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Commitments and Contingencies | 12 Months Ended
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Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 19. Commitments and Contingencies Contingent Consideration In connection with its acquisitions of Quantum and OptoSeis, the Company recorded contingent purchase price payments, or contingent consideration, that may be owed in the future. For both acquisitions, the contingent payments are based on future receipt of contracts awards and the resulting revenue derived from such contracts. The Company has utilized the services of an independent valuation consultant to assist it with the estimation of the fair value of this contingent consideration. The determination of fair value is inherently unpredictable since it requires estimates and projections of future revenue, including the size, length, timing and, in the case of Quantum, the extent of gross profits earned under its future contracts. As a result, the Company anticipates future fair value adjustments to these liabilities over the respective earn-out periods, and these adjustments will result in either charges or credits to the Company’s operating expenses when the fair value of the contingent consideration increases or decreases, respectively. The Company recorded an initial contingent earn-out liability of $7.7 million in connection with its July 2018 acquisition of Quantum. Contingent payments, if any, may be paid in the form of cash or Company stock and will be derived from eligible revenue generated during a four-year earn-out period subsequent to the closing of the acquisition. The maximum amount of contingent payments is $23.5 million over the earn-out period. For the fiscal year ended September 30, 2019, the Company recorded a $2.9 million adjustment to decrease the initial earn-out liability to its estimated fair value. The Company recorded an initial continent earn-out liability of $4.3 million in connection with its November 2018 acquisition of all the intellectual property and related assets of the OptoSeis® fiber optic sensing technology. Contingent cash payments, if any, will be derived from eligible revenue generated during a five-and-a-half year earn-out period subsequent to the closing of the acquisition from products and services utilizing the OptoSeis® fiber optic technology. The maximum amount of contingent payments is $23.2 million over the earn-out period. For the fiscal year ended September 30, 2019, the Company recorded a $0.8 million adjustment to increase the initial earn-out liability to fair value. The Company will reassess the earn-out calculations related to this contingent consideration in future periods. Operating Leases The Company leases office space and certain equipment for terms of two years or less. Rent expense was approximately $0.6 million and $0.1 million during fiscal years 2019 and 2018, respectively. Future minimum lease obligations for the fiscal years ending September 30, 2020 and 2021 are $0.4 million and $36,000, respectively. Legal Proceedings The Company is involved in various pending legal actions in the ordinary course of its business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty of such actions. However, management believes that the most probable, ultimate resolution of current pending matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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