Basis of Presentation and Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Financing Receivables

Financing receivables consisted of the following (in thousands) as of:

	December 31, 2018			September 30, 2018
Customer support contracts, current and long-term, gross	$	292		$	281
Product receivables, gross	526			526
Allowance for losses on financing receivables	(526		)	(526		)
	$	292		$	281

Investment in sales-type leases consists of the following (in thousands):

	December 31, 2018		September 30, 2018
Investment in sales-type lease	$	416	$	399
	$	416	$	399

Inventory

Inventory consists of the following (in thousands):

	December 31, 2018		September 30, 2018
Raw materials and supplies	$	433	$	358
Finished goods	977		669
	$	1,410	$	1,027

Fair Value, Liabilities Measured on Recurring Basis

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

December 31, 2018	Level 1		Level 2		Level 3		Total Fair Value
Derivative liability	$	—	$	2	$	—	$	2

September 30, 2018	Level 1		Level 2		Level 3		Total Fair Value
Derivative liability	$	—	$	14	$	—	$	14

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 V Debt, Net of Discount			Warrant Debt, PFG V
Balance as of September 30, 2018	$	1,905		$	103
Activity during the period:
Disbursement of Tranche 2, net of discount	471			26
Payments to PFG	(83		)	—
Amortization and accretion expense	24			4
Balance as of December 31, 2018	$	2,317		$	133

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,
	2018	2017
Expected life	4.3 years	4.4 years
Risk-free interest rate	2.93%	1.79%
Expected volatility	60.19%	63.49%
Expected forfeiture rate	13.51%	12.53%
Expected exercise factor	1.2	1.16
Expected dividend yield	0%	0%

Summary of Option Activity

A summary of option activity at December 31, 2018 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, 2018	2,029,741		$	7.04	5.0
Granted	197,850		0.67		9.8
Exercised	—		—		0.0
Forfeited	(52,032	)	4.50		4.6
Outstanding at December 31, 2018	2,175,559		6.52		6.1
Exercisable at December 31, 2018	1,469,416				4.8

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, 2018 is presented below:

	2018
Non-vested Shares	Shares		Weighted-Average Grant Date Fair Value
Non-vested at October 1, 2018	680,720		$	1.46
Granted	197,850		2.24
Vested	(147,842	)	2.34
Forfeited	(24,585	)	1.31
Non-vested at December 31, 2018	706,143		$	0.90

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,
	2018	2017
Denominator for basic net income (loss) per share - weighted average common shares	5,100,684	4,458,075
Effect of dilutive options (treasury method)	—	54,747
Denominator for diluted net income (loss) per share - adjusted weighted average common shares	5,100,684	4,512,822
Options, warrants and convertible shares outstanding during each period, but not included in the computation of diluted net income (loss) per share because they are antidilutive	2,545,719	2,348,585