Note 1 - Description of Business	3 Months Ended
Dec. 31, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Description of Business Overview Bridgeline Digital, The Digital Engagement Company™, helps customers with their digital experience from websites and intranets to online stores. Bridgeline ’s iAPPS® platform integrates Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics to deliver digital experiences to its customers. iAPPSds is a platform for large franchise and multi-unit organizations and also integrates Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics. The iAPPS platform is delivered through a cloud-based SaaS (“Software as a Service”) multi-tenant business model, providing maintenance, daily technical operation and support; or via a traditional perpetual licensing business model, in which the iAPPS software resides on a dedicated server in either the customer’s facility or hosted by Bridgeline via a cloud-based hosted services model. Bridgeline Digital was incorporated under the laws of the State of Delaware on August 28, 2000. Locations T he Company’s corporate office is located in Burlington, Massachusetts. The Company has one wholly-owned subsidiary, Bridgeline Digital Pvt. Ltd. located in Bangalore, India. Reverse Stock Split On June 29, 2017, the Company ’s Shareholders and the Board of Directors approved a reverse stock split pursuant to which all classes of our issued and outstanding shares of common stock at the close of business on such date were combined and reconstituted into a smaller number of shares of common stock in a ratio of 1 share of common stock for every 5 shares of common stock ( “1 -for- 5 reverse stock split”). The 1 -for- 5 reverse stock split was effective as of close of business on July 24, 2017 and the Company’s stock began trading on a split-adjusted basis on July 25, 2017. The reverse stock split reduced the number of shares of the Company ’s common stock currently outstanding from approximately 21 million shares to approximately 4.2 million shares. Proportional adjustments have been made to the conversion and exercise prices of the Company’s outstanding convertible preferred stock, warrants, restricted stock awards, and stock options, and to the number of shares issued and issuable under the Company’s Stock Incentive Plans. Upon the effectiveness of the 1 -for- 5 reverse stock split, each five shares of the Company’s issued and outstanding common stock were automatically combined and converted into one issued and outstanding share of common stock, par value $.001. The Company did not issue any fractional shares in connection with the reverse stock split. Instead, fractional share interests were rounded up to the next largest whole share. The reverse stock split does not modify the rights or preferences of the common stock. The number of authorized shares of the Company’s common stock remains at 50 million shares and the par value remains $0.001. The accompanying condensed consolidated financial statements and footnotes have been retroactively adjusted to reflect the effects of the 1 -for- 5 reverse stock split. Liquidity and Management’s Plans The Company has a Loan and Security Agreement (“Heritage Agreement”) with Heritage Bank of Commerce (“Heritage Bank”) which has a maturity date of June 15, 2019. The Heritage Agreement currently provides for $2.5 million of revolving credit advances and may be used for acquisitions and working capital purposes. The credit advances may not exceed the monthly borrowing base capacity, which will fluctuate based on monthly accounts receivable balances. The Company may request credit advances if the borrowing capacity is more than the current outstanding loan advance, and must pay down the outstanding loan advance if it exceeds the borrowing capacity. As of December 31, 2017, the Company had an outstanding balance under the Heritage Agreement of $2.5 million. On October 10, 2017, the Company entered into a Loan and Security Agreement (the “ Montage Loan” or “Loan Agreement”) with Montage Capital II, L.P. (“Montage”). The Montage Loan has a thirty-six ( 36 ) month term which expires on October 10, 2020. The Loan Agreement provides for up to $1.5 million of borrowing in the form of a non-revolving term loan which may be used by the Company for working capital purposes. $1 million of borrowing was advanced on the date of closing (the “First Tranche”). An additional $500 thousand of borrowing will be available at the Company’s option in the event that the Company achieves certain financial milestones and is otherwise in compliance with its loan covenants (the “Second Tranche”). On May 19, 2017, the Company filed a Registration Statement on Form S- 3 with the Securities and Exchange Commission in relation to the registration of securities of the Company having an aggregate public offering price of up to $10 million. The determinate number of shares of common stock, preferred stock, warrants, and units of any combination thereof (collectively, the “Securities”) may be offered and sold from time to time, but shall not exceed $10 million in total. There have been no securities sold as of December 31, 2017. Historically, the Company has had operating losses and working capital deficiencies, but has undertaken a long term cost reduction plan that includes staff reductions and office lease consolidations to compensate for the shortfalls. The Company will continu e to follow through with its plan and closely monitor and adjust such expenditures throughout the next twelve months. While there can be no assurance that anticipated sales will be achieved for future periods, the Company’s management believes it has an appropriate cost structure in place to support the revenues that will be achieved under the Company’s operating plan. Management believes that it is probable that working capital, capital expenditure and debt repayment needs for the next twelve months from the financial statement date of issuance will be met. The cash balance as of December 31, 2017 of $ 1.1 million as well as collections from accounts receivable will be sufficient to meet the Company’s obligations for a minimum of twelve months from the financial statement issuance date. While not currently included in the Company’s operating plan and forecast, it may raise additional capital or borrow on its credit facility with Heritage Bank and/or advance the second tranche of funds from Montage Capital, if the respective financial milestones are met, in order to fund future operations. The ability to raise funds through these means may be helpful to the Company if the anticipated sales levels are not achieved or it cannot reduce operating expenses to account for any shortfalls.

Description of Business

Overview

Bridgeline Digital, The Digital Engagement Company™, helps customers with their digital experience from websites and intranets to online stores. Bridgeline

’s iAPPS® platform integrates Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics to deliver digital experiences to its customers. iAPPSds is a platform for large franchise and multi-unit organizations and also integrates

Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics.

The iAPPS

platform is delivered through a cloud-based SaaS (“Software as a Service”) multi-tenant business model, providing maintenance, daily technical operation and support; or via a traditional perpetual licensing business model, in which the iAPPS software resides on a dedicated server in either the customer’s facility or hosted by Bridgeline via a cloud-based hosted services model.

Bridgeline Digital was incorporated under the laws of the State of Delaware on

August 28, 2000.

Locations

he Company’s corporate office is located in Burlington, Massachusetts. The Company has

one

wholly-owned subsidiary, Bridgeline Digital Pvt. Ltd. located in Bangalore, India.

Reverse Stock

Split

June 29, 2017,

the Company

’s Shareholders and the Board of Directors approved a reverse stock split pursuant to which all classes of our issued and outstanding shares of common stock at the close of business on such date were combined and reconstituted into a smaller number of shares of common stock in a ratio of

share of common stock for every

shares of common stock (

“1

-for-

reverse stock split”). The

-for-

reverse stock split was effective as of close of business on

July 24, 2017

and the Company’s stock began trading on a split-adjusted basis on

July 25, 2017.

The reverse stock split reduced the number of shares of the Company

’s common stock currently outstanding from approximately

million shares to approximately

4.2

million shares. Proportional adjustments have been made to the conversion and exercise prices of the Company’s outstanding convertible preferred stock, warrants, restricted stock awards, and stock options, and to the number of shares issued and issuable under the Company’s Stock Incentive Plans.

Upon the effectiveness of the

-for-

reverse stock split, each

five

shares of the Company’s issued and outstanding common stock were automatically combined and converted into

one

issued and outstanding share of common stock, par value

$.001.

The Company did

not

issue any fractional shares in connection with the reverse stock split. Instead, fractional share interests were rounded up to the next largest whole share. The reverse stock split does

not

modify the rights or preferences of the common stock. The number of authorized shares of the Company’s common stock remains at

million shares and the par value remains

$0.001.

The accompanying condensed consolidated financial statements and footnotes have been retroactively adjusted to reflect the effects of the

-for-

reverse stock split.

Liquidity and Management’s Plans

The Company has a Loan and Security Agreement

(“Heritage Agreement”) with Heritage Bank of Commerce (“Heritage Bank”) which has a maturity date of

June 15, 2019.

The Heritage Agreement currently provides for

$2.5

million of revolving credit advances and

may

be used for acquisitions and working capital purposes. The credit advances

may

not

exceed the monthly borrowing base capacity, which will fluctuate based on monthly accounts receivable balances. The Company

may

request credit advances if the borrowing capacity is more than the current outstanding loan advance, and must pay down the outstanding loan advance if it exceeds the borrowing capacity. As of

December 31, 2017,

the Company had an outstanding balance under the Heritage Agreement of

$2.5

million.

October 10, 2017,

the Company entered into a Loan and Security Agreement (the “

Montage Loan” or “Loan Agreement”) with Montage Capital II, L.P. (“Montage”). The Montage Loan has a

thirty-six

(

) month term which expires on

October 10, 2020.

The Loan Agreement provides for up to

$1.5

million of borrowing in the form of a non-revolving term loan which

may

be used by the Company for working capital purposes.

million of borrowing was advanced on the date of closing (the “First Tranche”). An additional

$500

thousand of borrowing will be available at the Company’s option in the event that the Company achieves certain financial milestones and is otherwise in compliance with its loan covenants (the “Second Tranche”).

May 19, 2017,

the Company filed a Registration Statement on Form S-

with the Securities and Exchange Commission in relation to the registration of securities of the Company having an aggregate public offering price of up to

$10

million.

The determinate number of shares of common stock, preferred stock, warrants, and units of any combination thereof (collectively, the “Securities”)

may

be offered and sold from time to time, but shall

not

exceed

$10

million in total. There have been

securities sold as of

December 31, 2017.

Historically, the Company has had operating losses and working capital deficiencies, but has undertaken a long term cost reduction plan that includes staff reductions and office lease consolidations to compensate for the shortfalls. The Company will continu

e to follow through with its plan and closely monitor and adjust such expenditures throughout the next

twelve

months. While there can be

assurance that anticipated sales will be achieved for future periods, the Company’s management believes it has an appropriate cost structure in place to support the revenues that will be achieved under the Company’s operating plan. Management believes that it is probable that working capital, capital expenditure and debt repayment needs for the next

twelve

months from the financial statement date of issuance will be met. The cash balance as of

December 31, 2017

1.1

million as well as collections from accounts receivable will be sufficient to meet the Company’s obligations for a minimum of

twelve

months from the financial statement issuance date. While

not

currently included in the Company’s operating plan and forecast, it

may

raise additional capital or borrow on its credit facility with Heritage Bank and/or advance the

second

tranche of funds from Montage Capital, if the respective financial milestones are met, in order to fund future operations. The ability to raise funds through these means

may

be helpful to the Company if the anticipated sales levels are

not

achieved or it cannot reduce operating expenses to account for any shortfalls.