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Note 11 - Accrued Liabilities

9 Months Ended

Jun. 30, 2021

Current and Noncurrent Accrued Liabilities [Text Block]

11. ACCRUED LIABILITIES

Accrued liabilities consisted of the following:

	June 30,		September 30,
	2021		2020
Payroll and related	$	2,705	$	2,545
Deferred revenue		748		731
Customer deposits		9,439		3,683
Accrued contract costs		89		719
Warranty reserve		143		126
Other		181		76
Total	$	13,305	$	7,880

Other liabilities-noncurrent consisted of the following:

	June 30,		September 30,
	2021		2020
Deferred extended warranty revenue	$	344	$	293
Customer deposits		1,654		-
Deferred tax liabilities		2,729		-
Asset purchase holdback liability		693		-
Total	$	5,420	$	293

Payroll and related

Payroll and related consisted primarily of accrued vacation, bonus, sales commissions and benefits.

Deferred revenue

Deferred revenue as of June 30, 2021, included prepayments from customers for services, including extended warranty, scheduled to be performed in the twelve months ending June 30, 2022.

Customer deposits

Customer deposits represent amounts paid by customers as a down payment on hardware orders to be delivered in future periods. The customer deposits classified as noncurrent relate to orders that are expected to be delivered during the fourth quarter of our fiscal year ended September 20, 2022.

Accrued contract costs

Accrued contract costs consist of accrued expenses for contracting a third-party service provider to fulfill repair and maintenance obligations required under a contract with a foreign military for units sold in the year ended September 30, 2011. Payments to the service provider will be made annually upon completion of each year of service. A new contract was signed with the customer in May 2019 to continue repair and maintenance services through May 2024. These services are being recorded in cost of revenues to correspond with the revenues for these services.

Warranty reserve

Changes in the warranty reserve and extended warranty were as follows:

	June 30,			September 30,
	2021			2020
Beginning balance	$	126		$	150
Warranty provision		44			16
Warranty settlements		(27	)		(40	)
Ending balance	$	143		$	126

The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenue is recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period and adjusts the accrued warranty liability to an amount equal to estimated warranty expense for products currently under warranty.

Deferred extended warranty revenue

Deferred extended warranty revenue consists of warranties purchased in excess of the Company’s standard warranty. Extended warranties typically range from one to two years.

Deferred tax liability

In connection with the Zonehaven acquisition, the Company recorded a deferred tax liability related to tax basis differences on acquired intangible assets.

Asset purchase holdback liability

In connection with the Amika Mobile asset purchase, the Company recorded a holdback liability related to future adjustments to assets and liabilities. Adjustments of up to CAD$1,000 (USD$807) will be deducted from the asset purchase holdback liability for up to three years from the closing date. The liability is recorded at fair value in the condensed consolidated balance sheet.