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Investments | 12 Months Ended
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Sep. 30, 2015
Investments Debt And Equity Securities [Abstract] |
Investments | 3. INVESTMENTS The Company determines the appropriate designation of investments at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s investments are designated as available-for-sale debt securities. As of September 30, 2015 and 2014, the Company’s short-term investments have maturity dates of greater than 90 days and less than one year from the balance sheet date. The Company’s long-term investments have maturity dates of greater than one year from the balance sheet date. Available-for-sale marketable securities are carried at fair value as determined by quoted market prices for identical or similar assets, with unrealized gains and losses, net of tax, and reported as a separate component of stockholders’ equity. Management reviews the fair value of the portfolio at least monthly, and evaluates individual securities with fair value below amortized cost at the balance sheet date. For debt securities, in order to determine whether impairment is other-than-temporary, management must conclude whether the Company intends to sell the impaired security and whether it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. If management intends to sell an impaired debt security or it is more likely than not the Company will be required to sell the security prior to recovering its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of an other-than-temporary impairment related to a credit loss, or securities that management intends to sell before recovery, is recognized in earnings. The amount of an other-than-temporary impairment on debt securities related to other factors is recorded consistent with changes in the fair value of all other available-for-sale securities as a component of stockholders’ equity in other comprehensive income. No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2015, 2014 and 2013. The cost of securities sold is based on the specific identification method. Amortization of premiums, accretion of discounts, interest, dividend income, and realized gains and losses are included in investment income. The following table summarizes investments by security type as of September 30, 2015 and 2014:
|  | September 30, 2015 |
|  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Market Value |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities, short-term |  | $ | 23,924,252 |  |  | $ | 3,466 |  |  | $ | (6,390 | ) |  | $ | 23,921,328 |
Corporate debt securities, long-term |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 23,924,252 |  |  | $ | 3,466 |  |  | $ | (6,390 | ) |  | $ | 23,921,328 |
|  | September 30, 2014 |
|  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Market Value |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities, short-term |  | $ | 16,273,996 |  |  | $ | 1,472 |  |  | $ | (6,298 | ) |  | $ | 16,269,170 |
Corporate debt securities, long-term |  |  | 2,075,002 |  |  |  | — |  |  |  | (2,984 | ) |  |  | 2,072,018 |
Total |  | $ | 18,348,998 |  |  | $ | 1,472 |  |  | $ | (9,282 | ) |  | $ | 18,341,188 |
Fair Value Measurements and Disclosures FASB ASC Topic 820, Fair Value Measurements (“ASC 820”) defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which consists of the following:
| • | Level 1—Quoted prices in active markets for identical assets or liabilities;
| • | Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
| • | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Because many fixed income securities do not trade on a daily basis or have market prices from multiple sources, the pricing applications may apply available information as applicable to determine the fair value as of the measurement date. This methodology applies to the Company’s Level 2 investments. Currently, the Company does not hold any Level 3 investments. The Company recorded an acquisition-related liability for contingent consideration representing the amounts payable to former IDchecker shareholders, as outlined under the terms of the Share Purchase Agreement, subject to the achievement of certain revenue and net income targets by IDchecker for the nine-month period ended on September 30, 2015, and the twelve-month period ending on September 30, 2016. The fair value of this Level 3 liability is estimated using the Monte-Carlo simulation (using the Company’s stock price, the annual risk-free interest rate, expected volatility, the probability of reaching the performance targets and a 10 trading day average stock price). Subsequent changes in the fair value of the contingent consideration liability were recorded in the statement of operations and resulted from updates to assumed probability of achievement of the performance targets and adjustments to the inputs discussed previously.
|  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
September 30, 2015: |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |  |
Corporate debt securities |  |  |  |  |  |  |  |
Financial |  | $ | 10,308,482 |  |  | $ | - |
Industrial |  |  | 9,665,243 |  |  |  | - |
Utility |  | $ | 1,801,803 |  |  | $ | - |
Commercial paper |  |  |  |  |  |  |  |
Industrial |  |  | 1,447,655 |  |  |  | - |
Financial |  |  | 698,145 |  |  |  | - |
Total assets at fair value |  | $ | 23,921,328 |  |  | $ | - |
Liabilities: |  |  |  |  |  |  |  |
Acquisition-related contingent consideration |  |  | - |  |  |  | 46,743 |
Total liabilities at fair value |  | $ | - |  |  | $ | 46,743 |
September 30, 2014: |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |  |
Corporate debt securities |  |  |  |  |  |  |  |
Financial |  | $ | 9,334,140 |  |  | $ | - |
Industrial |  |  | 3,980,772 |  |  |  | - |
Utility |  |  | 756,215 |  |  |  | - |
Commercial paper |  |  |  |  |  |  |  |
Financial |  |  | 2,198,043 |  |  |  | - |
Long-term investments: |  |  |  |  |  |  |  |
Corporate debt securities |  |  |  |  |  |  |  |
Financial |  | $ | 1,564,505 |  |  | $ | - |
Utility |  |  | 507,513 |  |  |  | - |
Total assets at fair value |  | $ | 18,341,188 |  |  | $ | - |
Liabilities: |  |  |  |  |  |  |  |
Acquisition-related contingent consideration |  |  | - |  |  |  | - |
Total liabilities at fair value |  | $ | - |  |  | $ | - |
The following table includes a summary of the contingent consideration measured at fair value using significant unobservable inputs (Level 3) during the year ended September 30, 2015:
Balance at September 30, 2014 |  | $ | - |
Expenses recorded due to changes in fair value |  |  | 46,743 |
Payments |  |  | - |
Balance at September 30, 2015 |  | $ | 46,743 |

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