Note 2 - Basis of Presentation and Significant Accounting Policies	6 Months Ended
Mar. 31, 2021
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES General The Company's unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10 -Q and Article 8 of Regulation S- X and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In management's opinion, the accompanying financial statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended September 30, 2020 included in the Company's Annual Report on Form 10 -K, as filed with the SEC on December 10, 2020. The accompanying condensed consolidated balance sheet at September 30, 2020 has been derived from the audited consolidated balance sheet at September 30, 2020 contained in the above referenced Form 10 -K. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. Principles of Consolidation The Company has seven wholly owned subsidiaries, Genasys II Spain, S.A.U (“Genasys Spain”), Genasys Communications Canada ULC, Genasys Singapore PTE Ltd, Genasys Puerto Rico, LLC and Genasys Inc. (branch) in the United Arab Emirates and two currently inactive subsidiaries, Genasys America de CV and LRAD International Corporation. The condensed consolidated financial statements include the accounts of these subsidiaries after elimination of intercompany transactions and accounts. Cash, cash equivalents and restricted cash The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. As of March 31, 2021, the amount of cash and cash equivalents was $18,455. As of September 30, 2020, the amount of cash and cash equivalents was $23,319. The Company considers any amounts pledged as collateral or otherwise restricted for use in current operations to be restricted cash. In addition, the Company excludes from cash and cash equivalents cash required to fund specific future contractual obligations related to business combinations. Restricted cash is classified as a current asset unless amounts are not expected to be released and available for use in operations within one year. As of March 31, 2021, the current portion of restricted cash was $282 and the noncurrent portion was $1,190. As of September 30, 2020, the current portion of restricted cash was $282 and the noncurrent portion was $395. Immaterial Correction of Prior Period Financial Statements During the quarter ended December 31, 2020, Company management identified an immaterial error in the previously issued September 30, 2020 consolidated balance sheet. This error resulted in an overstatement of prepaid expenses and accrued liabilities of $5,205 related to a foreign currency forward contract which was presented on a gross basis rather than on a net basis. There was no impact to the consolidated statement of operations or the consolidated statement of cash flows as of September 30, 2020, as a result of this misstatement. Further, there was no impact to the condensed consolidated financial statements as of, and for the six months ended March 31, 2021, as the forward contract was settled during the first quarter of fiscal 2021. SEC Staff Accounting Bulletin: No. 99 – Materiality and No. 108 – Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements were used by management to evaluate the impact of the misstatement. Management concluded that this misstatement had no material impact on either the accompanying condensed consolidated balance sheet as of March 31, 2021 or the previously issued consolidated balance sheet as of September 30, 2020, and therefore the misstatement was corrected in the accompanying condensed consolidated balance sheet as of September 30, 2020. All financial information contained in the accompanying notes to these condensed consolidated financial statements has been revised to reflect the correction of this error. Reclassifications Where necessary, the prior year's information has been reclassified to conform to the current year presentation.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

General

The Company's unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form

-Q and Article

of Regulation S-

and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In management's opinion, the accompanying financial statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented

not

misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended

September

30,

2020

included in the Company's Annual Report on Form

-K, as filed with the SEC on

December 10, 2020.

The accompanying condensed consolidated balance sheet at

September 30, 2020

has been derived from the audited consolidated balance sheet at

September 30, 2020

contained in the above referenced Form

-K. Results of operations for interim periods are

not

necessarily indicative of the results of operations for a full year.

Principles of Consolidation

The Company has

seven

wholly owned subsidiaries, Genasys II Spain, S.A.U (“Genasys Spain”), Genasys Communications Canada ULC, Genasys Singapore PTE Ltd, Genasys Puerto Rico, LLC and Genasys Inc. (branch) in the United Arab Emirates and

two

currently inactive subsidiaries, Genasys America de CV and LRAD International Corporation. The condensed consolidated financial statements include the accounts of these subsidiaries after elimination of intercompany transactions and accounts.

Cash, cash equivalents and restricted cash

The Company considers all highly liquid investments with an original maturity of

three

months or less, when purchased, to be cash equivalents. As of

March 31, 2021,

the amount of cash and cash equivalents was

$18,455.

As of

September 30, 2020,

the amount of cash and cash equivalents was

$23,319.

The Company considers any amounts pledged as collateral or otherwise restricted for use in current operations to be restricted cash. In addition, the Company excludes from cash and cash equivalents cash required to fund specific future contractual obligations related to business combinations. Restricted cash is classified as a current asset unless amounts are

not

expected to be released and available for use in operations within

one

year. As of

March 31, 2021,

the current portion of restricted cash was

$282

and the noncurrent portion was

$1,190.

As of

September 30, 2020,

the current portion of restricted cash was

$282

and the noncurrent portion was

$395.

Immaterial Correction of Prior Period Financial Statements

During the quarter ended

December 31, 2020,

Company management identified an immaterial error in the previously issued

September 30, 2020

consolidated balance sheet. This error resulted in an overstatement of prepaid expenses and accrued liabilities of

$5,205

related to a foreign currency forward contract which was presented on a gross basis rather than on a net basis. There was

impact to the consolidated statement of operations or the consolidated statement of cash flows as of

September 30, 2020,

as a result of this misstatement. Further, there was

impact to the condensed consolidated financial statements as of, and for the

six

months ended

March 31, 2021,

as the forward contract was settled during the

first

quarter of fiscal

2021.

SEC Staff Accounting Bulletin:

No.

– Materiality and

No.

108

– Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements were used by management to evaluate the impact of the misstatement. Management concluded that this misstatement had

material impact on either the accompanying condensed consolidated balance sheet as of

March 31, 2021

or the previously issued consolidated balance sheet as of

September 30, 2020,

and therefore the misstatement was corrected in the accompanying condensed consolidated balance sheet as of

September 30, 2020.

All financial information contained in the accompanying notes to these condensed consolidated financial statements has been revised to reflect the correction of this error.

Reclassifications

Where necessary, the prior year's information has been reclassified to conform to the current year presentation.