Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Financing Receivables

Financing receivables consist of the following (in thousands):

	June 30, 2017		September 30, 2016
Investment in sales-type lease	$	495	$	—
Support contract receivable	358		—
	$	853	$	—

Inventory

Inventory consists of the following (in thousands):

	June 30, 2017		September 30, 2016
Raw materials and supplies	$	158	$	149
Finished goods	961		1,755
	$	1,119	$	1,904

Fair Value, Liabilities Measured on Recurring Basis

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

June 30, 2017	Level 1		Level 2		Level 3		Total Fair Value
Derivative liability	—		25		—		25
	$	—	$	25	$	—	$	25

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	(605		)	—
Change in fair value	55			15
Balance at June 30, 2017	$	675		$	117

Fair Value Assumptions for Stock Options Granted

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

	Nine Months Ended June 30,
	2017	2016
Expected life	4.8-4.9 years	4.9-5.0 years
Risk-free interest rate	1.08%-1.49%	0.85%-1.23%
Expected volatility	56.98%-61.88%	53.75%-56.61%
Expected forfeiture rate	10.17%-11.72%	10.61%-11.76%
Expected exercise factor	1.32-1.35	1.43-1.44
Expected dividend yield	0%	0%

Summary of Option Activity

A summary of option activity at June 30, 2017 and changes during the nine 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	315,020		4.75		9.5
Exercised	—		—		0.0
Forfeited	(84,314	)	16.81		4.9
Outstanding at June 30, 2017	1,833,528		8.36		6.1
Exercisable at June 30, 2017	1,265,843		9.21		5.0

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 nine month period ended June 30, 2017 is presented below:

	2017
Non-vested Shares	Shares		Weighted-Average Grant Date Fair Value
Non-vested at October 1, 2016	539,985		$	3.21
Granted	315,020		1.83
Vested	(256,248	)	3.06
Forfeited	(31,072	)	2.58
Non-vested at June 30, 2017	567,685		$	2.50

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 June 30,		Nine Months Ended June 30,
	2017	2016	2017	2016
Denominator for basic loss per share - weighted average common shares	4,449,893	4,402,479	4,429,006	4,381,987
Effect of dilutive options (treasury method)	—	—	—	—
Denominator for diluted loss per share - adjusted weighted average common shares	4,449,893	4,402,479	4,429,006	4,381,987
Options and warrants outstanding during each period, but not included in the computation of diluted loss per share because they are antidilutive	1,968,330	1,754,262	1,968,330	1,754,262