Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Inventory

Inventory consists of the following (in thousands):

	September 30,
	2016		2015
Raw materials and supplies	$	149	$	254
Finished goods	1,755		2,131
	$	1,904	$	2,385

Estimated Useful Lives of Property and Equipment

The estimated useful lives used to calculate depreciation are as follows:

	Years
Leasehold improvements	5 to 10 years
Computer equipment	3 to 5 years
Furniture and fixtures	5 to 7 years

Summary of Financial Liabilities Measured at Fair Value on Recurring Basis

Financial liabilities measured at fair value on a recurring basis are summarized below (in thousands):

September 30, 2016	Level 1		Level 2		Level 3		Total Fair Value
Derivative liability	$	—	$	67	$	—	$	67

September 30, 2015	Level 1		Level 2		Level 3		Total Fair Value
PFG debt, net of discount	$	—	$	—	$	1,347	$	1,347
Warrant debt	—		—		63		63
Derivative liability	—		109		—		109
	$	—	$	109	$	1,410	$	1,519

Summary of Changes in Level 3 Fair Value Measurements

Included below is a summary of the changes in our Level 3 fair value measurements (in thousands):

	PFG Debt, net of discount			Warrant Debt
Balance as of September 30, 2015	$	1,347		$	63
Activity during the period:
Disbursement of Tranche 2, net of discount	462			22
Payments to PFG	(655		)	—
Change in fair value	71			17
Balance as of September 30, 2016	$	1,225		$	102

Fair Value Assumptions for Stock Options Granted

The fair value of each option grant is estimated using the assumptions in the following table:

	Years Ending September 30,
	2016	2015
Expected life	4.9 – 5.0 years	4.8 – 5.0 years
Risk-free interest rate	0.84%-1.23%	0.96%-1.05%
Expected volatility	53.8%-57.2%	45.5%-50.0%
Expected forfeiture rate	10.3 %-11.8%	10.7 %-12.0%
Expected exercise factor	1.35-1.44	1.40-1.43
Expected dividend yield	—%	—%

Computation of Basic and Diluted Weighted Average Shares Used in Earnings Per Share Calculations

The following table sets forth the computation of basic and diluted weighted average shares used in the earnings per share calculations:

	Years Ending September 30,
	2016	2015
Denominator for basic earnings (loss) per share
-weighted average common shares	4,389,421	4,332,576
Effect of dilutive options and warrants (treasury method)	—	—
Denominator for diluted earnings (loss) per share
-adjusted weighted average common shares	4,389,421	4,332,576
Options and warrants outstanding during each year, but not included in the computation of diluted earnings (loss) per share because they are antidilutive	1,737,624	1,560,211