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Note 11 - Debt | 6 Months Ended
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Mar. 31, 2018
Notes to Financial Statements |
Debt Disclosure [Text Block] | 11 . D EBT In connection with the acquisition of Genasys, as described in Note 4, the Company acquired certain debts of Genasys. The carrying value of the acquired debt approximates fair value. The components of the acquired debt consisted of the following as of March 31, 2018:
Loans with Governmental Agencies (1) |  | $ | 847,215 |
Revolving Credit Facilities (2) |  |  | 198,850 |
Term Loans (3) |  |  | 119,483 |
Total debt |  |  | 1,165,548 |
Less current portion |  |  | (896,317 | )
Total long-term debt |  | $ | 269,231 |
| ( 1 ) | Loans with governmental agencies represents debt granted by ministries within Spain and the European Union for the purpose of stimulating economic development and promoting research and development. Loans with governmental agencies as of March 31, 2018 are as follows:
Agency | Due Date |  | Interest Rate |  |  | Principal |  |
Ministry of Industry, Tourism, and Commerce | December 31, 2018 |  | 0.53% |  |  | $ | 73,865 |  | a
Ministry of Industry, Tourism, and Commerce | December 31, 2019 |  | 0.51% |  |  |  | 107,933 |  | b
Ministry of Industry, Tourism, and Commerce | January 31, 2020 |  | 3.95% |  |  |  | 94,634 |  | c
Ministry of Science and Innovation | February 2, 2022 |  | 0.00% |  |  |  | 74,136 |  |
Ministry of Science and Innovation | February 2, 2024 |  | 0.00% |  |  |  | 296,440 |  | d
Center for Development of Industrial Technology | March 31, 2021 |  | 0.00% |  |  |  | 94,306 |  |
European Union Agency for Network and Information Security | October 28, 2018 |  | 2.95% |  |  |  | 105,902 |  |
|  |  |  |  |  | $ | 847,215 |  |
| a. | This loan is secured by $26,113 of cash pledged as collateral by Genasys. This amount is included in restricted cash at March 31, 2018. The cash will be released upon repayment of the loan.
| b. | This loan is secured by $40,373 of cash pledged as collateral by Genasys, which represents 25% of the original principal received. This amount is included in restricted cash at March 31, 2018. The cash will be released upon repayment of the loan.
| c. | This loan is secured by $63,774 of cash pledged as collateral by Genasys, which represents 35% of the original principal received. This amount is included in restricted cash at March 31, 2018. The cash will be released upon repayment of the loan.
| d. | This loan is secured by $296,440 of cash pledged as collateral by Genasys, which is the current balance of the loan. This amount represents 66.6% of the original principal received. This amount is included in restricted cash at March 31, 2018. The Company expects the Ministry of Science and Innovation to declare the terms of the loan satisfied within fiscal year 2018, and that the outstanding balance of the loan will be paid in full during fiscal year 2018. Accordingly, this has been included in the current portion of notes payable as of March 31, 2018.
| ( 2 ) | Revolving credit facilities were used by Genasys to meet short-term operating needs. Revolving credit facilities as of March 31, 2018 are as follows:
Description |  | Interest Rate |  |  | Principal |
Revolving Credit Facility A |  | 3.50% |  |  | $ | 58,092 |
Revolving Credit Facility B |  | 3.95% |  |  |  | 60,811 |
Revolving Credit Facility C |  | 3.00% |  |  |  | 60,199 |
Other Revolving Credit Facilities |  | 4.20% |  |  |  | 19,748 |
|  |  |  |  | $ | 198,850 |
Borrowing under Revolving Credit Facilities A, B, and C are up to a maximum of €50,000 (approximately $61,600 ). These revolving credit facilities mature during the three months ended June 30, 2018. The Other Revolving Credit Facilities were used by Genasys to fund local tax payments and mature during the three months ended June 30, 2018.
| ( 3 ) | Term Loans as of March 31, 2018 are as follows:
Description |  | Due Date |  | Interest Rate |  |  | Principal |
Term Loan A |  | October 20, 2018 |  | 4.80% |  |  | $ | 12,681 |
Term Loan B |  | May 27, 2019 |  | Variable |  |  |  | 18,549 |
Term Loan C |  | June 20, 2019 |  | 4.29% |  |  |  | 39,951 |
Term Loan D |  | July 12, 2020 |  | Variable |  |  |  | 48,302 |
|  |  |  |  |  |  | $ | 119,483 |
Term Loan A is an unsecured 4.80% fixed rate loan due in October 2018 issued to fund the working capital needs of Genasys. There is a prepayment penalty of 3% of the outstanding balance. Principal and interest payments are payable on the 20 th of each month. Term Loan B is an unsecured variable rate loan due in May 2019 issued to fund the working capital needs of Genasys. The interest rate is Euribor + 3.5%. There are no prepayment penalties. Principal and interest payments are payable on the 27 th of each month. Term L oan C is an unsecured fixed rate loan due in June 2019 issued to fund the working capital needs of Genasys. There is no prepayment penalty. Principal and interest payments are due on the 20 th of each month. Term L oan D is an unsecured variable rate loan due in July 2020 issued to fund the working capital needs of Genasys. There is a prepayment penalty of 0.5% of the outstanding balance. The interest rate is fixed at 2.44% until July 2018 at which point the interest rate becomes Euribor + 2.44%. Principal and interest payments are due on the 12 th of each month. The following is a schedule of future annual payments as of March 31, 2018:
April 2018-March 2019 |  | $ | 896,317 |
April 2019-March 2020 |  |  | 173,035 |
April 2020-March 2021 |  |  | 48,796 |
April 2021-March 2022 |  |  | 47,400 |
April 2022-March 2023 |  |  | - |
Thereafter |  |  | - |
Total |  | $ | 1,165,548 |
The Company has pledged $428,425 of cash as collateral against debt. This restricted cash amount is included in restricted cash and long-term restricted cash as of March 31, 2018. The Company recorded $9,815 in interest expense for the three months and six months ended March 31, 2018 in the condensed consolidated statements of income in connection with the above referenced debt.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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