Note 16 - Stockholders' Equity

6 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Equity [Text Block]

16. STOCKHOLDERS’ EQUITY

Summary

The following table summarizes changes in the components of stockholders’ equity during the six months ended March 31, 2024 and the six months ended March 31, 2023 (amounts in thousands, except par value and share amounts):

												Accumulated
	Common Stock					Additional						Other			Total
	Shares			Par Value Amount		Paid-in Capital			Accumulated Deficit			Comprehensive Loss			Stockholders' Equity
Balance as of September 30, 2023		37,211,071		$	372	$	110,379		$	(76,062	)	$	(505	)	$	33,812
Share-based compensation expense		-			-		446			-			-			446
Issuance of common stock upon offering, net of issuance costs		5,750,000			57		10,449			-			-			10,449
Issuance of common stock upon vesting of restricted stock units		10,000			-		-			-			-			-
Issuance of common stock in business combination		986,486			10		1,924			-			-			1,924
Obligation to issue common stock		-			-		527			-			-			527
Release of obligation to issue common stock		69,564			1		-			-			-			-
Accumulated other comprehensive loss		-			-		-			-			119			119
Net loss		-			-		-			(6,724	)		-			(6,724	)
Balance as of December 31, 2023		44,027,121		$	440	$	123,725		$	(82,786	)	$	(386	)	$	40,553
Share-based compensation expense		-		$	-	$	524		$	-		$	-		$	524
Issuance of common stock upon vesting of restricted stock units		229,233			2		-			-			-			-
Shares retained for payment of taxes in connection with settlement of restricted stock units		(6,846	)		-		(12	)		-			-			(12	)
Settlement of contingent consideration in shares of common stock		236,343			3		656			-			-			656
Obligation to issue common stock		-			-		158			-			-			158
Accumulated other comprehensive loss		-			-		-			-			(59	)		(59	)
Net loss		-			-		-			(6,938	)		-			(6,938	)
Balance as of March 31, 2024		44,485,851		$	445	$	125,051		$	(89,724	)	$	(445	)	$	34,882

												Accumulated
	Common Stock					Additional						Other			Total
	Shares			Par Value Amount		Paid-in Capital			Accumulated Deficit			Comprehensive Loss			Stockholders' Equity
Balance as of September 30, 2022		36,611,240		$	366	$	108,551		$	(57,366	)	$	(792	)	$	50,393
Share-based compensation expense		-			-		420			-			-			420
Issuance of common stock upon exercise of stock options, net		20,000			-		32			-			-			32
Issuance of common stock upon vesting of restricted stock units		12,667			-		-			-			-			-
Release of obligation to issue common stock		69,564			1		-			-						-
Accumulated other comprehensive loss		-			-		-			-			266			266
Net loss		-			-		-			(3,507	)					(3,507	)
Balance as of December 31, 2022		36,713,471		$	367	$	109,003		$	(60,873	)	$	(526	)	$	47,604
Share-based compensation expense		-		$	-	$	513		$	-		$	-		$	513
Issuance of common stock upon exercise of stock options, net		33,765			1		54			-			-			54
Issuance of common stock upon cashless exercise of stock options, net		15,914			-		-			-			-			-
Issuance of common stock upon vesting of restricted stock units		232,761			2		(2	)		-			-			(2	)
Shares retained for payment of taxes in connection with settlement of restricted stock units		(11,616	)		-		(45	)		-			-			(45	)
Accumulated other comprehensive loss		-			-		-			-			81			81
Net loss		-			-		-			(3,403	)		-			(3,403	)
Balance as of March 31, 2023		36,984,295		$	370	$	109,523		$	(64,276	)	$	(445	)	$	44,802

Common stock activity

During the six months ended March 31, 2024, there were no exercises of stock options and the Company issued 232,387 shares of common stock in connection with the vesting of RSUs. During the six months ended March 31, 2023, the Company issued 69,679 shares of common stock and received gross proceeds of $86 in connection with the exercise of stock options and the Company issued 233,812 shares of common stock in connection with the vesting of RSUs.

On October 4, 2023, the Company completed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $2.00 per share of common stock. The Company received gross proceeds of approximately $11,500 from the offering, before underwriting discounts and commissions and offering expenses of $1,051. The Company intends to use the net proceeds from this offering for general corporate purposes, including funding organic growth, working capital, capital expenditures, and continued research and development with respect to products and technologies, as well as costs related to post-closing integration with the Evertel business and research and development activities related to the integrated business.

In connection with the Evertel acquisition, the Company issued 986,486 shares of common stock to the former owners of Evertel. The fair value of the Company’s stock on the closing date was $1.95 which resulted in the addition of $1,924 to additional-paid-in-capital. The Company also issued 236,343 shares of common stock to the former owners of Evertel, in connection with the settlement of a portion of the contingent consideration liability. This resulted in the addition of $656 to additional-paid-in-capital.

Under the terms of the Purchase Agreement, the Company recorded an obligation to issue 81,083 shares of common stock to the former owners of Evertel and three key employees subsequent to March 31, 2024, resulting in an addition of $158 to additional-paid-in-capital. Also, in connection with the Evertel acquisition, the Company agreed to issue 270,270 shares of the Company’s common stock to the seller of Evertel twelve months from the closing date. The fair value of the Company’s common stock on the closing date was $1.95, resulting in the addition of $527 to additional paid-in-capital.

In connection with the Amika Mobile asset purchase, the Company agreed to issue 191,267 shares of the Company’s common stock to the former owners of Amika Mobile on each of the first, second and third anniversaries of the closing date. The total number of shares of common stock the Company was obligated to issue was 573,801. The fair value of the Company’s common stock on the closing date was $5.98, resulting in the addition of $3,431 to additional paid-in-capital. During the year ended September 30, 2021, the Company accelerated the issuance of 365,109 of such shares of common stock to a former owner of the Amika Mobile assets. The Company issued 69,564 shares to the former owners of the Amika Mobile assets during each the years ended September 30, 2023 and 2022. During the three months ended December 31, 2023, the Company issued the final 69,564 shares to the former owners of the Amika Mobile assets.

Share buyback program

In December 2022, the Board of Directors extended the Company’s share buyback program through December 31, 2024. Under the program, the Company was authorized to repurchase up to $5,000 of its outstanding common shares.

There were no shares repurchased during the six months ended March 31, 2024 and 2023. All repurchased shares have been retired.

Dividends

There were no dividends declared in the six months ended March 31, 2024 and 2023.