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Note 10 - Accrued and Other Liabilities

3 Months Ended

Dec. 31, 2022

Current and Noncurrent Accrued Liabilities [Text Block]

10. ACCRUED AND OTHER LIABILITIES

Accrued liabilities consisted of the following:

	December 31,		September 30,
	2022		2022
Payroll and related	$	2,155	$	3,003
Deferred revenue		1,585		1,827
Customer deposits		3,011		4,724
Accrued contract costs		454		809
Warranty reserve		159		159
Canadian goods and services and harmonized sales tax payable		-		1,556
Asset purchase holdback liability		701		-
Other		10		5
Total	$	8,075	$	12,083

Other liabilities-noncurrent consisted of the following:

	December 31,		September 30,
	2022		2022
Deferred revenue	$	243	$	227
Asset purchase holdback liability		-		680
Total	$	243	$	907

Payroll and related

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

Deferred revenue

Deferred revenue as of December 31, 2022, included prepayments from customers for services, including extended warranty, scheduled to be performed in the twelve months ending December 31, 2023.

Customer deposits

Customer deposits represent amounts paid by customers as a down payment on hardware orders to be delivered in the twelve months ending December 31, 2023.

Accrued contract costs

Accrued contract costs consisted 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.

Asset purchase holdback liability

In connection with the Amika Mobile asset purchase, the Company recorded a holdback liability related to potential future adjustments to assets and liabilities, misrepresentations and indemnifications against third-party claims. Adjustments of up to CAD$1,000 (USD$738) 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.

Warranty reserve

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

	December 31,			September 30,
	2022			2022
Beginning balance	$	159		$	146
Warranty provision		24			86
Warranty settlements		(24	)		(73	)
Ending balance	$	159		$	159

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