Note 11 - Accrued and Other Liabilities

12 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Current and Noncurrent Accrued Liabilities [Text Block]

11. ACCRUED AND OTHER LIABILITIES

Accrued liabilities consisted of the following:

	September 30,
	2021		2020
Payroll and related	$	3,726	$	2,545
Deferred revenue		1,120		731
Customer deposits		8,701		3,683
Accrued contract costs		416		719
Warranty reserve		146		126
Other		2		76
Total	$	14,111	$	7,880

Other liabilities - noncurrent consisted of the following:

	September 30,
	2021		2020
Deferred extended warranty revenue	$	308	$	293
Asset purchase holdback liability		687		-
Total	$	995	$	293

Payroll and related

Accrued payroll and related consisted primarily of accrued bonus, accrued vacation, accrued sales commissions and benefits.

Deferred revenue

Deferred revenue as of September 30, 2021 included prepayments from customers for services, including extended warranty, scheduled to be performed in the year ended September 30, 2022.

Customer deposits

Customer deposits represent amounts paid by customers as a down payment on hardware orders to be delivered during the year ended September 30, 2022.

Accrued contract costs

Accrued contract costs consist of accrued expenses for contracting a third-party service provider to fulfill repair and maintenance obligations required under a contract with a foreign military for units sold in the year ended September 30, 2011. Payments to the service provider will be made annually upon completion of each year of service. A new contract was signed with the customer in May 2019 to continue repair and maintenance services through May 2024. These services are being recorded in cost of revenues to correspond with the revenues for these services.

Warranty reserve

Details of the estimated warranty reserve were as follows:

	September 30,
	2021			2020
Beginning balance	$	126		$	150
Warranty provision		56			16
Warranty settlements		(36	)		(40	)
Ending balance	$	146		$	126

The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenue is recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period and adjusts the accrued warranty liability to an amount equal to estimated warranty expense for products currently under warranty.

Deferred extended warranty revenue

Deferred extended warranty revenue consists of warranties purchased in excess of the Company’s standard warranty. Extended warranties typically range from one to two years.          

Asset purchase holdback liability

In connection with the Amika Mobile asset purchase, the Company recorded a holdback liability related to potential future adjustments to assets and liabilities, misrepresentations and indemnifications against third-party claims. Adjustments of up to CAD$1,000 (USD$787) will be deducted from the asset purchase holdback liability for up to three years from the closing date. The liability is recorded at fair value in the consolidated balance sheet.