Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 000-24248

GENASYS INC.

(Exact name of registrant as specified in its charter)


Delaware		87-0361799
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

16262 West Bernardo Drive, San Diego, California		92127
(Address of principal executive offices)		(Zip Code)

(858) 676-1112

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which securities are registered

Common stock, $0.00001 par value per share

GNSS

NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares of Common Stock, $0.00001 par value, outstanding on February 9, 2024 was 44,027,121.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Genasys Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share amounts)

	December 31,
	2023			September 30,
	(Unaudited)			2023
ASSETS
Current assets:
Cash and cash equivalents	$	4,780		$	8,665
Short-term marketable securities		8,777			1,481
Restricted cash		-			758
Accounts receivable, net of allowance for credit losses of $65		4,435			5,952
Inventories, net		6,890			6,501
Prepaid expenses and other		2,100			1,851
Total current assets		26,982			25,208

Long-term restricted cash		346			96
Property and equipment, net		1,587			1,551
Goodwill		13,151			10,282
Intangible assets, net		10,366			8,427
Operating lease right of use assets		3,712			3,886
Other assets		494			455
Total assets	$	56,638		$	49,905

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,897		$	2,785
Accrued liabilities		8,618			7,466
Operating lease liabilities, current portion		1,031			1,008
Total current liabilities		11,546			11,259

Other liabilities, noncurrent		509			551
Operating lease liabilities, noncurrent		4,030			4,283
Total liabilities		16,085			16,093

Stockholders' equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; none issued and outstanding		-			-
Common stock, $0.00001 par value; 100,000,000 shares authorized; 44,027,121 and
37,211,071 shares issued and outstanding, respectively		-			-
Additional paid-in capital		123,725			110,379
Accumulated deficit		(82,786	)		(76,062	)
Accumulated other comprehensive loss		(386	)		(505	)
Total stockholders' equity		40,553			33,812
Total liabilities and stockholders' equity	$	56,638		$	49,905

See accompanying notes

Genasys Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share and share amounts)

(Unaudited)

	Three months ended
	December 31,
	2023			2022
Revenues:
Product sales	$	2,166		$	9,118
Contract and other		2,195			1,369
Total revenues		4,361			10,487
Cost of revenues		2,882			5,655

Gross profit		1,479			4,832

Operating expenses
Selling, general and administrative		6,518			6,384
Research and development		2,191			1,935
Total operating expenses		8,709			8,319

Loss from operations		(7,230	)		(3,487	)

Other income (expense), net		77			(20	)

Loss before income taxes		(7,153	)		(3,507	)
Income tax benefit		(429	)		-
Net loss	$	(6,724	)	$	(3,507	)


Net loss per common share - basic and diluted	$	(0.15	)	$	(0.10	)
Weighted average common shares outstanding:
Basic and diluted		43,729,240			36,696,145

See accompanying notes

Genasys Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(Unaudited)

	Three months ended
	December 31,
	2023			2022
Net loss	$	(6,724	)	$	(3,507	)
Unrealized gain on marketable securities		10			21
Unrealized foreign currency gain		109			245
Comprehensive loss	$	(6,605	)	$	(3,241	)

See accompanying notes

Genasys Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

	Three Months Ended
`	December 31,
	2023			2022
Operating Activities:
Net loss	$	(6,724	)	$	(3,507	)

Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		729			643
Amortization of debt issuance costs		-			5
Warranty provision		(22	)		24
Inventory obsolescence		39			46
Loss on disposition of fixed assets		2			-
Stock-based compensation		446			420
Partial release of valuation allowance		(517	)		-
Amortization of operating lease right of use asset		192			199
Accretion of acquisition holdback liability		5			12
Accretion of acquisition contingent consideration		46			-

Changes in operating assets and liabilities:
Accounts receivable, net		1,666			3,482
Inventories, net		(429	)		(2,041	)
Prepaid expenses and other		(249	)		624
Accounts payable		(902	)		249
Accrued and other liabilities		(11	)		(5,006	)
Net cash used in operating activities		(5,729	)		(4,850	)

Investing Activities:
Purchases of marketable securities		(7,532	)		(1,994	)
Proceeds from maturities of marketable securities		247			1,609
Cash paid for acquisitions		(923	)		-
Cash paid for asset purchase holdback liability		(764	)		-
Capital expenditures		(142	)		(98	)
Net cash used in investing activities		(9,114	)		(483	)

Financing Activities:
Proceeds from exercise of stock options		-			32
Proceeds from offering of common stock, net of issuance costs		10,449			-
Net cash provided by financing activities		10,449			32
Effect of foreign exchange rate on cash		1			39
Net decrease in cash, cash equivalents, and restricted cash		(4,393	)		(5,262	)
Cash, cash equivalents and restricted cash, beginning of period		9,519			13,659
Cash, cash equivalents and restricted cash, end of period	$	5,126		$	8,397

Reconciliation of cash, cash equivalents and restricted cash to the consolidated
balance sheets:
Cash and cash equivalents	$	4,780	$	7,563
Restricted cash, current portion		-		738
Long-term restricted cash		346		96
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows	$	5,126	$	8,397

See accompanying notes

Genasys Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in thousands)

(Unaudited)

	Three Months Ended
	December 31,
	2023			2022
Noncash investing and financing activities:
Change in unrealized loss on marketable securities	$	10		$	21
Obligation to issue common stock in connection with the Amika Mobile asset purchase	$	-		$	(416	)
Obligation to issue common stock in connection with the Evertel acquisition	$	(527	)	$	-
Shares issued in connection with the Evertel acquisition	$	(1,924	)	$	-
Contingent consideration payable in connection with the Evertel acquisition	$	(890	)	$	-
Holdback liability payable in connection with the Evertel acquisition	$	(230	)	$	-

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

1. OPERATIONS

Genasys Inc. is a global provider of Protective Communications™ solutions including its Genasys Protect™ software platform and Genasys Long Range Acoustic Devices® (“LRAD®”). The Company's unified platform receives information from a wide variety of sensors and Internet-of-Things (“IoT”) inputs to collect real-time information on developing and active emergency situations. The Company uses this information to create and disseminate alerts, warnings, notifications, and instructions through multiple channels before, during, and after public safety and enterprise threats, critical events, and other crisis situations.

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, 2023, included in the Company’s Annual Report on Form 10-K, as filed with the SEC on December 7, 2023. The accompanying condensed consolidated balance sheet as of September 30, 2023, has been derived from the audited consolidated balance sheet as of September 30, 2023, 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 nine wholly owned subsidiaries, Genasys II Spain, S.A.U. (“Genasys Spain”), Genasys Communications Canada ULC (“Genasys Canada”), Genasys Singapore PTE Ltd, Genasys Puerto Rico, LLC, Zonehaven LLC, Evertel Technologies 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 December 31, 2023, the amount of cash and cash equivalents was $4,780. As of September 30, 2023, the amount of cash and cash equivalents was $8,665.

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 December 31, 2023, restricted cash was $346. As of September 30, 2023, restricted cash was $854.

Accounts receivable and allowance for credit losses

The Company adopted Accounting Standards Update (“ASU”) No. 2019-10, Financial Instruments – Credit Losses (“ASC 326”), as of October 1, 2023. This new standard adds to U.S. GAAP an impairment model, known as the current expected credit loss ("CECL") model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the timelier recognition of losses. Under the CECL model, entities estimate credit losses over the entire contractual term from the date of initial recognition of the financial instrument. The standard only impacts the Company’s trade receivables. There was no cumulative effect adjustment and the adoption of this standard did not have a material impact on the consolidated financial statements.

The Company maintains an allowance for credit losses primarily for estimated losses resulting from the inability or failure of individual customers to make required payments. The Company maintains an allowance under ASC 326, based on historical losses, changes in payment history, customer-specific information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. The allowance under ASC 326 is updated as additional losses are incurred or information becomes available related to the customer or economic conditions.

The Company’s allowance for credit losses was $65 as of December 31, 2023 and September 30, 2023.

The Company writes-off accounts receivable based on the age of the receivable and the facts and circumstances surrounding the customer and reasons for non-payment. Actual write-offs might differ from the recorded allowance.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

Reclassifications

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

3. RECENT ACCOUNTING PRONOUNCEMENTS

Recently adopted pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which supersedes current guidance by requiring recognition of credit losses when it is probable that a loss has been incurred. The new standard requires the establishment of an allowance for estimated credit losses on financial assets including trade and other receivables at each reporting date. The new standard will result in earlier recognition of allowances for losses on trade and other receivables and other contractual rights to receive cash. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments – Credit Losses (“ASC 326”), Derivatives and Hedging (“ASC 815”) and Leases (“ASC 842”), which extended the effective date of ASC 326 for certain companies until fiscal years beginning after December 15, 2022. The new standard was effective for the Company beginning October 1, 2023. The adoption of this standard did not have a material effect on the Company’s condensed consolidated financial statements. Refer to Note 2, Basis of Presentation and Significant Accounting Policies, for additional information.

Accounting pronouncements not yet adopted

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, which means that it will be effective for the Company’s annual periods beginning October 1, 2024, and interim periods beginning October 1, 2025. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on disclosures within the consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as disaggregated information on income tax paid. The standard is effective for fiscal years beginning after December 15, 2024, which means that it will be effective for the Company’s fiscal years beginning October 1, 2025. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on the consolidated financial statements.

4. BUSINESS COMBINATIONS

On October 4, 2023, the Company completed the acquisition of all of the membership interests in Evertel Technologies, LLC. (“Evertel”), pursuant to a Membership Interest Purchase Agreement (“Purchase Agreement”) with Word Systems Operations, LLC (“Seller”) and Evertel Technologies, LLC.

Evertel offers a secure and compliant mission-critical collaboration platform for the public safety market that connects public safety personnel, information, and tools in one space.

The Evertel acquisition was accounted for as a business combination using the acquisition method pursuant to ASC Topic 805. As the acquirer for accounting purposes, the Company has estimated the purchase consideration, assets acquired and liabilities assumed as of the acquisition date, with the excess of the purchase consideration over the fair value of net assets acquired recognized as goodwill. The estimated fair value of assets purchased, and liabilities assumed, in certain cases may be subject to revision based on the final determination of fair value.

The consideration consisted of the following:

Cash paid	$	923
Common stock issued		1,924
Contingent consideration		890
Acquisition holdback liability		230
Common stock to be issued		527
	$	4,494

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

The Company funded the cash portion of the total consideration with available cash on hand. The Company also issued 986,486 shares of the Company’s common stock to the former owners of Evertel. The fair value of the Company’s stock on the closing date was $1.95, resulting in the addition of $1,924 to additional-paid-in-capital. The contingent consideration liability is a current liability and recorded in the current portion of accrued liabilities as of December 31, 2023. Under the terms of the Purchase Agreement, the Company also recorded a holdback liability and an obligation to issue common stock as security for potential indemnification claims against the seller. The holdback liability and the common stock will be released twelve months from the closing date, subject to amounts withheld for actual, pending or potential claims.

The Company incurred $39 in expenses related to this transaction. The expenses were incurred in the fourth quarter of fiscal year 2023 and recorded the expense in selling, general and administrative expenses in the consolidated statement of operations.

The preliminary allocation of the purchase price as of the acquisition date is as follows:

Assets acquired
Accounts receivable	$	142
Prepaid expenses		27
Intangible assets		2,550
Goodwill		2,772
Total Assets	$	5,491

Liabilities assumed
Accrued commissions	$	10
Deferred revenue		470
Deferred tax liability		517
Total liabilities		997

Net assets acquired	$	4,494

The estimated fair value of identifiable intangible assets acquired and their estimated useful lives are as follows:

	Fair Value		Est.Useful Life (in years)
Developed technology	$	2,290		7
Customer relationships		260		5
	$	2,550

Identifiable intangible assets consist of certain technology and customer relationships purchased from Evertel. Identifiable intangible assets are amortized over their estimated useful lives based upon several assumptions, including the estimated period of economic benefit and utilization. The weighted average amortization period for identifiable intangible assets acquired is 6.8 years. These intangible assets are classified as Level 3 in the ASC Topic 820 three-tier fair value hierarchy.

The goodwill for Evertel is attributable to combining the Company’s existing emergency communications solutions with the software and software development capabilities of Evertel to enhance product offerings. Goodwill is also attributable to the skill level of the acquired workforce. The Company will continue to analyze the transaction and refine its calculations, as appropriate during the measurement period, which could affect the value of goodwill. Goodwill from the Evertel acquisition will not be deductible for tax purposes.

The Company has included the operating results of Evertel in continuing operations in its unaudited condensed consolidated financial statements since the aquisition date. $209 in net revenues and $195 in net loss of Evertel were included in the unaudited condensed consolidated financial statements for the three months ended December 31, 2023.

5.	REVENUE RECOGNITON

ASC 606, Revenue from Contracts with Customers (“ASC 606”), outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized:

Identify the contract(s) with customers

Identify the performance obligations

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

Determine the transaction price

Allocate the transaction price to the performance obligations

Recognize revenue when the performance obligations have been satisfied

ASC 606 requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services.

The Company derives its revenue from the sale of products to customers, contracts, software license fees, other services and freight. The Company sells its products through its direct sales force and through authorized resellers and system integrators. The Company recognizes revenue for goods including software when all the significant risks and rewards have been transferred to the customer, no continuing managerial involvement usually associated with ownership of the goods is retained, no effective control over the goods sold is retained, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transactions will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Software license revenue, maintenance and/or software development service fees may be bundled in one arrangement or may be sold separately.

Product revenue

Product revenue is recognized as a distinct single performance obligation when products are tendered to a carrier for delivery, which represents the point in time that the Company’s customer obtains control of the products. A smaller portion of product revenue is recognized when the customer receives delivery of the products. A portion of products are sold through resellers and system integrators based on firm commitments from an end user, and as a result, resellers and system integrators carry little or no inventory. The Company’s customers do not have a right to return product unless the product is found defective and therefore the Company’s estimate for returns has historically been insignificant.

Perpetual licensed software

The sale and/or license of software products is deemed to have occurred when a customer either has taken possession of, or has the ability to take immediate possession of, the software and the software key. Perpetual software licenses can include one-year maintenance and support services. In addition, the Company sells maintenance services on a stand-alone basis and is therefore capable of determining their fair value. On this basis, the amount of the embedded maintenance is separated from the fee for the perpetual license and is recognized on a straight-line basis over the period to which the maintenance relates.

Time-based licensed software

The time-based license agreements include the use of a software license for a fixed term, generally one-year, and maintenance and support services during the same period. The Company does not sell time-based licenses without maintenance and support services and therefore revenues for the entire arrangements are recognized on a straight-line basis over the term.

Warranty, maintenance and services

The Company offers extended warranty, maintenance and other services. Extended warranty and maintenance contracts are offered with terms ranging from one to several years, which provide repair and maintenance services after expiration of the original one-year warranty term. Revenues from separately priced extended warranty and maintenance contracts are recognized based on time elapsed over the service period and classified as contract and other revenues. Revenue from other services such as training or installation is recognized when the service is completed.

Multiple element arrangements

The Company has entered into a number of multiple element arrangements, such as the sale of a product or perpetual licenses that may include maintenance and support (included in the price of perpetual licenses) and time-based licenses (that include embedded maintenance and support, both of which may be sold with software development services, training, and other product sales). In some cases, the Company delivers software development services bundled with the sale of the software. In multiple element arrangements, the Company uses either the stand-alone selling price or an expected cost plus margin approach to determine the fair value of each element within the arrangement, including software and software-related services such as maintenance and support. In general, elements in such arrangements are also sold on a stand-alone basis and stand-alone selling prices are available.

Revenue is allocated to each deliverable based on the fair value of each individual element and is recognized when the revenue recognition criteria described above are met, except for time-based licenses which are not unbundled. When software development services are performed and are considered essential to the functionality of the software, the Company recognizes revenue from the software development services on a stage of completion basis, and the revenue from the software when the related development services have been completed.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

The Company disaggregates revenue by reporting segment (Hardware and Software) and geographically to depict the nature of revenue in a manner consistent with its business operations and to be consistent with other communications and public filings. Refer to Note 18, Segment Information and Note 19, Major Customers, Suppliers and Related Information for additional details of revenues by reporting segment and disaggregation of revenue.

Contract assets and liabilities

The Company enters into contracts to sell products and provide services and recognizes contract assets and liabilities that arise from these transactions. The Company recognizes revenue and corresponding accounts receivable according to ASC 606 and, at times, recognizes revenue in advance of the time when contracts give the Company the right to invoice a customer. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Subscription related commission costs are deferred and then amortized on a straight-line basis over the period of benefit. The Company may also receive consideration, per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a contract liability. Additionally, the Company may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met. The table below reflects the balances of contract liabilities as of December 31, 2023 and September 30, 2023, including the change between the periods. There were no contract assets as of December 31, 2023 and September 30, 2023. The current portion of contract liabilities and the noncurrent portion are included in “Accrued liabilities” and “Other liabilities, noncurrent”, respectively, on the accompanying condensed consolidated balance sheets. Refer to Note 11, Accrued and Other Liabilities for additional details.

The Company’s contract liabilities were as follows:

	Customer deposits			Deferred revenue			Total contract liabilities
Balance as of September 30, 2023	$	766		$	3,254		$	4,020
New performance obligations		819			1,583			2,402
Recognition of revenue as a result of satisfying performance obligations		(363	)		(1,342	)		(1,705	)
Effect of exchange rate on deferred revenue		-			5			5
Balance as of December 31, 2023	$	1,222		$	3,500		$	4,722
Less: non-current portion		-			(509	)		(509	)
Current portion as of December 31, 2023	$	1,222		$	2,991		$	4,213

Remaining performance obligations

Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations under an original contract with a term greater than one year, which are fully or partially unsatisfied at the end of the period.

As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4,722. The Company expects to recognize revenue on approximately $4,213 or 89% of the remaining performance obligations over the next 12 months, and the remainder is expected to be recognized thereafter.

Practical expedients

In cases where the Company is responsible for shipping after the customer has obtained control of the goods, the Company has elected to treat these activities as fulfillment activities rather than as a separate performance obligation. Additionally, the Company has elected to capitalize the cost to obtain a contract only if the period of amortization is longer than one year. The Company only gives consideration to whether a customer agreement has a financing component if the period of time between transfer of goods and services and customer payment is greater than one year. The Company also utilizes the “as invoiced” practical expedient in certain cases where performance obligations are satisfied over time and the invoiced amount corresponds directly with the value the Company is providing to the customer.

6.	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.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

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 Company’s cash equivalents and marketable securities were determined based on Level 1 and Level 2 inputs. The valuation techniques used to measure the fair value of the “Level 2” instruments were based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. The Company believes that the recorded values of its other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. The Company did not have any marketable securities in the Level 3 category as of December 31, 2023 or September 30, 2023. 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 periods ended December 31, 2023 and September 30, 2023.

Instruments measured at fair value on a recurring basis

Cash equivalents and marketable securities: 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 December 31, 2023 and September 30, 2023. Unrealized gains and losses from the remeasurement of marketable securities are recorded in accumulated other comprehensive income (loss) until recognized in earnings upon the sale or maturity of the security.

	December 31, 2023
	Cost Basis		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cash Equivalents		Short-term Securities		Long-term Securities
Level 1:
Money market funds	$	1,060	$	-	$	-		$	1,060	$	1,060	$	-	$	-

Level 2:
Certificates of deposit		302		-		-			302		-		302		-
U.S. government agency bonds		1,161		-		-			1,161		-		1,161		-
Municipal securities		3,707		4		(3	)		3,708		-		3,708		-
Corporate bonds		3,607		1		(2	)		3,606		-		3,606		-
Subtotal		8,777		5		(5	)		8,777		-		8,777		-

Total	$	9,837	$	5	$	(5	)	$	9,837	$	1,060	$	8,777	$	-

	September 30, 2023
	Cost Basis		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cash Equivalents		Short-term Securities		Long-term Securities
Level 1:
Money market funds	$	2,307	$	-	$	-		$	2,307	$	2,307	$	-	$	-

Level 2:
Certificates of deposit		301		-		-			301		-		301		-
Municipal securities		926		-		(7	)		919		-		919		-
Corporate bonds		264		-		(3	)		261		-		261		-
Subtotal		1,491		-		(10	)		1,481		-		1,481		-

Total	$	3,798	$	-	$	(10	)	$	3,788	$	2,307	$	1,481	$	-

The Company manages debt investments as a single portfolio of highly marketable securities that is intended to be available to meet current cash requirements. Historically, the gross unrealized losses related to the Company’s portfolio of available-for-sale debt securities were immaterial, and primarily due to normal market fluctuations and not due to increased credit risk or other valuation concerns. Gross unrealized losses on available-for-sale debt securities was $5 as of December 31, 2023, and historically, such gross unrealized losses have been temporary in nature. The Company believes that it is probable the principal and interest will be collected in accordance with the contractual terms. The debt investment portfolio is reviewed at least quarterly, or when there are changes in credit risks or other potential valuation concerns, to identify and evaluate whether an allowance for credit losses or impairment would be necessary. Factors considered in determining whether a loss is temporary include the magnitude of the decline in market value, the length of time the market value has been below cost (or adjusted cost), credit quality, and the Company’s ability and intent to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

The following table summarizes the fair value and gross unrealized losses related to available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and September 30, 2023:

	As of December 31, 2023
	In loss position < 12 months					In loss position > 12 months					Total in loss position

	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Certificates of deposit	$	-	$	-		$	-	$	-		$	-	$	-
U.S. government agency bonds		-		-			-		-			-		-
Municipal securities		628		(1	)		132		(2	)		760		(3	)
Corporate bonds		2,882		(2	)		-		-			2,882		(2	)
	$	3,510	$	(3	)	$	132	$	(2	)	$	3,642	$	(5	)

	As of September 30, 2023
	In loss position < 12 months					In loss position > 12 months					Total in loss position
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Certificates of deposit	$	-	$	-		$	-	$	-		$	-	$	-
U.S. government agency bonds		-		-			-		-			-		-
Municipal securities		684		(2	)		235		(5	)		919		(7	)
Corporate bonds		-		-			261		(3	)		261		(3	)
	$	684	$	(2	)	$	496	$	(8	)	$	1,180	$	(10	)

Instruments measured at fair value on a non-recurring basis

Nonfinancial assets: Nonfinancial assets such as goodwill, other intangible assets, long-lived assets held and used, and right-of-use (“ROU”) assets are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination.

Goodwill and intangible assets are recognized at fair value during the period in which an acquisition is completed, from updated estimates 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 inputs. The Company estimates the fair value of these long-lived assets on a non-recurring basis based on a market valuation approach, engaging independent valuation experts to assist in the determination of fair value.

The following table presents nonfinancial assets that were subject to fair value measurement during the three months December 31, 2023. There were no business combinations or indicators of impairment during the twelve months ended September 30, 2023.

			Fair Value Measurements at December 31, 2023
	Carrying Value		(Level 1)		(Level 2)		(Level 3)		Gain/(Loss)
Intangible assets from Evertel acquisition	$	2,550	$	-	$	-	$	2,550	$	-
Goodwill from Evertel acquisition	$	2,772	$	-	$	-	$	2,772	$	-

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

Contingent consideration liability: In connection with the Evertel acquisition, the Company recorded a liability related to future performance criteria, A payment of up to $1,050 is payable based on future performance. The contingent consideration liability was recorded at the fair value of $890 as of the acquisition date. The Company engaged independent valuation experts to assist in determining the fair value of the contingent consideration. During each reporting period, the Company will adjust the contingent consideration liability as performance criteria are achieved. The change in fair value is recorded in the accompanying consolidated statement of operations. The changes in the carrying amount of the contingent consideration liability were as follows:

Value at acquisition date	$	890
Remeasurement estimate		46
Balance as of December 31, 2023	$	936

Acquisition holdback liability: In connection with the Evertel acquisition, the Company recorded a holdback liability related to potential future misrepresentations and indemnifications against third-party claims. The holdback liability will be released twelve months from the closing date, subject to amounts withheld for actual, pending or potential claims. The holdback liability was recorded at the present value which was the fair value at the acquisition date. The Company engaged independent valuation experts to assist in determining the present value of the holdback liability. The expected future payment was discounted using a rate representative of the Company’s payment risk and credit rating. Accretion is recorded in each subsequent reporting period based on the discount factor used to arrive at the original fair value. This change in fair value is recorded in the accompanying consolidated statement of operations. The changes in the carrying amount of the holdback liability is as follows:

Balance at acquisition date	$	230
Accretion		5
Balance as of December 31, 2023	$	235

7. INVENTORIES, NET

Inventories, net consisted of the following:

	December 31,			September 30,
	2023			2023
Raw materials	$	4,268		$	5,086
Finished goods		1,865			1,029
Work in process		1,625			1,218
Inventories, gross		7,758			7,333
Reserve for obsolescence		(868	)		(832	)
Inventories, net	$	6,890		$	6,501

8. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

	December 31,			September 30,
	2023			2023
Office furniture and equipment	$	1,526		$	1,582
Machinery and equipment		1,480			1,441
Leasehold improvements		2,313			2,302
Construction in progress		53			-
Property and equipment, gross		5,372			5,325
Accumulated depreciation		(3,785	)		(3,774	)
Property and equipment, net	$	1,587		$	1,551

Depreciation and amortization expense for property and equipment was $110 and $111 for the three months ended December 31, 2023 and 2022, respectively.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

9. GOODWILL AND INTANGIBLE ASSETS

Goodwill is attributable to the acquisitions of Genasys Spain, Zonehaven, Evertel, and the Amika Mobile asset purchase and is due to combining the integrated emergency critical communications, mass messaging solutions and software development capabilities with existing hardware products for enhanced offerings and the skill level of the acquired workforces. The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. As of December 31, 2023 and September 30, 2023, goodwill was $13,151 and $10,282 respectively. During the three months ended December 31, 2023, $2,772 was added to goodwill as a result of the Evertel acquisition. There were no additions or impairments to goodwill during the twelve months ended September 30, 2023.

The changes in the carrying amount of goodwill by segment for the three months ended December 31, 2023, were as follows:

	Hardware		Software		Total
Balance as of September 30, 2023	$	-	$	10,282	$	10,282
Acquisitions		-		2,772		2,772
Currency translation		-		97		97
Balance as of December 31, 2023	$	-	$	13,151	$	13,151

The changes in the carrying amount of intangible assets by segment for the three months ended December 31, 2023, were as follows:

	Hardware			Software			Total
Balance as of September 30, 2023	$	17		$	8,410		$	8,427
Acquisitions		-			2,550			2,550
Amortization		(1	)		(618	)		(619	)
Currency translation		-			8			8
Balance as of December 31, 2023	$	16		$	10,350		$	10,366

Intangible assets and goodwill related to Genasys Spain are translated from Euros to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the period related to goodwill and intangible assets was an increase of $105.

The Company’s consolidated intangible assets consisted of the following:

	December 31,			September 30,
	2023			2023
Technology	$	14,246		$	11,930
Customer relationships		2,075			1,790
Trade name portfolio		614			605
Non-compete agreements		232			223
Patents		72			72
		17,239			14,620
Accumulated amortization		(6,873	)		(6,193	)
	$	10,366		$	8,427

As of December 31, 2023, future amortization expense is as follows:

Fiscal year ending September 30,
2024 (remaining nine months)		1,861
2025		2,358
2026		2,222
2027		2,048
2028		1,220
Thereafter		657
Total estimated amortization expense	$	10,366

Amortization expense was $619 and $532 for the three months ended December 31, 2023 and 2022, respectively.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

10. PREPAID EXPENSES AND OTHER

Prepaid expenses and other current assets consisted of the following:

	December 31,		September 30,
	2023		2023
Deposits for inventory	$	48	$	301
Prepaid insurance		261		264
Dues and subscriptions		363		261
Prepaid professional services		438		136
Prepaid commissions		441		417
Trade shows and travel		93		150
Canadian goods and services and harmonized sales tax receivable		114		123
Other		342		199
	$	2,100	$	1,851

Deposits for inventory

Deposits for inventory consisted of cash payments to vendors for inventory to be delivered in the future.

Prepaid insurance

Prepaid insurance consisted of premiums paid for health, commercial and corporate insurance. These premiums are amortized on a straight-line basis over the term of the agreements.

Dues and subscriptions

Dues and subscriptions consisted of payments made in advance for software subscriptions and trade and professional organizations. These payments are amortized on a straight-line basis over the term of the agreements.

Prepaid professional services

Prepaid professional services consist of payments made in advance for services such as accounting, consulting and legal services.

Prepaid commissions

Prepaid commissions represented the current portion of sales commissions paid in connection with obtaining a contract with a customer. These costs are deferred and are amortized on a straight-line basis over the period of benefit, which is typically between three and five years. Amortization of prepaid commissions is included in selling, general and administrative expenses in the accompanying condensed consolidated statement of operations.

Trade shows and travel

Trade shows and travel consisted of payments made in advance for trade show events.

Canadian goods and services and harmonized sales tax receivable

The goods and services tax and harmonized sales tax (“GST/HST”) is a Canadian value-added tax that applies to many goods and services. Registrants may claim refundable tax credits for GST/HST incurred through filing periodic tax returns. This GST/HST receivable is a receivable from the Canadian Revenue Agency.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

11. ACCRUED AND OTHER LIABILITIES

Accrued liabilities consisted of the following:

	December 31,		September 30,
	2023		2023
Payroll and related	$	2,104	$	2,237
Deferred revenue		2,991		2,703
Customer deposits		1,222		766
Accrued contract costs		897		825
Warranty reserve		110		132
Asset purchase holdback liability		-		736
Acquisition holdback liability		235		-
Acquisition contingent consideration liability		936		-
Other		123		67
Total	$	8,618	$	7,466

Other liabilities-noncurrent consisted of the following:

December 31,

September 30,

2023

Deferred revenue

509

551

Payroll and related

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

Deferred revenue

Deferred revenue as of December 31, 2023, included prepayments from customers for services, including extended warranty, scheduled to be performed in the twelve months ending December 31, 2024.

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, 2024.

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.

Warranty reserve

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

	December 31,			September 30,
	2023			2023
Beginning balance	$	132		$	159
Warranty provision		(22	)		40
Warranty settlements		-			(67	)
Ending balance	$	110		$	132

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.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

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. The holdback liability was paid to the seller of the Amika Mobile assets on October 6, 2023. The liability was recorded at fair value as of September 30, 2023.

Acquisition holdback liability

In connection with the Evertel acquisition, the Company recorded a holdback liability related to potential misrepresentations and indemnifications against third-party claims. The holdback liability will be released twelve months from the closing date, subject to amounts withheld for actual, pending or potential claims. The holdback liability was recorded at the present value which was the fair value at the acquisition date. Accretion is recorded in each subsequent reporting period based on the discount factor used to arrive at the original fait value. This change in fair value is recorded in the accompanying condensed consolidated statement of operations.

Contingent consideration liability

In connection with the Evertel acquisition, the Company recorded a liability related to future performance criteria, The contingent consideration liability was recorded at the fair value at the acquisition date. The liability has and will be adjusted at each reporting period as progress towards the contingent consideration criteria is achieved.

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.

12. LEASES

The Company determines if an arrangement is a lease at inception. The guidance in ASC 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Additionally, the portfolio approach is used in determining the discount rate used to present value lease payments. The ROU asset includes any lease payments made and excludes lease incentives and initial direct costs incurred.

The Company is party to operating leases for office and production facilities and equipment under agreements that expire at various dates through 2028. The Company elected the package of practical expedients permitted under the lease standard. In electing the practical expedient package, the Company is not required to reassess whether an existing or expired contract is or contains a lease, reassess the lease classification for expired or existing leases nor reassess the initial direct costs for leases that commenced before the adoption of ASC 842. The Company also elected the short-term lease exemption such that the lease standard was applied to leases greater than one year in duration. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The tables below show the operating lease ROU assets and liabilities as of September 30, 2023, and the balances as of December 31, 2023, including the changes during the periods.

	Operating lease ROU assets
Operating lease ROU assets as of September 30, 2023	$	3,886
Additional operating lease ROU assets		-
Less amortization of operating lease ROU assets		(192	)
Effect of exchange rate on operating lease ROU assets		18
Operating lease ROU assets as of December 31, 2023	$	3,712

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

	Operating lease liabilities
Operating lease liabilities as of September 30, 2022	$	5,291
Additional operating lease liabilities		-
Less lease principal payments on operating lease liabilities		(248	)
Effect of exchange rate on operating lease liabilities		18
Operating lease liabilities as of December 31, 2023		5,061
Less non-current portion		(4,030	)
Current portion as of December 31, 2023	$	1,031

As of December 31, 2023, the Company’s operating leases have a weighted-average remaining lease term of 4.5 years and a weighted-average discount rate of 4.15%. The maturities of the operating lease liabilities are as follows:

Fiscal year ending September 30,
2024 (remaining nine months)	$	909
2025		1,186
2026		1,200
2027		1,221
2028		1,047
Thereafter		-
Total undiscounted operating lease payments		5,563
Less imputed interest		(502	)
Present value of operating lease liabilities	$	5,061

For the three months ended December 31, 2023 and 2022, total lease expense under operating leases was approximately $245 and $264, respectively. The Company recorded $5 in short-term lease expense during the three months ended December 31, 2023 and did not have any short-term lease expense during the three months ended December 31, 2022.

13. INCOME TAXES

The Company’s effective tax rate for the three months ended December 31, 2023 and 2022 was negative 6.0% and 0%, respectively.

The income tax benefit of $429 for the three months ended December 31, 2023 is primarily attributable to the partial release of $517 of U.S. valuation allowance in conjunction with the acquisition of Evertel as the acquired net deferred tax liabilities will provide a source of income for the Company to realize a portion of its deferred tax assets, for which a valuation allowance is no longer needed, refer to Note 4, Business Combinations, for additional information. For the three months ended December 31, 2022, the Company did not record an income tax benefit for the current period tax loss as the benefits were not expected to be realized during the current or future periods.

The Company continues to maintain a full valuation allowance against its U.S. and foreign deferred tax assets.

ASC 740, Income Taxes, requires the Company to recognize in its consolidated financial statements uncertainties in tax positions taken that may not be sustained upon examination by the taxing authorities. If interest or penalties are assessed, the Company would recognize these charges as income tax expense. The Company has not recorded any income tax expense or benefit for uncertain tax positions.

14. COMMITMENTS AND CONTINGENCIES

Litigation

The Company may at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in the Company’s estimation, record adequate reserves in the Company’s consolidated financial statements for pending litigation. Currently, there are no pending material legal proceedings to which the Company is a party or to which any of its property is subject.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

Bonus plan

The Company has a bonus plan for employees, in accordance with their terms of employment, whereby they can earn a percentage of their salary based on meeting targeted objectives for orders received, revenue, operating income and operating cash flow. In the three months ended December 31, 2023, the recorded $40 in bonus expense. In the three months ended December 31, 2022, the Company recorded $548 of bonus expense.

Amika Mobile asset purchase

The Company also agreed to issue 191,267 shares of the Company’s common stock to the seller of the Amika Mobile assets on each of the first, second and third anniversaries of the closing date. The total number of shares of common stock the Company is obligated to issue is 573,801. The fair value of the Company’s common stock on the closing date was $5.98, resulting in the addition of $3,431 to additional paid-in-capital. During the year ended September 30, 2021, the Company accelerated the issuance of 365,109 of such shares of common stock to the seller of the Amika Mobile assets. During the year ended September 30, 2023, the Company issued 69,564 shares of common stock to the seller of the Amika Mobile assets. There were 69,564 remaining shares of the Company’s common stock subject to issuance under this obligation as of September 30, 2023. These shares were issued on October 2, 2023.

Evertel Acquisition

In connection with the Evertel acquisition, the Company recorded a liability related to future performance criteria, A payment of up to $1,050 is payable based on future performance. The contingent consideration liability was recorded at the fair value at the acquisition date. The Company engaged independent valuation experts to assist in determining the fair value of this contingent consideration. During each reporting period through March 31, 2023, the Company will adjust the contingent consideration liability as performance criteria are achieved. The fair value was $926, as of December 31, 2023.

Also, in connection with the Evertel acquisition, the Company recorded a holdback liability related to potential misrepresentations and indemnifications against third-party claims. The holdback liability will be released twelve months from the closing date, subject to amounts withheld for actual, pending or potential claims. The holdback liability was recorded at the present value which was the fair value at the acquisition date. Accretion is recorded in each subsequent reporting period based on the discount factor used to arrive at the original fait value. This change in fair value is recorded in the accompanying condensed consolidated statement of operations. The fair value was $235, as of December 31, 2023.

The Company also agreed to issue 270,270 shares of the Company’s common stock to the seller of Evertel twelve months from the closing date. The fair value of the Company’s common stock on the closing date was $1.95, resulting in the addition of $527 to additional paid-in-capital.

15. SHARE-BASED COMPENSATION

Stock option plans

The Amended and Restated 2015 Equity Incentive Plan (“2015 Equity Plan”) was adopted by the Company’s Board of Directors on December 6, 2016 and approved by the Company’s stockholders on March 14, 2017. The 2015 Equity Plan was amended by the Company’s Board of Directors on December 8, 2020, to increase the number of shares authorized for issuance from 5,000,000 to 10,000,000. On March 16, 2021, the Company’s stockholders approved the plan amendment. The 2015 Equity Plan authorizes the issuance of stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs”) and performance awards, to an aggregate of 10,000,000 new shares of common stock to employees, directors, advisors or consultants. As of December 31, 2023, there were options and restricted stock units outstanding covering 4,146,369 shares of common stock under the 2015 Equity Plan, respectively, and 2,302,827 shares of common stock available for grant, for a total of 6,449,196 shares of common stock authorized and unissued under the equity plans.

Share-based compensation

The Company’s employee stock options have various restrictions that reduce option value, including vesting provisions and restrictions on transfer and hedging, among others, and are often exercised prior to their contractual maturity.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

There were 887,250 stock options granted during the three months ended December 31, 2023. There were 1,204,000 stock options granted during the three months ended December 31, 2022. The weighted average estimated fair value of employee stock options granted during the three months ended December 31, 2023 and 2022, was calculated using the Black-Scholes option-pricing model with the following weighted average assumptions (annualized percentages):

	Three months ended
	December 31,
	2023			2022
Volatility		57.8	%		52.1	%
Risk-free interest rate		4.3	%		4.1	%
Dividend yield		0.0	%		0.0	%
Expected term in years		4.2			6.1

Expected volatility is based on the historical volatility of the Company’s common stock over the period commensurate with the expected term of the options. The risk-free interest rate is based on rates published by the Federal Reserve Board. The contractual term of the options was seven years. The expected term is based on observed and expected time to post-vesting exercise. The expected forfeiture rate is based on past experience and employee retention data. Forfeitures are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates. Such revision adjustments to expense will be recorded as a cumulative adjustment in the period in which the estimate is changed. The Company has not paid a dividend in fiscal 2024 and did not pay a dividend in fiscal 2023.

As of December 31, 2023, there was approximately $2,154 of total unrecognized compensation costs related to outstanding employee stock options. This amount is expected to be recognized over a weighted average period of 2.4 years. To the extent the forfeiture rate is different from what the Company anticipated, stock-based compensation related to these awards will be different from the Company’s expectations.

Performance-based stock options

On August 10, 2022, the Company granted PVOs to purchase up to 750,000 shares of the Company’s common stock to a key member of management, with a contractual term of seven years. During the year ended September 30, 2023, these options were forfeited due to a voluntary termination of employment. The Company did not record compensation expense related to these options.

On October 8, 2022, the Company awarded performance-based stock options to purchase 800,000 shares of the Company’s common stock to a key executive, with a contractual term of seven years. Vesting is based upon the achievement of certain performance criteria for each of fiscal 2025 and 2026 including a minimum free cash flow margin and net revenue targets. Additionally, vesting is subject to the executive being employed by the Company at the time the Company achieves such financial targets. The Company has not record compensation expense related to these options.

On March 20, 2023, the Company granted PVOs to purchase up to 450,000 shares of the Company’s stock to a key member of management with a contractual term of seven years. Vesting is based upon the achievement of certain performance criteria for each of the first three twelve-month periods following the employee’s start date, including targets related to growth in the institutional ownership of the Company’s common stock and growth in the trading volume of the Company’s common stock during such periods. Additionally, vesting is subject to the employee being employed by the Company on each of the first three anniversaries of the employee’s start date. 225,000 of these options contain a market-based vesting condition and accounting principles do not require the market condition to be achieved in order for compensation expense to be recognized. The Company recorded $62 of compensation expense related to these options during the three months ended December 31, 2023.

The Company did not grant any PVO’s during the three months ended December 31, 2023.

Restricted stock units

During fiscal 2021, 145,950 RSUs were granted to employees that will vest over three years on the anniversary date of the grant. These were issued at a market value of $989, which have and will be expensed on a straight-line basis over the three-year life of the grants.

On November 1, 2021, 10,000 RSUs were granted to a non-employee advisor that vested on the first anniversary of the grant date. These were issued at a market value of $51, which were expensed on a straight-line basis though the November 1, 2022 vest date. On November 1, 2022, 10,000 RSUs were granted to a non-employee advisor that vested on the first anniversary of the grant date. These were issued at a market value of $29, which were expensed on a straight-line basis though the November 1, 2023 vest date. On November 1, 2023, 10,000 RSUs were granted to a non-employee advisor that will vest on the first anniversary of the grant date. These were issued at a market value of $17, which have and will be expensed on a straight-line basis though the November 1, 2024, vest date.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

On March 14, 2023, each non-employee member of the Board of Directors received a grant of 30,000 RSUs that will vest on the first anniversary of the grant date. These RSUs were granted at a market value of $417 and have and will be expensed on a straight-line basis through the March 14, 2024, vest date. On February 14, 2023, 145,600 RSUs were granted to employees that will vest over three years on the anniversary date of the grant. These RSUs were issued at a market value of $582, which have and will be expensed on a straight-line basis over the three-year life of the grants.

Compensation expense for RSUs was $228 and $198 for the three months ended December 31, 2023 and 2022, respectively. As of December 31, 2023, there was approximately $666 of total unrecognized compensation costs related to outstanding RSUs. This amount is expected to be recognized over a weighted average period of 1.1 years.

A summary of the Company’s RSUs as of December 31, 2023 is presented below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding September 30, 2023		379,597		$	3.94
Granted		10,000		$	1.73
Released		(10,000	)	$	2.87
Forfeited/cancelled		-		$	-
Outstanding December 31, 2023		379,597		$	3.91

Stock option summary information

A summary of the activity in options to purchase the capital stock of the Company as of December 31, 2023 is presented below:

	Number of Shares			Weighted Average Exercise Price
Outstanding September 30, 2023		2,904,522		$	3.19
Granted		887,250		$	1.70
Forfeited/expired		(25,000	)	$	1.70
Exercised		-		$	-
Outstanding December 31, 2023		3,766,772		$	2.85
Exerciseable December 31, 2023		992,981		$	3.48

Options outstanding are exercisable at prices ranging from $1.51 to $8.03 per share and expire over the period from 2024 to 2030 with an average life of 5.5 years. The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2023 was $322 and $29, respectively. The aggregate intrinsic value represents the difference between the Company’s closing stock price on the last day of trading for the quarter, which was $2.03 per share, and the exercise price multiplied by the number of applicable options. The total intrinsic value of stock options exercised during the three months ended December 31, 2023 was $0 and proceeds from these exercises was $0. The total intrinsic value of stock options exercised during the three months ended December 31, 2022 was $23 and proceeds from these exercises was $32.

The following table summarized information about stock options outstanding as of December 31, 2023:

					Weighted Average		Weighted Average				Weighted Average
Range of			Number		Remaining		Exercise		Number		Exercise
Exercise Prices			Outstanding		Contractual Term		Price		Exercisable		Price
$1.51	-	$1.76		991,407		6.29	$	1.71		104,157	$	1.75
$2.64	-	$2.68		88,000		6.60	$	2.67		-	$	-
$2.69	-	$2.69		1,100,000		5.77	$	2.69		125,000	$	2.69
$3.09	-	$8.03		1,587,365		4.75	$	3.69		763,824	$	3.84
				3,766,772		5.49	$	2.85		992,981	$	3.48

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

The Company recorded $218 and $222 of stock option compensation expense for employees, directors and consultants for the three months ended December 31, 2023, and 2022, respectively.

Share-based compensation

The Company recorded share-based compensation expense and classified it in the condensed consolidated statements of operations as follows:

	Three Months Ended
	December 31,
	2023		2022
Cost of revenues	$	39	$	28
Selling, general and administrative		380		373
Research and development		27		19
	$	446	$	420

16. STOCKHOLDERS’ EQUITY

Summary

The following table summarizes changes in the components of stockholders’ equity during the three months ended December 31, 2023 and the three months ended December 31, 2022 (amounts in thousands, except par value and share amounts):

	Common Stock				Additional					Accumulated Other			Total
			Par Value		Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance as of September 30, 2023		37,211,071	$	372	$	110,379	$	(76,062	)	$	(505	)	$	33,812
Share-based compensation expense		-		-		446		-			-			446
Issuance of common stock upon offering, net of issuance costs		5,750,000		57		10,449		-			-			10,449
Issuance of common stock upon vesting of restricted stock units		10,000		-		-		-			-			-
Issuance of common stock in business combination		986,486		10		1,924		-			-			1,924
Obligation to issue common stock		-		-		527		-			-			527
Release of obligation to issue common stock		69,564		1		-		-			-			-
Accumulated other comprehensive loss		-		-		-		-			119			119
Net loss		-		-		-		(6,724	)		-			(6,724	)
Balance as of December 31, 2023		44,027,121	$	440	$	123,725	$	(82,786	)	$	(386	)	$	40,553

										Accumulated
	Common Stock				Additional					Other			Total
			Par Value		Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance as of September 30, 2022		36,611,240		366		108,551		(57,366	)		(792	)		50,393
Share-based compensation expense		-		-		420		-			-			420
Issuance of common stock upon exercise of stock options, net		20,000		-		32		-			-			32
Issuance of common stock upon vesting of restricted stock units		12,667		-		-		-			-			-
Release of obligation to issue common stock		69,564		1		-		-						-
Accumulated other comprehensive loss		-		-		-		-			266			266
Net loss		-		-		-		(3,507	)					(3,507	)
Balance as of December 31, 2022		36,713,471		367		109,003		(60,873	)		(526	)		47,604

Common stock activity

During the three months ended December 31, 2023, there were no exercises of stock options and the Company issued 10,000 shares of common stock in connection with the vesting of RSUs. During the three months ended December 31, 2022, the Company issued 20,000 shares of common stock and received gross proceeds of $32 in connection with the exercise of stock options and the Company issued 12,667 shares of common stock in connection with the vesting of RSUs.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

On October 4, 2023, the Company completed an underwritten offering of 5,750,000 shares of its common stock at a public offering price of $2.00 per share of common stock. The Company received gross proceeds of approximately $11,500 from the offering, before underwriting discounts and commissions and offering expenses of $1,051. The Company intends to use the net proceeds from this offering for general corporate purposes, including funding organic growth, working capital, capital expenditures, and continued research and development with respect to products and technologies, as well as costs related to post-closing integration with the Evertel business and research and development activities related to the integrated business.

In connection with the Evertel acquisition, the Company issued 986,486 shares of common stock to the former owners of Evertel. The fair value of the Company’s stock on the closing date was $1.95 which resulted in the addition of $1,924 to additional-paid-in-capital.

Also, in connection with the Evertel acquisition, the Company agreed to issue 270,270 shares of the Company’s common stock to the seller of Evertel twelve months from the closing date. The fair value of the Company’s common stock on the closing date was $1.95, resulting in the addition of $527 to additional paid-in-capital.

In connection with the Amika Mobile asset purchase, the Company agreed to issue 191,267 shares of the Company’s common stock to the former owners of Amika Mobile on each of the first, second and third anniversaries of the closing date. The total number of shares of common stock the Company was obligated to issue was 573,801. The fair value of the Company’s common stock on the closing date was $5.98, resulting in the addition of $3,431 to additional paid-in-capital. During the year ended September 30, 2021, the Company accelerated the issuance of 365,109 of such shares of common stock to a former owner of the Amika Mobile assets. The Company issued 69,564 shares to the former owners of the Amika Mobile assets during each the years ended September 30, 2023 and 2022. During the three months ended December 31, 2023, the Company issued the final 69,564 shares to the former owners of the Amika Mobile assets.

Share buyback program

In December 2022, the Board of Directors extended the Company’s share buyback program through December 31, 2024. Under the program, the Company was authorized to repurchase up to $5,000 of its outstanding common shares.

There were no shares repurchased during the three months ended December 31, 2023 and 2022. All repurchased shares have been retired.

Dividends

There were no dividends declared in the three months ended December 31, 2023 and 2022.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

17. NET LOSS PER SHARE

The following table sets forth the computation of basic and diluted net loss per share:

	Three months ended
	December 31,
	2023			2022
Net loss	$	(6,724	)	$	(3,507	)

Basic and diluted loss per share	$	(0.15	)	$	(0.10	)

Weighted average shares outstanding - basic		43,729,240			36,696,145
Assumed exercise of dilutive options		-			-
Weighted average shares outstanding - diluted		43,729,240			36,696,145

Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive:
Options		3,766,772			4,814,537
RSU		379,597			340,174
Obligation to issue common stock		-			69,564
Total		4,146,369			5,224,275

18. SEGMENT INFORMATION

The Company is engaged in the design, development and commercialization of directed and multidirectional sound technologies, voice broadcast products, and location-based mass messaging software for emergency warning and evacuation management. The Company operates in two business segments: Hardware and Software and its principal markets are North and South America, Europe, the Middle East and Asia. As reviewed by the Company’s chief operating decision maker, the Company evaluates the performance of each segment based on sales and operating income. Cash and cash equivalents, marketable securities, accounts receivable, inventory, property and equipment, deferred tax assets, goodwill and intangible assets are primary assets identified by segment. The accounting policies for segment reporting are the same for the Company as a whole.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

The following table presents the Company’s segment disclosures:

	Three months ended
	December 31,
	2023			2022
Revenue from external customers
Hardware	$	2,946		$	9,584
Software		1,415			903
	$	4,361		$	10,487

Intersegment revenues
Hardware	$	-		$	-
Software		1,488			1,222
	$	1,488		$	1,222

Segment operating loss
Hardware	$	(3,115	)	$	(28	)
Software		(4,115	)		(3,459	)
	$	(7,230	)	$	(3,487	)

Other expenses:
Depreciation and amortization expense
Hardware	$	96		$	99
Software		633			544
	$	729		$	643

Income tax benefit
Hardware	$	-		$	-
Software		(429	)		-
	$	(429	)	$	-

	December 31,		September 30,
	2023		2023
Long-lived assets
Hardware	$	1,467	$	1,427
Software		10,486		8,551
	$	11,953	$	9,978

Total assets
Hardware	$	31,341	$	28,878
Software		25,297		21,027
	$	56,638	$	49,905

19. MAJOR CUSTOMERS, SUPPLIERS AND RELATED INFORMATION

For the three months ended December 31, 2023, revenues from two customers accounted for 14% and 13% of total revenues with no other single customer accounting for more than 10% of revenues. As of December 31, 2023, accounts receivable from three customers accounted for 35%, 11% and 10% of total accounts receivable, with no other single customer accounting for more than 10% of the accounts receivable balance.

For the three months ended December 31, 2022, revenues from one customer accounted for 60% of total revenues with no other single customer accounting for more than 10% of revenues. As of December 31, 2022, accounts receivable from two customers accounted for 41% and 18% of total accounts receivable, with no other single customer accounting for more than 10% of the accounts receivable balance.

Genasys Inc.

Notes to the Condensed Consolidated Financial Statements

(in thousands, except per share and share amounts)

(Unaudited)

Revenue from customers in the United States was $3,624 and $8,938 for the three months ended December 31, 2023 and 2022, respectively. The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location. The following table summarizes revenues by geographic region.

	Three months ended December 31,
	2023		2022
Americas	$	3,667	$	9,163
Asia Pacific		319		759
Europe, Middle East and Africa		375		565
Total Revenues	$	4,361	$	10,487

The following table summarizes long-lived assets by geographic region.

	December 31,		September 30,
	2023		2023
United States	$	11,637	$	9,624
Americas (excluding the United States)		6		7
Europe, Middle East and Africa		310		347
Total long lived assets	$	11,953	$	9,978

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion and analysis set forth below should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the related notes included under Item 1 of this Quarterly Report on Form 10-Q, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended September 30, 2023.

Forward Looking Statements

This report contains certain statements of a forward-looking nature relating to future events or future performance. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements but are not the only means of identifying forward-looking statements. Prospective investors are cautioned that such statements are only predictions and actual events or results may differ materially. In evaluating such statements, prospective investors should specifically consider various factors identified in this report and any matters set forth under Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K, which could cause actual results to differ materially from those indicated by such forward-looking statements.

For purposes of this Quarterly Report, the terms “we,” “us,” “our” “Genasys” and the “Company” refer to Genasys Inc. and its consolidated subsidiaries.

Overview

We are a global provider of Protective Communications solutions, including our Genasys Protect software platform and Genasys Long Range Acoustic Devices.  Our unified software platform receives information from a wide variety of sensors and IoT inputs to collect real-time information on developing and active emergency situations. Genasys uses this information to create and disseminate alerts, warnings, notifications, and instructions through multiple channels before, during, and after public safety and enterprise threats, critical events, and other crisis situations.

Genasys Protect provides a comprehensive portfolio of Protective Communications software and hardware systems serving federal governments and agencies; state and local governmental agencies, and education (“SLED”); and enterprise organizations in sectors including but not limited to oil and gas, utilities, manufacturing, automotive, and healthcare.  Genasys Protect solutions have a diverse range of applications, including emergency warning and mass notification for public safety; critical event management for enterprise companies; de-escalation for defense and law enforcement; critical infrastructure protection; and automated detection of real-time threats such as active shooters and severe weather.

Genasys’ LRAD systems broadcast audible directed voice messages with exceptional clarity from close range out to 5,500 meters. We have a history of successfully delivering innovative systems and solutions in mission critical situations, pioneering the acoustic hailing device (“AHD”) market with the introduction of our first LRAD AHD in 2002 and creating the first multidirectional voice-based public safety mass notification systems in 2012. Building on our proven, best in class solutions and systems, we recently launched the first and only unified, end-to-end Protective Communications platform – Genasys Protect.

The platform includes:

Software Products

Genasys Protect

The Complete Protective Communications Platform

Genasys Protect combines the most comprehensive suite of solutions enabling preparedness, responsiveness, and analytics to keep people, assets, and operations protected against the impacts of natural disasters, terrorism, violent civil unrest, and other dangerous situations, as well as power failures, facility shutdowns, and other non-emergency operational disruptions.

Proven Technology: Genasys solutions have been on the front lines for more than 40 years, providing precision-targeted communications designed to ensure the right people get the right message - right away.

Modular Suite: Built on open standards, Genasys software and hardware systems are designed to easily integrate, whether using the full Genasys suite or complementing the notification platforms customers already have in place.

Predictive Simulation: Genasys Protect is designed to enable customers to test response plans preemptively with advanced simulation of evacuation-level events, including fires and floods, and their impact on infrastructure, including traffic patterns and perimeter establishment.

Unified Viewpoint: One common safety operating picture provides real-time visibility into our customers’ people, assets, and environment by combining first-party data from asset / people-management platforms and IoT sensors with vetted third-party data sources, including the Federal Emergency Management Agency (“FEMA”), National Oceanic and Atmospheric Administration, Department of Homeland Security, and more.

Unmatched Precision: Customized zone mapping enables targeting of mass notifications at the street level, making it easier to sequence response areas from most to least critical.

Multi-channel: Genasys Protect is designed to allow customers to saturate their notification area by simultaneously alerting people across SMS, voice calls, social media, TV, radio, digital signage, and outdoor acoustic devices.

Network Effect: Implementation in neighboring municipalities as well as across public- and private-sector organizations within the same municipality extends coverage and enables greater precision when notifying people of threats.

Genasys Protect ALERT

ALERT is an interactive, cloud-based SaaS solution that enables SLED and enterprise customers to send critical information to at-risk individuals or groups when an emergency occurs. ALERT acts as both a communications input and output, receiving information from state-of-the-art sensors and emergency services, and quickly relaying notifications, alerts, and instructions to at-risk populations and first responders. ALERT communications with the public can be enhanced via Genasys Protect ACOUSTICS, while ALERT communications among first responders and emergency personnel can be augmented and accelerated with Genasys Protect CONNECT (formerly Evertel). ALERT customers can create and send critical, verified, and secure notifications and messages that are geographically specific and targeted using emails, voice calls, text messages, panic buttons, desktop alerts, TV, social media, and more. Additionally, Genasys is a certified provider of Integrated Public Alert and Warning Systems (“IPAWS”) notifications. IPAWS is the federal public notification platform for the United States, which ALERT customers can use to deliver critical communications in multiple languages to specific populations.

Similarly, enterprise customers are able to send critical communications to at-risk employees, contractors, visitors, or groups based on geographic location or team status. Operated and controlled via a single dashboard that includes two-way polling, duress buttons, field check-ins and recipient locations, ALERT integrates with various data sources, including sensors, emergency services, active directories, human resources, visitor management, and building control systems to find and deliver safety alerts and notifications to residents, employees, staff, contractors, temporary workers, and visitors.

ALERT sends targeted messages based on geographic location, permitting relevant information and instructions to be sent to the appropriate populations. Emergency managers can prepare for natural or man-made disasters by developing evacuation plans that map routes, shelters, traffic control locations, and road closures using ALERT’s extensive public safety resources and mapped zones. This information is easily shared with the public and reduces the time it takes to execute emergency evacuations and conduct orderly repopulations. Auto-Discovery, an innovative feature of the platform, locates and connects with anyone on a wired or wireless network in a fixed area with no opt-in required. When discovered, ALERT anonymizes all recipient information and data. When an emergency occurs, these tools allow at-risk groups or individuals to be notified as quickly as possible without sacrificing their privacy.

In addition to disseminating alerts and notifications, ALERT uses two-way communication tools, including polls and check-ins to receive feedback from targeted populations and first responders. With direct feedback, operators can survey the safety and status of at-risk individuals, learn of developments, update notifications and/or instructions in response to new information, and more.

Genasys Protect EVAC

EVAC enables responding agencies to react swiftly, make collaborative decisions, and communicate event status in real-time to other agencies, businesses, and the public. EVAC determines and communicates the proper scope of a response or evacuation by replacing guesswork with data-driven intelligence. EVAC enhances safety levels for first responders, communities, and large campuses by providing:

●

intelligent zones to improve evacuation planning and communication. EVAC users can build, edit, and act upon geographical location data, including shelters, facilities, and traffic;

●

modeling behaviors to plan for effective responses and/or evacuation scenarios covering emergencies that include wildfires, floods, active shooters, hurricanes, and more;

●

actionable communication through the Genasys Protect mobile app to keep people informed before, during, and after a critical event;

●

a common operating picture across agencies to reduce response times by 90%; and

●

targeted alerting across multiple channels, including intelligible, outdoor speakers for timely, efficient evacuation and public safety notifications.

Genasys Protect CONNECT

CONNECT is a leading cross-agency collaboration platform that streamlines and secures team and one-on-one communications for first responders and public safety agencies. With real-time intelligence sharing that exceeds regulatory privacy requirements for public agencies, CONNECT’s instant communication platform empowers first responders and public safety personnel to collaborate and share information in a single space with text, videos, images, and audio from any location. CONNECT provides a secure space where professionals can exchange information, make decisions, and collaborate with trust in data security. Record retention policies drive compliance that allows agencies and personnel to communicate in confidence.

Enabling public safety professionals to collaborate with other agencies throughout their region, state and country, CONNECT provides real-time interoperability to address critical events and crisis situations more quickly through coordinated efforts. Compliant with all federal and state-level legal requirements for public safety communications, CONNECT data is protected and secured through high-level data encryption within a secure, U.S. based, government-only cloud environment.

Hardware

Genasys Protect ACOUSTICS

ACOUSTICS unites Genasys’ next generation of mass notification speaker systems with Genasys Protect command-and-control software. Most legacy mass notification systems are sirens with limited, if any, voice broadcast capability. ACOUSTICS systems feature the mass notification industry's highest Speech Transmission Index (“STI”), large directional and omni-directional broadcast coverage areas, and an array of options including solar power, battery backup, and satellite connectivity that enable the systems to continue operating when power and telecommunications infrastructure goes down.

ACOUSTICS gives operators the ability to send critical alerts and notifications from emergency operations centers, and authorized computers or smart phones. Emergency alerts and information can be sent via individual, grouped, or networked ACOUSTICS installations, text messages, emails, IPAWS, desktop alerts, TV, voice calls, and social media. Genasys Protect’s layered redundancy helps to ensure the maximum number of people receive Protective Communications and critical notifications.

Genasys LRAD

LRAD is the world’s leading AHD, with the ability to project audible alert tones and voice messages with exceptional vocal clarity in a 30° beam from close range to 5,500 meters. LRADs are used throughout the world in multiple applications and circumstances to safely hail, warn, inform, direct, prevent misunderstandings, determine intent, establish large safety zones, resolve uncertain situations, and save lives. LRADs have been deployed in numerous defense, law enforcement, public safety, maritime, oil & gas and critical infrastructure security installations and applications where clear and intelligible voice communications are essential.

Several LRAD models are available in varying audio outputs, communication coverage areas, sizes, and functionalities. Several options and accessories (cameras, searchlights, mounts, and more) are also available to enhance LRAD capabilities.

All LRAD systems are defined by unparalleled audio output and clarity. LRADs use Genasys' proprietary XL driver technology, which generates higher audio output in smaller, lighter form factors. The technology also helps ensure voice messages and alert tones cut through background noise and are clearly heard and understood. These competitive advantages, and constant innovation, have made LRAD the de facto standard of the global AHD industry.

Recent Developments

Business developments since September 30, 2023:

•

Awarded critical infrastructure project to engineer, procure and build a Genasys Protect early warning system for 37 dams in Puerto Rico. The project is backed by $194.3 million in FEMA funding.

•

Expanded Genasys Protect EVAC coverage to include all of Los Angeles County, CA under a five year contract

•

Completed acquisition of Evertel Technologies, subsequently rebranded as Genasys Protect CONNECT

•

Selected by the State of Utah's Department of Corrections to provide secure communications

•

Closed $10.4 million offering of common stock

•

Received $1.0 million contract from the U.S. Army for Common Remotely Operated Weapon Stations (“CROWS”) LRAD integration prototypes

•

Awarded $2.0 million contract under a multi-phase program to deploy LRADs on naval ships and shore installations of a Middle Eastern country

•

Announced new critical infrastructure protection orders from three companies in the U.S. Energy sector

•

Partnered with Ladris Technologies, Inc., an artificial intelligence provider, to deliver comprehensive disaster evacuation modeling solutions across North America and Europe

Revenues for the Company’s first quarter of fiscal 2024, were $4,361, a decrease from $10,487 in the first quarter of fiscal 2023. Software revenue of $1,415 increased $512, offset by a decrease of $6,638 in hardware revenue ($2,946). First quarter hardware revenue in the prior year included $5,400 from a U.S. Army program of record. Deliveries against this program of record were completed in the fourth quarter of fiscal 2023. A similar sized new program is pending as part of the Department of Defense fiscal year 2024 authorization. The timing of budget cycles, government financial issues and military conflict in certain areas of the world, often delay contract awards, resulting in uneven quarterly revenue. Gross profit decreased compared to the same quarter in the prior year as a result of lower hardware revenue and reduced overhead absorption, partially offset by higher margin software revenue in this year’s quarter. Operating expenses in the quarter ended December 31, 2023, increased 5% to $8,709, compared with $8,319 in the same period in the prior year. We reported a net loss of $6,724 for the first quarter of fiscal 2024, or $(0.15) per share, compared with a net loss of $3,507, or $(0.10) per share, for the same quarter in the prior year.

Business Outlook

Our products, systems, and solutions continue to gain worldwide awareness and recognition through increased marketing efforts, product demonstrations, and word of mouth as a result of positive responses and increased acceptance. We believe we have a solid global brand, technology, and product foundation, which we continue to expand to serve new markets and customers for greater business growth. We believe we have strong market opportunities for our product offerings throughout the world in the defense, public safety, emergency warning, mass notification, critical event management, enterprise safety, and law enforcement sectors as a result of increasing threats to government, commerce, law enforcement, homeland security, and critical infrastructure. Our products, systems, and solutions also have many applications within the fire rescue, maritime, asset protection, and wildlife preservation business segments.

Genasys has developed a global market and an increased demand for LRADs and advanced mass notification speakers. We have a reputation for producing quality products that feature industry-leading broadcast area coverage, vocal intelligibility, and product reliability. We intend to continue building on our AHD market leadership position by offering enhanced voice broadcast systems and accessories for an expanding range of applications. In executing our strategy, we use direct sales to governments, militaries, large end-users, system integrators, and prime vendors. We have built a worldwide distribution channel consisting of partners and resellers that have significant expertise and experience selling integrated communication solutions into our various target markets. As our primary AHD sales opportunities are with domestic and international governments, military branches, and law enforcement agencies, we are subject to each customer’s unique budget cycle, which leads to long selling cycles and uneven revenue flow, complicating our product planning.

The proliferation of natural and man-made disasters, crisis situations, and civil unrest require technologically advanced, multichannel solutions to deliver clear and timely protective communications to help keep people safe during critical events. Businesses are also incorporating protective communication and emergency management systems that locate and help safeguard employees and infrastructure when crises occur.

By providing the only SaaS platform that unifies sensors and IoT inputs with multichannel, multiagency alerting and notifications, Genasys seeks to deliver reliable, fast, and intuitive solutions for creating and disseminating geolocation-targeted warnings, information, and instructions before, during, and after public safety and enterprise threats.

While the software and hardware mass notification markets are more mature with many established manufacturers and suppliers, we believe that our advanced technology and unified platform provides opportunities to succeed in the large and growing public safety, emergency warning, and critical communications markets.

In fiscal 2024, we intend to continue pursuing domestic and international business opportunities with the support of business development consultants, key representatives, and resellers. We plan to grow our revenues through increased direct sales to governments and agencies that desire to integrate our communication technologies into their homeland security and public safety systems. This includes building on fiscal 2023 domestic defense sales by pursuing further U.S. military opportunities. We also plan to pursue domestic and international emergency warning, enterprise and critical event management, government, law enforcement, fire rescue, homeland and international security, private and commercial security, border security, maritime security, and wildlife preservation business opportunities. In addition to the matters above, we are authorized for the performance of services and provision of goods pursuant to Delaware General Corporation Law.

Our research and development strategy involves incorporating further innovations and capabilities into our Genasys Protect platform to meet the needs of our target markets.

Our Genasys Protect software solutions are more complex offerings. We are pursuing certain certifications, which are often required when bidding on government and mass notification opportunities. We intend to invest engineering resources to enhance our ALERT, EVAC, and CONNECT software solutions to compete for larger emergency warning and critical communications business opportunities. We are also configuring alternative solutions to achieve lower price points to meet the needs of certain customers or applications. We also engage in ongoing value engineering to reduce the cost and simplify the manufacturing of our products.

A large number of LRAD and ACOUSTICS components and sub-assemblies manufactured by outside suppliers within our supply chain are produced within 50 miles of our facility. We do not source component parts from suppliers in China. It is likely that some of our suppliers source parts in China. Negative impacts on our supply chain could have a material adverse effect on our business.

We have been affected by price increases from our suppliers and logistics as well as other inflationary factors such as increased salary, labor, and overhead costs. We regularly review and adjust the sales price of our finished goods to offset these inflationary factors. Although we do not believe that inflation has had a material impact on our financial results through December 31, 2023, sustained or increased inflation in the future may have a negative effect on our ability to achieve certain expectations in gross margin and operating expenses. If we are unable to offset the negative impacts of inflation with increased prices, our future results could be materially affected.

Critical Accounting Policies

We have identified a number of accounting policies as critical to our business operations and the understanding of our results of operations. These are described in our consolidated financial statements located in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended September 30, 2023. The impact and any associated risks related to these policies on our business operations is discussed below and throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations when such policies affect our reported and expected financial results.

The methods, estimates and judgments we use in applying our accounting policies, in conformity with U.S. generally accepted accounting principles, have a significant impact on the results we report in our financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. The estimates affect the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

The following critical accounting policy was not included in our consolidated financial statements located in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended September 30, 2023.

Business Combinations

We apply the provisions of ASC Topic 805, Business Combinations, in accounting for our acquisitions. The acquired assets and assumed liabilities are recorded at their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the fair value of net identifiable assets. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the date of acquisition, as well as any contingent consideration, our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. Upon conclusion of the measurement period, or the final determination of values for assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments will be recorded in our consolidated statements of operations.

Accounting for business combinations requires significant judgment, estimates and assumptions at the acquisition date. In developing estimates of fair values at the acquisition date, we utilize a variety of factors including market data, independent experts, historical and future expected cash flows, growth rates and discount rates. The subjective nature of our assumptions increases the risk associated with estimates surrounding the projected performance of the acquired entity.

Comparison of Results of Operations for the Three Months Ended December 31, 2023 and 2022 (in thousands)

	Three Months Ended
	December 31, 2023						December 31, 2022
				% of						% of
				Total						Total			Fav(Unfav)
	Amount			Revenue			Amount			Revenue			Amount			%
Revenues:
Product sales	$	2,166			49.7	%	$	9,118			86.9	%	$	(6,952	)		(76.2	%)
Contract and other		2,195			50.3	%		1,369			13.1	%		826			60.3	%
Total revenues		4,361			100.0	%		10,487			100.0	%		(6,126	)		(58.4	%)

Cost of revenues		2,882			66.1	%		5,655			53.9	%		2,773			49.0	%
Gross Profit		1,479			33.9	%		4,832			46.1	%		(3,353	)		(69.4	%)

Operating expenses
Selling, general and administrative		6,518			149.5	%		6,384			60.9	%		(134	)		(2.1	%)
Research and development		2,191			50.2	%		1,935			18.5	%		(256	)		(13.2	%)
Total operating expenses		8,709			199.7	%		8,319			79.3	%		(390	)		(4.7	%)

Loss from operations		(7,230	)		(165.8	%)		(3,487	)		(33.3	%)		(3,743	)		107.3	%

Other income (expense), net		77			1.8	%		(20	)		(0.2	%)		97			(485.0	%)

Loss before income taxes		(7,153	)		(164.0	%)		(3,507	)		(33.4	%)		(3,646	)		104.0	%
Income tax benefit		(429	)		(9.8	%)		-			0.0	%		429			100.0	%
Net loss	$	(6,724	)		(154.2	%)	$	(3,507	)		(33.4	%)	$	(3,217	)		91.7	%

Net revenue
Hardware	$	2,946			67.6	%	$	9,584			91.4	%		(6,638	)		(69.3	%)
Software		1,415			32.4	%		903			8.6	%		512			56.7	%
Total net revenue	$	4,361			100.0	%	$	10,487			100.0	%	$	(6,126	)		(58.4	%)

The tables above set forth for the periods indicated certain items of our condensed consolidated statements of operations expressed in dollars and as a percentage of net revenues. The financial information and the discussion below should be read in conjunction with the condensed consolidated financial statements and notes contained in this report.

Revenues

Revenues decreased $6,126, or 58%, compared with the first fiscal quarter in the prior year. Hardware revenue decreased $6,638, partially offset by software revenue ($1,415) which increased $512, compared with the prior year quarter. The lower hardware revenue in the first quarter of fiscal 2024 was largely due to the lower backlog at the start of the fiscal year compared with the prior year amount. First quarter hardware revenue in the prior year included $5,400 from a U.S. Army program of record. Deliveries against this program of record were completed in the fourth quarter of fiscal 2023. A similar sized new program is pending as part of the Department of Defense fiscal year 2024 authorization. The higher software revenue was primarily due to a 85% increase in recurring revenue partially offset by lower professional services performed in the current quarter. The receipt of orders is often uneven due to the timing of budget cycles, government financial issues and military conflict. As of December 31, 2023, we had aggregate deferred revenue of $4,722 for extended warranty obligations and software support agreements.

Gross Profit

Gross profit decreased $3,353, or 69%, compared with the same quarter in the prior year. The decrease was due to lower hardware revenue. The decrease in gross profit was due to lower hardware revenue and related reduced overhead absorption, partially offset by higher margin software in the current year’s first quarter. Gross profit as a percentage of sales was lower compared with the prior year period primarily due to reduced overhead absorption as a result of lower hardware revenue in the first quarter of fiscal 2024.

As our products have varying gross margins, product mix may affect gross profits. In addition, our margins vary based on the sales channels through which our products are sold in a given period. We continue to implement product updates and changes, including raw material and component changes, that may impact product costs. We have limited warranty cost experience with product updates and changes and estimated future warranty costs can impact our gross margins. We do not believe that historical gross profit margins should be relied upon as an indicator of future gross profit margins.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $134, or 2%, over the prior year quarter. The increase was largely due to $231 of higher compensation expenses from additional sales and related personnel and an additional $95 of amortization expense from the Evertel acquisition, offset by a $194 decrease in total professional services and travel related expenses.

We incurred non-cash share-based compensation expenses allocated to selling, general and administrative expenses in the three months ended December 31, 2023 and 2022 of $380 and $373, respectively.

We may expend additional resources on the marketing and selling of our products in future periods as we identify ways to optimize potential opportunities. Commission expenses will fluctuate based on the nature of our sales.

Research and Development Expenses

Research and development expenses increased $256, or 13%, in the fiscal first quarter due to an increase in engineers over the prior year period, including the addition of Evertel software development activities.

Included in research and development expenses for the three months ended December 31, 2023 and 2022, were $27 and $19, respectively, of non-cash share-based compensation costs.

Research and development costs vary period to period due to the timing of projects, and the timing and extent of using outside consulting, design, and development firms. We seek to continually improve our product offerings, and we expect to continue to expand our product line with new products, customizations, and enhancements. Based on current plans, we may expend additional resources on research and development in the current fiscal year compared to the prior fiscal year.

Net Loss

Net loss in the first quarter of fiscal year 2024 was $6,724, compared with a net loss of $3,507 in the first quarter of fiscal year 2023. The increase in net loss was primarily due to the lower revenue in the fiscal first quarter. The income tax benefit in the current year period is primarily due to acquisition related accounting leading to the release of a portion of the non-cash valuation allowance against deferred taxes.

Other Metrics

We monitor a number of financial and operating metrics, including adjusted EBITDA, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Our business metrics may be calculated in a manner different than similar other business metrics used by other companies.

Adjusted EBITDA

Adjusted EBITDA represents our net income before other income, net income tax expense (benefit), depreciation and amortization expense, and stock-based compensation. We do not consider these items to be indicative of our core operating performance. The items that are non-cash include depreciation and amortization expense and stock-based compensation. Adjusted EBITDA is a measure used by management to understand and evaluate our core operating performance and trends, and to generate future operating plans, make strategic decisions regarding allocation of capital, and invest in initiatives focused on cultivating new markets for our solutions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis. Adjusted EBITDA is not a measure calculated in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). We believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Nevertheless, use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (1) although depreciation and amortization are non-cash charges, the intangible assets that are amortized and property and equipment that is depreciated, will need to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacement or for new capital expenditure requirements; (2) adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (3) adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (4) adjusted EBITDA does not reflect tax payments or receipts that may represent a reduction or increase in cash available to us; and (5) other companies, including companies in our industry, may calculate adjusted EBITDA or similarly titled measures differently, which reduces the usefulness of the metric as a comparative measure. Because of these and other limitations, you should consider adjusted EBITDA alongside our other U.S. GAAP-based financial performance measures, net income and our other U.S. GAAP financial results.

The following table presents a reconciliation of adjusted EBITDA to net income, the most directly comparable U.S. GAAP measure, for each of the periods indicated (in thousands):

	Three months ended
	December 31,
	2023			2022
Net loss	$	(6,724	)	$	(3,507	)
Other (income) loss, net		(77	)		20
Income tax benefit		(429	)		-
Depreciation and amortization		729			643
Stock-based compensation		446			420
Adjusted EBITDA	$	(6,055	)	$	(2,424	)

Segment Results

Segment results include net sales and operating income by segment. Corporate expense including various administrative expenses and costs of a publicly traded company are included in the Hardware segment as per historical financial reporting.

	Software												Hardware
	Three months ended												Three months ended
	December 31,						Fav (Unfav)						December 31,						Fav (Unfav)
	2023			2022			$			%			2023			2022			$			%
Revenue	$	1,415		$	903		$	512			56.7	%	$	2,946		$	9,584		$	(6,638	)		(69.3	%)
Operating loss		(4,115	)		(3,459	)		(656	)		19.0	%		(3,115	)		(28	)		(3,087	)		11025.0	%

Reconciliation of GAAP to Non-GAAP
Depreciation and amortization		633			544			89			16.4	%		96			99			(3	)		(3.0	%)
Stock-based compensation		99			100			(1	)		(1.0	%)		347			320			27			8.4	%
Adjusted EBITDA	$	(3,383	)	$	(2,815	)	$	(568	)		20.2	%	$	(2,672	)	$	391		$	(3,063	)		(783.4	%)

Software Segment

Software segment revenue increased 57% over the prior fiscal year. This primarily reflects a 85% increase in recurring revenue compared to the prior fiscal year.

Operating loss increased $656 in the fiscal first quarter of the current year due to increases in payroll and benefits costs from increased hiring to support software development and sales, increased sales and marketing and related expenses, higher professional services expenses and higher commission expense resulting from the increased revenues.

Hardware Segment

Hardware segment revenue decreased $6,638, or 69%, over the prior year. The decrease was largely due to the lower backlog at the start of this fiscal year compared to the prior year amount. First quarter hardware revenue in the prior year included $5,400 from a U.S. Army program of record. Deliveries against this program of record were completed in the fourth quarter of fiscal 2023. A similar sized new program is pending as part of the Department of Defense fiscal year 2024 authorization.

Operating income decreased $3,087 in the current fiscal year period due to the lower revenue and resultant gross profit.

Liquidity and Capital Resources

Cash and cash equivalents as of December 31, 2023 were $4,780, compared with $8,665 as of September 30, 2023. We had short-term marketable securities of $8,777 as of December 31, 2023, compared with $1,481 as of September 30, 2023. In addition to cash and cash equivalents, short term marketable securities, other working capital and expected future cash flows from operating activities in subsequent periods, we have no other unused sources of liquidity at this time.

We continue to manage all aspects of our business including, but not limited to, monitoring the financial health of our customers, suppliers and other third-party relationships and developing new opportunities for growth.

Principal factors that could affect the availability of our internally generated funds include:

•

ability to meet sales projections;

•

government spending levels;

•

introduction of competing technologies;

•

product mix and effect on margins;

•

ability to reduce and manage current inventory levels; and

•

product acceptance in new markets;

Principal factors that could affect our ability to obtain cash from external sources include:

•

volatility in the capital markets; and

•

market price and trading volume of our common stock.

Based on our current cash position, and assuming currently planned expenditures and level of operations, we believe we have sufficient capital to fund operations for the twelve-month period subsequent to the issuance of the interim financial information. However, we operate in a rapidly evolving and unpredictable business environment that may change the timing or amount of expected future cash receipts and expenditures. Accordingly, there can be no assurance that we may not be required to raise additional funds through the sale of equity or debt securities or from credit facilities. Additional capital, if needed, may not be available on satisfactory terms, or at all.

Cash Flows

Our cash flows from operating, investing and financing activities, as reflected in the condensed consolidated statements of cash flows, are summarized in the table below:

	Three months ended
	December 31, 2023			December 31, 2022
Cash provided by (used in):
Operating activities	$	(5,729	)	$	(4,850	)
Investing activities		(9,114	)		(483	)
Financing activities		10,449			32

Operating Activities

Net loss of $6,724 for the three months ended December 31, 2023 was decreased by $920 of non-cash items that included share-based compensation, warranty provision, depreciation and amortization, amortization of operating lease ROU assets, accretion of acquisition related liabilities and inventory obsolescence. Cash used by operating activities in the fiscal first quarter reflected an increase in inventory of $429, an increase in prepaids and other assets of $249 and a decrease in accounts payable of $902 and accrued liabilities of $11. This was offset by a decrease in accounts receivable of $1,666.

Net loss of $3,507 for the three months ended December 31, 2022 was decreased by $1,349 of non-cash items that included share-based compensation, warranty provision, depreciation and amortization, amortization of operating lease ROU assets, and inventory obsolescence. Cash used by operating activities in the period reflected an increase in inventory of $2,041, and a decrease in accrued liabilities and other of $5,006, comprised of a decrease in the balances of customer deposits received, and payment of incentive compensation earned in fiscal year 2022. This was offset by a $3,482 decrease in accounts receivable, a $624 decrease in prepaid expenses, and a $249 increase in accounts payable

We had accounts receivable of $4,435 as of December 31, 2023, compared with $5,952 as of September 30, 2023. Terms with individual customers vary greatly. We regularly provide thirty-day terms to our customers if credit is approved. Our receivables can vary dramatically due to overall sales volume, quarterly variations in sales, timing of shipments to and receipts from large customers, payment terms, and the timing of contract payments.

As of December 31, 2023 and September 30, 2023, our working capital was $15,436 and $13,949, respectively. The increase in working capital was primarily due to cash raised through financing activities offset by Evertel acquisition related expenses, acquired liabilities and the fiscal first quarter net loss.

Investing Activities

Our net cash used in investing activities was $9,114 for the three months ended December 31, 2023, compared with net cash used in investing activities of $483 for the three months ended December 31, 2022. In the first three months of fiscal 2024, we increased our holdings in marketable securities by $7,285, compared with an increase of $385 for the three months ended December 31, 2022. Cash used in investing activities for acquisition of Evertel was $923 and cash used to pay the Amika holdback liability was $764. The Company also used $142 and $98 for the purchase of property and equipment for the three months ended December 31, 2023, and 2022, respectively. We anticipate additional expenditures for tooling and equipment during the balance of fiscal year 2024.

Financing Activities

In the three months ended December 31, 2023, we received $10,449 through financing activities, compared with $32 provided by financing activities for the three months ended December 31, 2022. In the first three months of fiscal 2024 we received $10,449 in net proceeds from an offering of the Company’s common stock. In the first three months of fiscal year 2023, we received $32 from the exercise of stock options.

In December 2018, the Board of Directors approved a share buyback program beginning January 1, 2019 and expiring on December 31, 2020, under which the Company was authorized to repurchase up to $5,000 of its outstanding common shares. In December 2022, the Board of Directors extended the Company’s share buyback program through December 31, 2024. The previous program expired on December 31, 2018.

There were no shares repurchased during the three months ended December 31, 2023 and December 31, 2022. All repurchased shares have been retired and as of December 31, 2023 and $3,000 was available for share repurchase under this program.

Recent Accounting Pronouncements

New pronouncements issued for future implementation are discussed in Note 3, Recent Accounting Pronouncements, to our condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Foreign Currency Risk

We consider our direct exposure to foreign exchange rate fluctuations to be minimal. The transactions of our Spanish subsidiary are denominated primarily in Euros and the transactions of our Canadian subsidiary are denominated primarily in Canadian dollars, which is a natural hedge against foreign currency fluctuations. All other sales to customers and all arrangements with third-party manufacturers, with one exception, provide for pricing and payment in U.S. dollars, and, therefore, are not subject to exchange rate fluctuations. Increases in the value of the U.S. dollar relative to other currencies could make our products more expensive, which could negatively impact our ability to compete. Conversely, decreases in the value of the U.S. dollar relative to other currencies could result in our suppliers raising their prices to continue doing business with us. Fluctuations in currency exchange rates could affect our business in the future.

Item 4. Controls and Procedures.

We are required to maintain disclosure controls and procedures designed to ensure that material information related to us, including our consolidated subsidiaries, is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, we conducted an evaluation of our disclosure controls and procedures as such term is defined under Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of December 31, 2023.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our fiscal quarter ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Our process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures and the remediation of any deficiencies, which may be identified during this process.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

We may at times be involved in litigation in the ordinary course of business. We will also, from time to time, when appropriate in management’s estimation, record adequate reserves in our consolidated financial statements for pending litigation. Currently, there are no pending material legal proceedings to which the Company is a party or to which any of its property is subject.

Item 1A. Risk Factors.

There have been no material changes to the risk factors described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the SEC on December 7, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

During the quarter ended December 31, 2023, none of our directors or officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as that term is used in SEC regulations.

Item 6. Exhibits.

31.1	Certification of Richard S. Danforth, Principal Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2	Certification of Dennis D. Klahn, Principal Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, executed by Richard S. Danforth, Principal Executive Officer and Dennis D. Klahn, Principal Financial Officer.*

101.INS	Inline XBRL Instance Document*

101.SCH	Inline XBRL Taxonomy Extension Schema Document*

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document*

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document*

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document*

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*

104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

* Filed concurrently herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	GENASYS INC.

Date: February 14, 2024	By:	/s/ Dennis D. Klahn
		Dennis D. Klahn, Chief Financial Officer
		(Principal Financial Officer)

Exhibit 31.1

CERTIFICATIONS

I, Richard S. Danforth, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Genasys Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s independent registered public accounting firm and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 14, 2024

/s/ Richard S. Danforth
Richard S. Danforth
(Principal Executive Officer)

Exhibit 31.2

CERTIFICATIONS

I, Dennis D. Klahn, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Genasys Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 14, 2024

/s/ Dennis D. Klahn
Dennis D. Klahn
(Principal Financial Officer)

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in accordance with 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in his or her capacity as an officer of Genasys Inc. (the “Company”), that, to his or her knowledge, the Quarterly Report of the Company on Form 10-Q for the quarter ended December 31, 2023 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operation of the Company as of the dates and for the periods presented in the financial statements included in such report.

Dated: February 14, 2024

/s/ Richard S. Danforth
Richard S. Danforth
President and Chief Executive Officer
(Principal Executive Officer)


/s/ Dennis D. Klahn
Dennis D. Klahn
Chief Financial Officer
(Principal Financial Officer)

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Dec. 31, 2023	Feb. 09, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	000-24248
Entity Registrant Name	GENASYS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0361799
Entity Address, Address Line One	16262 West Bernardo Drive
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
16262 West Bernardo Drive, San Diego, California	92127
City Area Code	858
Local Phone Number	676-1112
Title of 12(b) Security	Common stock, $0.00001 par value per share
Trading Symbol	GNSS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		44,027,121
Entity Central Index Key	0000924383
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
ASSETS
Cash and cash equivalents	$ 4,780	$ 8,665
Short-term marketable securities	8,777	1,481
Restricted cash	0	758
Accounts receivable, net of allowance for credit losses of $65	4,435	5,952
Inventories, net	6,890	6,501
Prepaid expenses and other	2,100	1,851
Total current assets	26,982	25,208
Long-term restricted cash	346	96
Property and equipment, net	1,587	1,551
Goodwill	13,151	10,282
Intangible assets, net	10,366	8,427
Operating lease right of use assets	3,712	3,886
Other assets	494	455
Total assets	56,638	49,905
Accrued liabilities	8,618	7,466
Accounts payable	1,897	2,785
Operating lease liabilities, current portion	1,031	1,008
Total current liabilities	11,546	11,259
Other liabilities, noncurrent	509	551
Operating lease liabilities, noncurrent	4,030	4,283
Total liabilities	16,085	16,093
Stockholders' equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.00001 par value; 100,000,000 shares authorized; 44,027,121 and 37,211,071 shares issued and outstanding, respectively	0	0
Additional paid-in capital	123,725	110,379
Accumulated deficit	(82,786)	(76,062)
Accumulated other comprehensive loss	(386)	(505)
Total stockholders' equity	40,553	33,812
Total liabilities and stockholders' equity	$ 56,638	$ 49,905

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Accounts Receivable, Allowance for Credit Loss, Current	$ 65	$ 65
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred Stock, Shares Issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized (in shares)	100,000,000	100,000,000
Common Stock, Shares, Outstanding (in shares)	44,027,121	37,211,071
Common Stock, Shares, Issued (in shares)	44,027,121	37,211,071
Common stock, $0.00001 par value; 100,000,000 shares authorized; 44,027,121 and 37,211,071 shares issued and outstanding, respectively	$ 0	$ 0

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenues:
Revenues	$ 4,361	$ 10,487
Cost of revenues	2,882	5,655
Gross profit	1,479	4,832
Operating expenses
Selling, general and administrative	6,518	6,384
Research and development	2,191	1,935
Total operating expenses	8,709	8,319
Loss from operations	(7,230)	(3,487)
Other income (expense), net	77	(20)
Loss before income taxes	(7,153)	(3,507)
Income tax benefit	(429)	0
Net loss	$ (6,724)	$ (3,507)
Net loss per common share - basic and diluted (in dollars per share)	$ (0.15)	$ (0.1)
Weighted average common shares outstanding:	43,729,240	36,696,145
Product [Member]
Revenues:
Revenues	$ 2,166	$ 9,118
Service [Member]
Revenues:
Revenues	$ 2,195	$ 1,369

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Net loss	$ (6,724)	$ (3,507)
Unrealized gain (loss) on marketable securities	10	21
Unrealized foreign currency (loss) gain	109	245
Comprehensive loss	$ (6,605)	$ (3,241)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating Activities:
Net loss	$ (6,724)	$ (3,507)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	729	643
Amortization of debt issuance costs	0	5
Warranty provision	(22)	24
Inventory obsolescence	39	46
Loss on disposition of fixed assets	2	0
Stock-based compensation	446	420
Partial release of valuation allowance	(517)	0
Amortization of operating lease right of use asset	192	199
Accretion of acquisition holdback liability	5	12
Accretion of acquisition contingent consideration	46	0
Depreciation and amortization	729	643
Increase (Decrease) in Operating Capital [Abstract]
Accounts receivable, net	1,666	3,482
Inventories, net	(429)	(2,041)
Prepaid expenses and other	(249)	624
Accounts payable	(902)	249
Accrued and other liabilities	(11)	(5,006)
Net cash used in operating activities	(5,729)	(4,850)
Investing Activities:
Purchases of marketable securities	(7,532)	(1,994)
Proceeds from maturities of marketable securities	247	1,609
Cash paid for acquisitions	(923)	0
Cash paid for asset purchase holdback liability	(764)	0
Capital expenditures	(142)	(98)
Net cash used in investing activities	(9,114)	(483)
Financing Activities:
Proceeds from exercise of stock options	0	32
Proceeds from offering of common stock, net of issuance costs	10,449	0
Net cash provided by financing activities	10,449	32
Effect of foreign exchange rate on cash	1	39
Net decrease in cash, cash equivalents, and restricted cash	(4,393)	(5,262)
Cash, cash equivalents and restricted cash, beginning of period	9,519	13,659
Cash, cash equivalents and restricted cash, end of period	5,126	8,397
Cash and cash equivalents	4,780	7,563
Restricted cash, current portion	0	738
Long-term restricted cash	346	96
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows	5,126	8,397
Noncash investing and financing activities:
Change in unrealized loss on marketable securities	10	21
Amika Mobile [Member]
Noncash investing and financing activities:
Obligation to issue common stock in connection with purchase	0	(416)
Evertel Technologies, LLC [Member]
Noncash investing and financing activities:
Obligation to issue common stock in connection with purchase	(527)	0
Shares issued in connection with the Evertel acquisition	(1,924)	0
Contingent consideration payable in connection with the Evertel acquisition	(890)	0
Holdback liability payable in connection with the Evertel acquisition	$ (230)	$ 0

Note 1 - Operations

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Nature of Operations [Text Block]

1. OPERATIONS

Note 2 - Basis of Presentation and Significant Accounting Policies

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

General

Principles of consolidation

Cash, cash equivalents and restricted cash

Accounts receivable and allowance for credit losses

The Company’s allowance for credit losses was $65 as of December 31, 2023 and September 30, 2023.

Reclassifications

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

Note 3 - Recent Accounting Pronouncements

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

3. RECENT ACCOUNTING PRONOUNCEMENTS

Recently adopted pronouncements

Accounting pronouncements not yet adopted

Note 4 - Business Combinations

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Business Combination Disclosure [Text Block]

4. BUSINESS COMBINATIONS

Evertel offers a secure and compliant mission-critical collaboration platform for the public safety market that connects public safety personnel, information, and tools in one space.

The consideration consisted of the following:

Cash paid	$	923
Common stock issued		1,924
Contingent consideration		890
Acquisition holdback liability		230
Common stock to be issued		527
	$	4,494

The preliminary allocation of the purchase price as of the acquisition date is as follows:

Assets acquired
Accounts receivable	$	142
Prepaid expenses		27
Intangible assets		2,550
Goodwill		2,772
Total Assets	$	5,491

Liabilities assumed
Accrued commissions	$	10
Deferred revenue		470
Deferred tax liability		517
Total liabilities		997

Net assets acquired	$	4,494

The estimated fair value of identifiable intangible assets acquired and their estimated useful lives are as follows:

	Fair Value		Est.Useful Life (in years)
Developed technology	$	2,290		7
Customer relationships		260		5
	$	2,550

Note 5 - Revenue Recognition

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

5.	REVENUE RECOGNITON

Identify the contract(s) with customers

Identify the performance obligations

Determine the transaction price

Allocate the transaction price to the performance obligations

Recognize revenue when the performance obligations have been satisfied

Product revenue

Perpetual licensed software

Time-based licensed software

Warranty, maintenance and services

Multiple element arrangements

Contract assets and liabilities

The Company’s contract liabilities were as follows:

	Customer deposits			Deferred revenue			Total contract liabilities
Balance as of September 30, 2023	$	766		$	3,254		$	4,020
New performance obligations		819			1,583			2,402
Recognition of revenue as a result of satisfying performance obligations		(363	)		(1,342	)		(1,705	)
Effect of exchange rate on deferred revenue		-			5			5
Balance as of December 31, 2023	$	1,222		$	3,500		$	4,722
Less: non-current portion		-			(509	)		(509	)
Current portion as of December 31, 2023	$	1,222		$	2,991		$	4,213

Remaining performance obligations

Practical expedients

Note 6 - Fair Value Measurements

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Fair Value Disclosures [Text Block]

6.	FAIR VALUE MEASUREMENTS

Level 1:

Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date.

Level 2:

Level 3:

Instruments measured at fair value on a recurring basis

	December 31, 2023
	Cost Basis		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cash Equivalents		Short-term Securities		Long-term Securities
Level 1:
Money market funds	$	1,060	$	-	$	-		$	1,060	$	1,060	$	-	$	-

Level 2:
Certificates of deposit		302		-		-			302		-		302		-
U.S. government agency bonds		1,161		-		-			1,161		-		1,161		-
Municipal securities		3,707		4		(3	)		3,708		-		3,708		-
Corporate bonds		3,607		1		(2	)		3,606		-		3,606		-
Subtotal		8,777		5		(5	)		8,777		-		8,777		-

Total	$	9,837	$	5	$	(5	)	$	9,837	$	1,060	$	8,777	$	-

	September 30, 2023
	Cost Basis		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cash Equivalents		Short-term Securities		Long-term Securities
Level 1:
Money market funds	$	2,307	$	-	$	-		$	2,307	$	2,307	$	-	$	-

Level 2:
Certificates of deposit		301		-		-			301		-		301		-
Municipal securities		926		-		(7	)		919		-		919		-
Corporate bonds		264		-		(3	)		261		-		261		-
Subtotal		1,491		-		(10	)		1,481		-		1,481		-

Total	$	3,798	$	-	$	(10	)	$	3,788	$	2,307	$	1,481	$	-

	As of December 31, 2023
	In loss position < 12 months					In loss position > 12 months					Total in loss position

	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Certificates of deposit	$	-	$	-		$	-	$	-		$	-	$	-
U.S. government agency bonds		-		-			-		-			-		-
Municipal securities		628		(1	)		132		(2	)		760		(3	)
Corporate bonds		2,882		(2	)		-		-			2,882		(2	)
	$	3,510	$	(3	)	$	132	$	(2	)	$	3,642	$	(5	)

	As of September 30, 2023
	In loss position < 12 months					In loss position > 12 months					Total in loss position
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Certificates of deposit	$	-	$	-		$	-	$	-		$	-	$	-
U.S. government agency bonds		-		-			-		-			-		-
Municipal securities		684		(2	)		235		(5	)		919		(7	)
Corporate bonds		-		-			261		(3	)		261		(3	)
	$	684	$	(2	)	$	496	$	(8	)	$	1,180	$	(10	)

Instruments measured at fair value on a non-recurring basis

			Fair Value Measurements at December 31, 2023
	Carrying Value		(Level 1)		(Level 2)		(Level 3)		Gain/(Loss)
Intangible assets from Evertel acquisition	$	2,550	$	-	$	-	$	2,550	$	-
Goodwill from Evertel acquisition	$	2,772	$	-	$	-	$	2,772	$	-

Value at acquisition date	$	890
Remeasurement estimate		46
Balance as of December 31, 2023	$	936

Balance at acquisition date	$	230
Accretion		5
Balance as of December 31, 2023	$	235

Note 7 - Inventories, Net

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

7. INVENTORIES, NET

Inventories, net consisted of the following:

	December 31,			September 30,
	2023			2023
Raw materials	$	4,268		$	5,086
Finished goods		1,865			1,029
Work in process		1,625			1,218
Inventories, gross		7,758			7,333
Reserve for obsolescence		(868	)		(832	)
Inventories, net	$	6,890		$	6,501

Note 8 - Property and Equipment, Net

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

8. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

	December 31,			September 30,
	2023			2023
Office furniture and equipment	$	1,526		$	1,582
Machinery and equipment		1,480			1,441
Leasehold improvements		2,313			2,302
Construction in progress		53			-
Property and equipment, gross		5,372			5,325
Accumulated depreciation		(3,785	)		(3,774	)
Property and equipment, net	$	1,587		$	1,551

Depreciation and amortization expense for property and equipment was $110 and $111 for the three months ended December 31, 2023 and 2022, respectively.

Note 9 - Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

9. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by segment for the three months ended December 31, 2023, were as follows:

	Hardware		Software		Total
Balance as of September 30, 2023	$	-	$	10,282	$	10,282
Acquisitions		-		2,772		2,772
Currency translation		-		97		97
Balance as of December 31, 2023	$	-	$	13,151	$	13,151

The changes in the carrying amount of intangible assets by segment for the three months ended December 31, 2023, were as follows:

	Hardware			Software			Total
Balance as of September 30, 2023	$	17		$	8,410		$	8,427
Acquisitions		-			2,550			2,550
Amortization		(1	)		(618	)		(619	)
Currency translation		-			8			8
Balance as of December 31, 2023	$	16		$	10,350		$	10,366

The Company’s consolidated intangible assets consisted of the following:

	December 31,			September 30,
	2023			2023
Technology	$	14,246		$	11,930
Customer relationships		2,075			1,790
Trade name portfolio		614			605
Non-compete agreements		232			223
Patents		72			72
		17,239			14,620
Accumulated amortization		(6,873	)		(6,193	)
	$	10,366		$	8,427

As of December 31, 2023, future amortization expense is as follows:

Fiscal year ending September 30,
2024 (remaining nine months)		1,861
2025		2,358
2026		2,222
2027		2,048
2028		1,220
Thereafter		657
Total estimated amortization expense	$	10,366

Amortization expense was $619 and $532 for the three months ended December 31, 2023 and 2022, respectively.

Note 10 - Prepaid Expenses and Other

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Prepaid Expenses And Other Disclosure [Text Block]

10. PREPAID EXPENSES AND OTHER

Prepaid expenses and other current assets consisted of the following:

	December 31,		September 30,
	2023		2023
Deposits for inventory	$	48	$	301
Prepaid insurance		261		264
Dues and subscriptions		363		261
Prepaid professional services		438		136
Prepaid commissions		441		417
Trade shows and travel		93		150
Canadian goods and services and harmonized sales tax receivable		114		123
Other		342		199
	$	2,100	$	1,851

Deposits for inventory

Deposits for inventory consisted of cash payments to vendors for inventory to be delivered in the future.

Prepaid insurance

Prepaid insurance consisted of premiums paid for health, commercial and corporate insurance. These premiums are amortized on a straight-line basis over the term of the agreements.

Dues and subscriptions

Prepaid professional services

Prepaid professional services consist of payments made in advance for services such as accounting, consulting and legal services.

Prepaid commissions

Trade shows and travel

Trade shows and travel consisted of payments made in advance for trade show events.

Canadian goods and services and harmonized sales tax receivable

Note 11 - Accrued and Other Liabilities

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Current and Noncurrent Accrued Liabilities [Text Block]

11. ACCRUED AND OTHER LIABILITIES

Accrued liabilities consisted of the following:

	December 31,		September 30,
	2023		2023
Payroll and related	$	2,104	$	2,237
Deferred revenue		2,991		2,703
Customer deposits		1,222		766
Accrued contract costs		897		825
Warranty reserve		110		132
Asset purchase holdback liability		-		736
Acquisition holdback liability		235		-
Acquisition contingent consideration liability		936		-
Other		123		67
Total	$	8,618	$	7,466

Other liabilities-noncurrent consisted of the following:

December 31,

September 30,

2023

Deferred revenue

509

551

Payroll and related

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

Deferred revenue

Deferred revenue as of December 31, 2023, included prepayments from customers for services, including extended warranty, scheduled to be performed in the twelve months ending December 31, 2024.

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, 2024.

Accrued contract costs

Warranty reserve

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

	December 31,			September 30,
	2023			2023
Beginning balance	$	132		$	159
Warranty provision		(22	)		40
Warranty settlements		-			(67	)
Ending balance	$	110		$	132

Asset purchase holdback liability

Acquisition holdback liability

Contingent consideration liability

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.

Note 12 - Leases

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

12. LEASES

The tables below show the operating lease ROU assets and liabilities as of September 30, 2023, and the balances as of December 31, 2023, including the changes during the periods.

	Operating lease ROU assets
Operating lease ROU assets as of September 30, 2023	$	3,886
Additional operating lease ROU assets		-
Less amortization of operating lease ROU assets		(192	)
Effect of exchange rate on operating lease ROU assets		18
Operating lease ROU assets as of December 31, 2023	$	3,712

	Operating lease liabilities
Operating lease liabilities as of September 30, 2022	$	5,291
Additional operating lease liabilities		-
Less lease principal payments on operating lease liabilities		(248	)
Effect of exchange rate on operating lease liabilities		18
Operating lease liabilities as of December 31, 2023		5,061
Less non-current portion		(4,030	)
Current portion as of December 31, 2023	$	1,031

Fiscal year ending September 30,
2024 (remaining nine months)	$	909
2025		1,186
2026		1,200
2027		1,221
2028		1,047
Thereafter		-
Total undiscounted operating lease payments		5,563
Less imputed interest		(502	)
Present value of operating lease liabilities	$	5,061

Note 13 - Income Taxes

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

13. INCOME TAXES

The Company’s effective tax rate for the three months ended December 31, 2023 and 2022 was negative 6.0% and 0%, respectively.

The Company continues to maintain a full valuation allowance against its U.S. and foreign deferred tax assets.

Note 14 - Commitments and Contingencies

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

14. COMMITMENTS AND CONTINGENCIES

Litigation

Bonus plan

Amika Mobile asset purchase

Evertel Acquisition

Note 15 - Share-based Compensation

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

15. SHARE-BASED COMPENSATION

Stock option plans

Share-based compensation

	Three months ended
	December 31,
	2023			2022
Volatility		57.8	%		52.1	%
Risk-free interest rate		4.3	%		4.1	%
Dividend yield		0.0	%		0.0	%
Expected term in years		4.2			6.1

Performance-based stock options

The Company did not grant any PVO’s during the three months ended December 31, 2023.

Restricted stock units

A summary of the Company’s RSUs as of December 31, 2023 is presented below:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding September 30, 2023		379,597		$	3.94
Granted		10,000		$	1.73
Released		(10,000	)	$	2.87
Forfeited/cancelled		-		$	-
Outstanding December 31, 2023		379,597		$	3.91

Stock option summary information

A summary of the activity in options to purchase the capital stock of the Company as of December 31, 2023 is presented below:

	Number of Shares			Weighted Average Exercise Price
Outstanding September 30, 2023		2,904,522		$	3.19
Granted		887,250		$	1.70
Forfeited/expired		(25,000	)	$	1.70
Exercised		-		$	-
Outstanding December 31, 2023		3,766,772		$	2.85
Exerciseable December 31, 2023		992,981		$	3.48

The following table summarized information about stock options outstanding as of December 31, 2023:

					Weighted Average		Weighted Average				Weighted Average
Range of			Number		Remaining		Exercise		Number		Exercise
Exercise Prices			Outstanding		Contractual Term		Price		Exercisable		Price
$1.51	-	$1.76		991,407		6.29	$	1.71		104,157	$	1.75
$2.64	-	$2.68		88,000		6.60	$	2.67		-	$	-
$2.69	-	$2.69		1,100,000		5.77	$	2.69		125,000	$	2.69
$3.09	-	$8.03		1,587,365		4.75	$	3.69		763,824	$	3.84
				3,766,772		5.49	$	2.85		992,981	$	3.48

The Company recorded $218 and $222 of stock option compensation expense for employees, directors and consultants for the three months ended December 31, 2023, and 2022, respectively.

Share-based compensation

The Company recorded share-based compensation expense and classified it in the condensed consolidated statements of operations as follows:

	Three Months Ended
	December 31,
	2023		2022
Cost of revenues	$	39	$	28
Selling, general and administrative		380		373
Research and development		27		19
	$	446	$	420

Note 16 - Stockholders' Equity

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Equity [Text Block]

16. STOCKHOLDERS’ EQUITY

Summary

	Common Stock				Additional					Accumulated Other			Total
			Par Value		Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance as of September 30, 2023		37,211,071	$	372	$	110,379	$	(76,062	)	$	(505	)	$	33,812
Share-based compensation expense		-		-		446		-			-			446
Issuance of common stock upon offering, net of issuance costs		5,750,000		57		10,449		-			-			10,449
Issuance of common stock upon vesting of restricted stock units		10,000		-		-		-			-			-
Issuance of common stock in business combination		986,486		10		1,924		-			-			1,924
Obligation to issue common stock		-		-		527		-			-			527
Release of obligation to issue common stock		69,564		1		-		-			-			-
Accumulated other comprehensive loss		-		-		-		-			119			119
Net loss		-		-		-		(6,724	)		-			(6,724	)
Balance as of December 31, 2023		44,027,121	$	440	$	123,725	$	(82,786	)	$	(386	)	$	40,553

										Accumulated
	Common Stock				Additional					Other			Total
			Par Value		Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance as of September 30, 2022		36,611,240		366		108,551		(57,366	)		(792	)		50,393
Share-based compensation expense		-		-		420		-			-			420
Issuance of common stock upon exercise of stock options, net		20,000		-		32		-			-			32
Issuance of common stock upon vesting of restricted stock units		12,667		-		-		-			-			-
Release of obligation to issue common stock		69,564		1		-		-						-
Accumulated other comprehensive loss		-		-		-		-			266			266
Net loss		-		-		-		(3,507	)					(3,507	)
Balance as of December 31, 2022		36,713,471		367		109,003		(60,873	)		(526	)		47,604

Common stock activity

Share buyback program

There were no shares repurchased during the three months ended December 31, 2023 and 2022. All repurchased shares have been retired.

Dividends

There were no dividends declared in the three months ended December 31, 2023 and 2022.

Note 17 - Net Loss Per Share

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

17. NET LOSS PER SHARE

The following table sets forth the computation of basic and diluted net loss per share:

	Three months ended
	December 31,
	2023			2022
Net loss	$	(6,724	)	$	(3,507	)

Basic and diluted loss per share	$	(0.15	)	$	(0.10	)

Weighted average shares outstanding - basic		43,729,240			36,696,145
Assumed exercise of dilutive options		-			-
Weighted average shares outstanding - diluted		43,729,240			36,696,145

Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive:
Options		3,766,772			4,814,537
RSU		379,597			340,174
Obligation to issue common stock		-			69,564
Total		4,146,369			5,224,275

Note 18 - Segment Information

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

18. SEGMENT INFORMATION

The following table presents the Company’s segment disclosures:

	Three months ended
	December 31,
	2023			2022
Revenue from external customers
Hardware	$	2,946		$	9,584
Software		1,415			903
	$	4,361		$	10,487

Intersegment revenues
Hardware	$	-		$	-
Software		1,488			1,222
	$	1,488		$	1,222

Segment operating loss
Hardware	$	(3,115	)	$	(28	)
Software		(4,115	)		(3,459	)
	$	(7,230	)	$	(3,487	)

Other expenses:
Depreciation and amortization expense
Hardware	$	96		$	99
Software		633			544
	$	729		$	643

Income tax benefit
Hardware	$	-		$	-
Software		(429	)		-
	$	(429	)	$	-

	December 31,		September 30,
	2023		2023
Long-lived assets
Hardware	$	1,467	$	1,427
Software		10,486		8,551
	$	11,953	$	9,978

Total assets
Hardware	$	31,341	$	28,878
Software		25,297		21,027
	$	56,638	$	49,905

Note 19 - Major Customers, Suppliers and Related Information

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

19. MAJOR CUSTOMERS, SUPPLIERS AND RELATED INFORMATION

	Three months ended December 31,
	2023		2022
Americas	$	3,667	$	9,163
Asia Pacific		319		759
Europe, Middle East and Africa		375		565
Total Revenues	$	4,361	$	10,487

The following table summarizes long-lived assets by geographic region.

	December 31,		September 30,
	2023		2023
United States	$	11,637	$	9,624
Americas (excluding the United States)		6		7
Europe, Middle East and Africa		310		347
Total long lived assets	$	11,953	$	9,978

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	Item 5. Other Information. During the quarter ended December 31, 2023, none of our directors or officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as that term is used in SEC regulations.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	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, 2023, included in the Company’s Annual Report on Form 10-K, as filed with the SEC on December 7, 2023. The accompanying condensed consolidated balance sheet as of September 30, 2023, has been derived from the audited consolidated balance sheet as of September 30, 2023, 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.
Consolidation, Policy [Policy Text Block]	Principles of consolidation The Company has nine wholly owned subsidiaries, Genasys II Spain, S.A.U. (“Genasys Spain”), Genasys Communications Canada ULC (“Genasys Canada”), Genasys Singapore PTE Ltd, Genasys Puerto Rico, LLC, Zonehaven LLC, Evertel Technologies 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 and Cash Equivalents, Policy [Policy Text Block]	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 December 31, 2023, the amount of cash and cash equivalents was $4,780. As of September 30, 2023, the amount of cash and cash equivalents was $8,665. 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 December 31, 2023, restricted cash was $346. As of September 30, 2023, restricted cash was $854.
Accounts Receivable [Policy Text Block]	Accounts receivable and allowance for credit losses The Company adopted Accounting Standards Update (“ASU”) No. 2019-10, Financial Instruments – Credit Losses (“ASC 326”), as of October 1, 2023. This new standard adds to U.S. GAAP an impairment model, known as the current expected credit loss ("CECL") model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the timelier recognition of losses. Under the CECL model, entities estimate credit losses over the entire contractual term from the date of initial recognition of the financial instrument. The standard only impacts the Company’s trade receivables. There was no cumulative effect adjustment and the adoption of this standard did not have a material impact on the consolidated financial statements. The Company maintains an allowance for credit losses primarily for estimated losses resulting from the inability or failure of individual customers to make required payments. The Company maintains an allowance under ASC 326, based on historical losses, changes in payment history, customer-specific information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. The allowance under ASC 326 is updated as additional losses are incurred or information becomes available related to the customer or economic conditions. The Company’s allowance for credit losses was $65 as of December 31, 2023 and September 30, 2023. The Company writes-off accounts receivable based on the age of the receivable and the facts and circumstances surrounding the customer and reasons for non-payment. Actual write-offs might differ from the recorded allowance.
Reclassification, Comparability Adjustment [Policy Text Block]	Reclassifications Where necessary, certain prior year’s information has been reclassified to conform to the current year presentation.

Note 4 - Business Combinations (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Cash paid	$	923
Common stock issued		1,924
Contingent consideration		890
Acquisition holdback liability		230
Common stock to be issued		527
	$	4,494

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Assets acquired
Accounts receivable	$	142
Prepaid expenses		27
Intangible assets		2,550
Goodwill		2,772
Total Assets	$	5,491

Liabilities assumed
Accrued commissions	$	10
Deferred revenue		470
Deferred tax liability		517
Total liabilities		997

Net assets acquired	$	4,494

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

	Fair Value		Est.Useful Life (in years)
Developed technology	$	2,290		7
Customer relationships		260		5
	$	2,550

Note 5 - Revenue Recognition (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

	Customer deposits			Deferred revenue			Total contract liabilities
Balance as of September 30, 2023	$	766		$	3,254		$	4,020
New performance obligations		819			1,583			2,402
Recognition of revenue as a result of satisfying performance obligations		(363	)		(1,342	)		(1,705	)
Effect of exchange rate on deferred revenue		-			5			5
Balance as of December 31, 2023	$	1,222		$	3,500		$	4,722
Less: non-current portion		-			(509	)		(509	)
Current portion as of December 31, 2023	$	1,222		$	2,991		$	4,213

Note 6 - Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	December 31, 2023
	Cost Basis		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cash Equivalents		Short-term Securities		Long-term Securities
Level 1:
Money market funds	$	1,060	$	-	$	-		$	1,060	$	1,060	$	-	$	-

Level 2:
Certificates of deposit		302		-		-			302		-		302		-
U.S. government agency bonds		1,161		-		-			1,161		-		1,161		-
Municipal securities		3,707		4		(3	)		3,708		-		3,708		-
Corporate bonds		3,607		1		(2	)		3,606		-		3,606		-
Subtotal		8,777		5		(5	)		8,777		-		8,777		-

Total	$	9,837	$	5	$	(5	)	$	9,837	$	1,060	$	8,777	$	-

	September 30, 2023
	Cost Basis		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cash Equivalents		Short-term Securities		Long-term Securities
Level 1:
Money market funds	$	2,307	$	-	$	-		$	2,307	$	2,307	$	-	$	-

Level 2:
Certificates of deposit		301		-		-			301		-		301		-
Municipal securities		926		-		(7	)		919		-		919		-
Corporate bonds		264		-		(3	)		261		-		261		-
Subtotal		1,491		-		(10	)		1,481		-		1,481		-

Total	$	3,798	$	-	$	(10	)	$	3,788	$	2,307	$	1,481	$	-

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value [Table Text Block]

	As of December 31, 2023
	In loss position < 12 months					In loss position > 12 months					Total in loss position

	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Certificates of deposit	$	-	$	-		$	-	$	-		$	-	$	-
U.S. government agency bonds		-		-			-		-			-		-
Municipal securities		628		(1	)		132		(2	)		760		(3	)
Corporate bonds		2,882		(2	)		-		-			2,882		(2	)
	$	3,510	$	(3	)	$	132	$	(2	)	$	3,642	$	(5	)

	As of September 30, 2023
	In loss position < 12 months					In loss position > 12 months					Total in loss position
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Certificates of deposit	$	-	$	-		$	-	$	-		$	-	$	-
U.S. government agency bonds		-		-			-		-			-		-
Municipal securities		684		(2	)		235		(5	)		919		(7	)
Corporate bonds		-		-			261		(3	)		261		(3	)
	$	684	$	(2	)	$	496	$	(8	)	$	1,180	$	(10	)

Business Combination, Fair Value Measurement of Acquired Intangible Assets [ Table Text Block]

			Fair Value Measurements at December 31, 2023
	Carrying Value		(Level 1)		(Level 2)		(Level 3)		Gain/(Loss)
Intangible assets from Evertel acquisition	$	2,550	$	-	$	-	$	2,550	$	-
Goodwill from Evertel acquisition	$	2,772	$	-	$	-	$	2,772	$	-

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]

Value at acquisition date	$	890
Remeasurement estimate		46
Balance as of December 31, 2023	$	936

Balance at acquisition date	$	230
Accretion		5
Balance as of December 31, 2023	$	235

Note 7 - Inventories, Net (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	December 31,			September 30,
	2023			2023
Raw materials	$	4,268		$	5,086
Finished goods		1,865			1,029
Work in process		1,625			1,218
Inventories, gross		7,758			7,333
Reserve for obsolescence		(868	)		(832	)
Inventories, net	$	6,890		$	6,501

Note 8 - Property and Equipment, Net (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Property, Plant and Equipment [Table Text Block]

	December 31,			September 30,
	2023			2023
Office furniture and equipment	$	1,526		$	1,582
Machinery and equipment		1,480			1,441
Leasehold improvements		2,313			2,302
Construction in progress		53			-
Property and equipment, gross		5,372			5,325
Accumulated depreciation		(3,785	)		(3,774	)
Property and equipment, net	$	1,587		$	1,551

Note 9 - Goodwill and Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Changes in Finite Lived Intangible Assets [Table Text Block]

	Hardware		Software		Total
Balance as of September 30, 2023	$	-	$	10,282	$	10,282
Acquisitions		-		2,772		2,772
Currency translation		-		97		97
Balance as of December 31, 2023	$	-	$	13,151	$	13,151

	Hardware			Software			Total
Balance as of September 30, 2023	$	17		$	8,410		$	8,427
Acquisitions		-			2,550			2,550
Amortization		(1	)		(618	)		(619	)
Currency translation		-			8			8
Balance as of December 31, 2023	$	16		$	10,350		$	10,366

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	December 31,			September 30,
	2023			2023
Technology	$	14,246		$	11,930
Customer relationships		2,075			1,790
Trade name portfolio		614			605
Non-compete agreements		232			223
Patents		72			72
		17,239			14,620
Accumulated amortization		(6,873	)		(6,193	)
	$	10,366		$	8,427

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Fiscal year ending September 30,
2024 (remaining nine months)		1,861
2025		2,358
2026		2,222
2027		2,048
2028		1,220
Thereafter		657
Total estimated amortization expense	$	10,366

Note 10 - Prepaid Expenses and Other (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

	December 31,		September 30,
	2023		2023
Deposits for inventory	$	48	$	301
Prepaid insurance		261		264
Dues and subscriptions		363		261
Prepaid professional services		438		136
Prepaid commissions		441		417
Trade shows and travel		93		150
Canadian goods and services and harmonized sales tax receivable		114		123
Other		342		199
	$	2,100	$	1,851

Note 11 - Accrued and Other Liabilities (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Accrued Liabilities [Table Text Block]

	December 31,		September 30,
	2023		2023
Payroll and related	$	2,104	$	2,237
Deferred revenue		2,991		2,703
Customer deposits		1,222		766
Accrued contract costs		897		825
Warranty reserve		110		132
Asset purchase holdback liability		-		736
Acquisition holdback liability		235		-
Acquisition contingent consideration liability		936		-
Other		123		67
Total	$	8,618	$	7,466

Other Noncurrent Liabilities [Table Text Block]

December 31,

September 30,

2023

Deferred revenue

509

551

Schedule of Product Warranty Liability [Table Text Block]

	December 31,			September 30,
	2023			2023
Beginning balance	$	132		$	159
Warranty provision		(22	)		40
Warranty settlements		-			(67	)
Ending balance	$	110		$	132

Note 12 - Leases (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Initial Measurement of Operating Lease [Table Text Block]

	Operating lease ROU assets
Operating lease ROU assets as of September 30, 2023	$	3,886
Additional operating lease ROU assets		-
Less amortization of operating lease ROU assets		(192	)
Effect of exchange rate on operating lease ROU assets		18
Operating lease ROU assets as of December 31, 2023	$	3,712

	Operating lease liabilities
Operating lease liabilities as of September 30, 2022	$	5,291
Additional operating lease liabilities		-
Less lease principal payments on operating lease liabilities		(248	)
Effect of exchange rate on operating lease liabilities		18
Operating lease liabilities as of December 31, 2023		5,061
Less non-current portion		(4,030	)
Current portion as of December 31, 2023	$	1,031

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

Fiscal year ending September 30,
2024 (remaining nine months)	$	909
2025		1,186
2026		1,200
2027		1,221
2028		1,047
Thereafter		-
Total undiscounted operating lease payments		5,563
Less imputed interest		(502	)
Present value of operating lease liabilities	$	5,061

Note 15 - Share-based Compensation (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Three months ended
	December 31,
	2023			2022
Volatility		57.8	%		52.1	%
Risk-free interest rate		4.3	%		4.1	%
Dividend yield		0.0	%		0.0	%
Expected term in years		4.2			6.1

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding September 30, 2023		379,597		$	3.94
Granted		10,000		$	1.73
Released		(10,000	)	$	2.87
Forfeited/cancelled		-		$	-
Outstanding December 31, 2023		379,597		$	3.91

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Shares			Weighted Average Exercise Price
Outstanding September 30, 2023		2,904,522		$	3.19
Granted		887,250		$	1.70
Forfeited/expired		(25,000	)	$	1.70
Exercised		-		$	-
Outstanding December 31, 2023		3,766,772		$	2.85
Exerciseable December 31, 2023		992,981		$	3.48

Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

					Weighted Average		Weighted Average				Weighted Average
Range of			Number		Remaining		Exercise		Number		Exercise
Exercise Prices			Outstanding		Contractual Term		Price		Exercisable		Price
$1.51	-	$1.76		991,407		6.29	$	1.71		104,157	$	1.75
$2.64	-	$2.68		88,000		6.60	$	2.67		-	$	-
$2.69	-	$2.69		1,100,000		5.77	$	2.69		125,000	$	2.69
$3.09	-	$8.03		1,587,365		4.75	$	3.69		763,824	$	3.84
				3,766,772		5.49	$	2.85		992,981	$	3.48

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended
	December 31,
	2023		2022
Cost of revenues	$	39	$	28
Selling, general and administrative		380		373
Research and development		27		19
	$	446	$	420

Note 16 - Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Stockholders Equity [Table Text Block]

	Common Stock				Additional					Accumulated Other			Total
			Par Value		Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance as of September 30, 2023		37,211,071	$	372	$	110,379	$	(76,062	)	$	(505	)	$	33,812
Share-based compensation expense		-		-		446		-			-			446
Issuance of common stock upon offering, net of issuance costs		5,750,000		57		10,449		-			-			10,449
Issuance of common stock upon vesting of restricted stock units		10,000		-		-		-			-			-
Issuance of common stock in business combination		986,486		10		1,924		-			-			1,924
Obligation to issue common stock		-		-		527		-			-			527
Release of obligation to issue common stock		69,564		1		-		-			-			-
Accumulated other comprehensive loss		-		-		-		-			119			119
Net loss		-		-		-		(6,724	)		-			(6,724	)
Balance as of December 31, 2023		44,027,121	$	440	$	123,725	$	(82,786	)	$	(386	)	$	40,553

										Accumulated
	Common Stock				Additional					Other			Total
			Par Value		Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance as of September 30, 2022		36,611,240		366		108,551		(57,366	)		(792	)		50,393
Share-based compensation expense		-		-		420		-			-			420
Issuance of common stock upon exercise of stock options, net		20,000		-		32		-			-			32
Issuance of common stock upon vesting of restricted stock units		12,667		-		-		-			-			-
Release of obligation to issue common stock		69,564		1		-		-						-
Accumulated other comprehensive loss		-		-		-		-			266			266
Net loss		-		-		-		(3,507	)					(3,507	)
Balance as of December 31, 2022		36,713,471		367		109,003		(60,873	)		(526	)		47,604

Note 17 - Net Loss Per Share (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three months ended
	December 31,
	2023			2022
Net loss	$	(6,724	)	$	(3,507	)

Basic and diluted loss per share	$	(0.15	)	$	(0.10	)

Weighted average shares outstanding - basic		43,729,240			36,696,145
Assumed exercise of dilutive options		-			-
Weighted average shares outstanding - diluted		43,729,240			36,696,145

Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive:
Options		3,766,772			4,814,537
RSU		379,597			340,174
Obligation to issue common stock		-			69,564
Total		4,146,369			5,224,275

Note 18 - Segment Information (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended
	December 31,
	2023			2022
Revenue from external customers
Hardware	$	2,946		$	9,584
Software		1,415			903
	$	4,361		$	10,487

Intersegment revenues
Hardware	$	-		$	-
Software		1,488			1,222
	$	1,488		$	1,222

Segment operating loss
Hardware	$	(3,115	)	$	(28	)
Software		(4,115	)		(3,459	)
	$	(7,230	)	$	(3,487	)

Other expenses:
Depreciation and amortization expense
Hardware	$	96		$	99
Software		633			544
	$	729		$	643

Income tax benefit
Hardware	$	-		$	-
Software		(429	)		-
	$	(429	)	$	-

	December 31,		September 30,
	2023		2023
Long-lived assets
Hardware	$	1,467	$	1,427
Software		10,486		8,551
	$	11,953	$	9,978

Total assets
Hardware	$	31,341	$	28,878
Software		25,297		21,027
	$	56,638	$	49,905

Note 19 - Major Customers, Suppliers and Related Information (Tables)

3 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Three months ended December 31,
	2023		2022
Americas	$	3,667	$	9,163
Asia Pacific		319		759
Europe, Middle East and Africa		375		565
Total Revenues	$	4,361	$	10,487

Long-Lived Assets by Geographic Areas [Table Text Block]

	December 31,		September 30,
	2023		2023
United States	$	11,637	$	9,624
Americas (excluding the United States)		6		7
Europe, Middle East and Africa		310		347
Total long lived assets	$	11,953	$	9,978

Note 2 - Basis of Presentation and Significant Accounting Policies (Details Textual) $ in Thousands	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Number of Wholly Owned Subsidiaries	9
Number of Additional Inactive Subsidiaries	2
Cash and Cash Equivalents, at Carrying Value, Total	$ 4,780	$ 8,665	$ 7,563
Restricted Cash	346	854
Accounts Receivable, Allowance for Credit Loss	$ 65	$ 65

Note 4 - Business Combinations (Details Textual) - USD ($)		3 Months Ended
	Oct. 04, 2023	Dec. 31, 2023	Sep. 30, 2023
Share Price		$ 2.03
Stock Issued During Period, Value, Acquisitions		$ 1,924,000
Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Acquisitions		1,924,000
Evertel Technologies, LLC [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	986,486
Share Price	$ 1.95
Business Combination, Acquisition Related Costs			$ 39,000
Finite-Lived Intangible Asset, Useful Life	6 years 9 months 18 days
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual		209,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual		$ 195,000
Evertel Technologies, LLC [Member] \| Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Acquisitions	$ 1,924

Note 4 - Business Combinations - Consideration (Details) - Evertel Technologies, LLC [Member] - USD ($) $ in Thousands		3 Months Ended
	Oct. 04, 2023	Dec. 31, 2023	Dec. 31, 2022
Cash paid	$ 923
Common stock issued	1,924
Contingent consideration	890	$ 890	$ (0)
Acquisition holdback liability	230	230	(0)
Common stock to be issued	527	$ 527	$ (0)
Business Combination, Consideration Transferred and to be Transferred	$ 4,494

Note 4 - Business Combinations - Assets Acquired and Liabilities assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Oct. 04, 2023	Sep. 30, 2023
Assets acquired
Goodwill	$ 13,151		$ 10,282
Evertel Technologies, LLC [Member]
Assets acquired
Accounts receivable		$ 142
Prepaid expenses		27
Intangible assets		2,550
Goodwill		2,772
Total Assets		5,491
Liabilities assumed
Accrued commissions		10
Deferred revenue		470
Deferred tax liability		517
Total liabilities		997
Net assets acquired		$ 4,494

Note 4 - Business Combinations - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands		3 Months Ended
	Oct. 04, 2023	Dec. 31, 2023
Fair value, intangibles		$ 2,550
Evertel Technologies, LLC [Member]
Fair value, intangibles	$ 2,550
Evertel Technologies, LLC [Member] \| Developed Technology Rights [Member]
Fair value, intangibles	$ 2,290
Estimated useful life, intangibles (Year)	7 years
Evertel Technologies, LLC [Member] \| Customer Relationships [Member]
Fair value, intangibles	$ 260
Estimated useful life, intangibles (Year)	5 years

Note 5 - Revenue Recognition 1 (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Contract with Customer, Asset, after Allowance for Credit Loss, Total	$ 0	$ 0
Revenue, Remaining Performance Obligation, Amount	$ 4,722

Note 5 - Revenue Recognition 2 (Details Textual) $ in Thousands	Dec. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Amount	$ 4,722
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Amount	$ 4,213
Revenue, Remaining Performance Obligation, Percentage	89.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months

Note 5 - Revenue Recognition - Contract Asset and Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Balance as of September 30, 2022	$ 4,020
New performance obligations	2,402
Recognition of revenue as a result of satisfying performance obligations	(1,705)
Effect of exchange rate on deferred revenue	5
Balance as of March 31, 2023	4,722
Less: non-current portion	(509)	$ (551)
Current portion as of March 31, 2023	4,213
Customer Deposits [Member]
Balance as of September 30, 2022	766
New performance obligations	819
Recognition of revenue as a result of satisfying performance obligations	(363)
Effect of exchange rate on deferred revenue	0
Balance as of March 31, 2023	1,222
Less: non-current portion	0
Current portion as of March 31, 2023	1,222
Deferred Revenue [Member]
Balance as of September 30, 2022	3,254
New performance obligations	1,583
Recognition of revenue as a result of satisfying performance obligations	(1,342)
Effect of exchange rate on deferred revenue	5
Balance as of March 31, 2023	3,500
Less: non-current portion	(509)
Current portion as of March 31, 2023	$ 2,991

Note 6 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2023	Oct. 04, 2023
Marketable Securities, Total	$ 0	$ 0
Goodwill and Intangible Asset Impairment	$ 0
Evertel Technologies, LLC [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High			$ 1,050
Business Combination, Contingent Consideration, Liability		$ 926	$ 890

Note 6 - Fair Value Measurements - Fair Value by Major Security Type (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Cash Equivalents	$ 1,060
Short-term marketable securities	8,777	$ 1,481
Fair Value, Nonrecurring [Member]
Cost Basis	9,837	3,798
Gross Unrealized Gain	5	0
Gross Unrealized Loss	(5)	(10)
Fair Value	9,837	3,788
Cash Equivalents	1,060	2,307
Short-term marketable securities	8,777	1,481
Long-term Securities	0	0
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Nonrecurring [Member]
Cost Basis	1,060	2,307
Gross Unrealized Gain	0	0
Gross Unrealized Loss	0	0
Fair Value	1,060	2,307
Cash Equivalents		2,307
Short-term marketable securities		0
Long-term Securities		0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Nonrecurring [Member]
Cost Basis	8,777	1,491
Gross Unrealized Gain	5	0
Gross Unrealized Loss	(5)	(10)
Fair Value	8,777	1,481
Cash Equivalents	0	0
Short-term marketable securities	8,777	1,481
Long-term Securities	0	0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Nonrecurring [Member] \| Certificates of Deposit [Member]
Cost Basis	302	301
Gross Unrealized Gain	0	0
Gross Unrealized Loss	0	0
Fair Value	302	301
Cash Equivalents	0	0
Short-term marketable securities	302	301
Long-term Securities	0	0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Nonrecurring [Member] \| US States and Political Subdivisions Debt Securities [Member]
Cost Basis	3,707	926
Gross Unrealized Gain	4	0
Gross Unrealized Loss	(3)	(7)
Fair Value	3,708	919
Cash Equivalents	0	0
Short-term marketable securities	3,708	919
Long-term Securities	0	0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Nonrecurring [Member] \| Corporate Debt Securities [Member]
Cost Basis	3,607	264
Gross Unrealized Gain	1	0
Gross Unrealized Loss	(2)	(3)
Fair Value	3,606	261
Cash Equivalents	0	0
Short-term marketable securities	3,606	261
Long-term Securities	0	$ 0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Nonrecurring [Member] \| US Treasury and Government [Member]
Cost Basis	1,161
Gross Unrealized Gain	0
Gross Unrealized Loss	0
Fair Value	1,161
Cash Equivalents	0
Short-term marketable securities	1,161
Long-term Securities	$ 0

Note 6 - Fair Value Measurements - Unrealized Loss on Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Unrealized loss position, less than 12 months, fair value	$ 3,510	$ 684
Unrealized loss position, less than 12 months, gross unrealized loss	(3)	(2)
Unrealized loss position, more than 12 months, fair value	132	496
Unrealized loss position, more than 12 months, gross unrealized loss	(2)	(8)
Unrealized loss position, fair value	3,642	10
Unrealized loss position, gross unrealized loss	(5)	(1,180)
Short-term Securities	5	1,180
Long-term Securities	(3,642)	(10)
Certificates of Deposit [Member]
Unrealized loss position, less than 12 months, fair value	0	0
Unrealized loss position, less than 12 months, gross unrealized loss	0	0
Unrealized loss position, more than 12 months, fair value	0	0
Unrealized loss position, more than 12 months, gross unrealized loss	0	0
Unrealized loss position, fair value	0	0
Unrealized loss position, gross unrealized loss	0	0
Short-term Securities	(0)	(0)
Long-term Securities	0	0
US Treasury and Government [Member]
Unrealized loss position, less than 12 months, fair value	0	0
Unrealized loss position, less than 12 months, gross unrealized loss	0	0
Unrealized loss position, more than 12 months, fair value	0	0
Unrealized loss position, more than 12 months, gross unrealized loss	0	0
Unrealized loss position, fair value	0	0
Unrealized loss position, gross unrealized loss	0	0
Short-term Securities	(0)	(0)
Long-term Securities	0	0
US States and Political Subdivisions Debt Securities [Member]
Unrealized loss position, less than 12 months, fair value	628	684
Unrealized loss position, less than 12 months, gross unrealized loss	(1)	(2)
Unrealized loss position, more than 12 months, fair value	132	235
Unrealized loss position, more than 12 months, gross unrealized loss	(2)	(5)
Unrealized loss position, fair value	760	919
Unrealized loss position, gross unrealized loss	(3)	(7)
Short-term Securities	3	7
Long-term Securities	(760)	(919)
Corporate Debt Securities [Member]
Unrealized loss position, less than 12 months, fair value	2,882	0
Unrealized loss position, less than 12 months, gross unrealized loss	(2)	0
Unrealized loss position, more than 12 months, fair value	0	261
Unrealized loss position, more than 12 months, gross unrealized loss	0	(3)
Unrealized loss position, fair value	2,882	261
Unrealized loss position, gross unrealized loss	(2)	(3)
Short-term Securities	2	3
Long-term Securities	$ (2,882)	$ (261)

Note 6 - Fair Value Measurements - Fair Value Measurement of Acquired Intangible Assets (Details) - Evertel Technologies, LLC [Member] $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)
Intangible assets from Evertel acquisition	$ 2,550
Intangible assets, gain (loss)	0
Goodwill from Evertel acquisition	2,772
Gain (loss) in goodwill	0
Fair Value, Inputs, Level 1 [Member]
Intangible assets from Evertel acquisition	0
Goodwill from Evertel acquisition	0
Fair Value, Inputs, Level 2 [Member]
Intangible assets from Evertel acquisition	0
Goodwill from Evertel acquisition	0
Fair Value, Inputs, Level 3 [Member]
Intangible assets from Evertel acquisition	2,550
Goodwill from Evertel acquisition	$ 2,772

Note 6 - Fair Value Measurements - Holdback Liability Measured at Fair Value on a Non-recurring Basis (Details) - Fair Value, Nonrecurring [Member] - Evertel Technologies, LLC [Member] $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)
Contingent Consideration Liability [Member]
Balance	$ 890
Accretion	46
Balance	936
Holdback Liability [Member]
Balance	230
Accretion	5
Balance	$ 235

Note 7 - Inventories, Net - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Raw materials	$ 4,268	$ 5,086
Finished goods	1,865	1,029
Work in process	1,625	1,218
Inventories, gross	7,758	7,333
Reserve for obsolescence	(868)	(832)
Inventories, net	$ 6,890	$ 6,501

Note 8 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Depreciation	$ 110	$ 111

Note 8 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Property and equipment, gross	$ 5,372	$ 5,325
Accumulated depreciation	(3,785)	(3,774)
Property and equipment, net	1,587	1,551
Furniture and Fixtures [Member]
Property and equipment, gross	1,526	1,582
Machinery and Equipment [Member]
Property and equipment, gross	1,480	1,441
Leasehold Improvements [Member]
Property and equipment, gross	2,313	2,302
Construction in Progress [Member]
Property and equipment, gross	$ 53	$ 0

Note 9 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Goodwill, Gross	$ 13,151		$ 10,282
Goodwill, Acquired During Period	2,772		0
Goodwill, Impairment Loss			$ 0
Amortization of Intangible Assets	619	$ 532
Genasys Spain [Member]
Goodwill and Intangible Assets, Foreign Currency Translation Gain (Loss)	105
Evertel Technologies, LLC [Member]
Goodwill, Acquired During Period	$ 2,772

Note 9 - Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Balance	$ 10,282
Balance	8,427
Acquisitions	2,772		$ 0
Acquisitions	2,550
Currency translation	97
Amortization	(619)	$ (532)
Balance	13,151		10,282
Currency translation	8
Balance	10,366		8,427
Hardware [Member]
Balance	0
Balance	17
Acquisitions	0
Acquisitions	0
Currency translation	0
Amortization	(1)
Balance	0		0
Currency translation	0
Balance	16		17
Software [Member]
Balance	10,282
Balance	8,410
Acquisitions	2,772
Acquisitions	2,550
Currency translation	97
Amortization	(618)
Balance	13,151		10,282
Currency translation	8
Balance	$ 10,350		$ 8,410

Note 9 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Intangible assets, gross carrying amount	$ 17,239	$ 14,620
Accumulated amortization	(6,873)	(6,193)
Finite-Lived Intangible Assets, Net	10,366	8,427
Developed Technology Rights [Member]
Intangible assets, gross carrying amount	14,246	11,930
Customer Relationships [Member]
Intangible assets, gross carrying amount	2,075	1,790
Trade Names [Member]
Intangible assets, gross carrying amount	614	605
Noncompete Agreements [Member]
Intangible assets, gross carrying amount		223
Patents [Member]
Intangible assets, gross carrying amount	$ 72	$ 72

Note 9 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
2024	$ 1,861
2025	2,358
2026	2,222
2027	2,048
2028	1,220
Thereafter	657
Finite-Lived Intangible Assets, Net	$ 10,366	$ 8,427

Note 10 - Prepaid Expenses and Other (Details Textual)	Dec. 31, 2023
Minimum [Member]
Capitalized Contract Cost, Amortization Period	3 years
Maximum [Member]
Capitalized Contract Cost, Amortization Period	5 years

Note 10 - Prepaid Expenses and Other - Summary of Prepaid Expenses and Others (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Deposits for inventory	$ 48	$ 301
Prepaid insurance	261	264
Dues and subscriptions	363	261
Prepaid professional services	438	136
Prepaid commissions	441	417
Trade shows and travel	93	150
Canadian goods and services and harmonized sales tax receivable	114	123
Other	342	199
Prepaid Expense and Other Assets, Current	$ 2,100	$ 1,851

Note 11 - Accrued and Other Liabilities (Details Textual)	3 Months Ended
	Dec. 31, 2023
Minimum [Member]
Extended Product Warranty Term	1 year
Maximum [Member]
Extended Product Warranty Term	2 years

Note 11 - Accrued and Other Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Payroll and related	$ 2,104	$ 2,237
Deferred revenue	4,213
Accrued contract costs	897	825
Warranty reserve	110	132
Other	123	67
Total	8,618	7,466
Asset Purchase Holdback Liability [Member]
Acquisition liability	0	736
Acquisition Holdback Liability [Member]
Acquisition liability	235	0
Acquisition contingent consideration liability [Member]
Acquisition liability	936	0
Service [Member]
Deferred revenue	2,991	2,703
Hardware [Member]
Deferred revenue	$ 1,222	$ 766

Note 11 - Accrued and Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Deferred revenue	$ 509	$ 551

Note 11 - Accrued and Other Liabilities - Changes in Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2023	Sep. 30, 2022
Beginning balance	$ 132	$ 159
Warranty provision	(22)	40
Warranty settlements	0	(67)
Ending balance	$ 110	$ 132

Note 12 - Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended
Note 12 - Leases (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating Lease, Expense	$ 245	$ 264
Short-Term Lease, Cost	$ 5	$ 0

Note 12 - Leases - Initial Measurement of Operating Lease (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Operating lease ROU assets as of September 30, 2022	$ 3,886
Operating lease liabilities as of September 30, 2022	5,291
Additional operating lease ROU assets	0
Less amortization of operating lease ROU assets	(192)	$ (199)
Less lease principal payments on operating lease liabilities	(248)
Effect of exchange rate on operating lease ROU assets	18
Effect of exchange rate on operating lease liabilities	18
Operating lease ROU assets as of March 31, 2023	3,712
Operating lease liabilities as of March 31, 2023	5,061
Less non-current portion	(4,030)		$ (4,283)
Operating lease liabilities, current portion	$ 1,031		$ 1,008

Note 12 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
2024 (remaining nine months)	$ 909
2025	1,186
2026	1,200
2027	1,221
2028	1,047
Thereafter	0
Total undiscounted operating lease payments	5,563
Less imputed interest	(502)
Present value of operating lease liabilities	$ 5,061	$ 5,291

Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Effective Income Tax Rate Reconciliation, Percent	6.00%	0.00%
Income Tax Expense (Benefit)	$ (429)	$ 0
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	517
Unrecognized Tax Benefits	$ 0	$ 0

Note 14 - Commitments and Contingencies (Details Textual) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		12 Months Ended
	Oct. 04, 2023	Oct. 02, 2020	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Increase (Decrease) in Other Employee-Related Liabilities			$ 40	$ 548
Share Price			$ 2.03
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock			$ 527
Additional Paid-in Capital [Member]
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock			$ 527
Assets Acquisition of Amika Mobile Corporation [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares, Each Anniversaries		191,267
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)		573,801	69,564		69,564
Share Price		$ 5.98
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable		$ 3,431
Assets Acquisition of Amika Mobile Corporation [Member] \| Former Owner of Amika Mobile [Member]
Stock Issued During Period, Shares, Acquisitions			69,564		69,564	69,564	365,109
Evertel Technologies, LLC [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	986,486
Share Price	$ 1.95
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 1,050
Business Combination, Contingent Consideration, Liability	$ 890		$ 926
Evertel Technologies, LLC [Member] \| Acquisition Holdback Liability [Member]
Business Combination, Contingent Consideration, Liability			$ 235
Evertel Technologies, LLC [Member] \| Agreement to Issue Stock [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	270,270
Share Price	$ 1.95
Evertel Technologies, LLC [Member] \| Agreement to Issue Stock [Member] \| Additional Paid-in Capital [Member]
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock	$ 527

Note 15 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands									3 Months Ended		12 Months Ended
	Nov. 01, 2023	Mar. 20, 2023	Mar. 14, 2023	Feb. 14, 2023	Nov. 01, 2022	Oct. 08, 2022	Aug. 10, 2022	Nov. 01, 2021	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023	Sep. 30, 2021	Mar. 16, 2021	Dec. 08, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant									6,449,196
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross									887,250
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period									7 years
Dividends									$ 0		$ 0
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount									$ 2,154
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition									2 years 4 months 24 days
Share-Based Payment Arrangement, Expense									$ 446	$ 420
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit									$ 1.51
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit									$ 8.03
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term									5 years 6 months
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value									$ 322
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value									$ 29
Share Price									$ 2.03
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value									$ 0	23
Gross Proceeds from Stock Options Exercised									$ 0	32
Vesting Based on Market Conditions [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross									1,204,000
Common Stock Award [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant									2,302,827
Performance Shares [Member] \| Management [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross		450,000					750,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period		7 years					7 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted									0
Share-Based Payment Arrangement, Expense									$ 62
Performance Shares [Member] \| Vesting Based on Market Conditions [Member] \| Management [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted		225,000
Restricted Stock Units (RSUs) [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition									1 year 1 month 6 days
Share-Based Payment Arrangement, Expense									$ 228	198
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period									10,000
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount									$ 666
Restricted Stock Units (RSUs) [Member] \| Share-Based Payment Arrangement, Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross						800,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period						7 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted	10,000
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture	$ 17
Restricted Stock Units (RSUs) [Member] \| Board of Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period								10,000				145,950
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture								$ 51				$ 989
Restricted Stock Units (RSUs) [Member] \| Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period				3 years								3 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period				145,600
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture				$ 582
Restricted Stock Units (RSUs) [Member] \| Non-employee Advisors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period					10,000
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture					$ 29
Restricted Stock Units (RSUs) [Member] \| Non-employee Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted			30,000
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture			$ 417
Share-Based Payment Arrangement, Option [Member] \| Employees, Directors, and Consultants [Member]
Share-Based Payment Arrangement, Expense									$ 218	$ 222
2015 Equity Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized													10,000,000	5,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Proposed Number of Shares Authorized														10,000,000
2015 Equity Plan [Member] \| Options and RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options and Equity Instruments Other than Options, Outstanding, Number									4,146,369

Note 15 - Share-based Compensation - Weighted-average Assumptions (Details)	3 Months Ended	9 Months Ended
	Dec. 31, 2023 Rate	Jun. 30, 2022 Rate
Volatility (Rate)	57.80%	52.10%
Risk-free interest rate (Rate)	4.30%	4.10%
Dividend yield (Rate)	0.00%	0.00%
Expected term in years (Year)	4 years 2 months 12 days	6 years 1 month 6 days

Note 15 - Share-based Compensation - Restricted Stock Activity (Details)	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Forfeited/cancelled, weighted average grant date fair value (in dollars per share)	$ 1.7
Restricted Stock Units (RSUs) [Member]
Outstanding, number of shares (in shares) \| shares	379,597
Outstanding, weighted average grant date fair value (in dollars per share)	$ 3.94
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period \| shares	10,000
Granted, weighted average grant date fair value (in dollars per share)	$ 1.73
Released, number of shares (in shares) \| shares	(10,000)
Released, weighted average grant date fair value (in dollars per share)	$ 2.87
Forfeited/cancelled, number of shares (in shares) \| shares	0
Forfeited/cancelled, weighted average grant date fair value (in dollars per share)	$ 0
Outstanding, number of shares (in shares) \| shares	379,597
Outstanding, weighted average grant date fair value (in dollars per share)	$ 3.91

Note 15 - Share-based Compensation - Stock Option Activity (Details)	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Outstanding (in shares) \| shares	2,904,522
Outstanding, weighted average exercise price (in dollars per share) \| $ / shares	$ 3.19
Granted (in shares) \| shares	887,250
Granted, weighted average exercise price (in dollars per share) \| $ / shares	$ 1.7
Forfeited/expired (in shares) \| shares	(25,000)
Forfeited/cancelled, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 1.7
Exercised (in shares) \| shares	0
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	$ 0
Outstanding (in shares) \| shares	3,766,772
Outstanding, weighted average exercise price (in dollars per share) \| $ / shares	$ 2.85
Exerciseable (in shares) \| shares	992,981
Exerciseable, weighted average exercise price (in dollars per share) \| $ / shares	$ 3.48

Note 15 - Share-based Compensation - Stock Options Outstanding (Details)	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Lower Exercise Price (in dollars per share)	$ 1.51
Upper Exercise Price (in dollars per share)	$ 8.03
Number Outstanding (in shares) \| shares	3,766,772
Weighted Average Remaining Contractual Life (Year)	5 years 5 months 26 days
Weighted average exercise price, outstanding balance (in dollars per share)	$ 2.85
Number Exercisable (in shares) \| shares	992,981
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.48
Range One [Member]
Lower Exercise Price (in dollars per share)	1.51
Upper Exercise Price (in dollars per share)	$ 1.76
Number Outstanding (in shares) \| shares	991,407
Weighted Average Remaining Contractual Life (Year)	6 years 3 months 14 days
Weighted average exercise price, outstanding balance (in dollars per share)	$ 1.71
Number Exercisable (in shares) \| shares	104,157
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 1.75
Range Two [Member]
Lower Exercise Price (in dollars per share)	2.64
Upper Exercise Price (in dollars per share)	$ 2.68
Number Outstanding (in shares) \| shares	88,000
Weighted Average Remaining Contractual Life (Year)	6 years 7 months 6 days
Weighted average exercise price, outstanding balance (in dollars per share)	$ 2.67
Number Exercisable (in shares) \| shares	0
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0
Range Three [Member]
Lower Exercise Price (in dollars per share)	2.69
Upper Exercise Price (in dollars per share)	$ 2.69
Number Outstanding (in shares) \| shares	1,100,000
Weighted Average Remaining Contractual Life (Year)	5 years 9 months 7 days
Weighted average exercise price, outstanding balance (in dollars per share)	$ 2.69
Number Exercisable (in shares) \| shares	125,000
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 2.69
Range Four [Member]
Lower Exercise Price (in dollars per share)	3.09
Upper Exercise Price (in dollars per share)	$ 8.03
Number Outstanding (in shares) \| shares	1,587,365
Weighted Average Remaining Contractual Life (Year)	4 years 9 months
Weighted average exercise price, outstanding balance (in dollars per share)	$ 3.69
Number Exercisable (in shares) \| shares	763,824
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.84

Note 15 - Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement, Expense	$ 446	$ 420
Cost of Sales [Member]
Share-Based Payment Arrangement, Expense	39	28
Selling, General and Administrative Expenses [Member]
Share-Based Payment Arrangement, Expense	380	373
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expense	$ 27	$ 19

Note 16 - Stockholders' Equity (Details Textual) - USD ($)			3 Months Ended		12 Months Ended
	Oct. 04, 2023	Oct. 02, 2020	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Issuance of common stock upon exercise of stock options, net (in shares)			0	20,000
Issuance of common stock upon vesting of restricted stock units (in shares)			10,000	12,667
Gross Proceeds from Stock Options Exercised			$ 0	$ 32,000
Underwritten Public Offering, Common Stock	5,750,000
Price Per Share, Underwritten Agreement	$ 2
Gross Proceeds From Underwritten Public Offering, Common Stock	$ 11,500,000
Payments of Stock Issuance Costs	$ 1,051,000
Share Price			$ 2.03
Stock Issued During Period, Value, Acquisitions			$ 1,924,000
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock			$ 527,000
Common Stock, Dividends, Per Share, Declared (in dollars per share)			$ 0	$ 0
Share Buyback Program [Member]
Stock Repurchase Program, Authorized Amount				$ 5,000,000,000
Stock Repurchased and Retired During Period, Shares (in shares)			0	0
Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Acquisitions			$ 1,924,000
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock			$ 527,000
Evertel Technologies, LLC [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	986,486
Share Price	$ 1.95
Evertel Technologies, LLC [Member] \| Agreement to Issue Stock [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	270,270
Share Price	$ 1.95
Evertel Technologies, LLC [Member] \| Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Acquisitions	$ 1,924
Evertel Technologies, LLC [Member] \| Additional Paid-in Capital [Member] \| Agreement to Issue Stock [Member]
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock	$ 527,000
Assets Acquisition of Amika Mobile Corporation [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)		573,801	69,564		69,564
Share Price		$ 5.98
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares, Each Anniversaries		191,267
Business Acquisition, Share Price		$ 5.98
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable		$ 3,431,000
Assets Acquisition of Amika Mobile Corporation [Member] \| Former Owner of Amika Mobile [Member]
Stock Issued During Period, Shares, Acquisitions			69,564		69,564	69,564	365,109

Note 16 - Stockholders' Equity - Summary of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Balance	$ 33,812		$ 50,393
Share-based compensation expense	$ 446		420
Issuance of common stock upon exercise of stock options, net (in shares)	0	20,000
Issuance of common stock upon offering, net of issuance costs	$ 10,449
Issuance of common stock upon exercise of stock options, net			32
Issuance of common stock upon vesting of restricted stock units (in shares)	10,000	12,667
Issuance of common stock upon vesting of restricted stock units	$ 0		0
Stock Issued During Period, Value, Acquisitions	1,924
Release of obligation to issue common stock	0
Accumulated other comprehensive loss	119		266
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock	527
Net loss	(6,724)	$ (3,507)
Balance	$ 40,553		$ 47,604
Common Stock [Member]
Balance (in shares)	37,211,071		36,611,240
Balance	$ 372		$ 366
Share-based compensation expense	$ 0
Issuance of common stock upon offering, net of issuance costs (in shares)	5,750,000
Issuance of common stock upon exercise of stock options, net (in shares)			20,000
Issuance of common stock upon offering, net of issuance costs	$ 57
Issuance of common stock upon exercise of stock options, net			$ 0
Issuance of common stock upon vesting of restricted stock units (in shares)	10,000		12,667
Issuance of common stock upon vesting of restricted stock units	$ 0		$ 0
Stock Issued During Period, Shares, Acquisitions	986,486
Release of obligation to issue common stock (in shares)	69,564		69,564
Stock Issued During Period, Value, Acquisitions	$ 10
Release of obligation to issue common stock	1		$ 1
Accumulated other comprehensive loss	0		0
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock	0
Net loss	$ 0		$ 0
Balance (in shares)	44,027,121		36,713,471
Balance	$ 440		$ 367
Additional Paid-in Capital [Member]
Balance	110,379		108,551
Share-based compensation expense	446		420
Issuance of common stock upon offering, net of issuance costs	10,449
Issuance of common stock upon exercise of stock options, net			32
Issuance of common stock upon vesting of restricted stock units	0		0
Stock Issued During Period, Value, Acquisitions	1,924
Release of obligation to issue common stock	0		0
Accumulated other comprehensive loss	0		0
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock	527
Net loss	0		0
Balance	123,725		109,003
Retained Earnings [Member]
Balance	(76,062)		(57,366)
Share-based compensation expense	0		0
Issuance of common stock upon offering, net of issuance costs	0
Issuance of common stock upon exercise of stock options, net			0
Issuance of common stock upon vesting of restricted stock units	0		0
Stock Issued During Period, Value, Acquisitions	0
Release of obligation to issue common stock	0		0
Accumulated other comprehensive loss	0		0
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock	0
Net loss	(6,724)		(3,507)
Balance	(82,786)		(60,873)
AOCI Attributable to Parent [Member]
Balance	(505)		(792)
Share-based compensation expense	0		0
Issuance of common stock upon offering, net of issuance costs	0
Issuance of common stock upon exercise of stock options, net			0
Issuance of common stock upon vesting of restricted stock units	0		0
Stock Issued During Period, Value, Acquisitions	0
Release of obligation to issue common stock	0		0
Accumulated other comprehensive loss	119		266
Increase in Additional Paid-in Capital, Obligation to Issue Common Stock	0
Net loss	0		(3,507)
Balance	$ (386)		$ (526)

Note 17 - Net Loss Per Share - Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Net loss	$ (6,724)	$ (3,507)
Basic and diluted income per share (in dollars per share)	$ (0.15)	$ (0.1)
Weighted average shares outstanding - basic (in shares)	43,729,240	36,696,145
Assumed exercise of dilutive options (in shares)	0	0
Weighted average shares outstanding - diluted (in shares)	43,729,240	36,696,145
Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive (in shares)	4,146,369	5,224,275
Share-Based Payment Arrangement, Option [Member]
Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive (in shares)	3,766,772	4,814,537
Restricted Stock Units (RSUs) [Member]
Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive (in shares)	379,597	340,174
Obligation to Issue Common Stock [Member]
Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive (in shares)	0	69,564

Note 18 - Segment Information (Details Textual)	3 Months Ended
Note 18 - Segment Information (Details Textual)	Dec. 31, 2023
Number of Reportable Segments	2

Note 18 - Segment Information - Segment Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Product sales	$ 4,361	$ 10,487
Long-lived assets	11,953		$ 9,978
Assets	56,638		49,905
Loss from operations	(7,230)	(3,487)
Depreciation and amortization	729	643
Income Tax Expense (Benefit)	(429)	0
Intersegment Eliminations [Member]
Product sales	1,488	1,222
Hardware [Member]
Long-lived assets	1,467		1,427
Assets	31,341		28,878
Hardware [Member] \| Operating Segments [Member]
Product sales	2,946	9,584
Loss from operations	(3,115)	(28)
Depreciation and amortization	96	99
Income Tax Expense (Benefit)	0	0
Hardware [Member] \| Intersegment Eliminations [Member]
Product sales	0
Software [Member]
Long-lived assets	10,486		8,551
Assets	25,297		$ 21,027
Software [Member] \| Operating Segments [Member]
Product sales	1,415	903
Loss from operations	(4,115)	(3,459)
Depreciation and amortization	633	544
Income Tax Expense (Benefit)	(429)	0
Software [Member] \| Intersegment Eliminations [Member]
Product sales	$ 1,488	$ 1,222

Note 19 - Major Customers, Suppliers and Related Information (Details Textual) $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Product sales	$ 4,361	$ 10,487
UNITED STATES
Product sales	$ 3,624	$ 8,938
Revenue Benchmark [Member] \| Customer Concentration Risk [Member]
Number Of Major Customers	2	1
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer 1 [Member]
Concentration Risk, Percentage	14.00%	60.00%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer 2 [Member]
Concentration Risk, Percentage	13.00%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer 3 [Member]
Concentration Risk, Percentage	10.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Number Of Major Customers	3	2
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer 1 [Member]
Concentration Risk, Percentage	35.00%	41.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer 2 [Member]
Concentration Risk, Percentage	11.00%	18.00%

Note 19 - Major Customers, Suppliers and Related Information - Schedule of Major Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenues	$ 4,361	$ 10,487
Americas [Member]
Revenues	3,667	9,163
Asia Pacific [Member]
Revenues	319	759
EMEA [Member]
Revenues	$ 375	$ 565