Hauppauge Digital (HAUP) 10-Q 14 Feb 14 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Dec. 31, 2013	Jan. 27, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Dec-13	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Trading Symbol	'HAUP	'
Entity Common Stock, Shares Outstanding	'	10,122,344
Entity Registrant Name	'HAUPPAUGE DIGITAL INC	'
Entity Central Index Key	'0000930803	'
Current Fiscal Year End Date	'--09-30	'
Entity Filer Category	'Smaller Reporting Company	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Sep. 30, 2013
Assets:	'	'
Cash and cash equivalents	$1,298,841	$1,482,566
Trade receivables, net of various allowances	3,238,028	2,180,276
Other non-trade receivables	359,616	278,497
Inventories	9,405,758	10,479,048
Deferred tax asset-current	496,569	453,659
Prepaid expenses and other current assets	1,181,969	1,155,054
Total current assets	15,980,781	16,029,100
Property, plant and equipment, net	122,526	144,596
Security deposits and other non-current assets	108,391	115,589
Deferred tax asset-non current	548,906	692,225
Total assets	16,760,604	16,981,510
Current Liabilities:	'	'
Accounts payable	4,086,752	3,758,876
Accrued expenses-fees	12,338,719	12,497,060
Accrued expenses	2,522,194	2,590,291
Income taxes payable	192,512	188,187
Total current liabilities	19,140,177	19,034,414
Stockholders' Deficit:	'	'
Common stock, $.01 par value; 25,000,000 shares authorized, 10,882,823 issued and 10,122,344 outstanding	108,828	108,828
Additional paid-in capital	18,457,101	18,428,511
Accumulated deficit	-13,875,556	-13,492,346
Accumulated other comprehensive loss	-4,664,398	-4,692,349
Treasury Stock, at cost, 760,479 shares	-2,405,548	-2,405,548
Total stockholders' deficit	-2,379,573	-2,052,904
Total liabilities and stockholders' deficit	$16,760,604	$16,981,510

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Dec. 31, 2013	Sep. 30, 2013
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	10,882,823	10,882,823
Common Stock, Shares, Outstanding	10,122,344	10,122,344
Treasury stock, shares	760,479	760,479

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net sales	$6,469,479	$11,930,378
Cost of sales	3,958,017	6,538,437
Gross profit	2,511,462	5,391,941
Selling, general and administrative expenses	2,067,698	2,873,775
Research and development expenses	691,782	706,926
(Loss) income from operations	-248,018	1,811,240
Other income (expense) :	'	'
Interest income	198	1,080
Foreign currency gain (loss)	-5,698	2,070
Total other income (expense)	-5,500	3,150
(Loss) income before tax provision	-253,518	1,814,390
Current tax expense	29,283	52,505
Deferred tax expense	100,409	471,799
Net (loss) income	($383,210)	$1,290,086
Net (loss) income per share:	'	'
Basic and Diluted (in dollars per share)	($0.04)	$0.13

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net (loss) income	($383,210)	$1,290,086
Foreign currency translation gain	27,951	69,408
Other comprehensive (loss) income	($355,259)	$1,359,494

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash Flows From Operating Activities	'	'
Net (loss) income	($383,210)	$1,290,086
Adjustments to reconcile net (loss) income to net cash used in operating activities:	'	'
Depreciation and amortization	22,942	29,602
Amortization of intangible assets	0	188,709
Stock compensation expense	28,590	26,184
Deferred tax expense	100,409	471,799
Sales reserve, net	0	15,553
Inventory reserve	102,920	100,000
Other items	4,572	-22,475
Changes in current assets and liabilities	'	'
Accounts receivable and other non trade receivables	-1,103,720	-4,343,882
Inventories	970,370	-988,408
Prepaid expenses and other current assets	-22,129	-53,495
Accounts payable	318,272	2,450,106
Accrued expenses and other current liabilities	-229,165	-673,717
Total adjustments	193,061	-2,800,024
Net cash used in operating activities	-190,149	-1,509,938
Cash Flows From Investing Activities:	'	'
Purchases of property, plant and equipment	-872	-12,697
Net cash used in investing activities	-872	-12,697
Effect of exchange rates on cash	7,296	31,238
Net decrease in cash and cash equivalents	-183,725	-1,491,397
Cash and cash equivalents, beginning of period	1,482,566	5,095,853
Cash and cash equivalents, end of period	1,298,841	3,604,456
Supplemental disclosures:	'	'
Income taxes paid	$26,283	$31,802

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	Note 1. Basis of Presentation
	The accompanying unaudited consolidated financial statements for Hauppauge Digital Inc. and subsidiaries (collectively, the “Company”) included herein have been prepared in accordance with generally accepted accounting principles for interim period reporting in conjunction with the instructions to Form 10-Q. Accordingly, these statements do not include all of the information required by generally accepted accounting principles for annual financial statements. In the opinion of management, all known adjustments (consisting of normal recurring accruals and reserves) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows as of and for the interim periods have been included.  The September 30, 2013 consolidated balance sheet has been derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP. It is suggested that these interim statements be read in conjunction with the financial statements and related notes included in the Company's September 30, 2013 Form 10-K.
	The operating results for the three months ended December 31, 2013 are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2014.
	The Company’s cash requirements for the next twelve months will include, among other things, the cash to fund its operating and working capital needs. The Company relies exclusively upon cash generated from operations to fund these needs. It does not have a working capital line of credit or other borrowing facility in place to draw upon in the event that cash from operations is insufficient to fund its capital requirements to sustain operations. The Company’s cash and cash equivalents as of December 31, 2013 and its internally generated cash may not be sufficient to fund its operating needs for the next twelve months and this gives rise to a substantial doubt regarding its ability to continue as a “going concern.”
	The Company has incurred operating losses for the last six fiscal years and in the three month period ended December 31, 2013. Those losses are primarily attributable to a continuing decline in sales. In the quarter ended December 31, 2013, the Company experienced an approximate 47% drop in sales from the quarter ended December 31, 2012.
	Since the fourth quarter of fiscal 2011, the Company has been implementing expense reduction initiatives. The Company switched from air to ocean freight to reduce shipping costs, outsourced most of its shipping and logistics to a third party, reduced personnel, relocated certain facilities to smaller offices, renogotiated certain exisiting leases to reduce rent and closed certain sales offices. The Company believes that it may be increasingly difficult to make further material reductions in costs and maintain a viable operating plan.
	The Company is working to develop a strategy to address its continuing operating losses and loss of sales, and during the latter part of fiscal 2013 the Company retained Corporate Fuel Advisors, an investment bank and advisory firm, which assisted the Company in considering and pursuing strategic alternatives, including possible additional financing to fund its capital needs, expense reductions and the restructuring of its business.
	The Company cannot assure that it will be able to develop and implement a plan that will enable it to successfully address its business and financial challenges. Among other things:
		⋅	If the Company seeks financing, it may not be able to obtain funding to address its capital needs on commercially reasonable terms, or at all.
		⋅	It may not be able to develop new lines of products or services that will be positively accepted by the marketplace.
		⋅	It may not be able to successfully compete with its competitors’ product and service offerings.
		⋅	Customers and consumers may lose confidence in the Company as a result of its financial condition and performance and their perceptions of its business prospects and competitive position, and they may cease to do business with the Company or buy its products.
	If any strategic or restructuring plan that the Company develops and implements is not successful, there is a substantial risk that the Company might not be able to sustain its operations at current levels, which would have a material adverse effect on its business, operating results and financial condition.
	The consolidated balance sheet at September 30, 2013 was derived from the audited consolidated balance sheet of Hauppauge Digital Inc. and Subsidiaries, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

Trade_Accounts_and_Other_NonTr

Trade Accounts and Other Non-Trade Receivables	3 Months Ended
	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]	'
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	'
	Note 2. Trade Accounts and Other Non-Trade Receivables
	Trade receivables consist of:
		·	Trade receivables from sales to customers
		·	Allowances, consisting of sales and bad debt
	Other non trade receivables consist of:
		·	Receivables pertaining to component parts purchased from the Company at cost by the Company’s contract manufacturers which are excluded from sales
		·	General services tax (GST) and value added tax (VAT) reclaimable on goods purchased by the Company’s Asian and European locations
		·	Other minor non-trade receivables
	Trade receivables and other non-trade receivables as of December 31, 2013 and September 30, 2013 consisted of:
			December 31,		September 30,
			2013		2013
	Trade receivables		$	5,035,099	$	3,977,347
	Allowance for doubtful accounts			-102,123		-102,123
	Sales reserve			-1,694,948		-1,694,948
	Net trade receivables		$	3,238,028	$	2,180,276
	Receivable from contract manufacturers		$	142,397	$	74,797
	GST and VAT tax receivables			159,300		147,816
	Other			57,919		55,884
	Total other non trade receivables		$	359,616	$	278,497

Inventories

Inventories	3 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	Note 3. Inventories
	Inventories have been valued at the lower of average cost or market on a first in first out basis. The components of inventory consist of:
		December 31,		September 30,
		2013		2013
	Component parts	$	3,994,346	$	3,795,919
	Finished goods		4,031,044		5,302,761
	Subtotal		8,025,390		9,098,680
	Reserve for anticipated sales returns at cost		1,380,368		1,380,368
	Total	$	9,405,758	$	10,479,048

Net_Income_Loss_Per_Share

Net Income (Loss) Per Share	3 Months Ended
	Dec. 31, 2013
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	Note 4. Net Income (Loss) Per Share
	Basic net income (loss) per share includes no dilution and is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per share reflects, in the periods in which they have a dilutive effect, the dilution which would occur upon the exercise of stock options. A reconciliation of the shares used in calculating basic and diluted net income per share is as follows:
		Three months ended
		December 31,
		2013		2012
	Weighted average shares outstanding-basic		10,122,344		10,122,344
	Number of shares issued on the assumed exercise of stock options		-		-
	Weighted average shares outstanding-diluted		10,122,344		10,122,344
	Options to purchase 1,265,625 and 1,396,625 shares of common stock, at prices from $0.74 to $7.45 and from $0.77 to $7.45, were outstanding for the three months December 31, 2013 and 2012, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive.

Product_Segment_and_Geographic

Product Segment and Geographic Information	3 Months Ended
	Dec. 31, 2013
Segment Reporting [Abstract]	'
Segment Reporting Disclosure [Text Block]	'
	Note 5. Product Segment and Geographic Information
	The Company operates primarily in one business segment, which is the development, marketing and manufacturing of TV receiver and video recording products for the personal computer market. Most of the Company’s products are similar in function and share commonality of component parts and manufacturing processes. The Company’s products are either sold, or can be sold, by the same retailers and distributors in the Company’s marketing channel. The Company also sells its TV tuner products directly to PC manufacturers. The Company evaluates its product lines under the functional categories:
		·	Video recorder products, such as the USB-Live2, HD-PVR and Colossus,
	·      TV tuner products such as the Broadway, digital TV tuners and hybrid digital/analog TV tuners
		·	Other video products and software.
	The Company’s TV tuner products enable, among other things, a PC user to watch TV in a resizable window on a PC. The Company’s video recorder products allow consumers to record high definition video from a cable TV or satellite set top box or a game console such as a Xbox 360 or Sony Playstation 3. The Company’s other non-TV tuner products enable, among other things, the ability to watch and listen to PC based videos, music and pictures on a TV set through a home network.
	Sales by functional category are as follows:
			Three months ended December 31,
			2013			2012
	Video recorder products		$	2,860,312		$	7,221,592
	TV tuner products			3,377,367			4,432,415
	Other video products and software			231,800			276,371
	Total sales		$	6,469,479		$	11,930,378
	The Company sells its products through a North American and international network of distributors and retailers. It maintains sales offices in the United States, Europe and Asia. Sales percentages by geographic region are as follows:
			Three months ended December 31,
	Geographic region		2013				2012
	The Americas			51	%			59	%
	Europe			45	%			37	%
	Asia			4	%			4	%
	Total			100	%			100	%

Tax_Provision

Tax Provision	3 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	Note 6. Tax Provision
	The Company’s tax provision for the three months ended December 31, 2013 and 2012 is as follows:
		Three months ended December 31,
		2013		2012
	Current state taxes	$	10,000	$	10,000
	Current tax expense on international operations		19,283		42,505
	Deferred tax expense		100,409		471,799
	Tax provision	$	129,692	$	524,304
	The deferred tax expense was primarily due to the utilization of net operating losses and the utilization of deferred timing differences related to its United States subsidiary.

Accrued_ExpenseFees

Accrued Expense-Fees	3 Months Ended
	Dec. 31, 2013
Accounts Payable and Accrued Liabilities [Abstract]	'
Accrued Expenses Fees [Text Block]	'
	Note 7. Accrued Expense-Fees
	The Company uses various software and technologies in certain of its products.  In certain cases, the Company purchases or licenses these software and technologies from third parties. The related purchase or license agreements provide for payment of royalty and other fees associated with the Company's sale of the related products. Such fees are estimated and get accrued and reflected as a component of cost of sales when those sales occur.  In certain circumstances, such fees are not specifically covered by contractual arrangements but are nonetheless potentially due to the third party sellers or owners of the software and technologies.  The Company uses all available applicable information in determining these estimates, and thus the accrued amounts are subject to change as new information is made available to the Company. Occasionally, third parties audit the Company's historical determination of fees, and adjustments are made.  Accrued fees are subject to elimination after three to seven years if not billed by or requested from the third parties. Based on the Company’s write off policies and information obtained during the first fiscal quarter of 2013, including the completion of a significant third party audit, the Company reduced its accrued expenses - fees balance by $176,857 and $1,765,330, during the first fiscal quarters of 2014 and 2013, respectively.  These estimate changes resulted in an improved gross margin for the first fiscal quarters of 2014 and 2013.  As of December 31, 2013 and September 30, 2013, accrued expenses-fees amounted to $12,338,719 and $12,497,060, respectively.
	During the first fiscal quarter of 2014, $250,306 in fees were charged to cost of sales exclusive of the estimate changes described above and $233,896 in fees were paid to various third parties. During the first fiscal quarter of 2013, $331,086 in fees were charged to cost of sales exclusive of the estimate changes described above and $1,120 in fees were paid to various third parties.

Accrued_Expenses

Accrued Expenses	3 Months Ended
	Dec. 31, 2013
Accrued Expenses [Abstract]	'
Accrued Expenses [Text Block]	'
	Note 8. Accrued Expenses
	Accrued expenses are for costs incurred for goods and services which are based on estimates, charged as incurred to operations as period costs, and for which no invoice has been rendered. Accrued expenses consist of the following:
		31-Dec		September 30,
		2013		2013
	Sales rebate program	$	1,094,122	$	1,232,493
	Freight and duty		829,587		858,933
	Compensation		300,704		222,595
	Warranty repair		79,097		79,667
	Inventory accruals		44,097		-
	Advertising and marketing		174,587		196,603
	Total accrued expenses	$	2,522,194	$	2,590,291

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Disclosures [Text Block]	'
	Note 9. Fair Value Measurements
	ASC Topic 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value, and expands the related disclosure requirements. The ASC indicates, among other things, that a fair value measurement assumes a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company also follows the provisions of ASC 820-10 with respect to its non-financial assets and liabilities adopted during the first quarter of fiscal 2010. In order to increase consistency and comparability in fair value measurements, ASC 820-10 establishes a hierarchy for observable and unobservable inputs used to measure fair value into three broad Levels, which are described below:
	• Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
	• Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.
	• Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
	In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.
	Additionally, on a nonrecurring basis, the Company uses fair value measures when analyzing asset impairment. Long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. Measurements based on undiscounted cash flows are considered to be Level 3 inputs.
	The carrying amount of cash, accounts receivable and accounts payable and other short-term financial instruments approximate their fair value due to their short-term nature.

Trade_Accounts_and_Other_NonTr1

Trade Accounts and Other Non-Trade Receivables (Tables)	3 Months Ended
	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]	'
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	'
	Trade receivables and other non-trade receivables as of December 31, 2013 and September 30, 2013 consisted of:
		December 31,		September 30,
		2013		2013
	Trade receivables	$	5,035,099	$	3,977,347
	Allowance for doubtful accounts		-102,123		-102,123
	Sales reserve		-1,694,948		-1,694,948
	Net trade receivables	$	3,238,028	$	2,180,276
	Receivable from contract manufacturers	$	142,397	$	74,797
	GST and VAT tax receivables		159,300		147,816
	Other		57,919		55,884
	Total other non trade receivables	$	359,616	$	278,497

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
	Inventories have been valued at the lower of average cost or market on a first in first out basis. The components of inventory consist of:
		December 31,		September 30,
		2013		2013
	Component parts	$	3,994,346	$	3,795,919
	Finished goods		4,031,044		5,302,761
	Subtotal		8,025,390		9,098,680
	Reserve for anticipated sales returns at cost		1,380,368		1,380,368
	Total	$	9,405,758	$	10,479,048

Net_Income_Loss_Per_Share_Tabl

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Dec. 31, 2013
Earnings Per Share [Abstract]	'
Schedule of Weighted Average Number of Shares [Table Text Block]	'
	A reconciliation of the shares used in calculating basic and diluted net income per share is as follows:
		Three months ended
		December 31,
		2013		2012
	Weighted average shares outstanding-basic		10,122,344		10,122,344
	Number of shares issued on the assumed exercise of stock options		-		-
	Weighted average shares outstanding-diluted		10,122,344		10,122,344

Product_Segment_and_Geographic1

Product Segment and Geographic Information (Tables)	3 Months Ended
	Dec. 31, 2013
Segment Reporting [Abstract]	'
Revenue from External Customers by Products and Services [Table Text Block]	'
	Sales by functional category are as follows:
		Three months ended December 31,
		2013			2012
	Video recorder products	$	2,860,312		$	7,221,592
	TV tuner products		3,377,367			4,432,415
	Other video products and software		231,800			276,371
	Total sales	$	6,469,479		$	11,930,378
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	'
	Sales percentages by geographic region are as follows:
		Three months ended December 31,
	Geographic region	2013				2012
	The Americas		51	%			59	%
	Europe		45	%			37	%
	Asia		4	%			4	%
	Total		100	%			100	%

Tax_Provision_Tables

Tax Provision (Tables)	3 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	'
	The Company’s tax provision for the three months ended December 31, 2013 and 2012 is as follows:
		Three months ended December 31,
		2013		2012
	Current state taxes	$	10,000	$	10,000
	Current tax expense on international operations		19,283		42,505
	Deferred tax expense		100,409		471,799
	Tax provision	$	129,692	$	524,304

Accrued_Expenses_Tables

Accrued Expenses (Tables)	3 Months Ended
	Dec. 31, 2013
Accrued Expenses [Abstract]	'
Schedule of Accrued Liabilities [Table Text Block]	'
	Accrued expenses consist of the following:
		December 31,		September 30,
		2013		2013
	Sales rebate program	$	1,094,122	$	1,232,493
	Freight and duty		829,587		858,933
	Compensation		300,704		222,595
	Warranty repair		79,097		79,667
	Inventory accruals		44,097		-
	Advertising and marketing		174,587		196,603
	Total accrued expenses	$	2,522,194	$	2,590,291

Basis_of_Presentation_Details_

Basis of Presentation (Details Textual)	3 Months Ended
	Dec. 31, 2013
Basis Of Presentation [Line Items]	'
Decrease In Sales Decrease Percentage	47.00%

Trade_Accounts_and_Other_NonTr2

Trade Accounts and Other Non-Trade Receivables (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Trade receivables	$5,035,099	$3,977,347
Allowance for doubtful accounts	-102,123	-102,123
Sales reserve	-1,694,948	-1,694,948
Net trade receivables	3,238,028	2,180,276
Total other non trade receivables	359,616	278,497
Receivable From Contract Manufacturers [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total other non trade receivables	142,397	74,797
Gst and Vat Taxes Receivables [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total other non trade receivables	159,300	147,816
Other [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Total other non trade receivables	$57,919	$55,884

Inventories_Details

Inventories (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
Inventory [Line Items]	'	'
Component parts	$3,994,346	$3,795,919
Finished goods	4,031,044	5,302,761
Subtotal	8,025,390	9,098,680
Reserve for anticipated sales returns at cost	1,380,368	1,380,368
Total	$9,405,758	$10,479,048

Net_Income_Loss_Per_Share_Deta

Net Income (Loss) Per Share (Details)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Schedule of Earnings per share [Line Items]	'	'
Weighted average shares outstanding-basic	10,122,344	10,122,344
Number of shares issued on the assumed exercise of stock options	0	0
Weighted average shares outstanding-diluted	10,122,344	10,122,344

Net_Income_Loss_Per_Share_Deta1

Net Income (Loss) Per Share (Details Textual) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Schedule of Earnings per share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,265,625	1,396,625
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$0.74	$0.77
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$7.45	$7.45

Product_Segment_and_Geographic2

Product Segment and Geographic Information (Details) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]	'	'
Revenue, Net	$6,469,479	$11,930,378
Video Recorder Products [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Revenue, Net	2,860,312	7,221,592
Tv Tuner Products [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Revenue, Net	3,377,367	4,432,415
Other Video Products And Software [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Revenue, Net	$231,800	$276,371

Product_Segment_and_Geographic3

Product Segment and Geographic Information (Details 1) (Sales [Member])	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]	'	'
Total	100.00%	100.00%
Americas Segment [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total	51.00%	59.00%
Europe Segment [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total	45.00%	37.00%
Asia Segment [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Total	4.00%	4.00%

Tax_Provision_Details

Tax Provision (Details) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Disclosure Income Tax Provision Benefit [Line Items]	'	'
Current state taxes	$10,000	$10,000
Current tax expense on international operations	19,283	42,505
Deferred tax expense	100,409	471,799
Tax provision	$129,692	$524,304

Accrued_ExpenseFees_Details_Te

Accrued Expense-Fees (Details Textual) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Accrued Expenses Fees [Line Items]	'	'	'
Reduction In Accrued Expenses Fees	$176,857	$1,765,330	'
Accrued expenses-fees	12,338,719	'	12,497,060
Payments for Fees	233,896	1,120	'
Cost of Revenue, Total	$250,306	$331,086	'

Accrued_Expenses_Details

Accrued Expenses (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
Accrued Expenses [Line Items]	'	'
Sales rebate program	$1,094,122	$1,232,493
Freight and duty	829,587	858,933
Compensation	300,704	222,595
Warranty repair	79,097	79,667
Inventory accruals	44,097	0
Advertising and marketing	174,587	196,603
Total accrued expenses	$2,522,194	$2,590,291