Basis of Presentation and Significant Accounting Policies (Tables)

6 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Financing Receivables

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

	March 31, 2019		September 30, 2018
Investment in sales-type lease	$	413	$	399
	$	413	$	399

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

	March 31, 2019			September 30, 2018
Customer support contracts, current and long-term, gross	$	290		$	281
Product receivables, gross	526			526
Allowance for losses on financing receivables	(526		)	(526		)
	$	290		$	281

Inventory

Inventory consists of the following (in thousands):

	March 31, 2019		September 30, 2018
Raw materials and supplies	$	438	$	358
Finished goods	1,203		669
	$	1,641	$	1,027

Fair Value, Liabilities Measured on Recurring Basis

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

March 31, 2019	Level 1		Level 2		Level 3		Total Fair Value
Derivative liability	$	—	$	10	$	—	$	10

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		Burish Notes, Net of Discount
Balance as of September 30, 2018	$	1,905		$	103	$	—
Activity during the period:
Disbursement of Tranche 2, net of discount	471			26		—
Disbursement of Tranches 1-4	—			—		4,000
Disbursement of warrants	—			—		(674		)
Payments	(333		)	—		—
Amortization and accretion expense	51			9		13
Balance as of March 31, 2019	$	2,094		$	138	$	3,339

Fair Value Assumptions for Stock Options Granted

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

	Six Months Ended March 31,
	2019	2018
Expected life	4.3 years	4.3-4.4 years
Risk-free interest rate	2.48%-2.93%	1.79%-2.40%
Expected volatility	60.19%-66.05%	62.45%-63.49%
Expected forfeiture rate	13.51%-14.76%	12.53%-13.53%
Expected exercise factor	1.2	1.16-1.17
Expected dividend yield	0%	0%

Summary of Option Activity

A summary of option activity at March 31, 2019 and changes during the six 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	199,850		0.67		9.8
Exercised	—		—		0.0
Forfeited	(523,668	)	8.93		4.6
Outstanding at March 31, 2019	1,705,923		5.71		6.4
Exercisable at March 31, 2019	1,144,326				5.4

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 six month period ended March 31, 2019 is presented below:

	2019
Non-vested Shares	Shares		Weighted-Average Grant Date Fair Value
Non-vested at October 1, 2018	680,720		$	1.46
Granted	199,850		2.23
Vested	(289,836	)	2.02
Forfeited	(29,137	)	1.22
Non-vested at March 31, 2019	561,597		$	0.94

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 March 31,		Six Months Ended March 31,
	2019	2018	2019	2018
Denominator for basic net income (loss) per share - weighted average common shares	5,278,500	4,461,310	5,232,449	4,459,675
Effect of dilutive options (treasury method)	—	—	—	—
Denominator for diluted net income (loss) per share - adjusted weighted average common shares	5,278,500	4,461,310	5,232,449	4,459,675
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	2,076,083	2,242,269	2,076,083	2,242,269