XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Note 5 - Fair Value Measurements | 12 Months Ended
--- | ---
Sep. 30, 2018
Notes to Financial Statements |
Fair Value Disclosures [Text Block] | 5. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist principally of cash equivalents, short and long-term marketable securities, accounts receivable and accounts payable. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows:
| Level 1: | Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date.
| Level 2: | Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date.
| Level 3: | Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation.
The fair value of the majority of the Company’s cash equivalents and marketable securities was determined based on “Level 1” inputs. The fair value of certain marketable securities, long-term debt, hedge fund investments, and derivative contracts were determined based on “Level 2” inputs. The valuation techniques used to measure the fair value of the “Level 2” instruments were valued based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. The Company does not have any financial instruments measured at fair value on a recurring basis in the “Level 3” category. There have been no changes in Level 1, Level 2, and Level 3 and no changes in valuation techniques for financial instruments measured at fair value on a recurring basis for the years ended September 30, 2018 and 2017. Instruments Measured at Fair Value on a Recurring Basis The following tables present the Company’s cash equivalents and marketable securities’ costs, gross unrealized gains and losses, and fair value by major security type recorded as cash equivalents or short-term or long-term marketable securities as of September 30, 2018 and 2017.
|  | September 30, 2018 |
|  |  |  |  |  | Unrealized |  |  | Fair |  |  | Cash |  |  | Short-term |  |  | Long-term |
|  | Cost Basis |  |  | Losses |  |  | Value |  |  | Equivalents |  |  | Securities |  |  | Securities |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  | $ | 410,393 |  |  | $ | - |  |  | $ | 410,393 |  |  | $ | 410,393 |  |  | $ | - |  |  | $ | - |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 499,000 |  |  |  | - |  |  |  | 499,000 |  |  |  | - |  |  |  | - |  |  |  | 499,000 |
Municipal securities |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Corporate bonds |  |  | 4,302,661 |  |  |  | (8,945 | ) |  |  | 4,293,716 |  |  |  | - |  |  |  | 3,592,175 |  |  |  | 701,541 |
Subtotal |  |  | 4,801,661 |  |  |  | (8,945 | ) |  |  | 4,792,716 |  |  |  | - |  |  |  | 3,592,175 |  |  |  | 1,200,541 |
Total |  | $ | 5,212,054 |  |  | $ | (8,945 | ) |  | $ | 5,203,109 |  |  | $ | 410,393 |  |  | $ | 3,592,175 |  |  | $ | 1,200,541 |
|  | September 30, 2017 |
|  |  |  |  |  |  |  |  | Fair |  |  | Cash |  |  | Short-term |  |  | Long-term |
|  | Cost Basis |  |  | Losses |  |  | Value |  |  | Equivalents |  |  | Securities |  |  | Securities |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  | $ | 55,257 |  |  | $ | - |  |  | $ | 55,257 |  |  | $ | 55,257 |  |  | $ | - |  |  | $ | - |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 2,436,647 |  |  |  | - |  |  |  | 2,436,647 |  |  |  | - |  |  |  | 1,937,647 |  |  |  | 499,000 |
Municipal securities |  |  | 25,315 |  |  |  | (12 | ) |  |  | 25,303 |  |  |  | - |  |  |  | 25,303 |  |  |  | - |
Corporate bonds |  |  | 2,609,973 |  |  |  | (1,257 | ) |  |  | 2,608,716 |  |  |  | - |  |  |  | 2,396,592 |  |  |  | 212,124 |
Subtotal |  |  | 5,071,935 |  |  |  | (1,269 | ) |  |  | 5,070,666 |  |  |  | - |  |  |  | 4,359,542 |  |  |  | 711,124 |
Total |  | $ | 5,127,192 |  |  | $ | (1,269 | ) |  | $ | 5,125,923 |  |  | $ | 55,257 |  |  | $ | 4,359,542 |  |  | $ | 711,124 |
Instruments Measured at Fair Value on a Non-Recurring Basis Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill, which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 unobservable inputs. In the event of an impairment, the Company determines the fair value of the goodwill and intangible assets using a discounted cash flow approach, which contains significant unobservable inputs and therefore is considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. The following table presents categories of long-lived assets that were subject to non-recurring fair value measurements during the year ended September 30, 2018:
|  |  |  |  |  | Fair Value Measurements at September 30, 2018 |  |  |  |  |
|  | Carrying Value |  |  | Active Markets for Identifiable Assets (Level 1) |  |  | Observable Inputs (Level 2) |  |  | Unobservable Inputs (Level 3) |  |  | Non-Cash Impairment Loss |
Intangible assets from Genasys acquisition (a) |  | $ | 1,520,006 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,520,006 |  |  | $ | - |
Goodwill from Genasys acquisition (b) |  | $ | 2,445,990 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,445,990 |  |  | $ | - |
Patents (c) |  | $ | 37,340 |  |  | $ | - |  |  | $ | - |  |  | $ | 37,340 |  |  | $ | (11,133 | )
| (a) | Represents acquired intangible assets from the acquisition of Genasys. There was no impairment related to these assets. (See Note 4, Acquisition and Note 8, Goodwill and Intangible Assets, for more information)
| (b) | Represents acquired goodwill from the acquisition of Genasys. There was no impairment related to these assets. (See Note 4, Acquisition and Note 8, Goodwill and Intangible Assets, for more information)
| (c) | During the year ended September 30, 2018, the Company determined that certain patents were impaired. The impaired patents related to products no longer sold by the Company.
The following table presents categories of long-lived assets that were subject to non-recurring fair value measurements during the year ended September 30, 2017:
|  |  |  |  |  | Fair Value Measurements at September 30, 2017 |  |  |  |  |
|  | Carrying Value |  |  | Active Markets for Identifiable Assets (Level 1) |  |  | Observable Inputs (Level 2) |  |  | Unobservable Inputs (Level 3) |  |  | Non-Cash Impairment Loss |
Patents |  | $ | 55,689 |  |  | $ | - |  |  | $ | - |  |  | $ | 55,689 |  |  | $ | - |
The Company did not recognize non-recurring fair value adjustments related to the impairment of intangible assets for the year ended September 30, 2017.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration