Basis of Presentation and Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Inventory

Inventory consists of the following (in thousands):

	December 31, 2016		September 30, 2016
Raw materials and supplies	$	154	$	149
Finished goods	1,117		1,755
	$	1,271	$	1,904

Fair Value, Liabilities Measured on Recurring Basis

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

December 31, 2016	Level 1		Level 2		Level 3		Total Fair Value
Derivative liability	—		46		—		46
	$	—	$	46	$	—	$	46

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

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

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 at September 30, 2016	$	1,225		$	102
Activity during the current period:
Payments to PFG	(202		)	—
Change in fair value	18			5
Balance at December 31, 2016	$	1,041		$	107

Fair Value Assumptions for Stock Options Granted

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

	Three Months Ended December 31,
	2016	2015
Expected life	4.9 years	4.9 years
Risk-free interest rate	1.08%	1.23%
Expected volatility	56.98%	53.75%
Expected forfeiture rate	10.22%	11.76%
Expected exercise factor	1.35	1.43
Expected dividend yield	0%	0%

Summary of Option Activity

A summary of option activity at December 31, 2016 and changes during the three months then ended is presented below:

	Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Period in Years
Outstanding at October 1, 2016	1,602,822		$	9.51	6.6
Granted	300,270		4.75		9.8
Exercised	—		—		0
Forfeited	(12,124	)	30.67		1.9
Outstanding at December 31, 2016	1,890,968		8.62		6.7
Exercisable at December 31, 2016	1,283,111		9.62		5.6

Summary of Status of Company's Non-vested Shares

A summary of the status of the Company’s non-vested shares and changes during the three month period ended December 31, 2016 is presented below:

	2016
Non-vested Shares	Shares		Weighted-Average Grant Date Fair Value
Non-vested at October 1, 2016	539,985		$	3.21
Granted	300,270		3.14
Vested	(230,562	)	1.83
Forfeited	(1,836	)	3.15
Non-vested at December 31, 2016	607,857		$	2.52

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:

	Three Months Ended December 31,
	2016	2015
Denominator for basic loss per share - weighted average common shares	4,411,559	4,363,740
Effect of dilutive options (treasury method)	—	—
Denominator for diluted loss per share - adjusted weighted average common shares	4,411,559	4,363,740
Options and warrants outstanding during each period, but not included in the computation of diluted loss per share because they are antidilutive	2,025,770	1,773,057