Abbott Agreement [Member] | Milestone Payment [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaborative arrangement payment received | $ 27,000 | $ 15,000 | $ 10,800 | $ 10,000 |
Collaborative Arrangement - A_2
Collaborative Arrangement - Additional Information (Detail 1) - Abbott Agreement [Member] $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Remaining performance obligation, amount | $ 4.2 |
Remaining performance obligation, satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | Licence Fees [Member] | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Remaining performance obligation, amount | $ 6.6 |
Remaining performance obligation, expected timing of satisfaction, period | two years |
Remaining performance obligation, satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Remaining performance obligation, amount | $ 2.4 |
Remaining performance obligation, satisfaction period | 1 year |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 40,371 | $ 2,035 |
Liabilities measured at fair value | 829 | |
Available-for-sale securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 3,933 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 40,371 | 2,035 |
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 3,933 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | 829 | |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 36,255 | 2,035 |
Cash equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 36,255 | 2,035 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | 829 | |
Contingent consideration [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 829 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 183 | |
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 183 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Contingent Consideration Expense Gain | |
Contingent Consideration [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration liability, beginning balance | $ 829 | $ 817 |
Fair value adjustments | (835) | |
Interest accretion | $ 6 | 12 |
Contingent consideration liability, ending balance | $ 829 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Debt [Line Items] | ||
Short-term borrowings | $ 10,000 | |
Long-term debt, gross | $ 30,000 | |
Less: Unamortized debt issuance costs | (595) | |
Long-term debt, net | 29,405 | |
Revolving Credit Facility [Member] | Term SOFR [Member] | ||
Schedule of Debt [Line Items] | ||
Long-term debt, gross | 5,000 | |
Secured Term Loan Facilities [Member] | Term SOFR [Member] | Tranche 1 [Member] | ||
Schedule of Debt [Line Items] | ||
Long-term debt, gross | $ 25,000 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Details) - Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | 12 Months Ended |
Sep. 30, 2023 | |
Revolving Credit Facility [Member] | |
Schedule of Debt [Line Items] | |
Description of variable rate basis | Term SOFR + 3.00% |
Debt instrument, basis spread on variable rate | 3% |
Maturity date | Oct. 01, 2027 |
Secured Term Loan Facilities [Member] | Tranche 1 [Member] | |
Schedule of Debt [Line Items] | |
Description of variable rate basis | Term SOFR +5.75% |
Debt instrument, basis spread on variable rate | 5.75% |
Maturity date | Oct. 01, 2027 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Oct. 14, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 14, 2020 | |
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, outstanding balance | $ 10,000,000 | |||
Secured term loan facilities, proceeds at closing | $ 30,000,000 | |||
Secured Overnight Financing Rate [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Description of variable rate basis | one-month secured overnight financing rate (“Term SOFR”) as published by CME Group Benchmark Administration Limited plus 0.10% | |||
Debt instrument, basis spread on variable rate | 0.10% | |||
Revolving Credit Facility [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | |||
Percentage of annual collateral management fee | 0.50% | |||
Revolving credit facility, minimum borrowing as percentage of availability | 20% | |||
Percentage of annual minimum balance fee | 0.50% | |||
Debt instrument, basis spread on variable rate | 3% | |||
Revolving credit facility, unused commitment fee rate | 0.50% | |||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Description of variable rate basis | Term SOFR + 3.00% | |||
Debt instrument, basis spread on variable rate | 3% | |||
Revolving Credit Facility [Member] | Tranche 1 [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, proceeds at closing | $ 5,000,000 | |||
Revolving Credit Facility [Member] | Year Three to Maturity [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Prepayment penalty | 1% | |||
Revolving Credit Facility [Member] | Year Two [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Prepayment penalty | 2% | |||
Revolving Credit Facility [Member] | Minimum [Member] | Secured Overnight Financing Rate [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, variable rate floor | 1.50% | |||
Revolving Credit Facility [Member] | Bridgewater Loan Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | |||
Revolving credit facility, outstanding balance | $ 10,000,000 | |||
Repayments of lines of credit | $ 10,000,000 | |||
Revolving credit facility, interest rate | Interest under the Bridgewater Loan Agreement accrued at a rate per annum equal to the greater of (i) 3.25%, and (ii) the 90-day interest rate yield for U.S. Government Treasury Securities plus 2.75%. | |||
Debt instrument, basis spread on variable rate | 2.75% | |||
Revolving credit facility, unused commitment fee rate | 0.075% | |||
Revolving credit facility, frequency of payments | quarterly | |||
Debt weighted average interest rate on the revolving credit facility | 6.10% | |||
Revolving Credit Facility [Member] | Bridgewater Loan Agreement [Member] | Minimum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, interest rate | 3.25 | |||
Term Loans [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Secured term loan facilities, borrowing capacity | $ 75,000,000 | |||
MidCap Credit Agreement, exit fee | 2.50% | |||
Debt instrument, basis spread on variable rate | 5.75% | |||
Term Loans [Member] | Tranche 1 [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Secured term loan facilities, borrowing capacity | $ 25,000,000 | |||
Secured term loan facilities, proceeds at closing | 25,000,000 | |||
Repayments of lines of credit | 10,000,000 | |||
Term Loans [Member] | Tranche 1 [Member] | Secured Overnight Financing Rate [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Description of variable rate basis | Term SOFR +5.75% | |||
Debt instrument, basis spread on variable rate | 5.75% | |||
Term Loans [Member] | Tranche 2 [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Secured term loan facilities, borrowing capacity | $ 50,000,000 | |||
Term Loans [Member] | Year Three to Maturity [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Prepayment penalty | 1% | |||
Term Loans [Member] | Year Two [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Prepayment penalty | 2% | |||
Term Loans [Member] | Minimum [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Secured term loan facilities, borrowing capacity | $ 10,000,000 | |||
Term Loans [Member] | Minimum [Member] | Secured Overnight Financing Rate [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, variable rate floor | 1.50% | |||
Term Loans [Member] | Maximum [Member] | Additional Tranche [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Secured term loan facilities, borrowing capacity | $ 25,000,000 | |||
Term Loans [Member] | Rolling-four-quarter Core Net Revenue [Member] | Minimum [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
MidCap Credit Agreement, minimum rolling-four-quarter core net revenue | 60,000,000 | |||
Term Loans [Member] | Rolling-four-quarter Core Net Revenue [Member] | Minimum [Member] | Tranche 2 [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Secured term loan facilities, borrowing capacity | $ 25,000,000 | |||
Term Loans [Member] | Midcap Revolving Credit Facility [Member] | MidCap Event of Default [Member] | MidCap Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
MidCap Credit Agreement, interest rate premium upon event of default | 2% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - Term Loans [Member] $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Derivative [Line Items] | |
Notional amount | $ 25 |
Fixed interest | 10.205% |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Notional amount | $ 25 |
Expiry date | Oct. 01, 2027 |
Fixed interest | 4.455% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Net Fair Value of Designated Hedge Derivatives Subject to Master Netting Arrangements Reported on Consolidated Balance Sheets (Detail) - Interest Rate Swap [Member] $ in Thousands | Sep. 30, 2023 USD ($) |
Offsetting Assets [Line Items] | |
Gross Recognized Amount | $ 183 |
Net Amount Presented | 183 |
Net Amount Reported | $ 183 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Pre-tax Amounts Recognized in AOCL on Interest Rate Swap (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net gain (loss) recognized in other comprehensive income (loss) | $ 260 |
Reclassification of net (gain) loss to interest expense | $ (77) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), Adjustments, after Tax |
Ending unrealized net gain (loss) in AOCL | $ 183 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Nov. 06, 2015 | Nov. 05, 2014 |
Stockholders Equity [Line Items] | |||
Remaining amount available for repurchases of shares | $ 25.3 | ||
Accelerated Share Repurchase Program [Member] | |||
Stockholders Equity [Line Items] | |||
Maximum payments for repurchase of common stock | $ 20 | $ 30 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 7,605 | $ 7,057 | $ 5,863 |
Product costs [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 279 | 234 | 122 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,417 | 1,424 | 1,298 |
Selling, general and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 5,909 | $ 5,399 | $ 4,443 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock-Based Compensation Activity [Line Items] | ||||
Unrecognized compensation costs, nonvested awards, amount | $ 10,700,000 | |||
Unrecognized compensation costs, nonvested awards, weighted average recognition period | 2 years 2 months 12 days | |||
Vesting period | 3 years | |||
Stock-based compensation expense | $ 7,605,000 | $ 7,057,000 | $ 5,863,000 | |
Dividend yield | 0% | |||
Nonqualified Stock Options [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Expiration period | 7 years | |||
Stock-based compensation expense | $ 3,700,000 | 3,400,000 | 2,800,000 | |
Aggregate intrinsic value, outstanding options | 800,000 | |||
Aggregate intrinsic value, exercisable options | $ 600,000 | |||
Weighted average remaining contractual life, options outstanding | 4 years | |||
Weighted average remaining contractual remaining, options exercisable | 2 years 10 months 24 days | |||
Intrinsic value, options exercised | $ 300,000 | 1,000,000 | 7,100,000 | |
Nonqualified Stock Options [Member] | Employee [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Vesting period | 4 years | |||
Nonqualified Stock Options [Member] | Maximum [Member] | Director [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Awards [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Stock-based compensation expense | $ 3,100,000 | $ 2,700,000 | $ 2,200,000 | |
Units granted | 103,000 | 99,000 | 71,000 | |
Units outstanding | 173,000 | 158,000 | 119,000 | 100,000 |
Weighted average grant date fair value | $ 40.96 | $ 42.98 | $ 44.07 | |
Restricted Stock Units (RSUs) [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Vesting period | 3 years | |||
Stock-based compensation expense | $ 500,000 | $ 500,000 | $ 500,000 | |
Units granted | 16,000 | 14,000 | 17,000 | |
Units outstanding | 74,000 | 65,000 | ||
Weighted average grant date fair value | $ 32.18 | $ 33.14 | ||
Deferred Stock Units [Member] | Director [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Stock-based compensation expense | $ 100,000 | $ 100,000 | $ 100,000 | |
Units outstanding | 38,000 | 36,000 | ||
Weighted average grant date fair value | $ 30.86 | $ 30.97 | ||
1999 Employee Stock Purchase Plan [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Stock-based compensation expense | $ 300,000 | $ 300,000 | $ 200,000 | |
Annual compensation withheld, maximum limit | 25,000 | |||
Employee contributions in accrued compensation at period end | $ 100,000 | $ 100,000 | ||
1999 Employee Stock Purchase Plan [Member] | Maximum [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Common stock authorized, original authorization | 600,000 | |||
Annual compensation withheld | 10% | |||
Vesting Anniversary [Member] | Nonqualified Stock Options [Member] | Employee [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Vesting percentage | 25% | |||
Vesting Anniversary [Member] | Restricted Stock Awards [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Vesting percentage | 33% | |||
Vesting Anniversary [Member] | Restricted Stock Units (RSUs) [Member] | Employee [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Vesting percentage | 33% | |||
2019 Equity Incentive Plan [Member] | ||||
Stock-Based Compensation Activity [Line Items] | ||||
Common stock authorized, original authorization | 2,340,000 | |||
Common stock authorized, shares remaining | 912,000 |
Stock-based Compensation Plan_4
Stock-based Compensation Plans - Stock Option Fair Value Assumptions and Weighted Average Fair Value of Stock Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock option fair value assumptions: | |||
Risk-free interest rate | 3.76% | 1.49% | 0.40% |
Expected life (years) | 4 years 8 months 12 days | 4 years 7 months 6 days | 4 years 7 months 6 days |
Expected volatility | 45% | 43% | 43% |
Dividend yield | 0% | ||
Weighted average grant date fair value of stock options granted | $ 15.03 | $ 15.96 | $ 14.71 |
Stock-based Compensation Plan_5
Stock-based Compensation Plans - Schedule of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of Options Outstanding, Beginning balance | 1,161,000 | 922,000 | 940,000 |
Number of Options, Granted | 311,000 | 342,000 | 274,000 |
Number of Options, Exercised | (20,000) | (45,000) | (248,000) |
Number of Options, Forfeited and expired | (90,000) | (58,000) | (44,000) |
Number of Options Outstanding, Ending balance | 1,362,000 | 1,161,000 | 922,000 |
Number of Options, vested and exercisable | 724,000 | ||
Weighted Average Exercise Price, Beginning Balance | $ 40.66 | $ 39.39 | $ 35.18 |
Weighted Average Exercise Price, Granted | 34.73 | 42.10 | 40.95 |
Weighted Average Exercise Price, Exercised | 21.50 | 21.24 | 24.22 |
Weighted Average Exercise Price, Forfeited and expired | 41.77 | 43.99 | 44.58 |
Weighted Average Exercise Price, Ending balance | 39.52 | $ 40.66 | $ 39.39 |
Weighted Average Exercise Price, vested and exercisable | $ 40.47 |
Stock-based Compensation Plan_6
Stock-based Compensation Plans - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Units, Beginning balance | 158,000 | 119,000 | 100,000 |
Number of Units, Granted | 103,000 | 99,000 | 71,000 |
Number of Units, Vested | (69,000) | (55,000) | (48,000) |
Number of Units, Forfeited | (19,000) | (5,000) | (4,000) |
Number of Units, Ending balance | 173,000 | 158,000 | 119,000 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 41.24 | $ 41.14 | $ 44.16 |
Weighted Average Grant Date Fair Value, Granted | 35.75 | 42.35 | 38.83 |
Weighted Average Grant Date Fair Value, Vested | 40.96 | 42.98 | 44.07 |
Weighted Average Grant Date Fair Value, Forfeited | 39.31 | 41.83 | 40.45 |
Weighted Average Grant Date Fair Value, Ending balance | $ 38.30 | $ 41.24 | $ 41.14 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current expense (benefit): | |||
U.S. Federal | $ 3,363 | $ (510) | $ 263 |
U.S. State | 591 | (143) | 108 |
International | 250 | 166 | 87 |
Total current expense (benefit) | 4,204 | (487) | 458 |
Deferred (benefit) expense: | |||
U.S. Federal | 5,200 | 1,851 | |
U.S. State | 515 | (62) | |
International | (181) | (447) | (138) |
Total deferred (benefit) expense | (181) | 5,268 | 1,651 |
Total income tax expense | $ 4,023 | $ 4,781 | $ 2,109 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Line Items] | ||||
U.S. federal statutory tax rate | 21% | |||
Excess tax benefits related to stock based compensation expense | $ 100,000 | $ 200,000 | $ 900,000 | |
Deferred tax asset valuation allowance | $ 17,672,000 | 22,005,000 | 17,672,000 | |
Valuation allowance change | 10,200,000 | |||
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | 2,500,000 | 3,100,000 | 2,500,000 | |
Accrued interest and penalties on unrecognized tax benefits | 300,000 | 500,000 | 300,000 | |
Undistributed earnings in foreign subsidiaries | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Difference of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Amount at statutory U.S. federal income tax rate | $ 522 | $ (4,724) | $ 1,333 |
Change because of the following items: | |||
State income taxes, net of federal benefit | (632) | (897) | (273) |
Foreign and state rate differential | 495 | 628 | 596 |
U.S. federal and foreign R&D credits | (1,544) | (1,511) | (920) |
Valuation allowance change | 4,083 | 10,978 | 1,059 |
Stock-based compensation | 1,003 | 481 | (544) |
U.S. Federal and state rate change | (152) | (35) | |
Tax reserve change | 734 | (123) | (150) |
Foreign-derived income deduction | (403) | ||
Contingent consideration | (164) | 13 | 3 |
Impact of CARES Act | 735 | ||
Acquisition-related transaction costs | 187 | ||
Other | 81 | (64) | 118 |
Total income tax expense | $ 4,023 | $ 4,781 | $ 2,109 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Depreciable assets | $ (3,802) | $ (3,995) |
Deferred revenue | 1,082 | 2,103 |
Accruals and reserves | 2,052 | 1,615 |
Stock-based compensation | 2,665 | 2,443 |
Impaired strategic investments | 1,829 | 1,787 |
NOL carryforwards | 4,578 | 6,379 |
U.S. Federal and state R&D credits | 2,973 | 4,465 |
Capitalized R&D expenses | 7,976 | |
Other | 648 | 848 |
Valuation allowance | (22,005) | (17,672) |
Deferred taxes liabilities, net | $ (2,004) | $ (2,027) |
Income Taxes - Schedule of De_2
Income Taxes - Schedule of Deferred Income Taxes, Net (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Income Tax Disclosure [Line Items] | |
NOL carryforwards, U.S. state | $ 0.3 |
NOL carryforwards, Ireland | $ 4.2 |
State [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforwards, beginning of expiration year | Jan. 01, 2028 |
R&D Credit Carryforwards [Member] | Federal and State [Member] | 2028 [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforwards, beginning of expiration year | Jan. 01, 2029 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 2,793 | $ 2,887 | $ 2,871 |
Increases in tax positions for prior years | 53 | 15 | |
Decreases in tax positions for prior years | (4) | (35) | (8) |
Increases in tax positions for current year | 836 | 519 | 458 |
Lapse of the statute of limitations | (182) | (631) | (449) |
Unrecognized tax benefits, ending balance | $ 3,443 | $ 2,793 | $ 2,887 |
Defined Contribution Plans - Ad
Defined Contribution Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions to defined contribution plans | $ 1.9 | $ 1.7 | $ 1.1 | |
U.S. [Member] | 401 (K) Retirement and Savings Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of employee contributions, eligible for employer match | 6% | |||
Percentage of employee contributions | 3% | 4% | ||
Ireland [Member] | Defined Contribution PRSA Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of employee contributions, eligible for employer match | 6% | |||
Percentage of employee contributions | 8% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | 24 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2018 | Sep. 30, 2024 | |
Commitments And Contingencies [Line Items] | ||||||
Other long-term liabilities | $ 8,060,000 | $ 10,773,000 | ||||
Other accrued liabilities current | 535,000 | 551,000 | ||||
Embolitech LLC [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contingent payments upon achievement of regulatory milestones | $ 1,000,000 | |||||
Installment payment period | 2024 | |||||
CRO [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation remaining to be paid | $ 2,000,000 | |||||
CRO [Member] | Minimum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Gross contractual obligation | 39,000,000 | |||||
CRO [Member] | Maximum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Gross contractual obligation | 41,000,000 | |||||
CRO [Member] | Maximum [Member] | CRO Pass-through Expenses [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Gross contractual obligation | 27,000,000 | |||||
In-Process Research and Development [Member] | Embolitech LLC [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Payments to acquire in-process research and development | $ 1,000,000 | $ 500,000 | $ 1,000,000 | $ 1,000,000 | $ 5,000,000 | |
Contingency period ending year | 2033 | |||||
In-Process Research and Development [Member] | Embolitech LLC [Member] | Forecast [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation payable in fiscal 2022 through fiscal 2024 | $ 900,000 |
Restructuring - (Additional Inf
Restructuring - (Additional Information) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring expense | $ 1,282 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Jul. 02, 2021 USD ($) Installment | Sep. 30, 2027 USD ($) | Sep. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Measurement period adjustment | $ 277,000 | |||||
Revenue | $ 132,584,000 | 99,951,000 | $ 105,136,000 | |||
Net income (loss) | $ (1,536,000) | (27,274,000) | 4,237,000 | |||
Vetex Medical Limited [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid | $ 39,900,000 | |||||
Deferred consideration payment, number of installment | Installment | 2 | |||||
Contingency period ending year | 2027 | |||||
Measurement period adjustment | $ 300,000 | |||||
Revenue | 0 | |||||
Net income (loss) | (900,000) | |||||
Acquisition transaction, integration and other costs | $ 1,000,000 | |||||
Vetex Medical Limited [Member] | Forecast [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Deferred consideration, contractual value | $ 1,800,000 | $ 1,800,000 | ||||
Vetex Medical Limited [Member] | Developed Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets amortized on straight-line basis, estimated useful life | 12 years | |||||
Vetex Medical Limited [Member] | Secured Revolving Credit Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred, liabilities incurred | $ 10,000,000 |
Acquisitions - Summary of Acqui
Acquisitions - Summary of Acquisition Date Fair Value of Purchase Consideration (Detail) - Vetex Medical Limited [Member] $ in Thousands | Jul. 02, 2021 USD ($) |
Business Acquisition [Line Items] | |
Consideration paid at closing | $ 39,985 |
Deferred consideration | 3,257 |
Contingent consideration | 814 |
Total purchase consideration | 44,056 |
Less: Cash acquired | (432) |
Total purchase consideration, net of cash acquired | $ 43,624 |
Acquisitions - Summary of Final
Acquisitions - Summary of Final Allocation of Purchase Consideration as of Acquisition Date (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 02, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 42,946 | $ 40,710 | $ 45,606 | |
Vetex Medical Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 18 | |||
Property and equipment | 37 | |||
Intangible assets | 27,600 | |||
Other non-current assets | 37 | |||
Accrued compensation | (236) | |||
Other accrued liabilities | (111) | |||
Deferred income taxes | (3,087) | |||
Net assets acquired | 24,258 | |||
Goodwill | 19,366 | |||
Total purchase consideration, net of cash acquired | $ 43,624 |
Reportable Segment Informatio_2
Reportable Segment Information - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Reportable Segment Informatio_3
Reportable Segment Information - Segment Revenue, Operating (Loss) Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 132,584 | $ 99,951 | $ 105,136 |
Operating income (loss) | 5,150 | (22,097) | 6,703 |
Depreciation and amortization | 8,522 | 9,142 | 8,017 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 132,584 | 99,951 | 105,136 |
Operating income (loss) | 17,721 | (9,850) | 18,453 |
Operating Segments [Member] | Medical Device [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 105,783 | 72,389 | 78,253 |
Operating income (loss) | 5,084 | (22,923) | 4,683 |
Depreciation and amortization | 7,874 | 8,368 | 7,224 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 26,801 | 27,562 | 26,883 |
Operating income (loss) | 12,637 | 13,073 | 13,770 |
Depreciation and amortization | 321 | 355 | 395 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (12,571) | (12,247) | (11,750) |
Depreciation and amortization | $ 327 | $ 419 | $ 398 |
Reportable Segment Informatio_4
Reportable Segment Information - Geographic Revenue and Long-lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | $ 23,525 | $ 24,788 | |
Ireland [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | $ 28,707 | $ 30,505 | |
Revenue [Member] | Geographic Concentration Risk [Member] | Domestic [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of consolidated revenue | 82% | 74% | 79% |
Revenue [Member] | Geographic Concentration Risk [Member] | Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of consolidated revenue | 18% | 26% | 21% |
Schedule of Valuation and Qua_2
Schedule of Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 81 | $ 119 | $ 130 | |
Additions: Charges to Income | 37 | 5 | (11) | |
Deductions: Other Changes (Debit) Credit | [1] | (38) | (43) | |
Balance at End of Period | $ 80 | $ 81 | $ 119 | |
[1] Primarily consists of uncollectible accounts written off, less recoveries. |