Cover Page - USD ($) $ in Thousands	12 Months Ended
Cover Page - USD ($) $ in Thousands	Sep. 30, 2019	Nov. 29, 2019	Mar. 31, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-35231
Entity Registrant Name	MITEK SYSTEMS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0418827
Entity Address, Address Line One	600 B Street, Suite 100
Entity Address, City or Town	San Diego,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92101
City Area Code	619
Local Phone Number	269-6800
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	MITK
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 474,600
Entity Common Stock, Shares Outstanding		40,855,375
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0000807863
Current Fiscal Year End Date	--09-30

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 16,748	$ 9,028
Short-term investments	16,502	8,448
Accounts receivable, net	14,938	16,821
Contract assets	2,350
Prepaid expenses	1,487	2,278
Other current assets	2,105	1,053
Total current assets	54,130	37,628
Long-term investments	1,552	0
Property and equipment, net	4,231	4,665
Intangible assets, net	24,405	32,947
Goodwill	32,636	34,407
Deferred income taxes, net	16,596	15,356
Other non-current assets	2,347	2,147
Total assets	135,897	127,150
Current liabilities:
Accounts payable	3,555	3,573
Accrued payroll and related taxes	6,410	7,915
Deferred revenue, current portion	5,612	4,792
Acquisition-related contingent consideration	1,036	1,849
Restructuring accrual	1,526	0
Other current liabilities	1,909	2,278
Total current liabilities	20,048	20,407
Deferred revenue, non-current portion	736	485
Deferred income tax liabilities	5,555	8,162
Other non-current liabilities	2,225	2,702
Total liabilities	28,564	31,756
Stockholders’ equity
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding, as of September 30, 2019 and 2018	0	0
Common stock, $0.001 par value, 60,000,000 shares authorized, 40,367,456 and 37,961,224 issued and outstanding, as of September 30, 2019 and 2018, respectively	40	38
Additional paid-in capital	132,160	116,944
Accumulated other comprehensive loss	(4,061)	(586)
Accumulated deficit	(20,806)	(21,002)
Total stockholders’ equity	107,333	95,394
Total liabilities and stockholders’ equity	$ 135,897	$ 127,150

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	40,367,456	37,961,224
Common stock, shares outstanding (in shares)	40,367,456	37,961,224

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Revenue	$ 84,590	$ 63,559	$ 45,390
Operating costs and expenses
Selling and marketing	27,405	21,700	14,484
Research and development	19,018	15,673	10,430
General and administrative	19,861	17,067	11,310
Acquisition-related costs and expenses	7,563	8,239	2,356
Restructuring costs	3,067	0	0
Total operating costs and expenses	89,180	71,365	42,621
Operating income (loss)	(4,590)	(7,806)	2,769
Other income (expense), net	602	(935)	402
Income (loss) before income taxes	(3,988)	(8,741)	3,171
Income tax benefit (provision)	3,264	(3,066)	10,921
Net income (loss)	$ (724)	$ (11,807)	$ 14,092
Net income (loss) per share—basic (in dollars per share)	$ (0.02)	$ (0.33)	$ 0.43
Net income (loss) per share—diluted (in dollars per share)	$ (0.02)	$ (0.33)	$ 0.40
Shares used in calculating net income (loss) per share—basic (in shares)	39,341	35,811	33,083
Shares used in calculating net income (loss) per share—diluted (in shares)	39,341	35,811	35,537
Other comprehensive income (loss)
Net income (loss)	$ (724)	$ (11,807)	$ 14,092
Foreign currency translation adjustment	(3,504)	(723)	208
Unrealized gain (loss) on investments	29	(10)	(19)
Other comprehensive income (loss)	(4,199)	(12,540)	14,281
Software and hardware
Revenue	46,845	40,698	29,647
Operating costs and expenses
Cost of revenue	3,711	3,064	1,112
Service and other
Revenue	37,745	22,861	15,743
Operating costs and expenses
Cost of revenue	$ 8,555	$ 5,622	$ 2,929

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance (in shares) at Sep. 30, 2016		32,782,000
Beginning Balance at Sep. 30, 2016	$ 39,485	$ 33	$ 71,036	$ (31,542)	$ (42)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	235,514	235,000
Exercise of stock options	$ 687		687
Settlement of restricted stock units (in shares)		707,000
Settlement of restricted stock units	0	$ 1	(1)
Stock-based compensation expense	5,478		5,478
Amortization of closing shares and earnout shares	1,477		1,477
Components of other comprehensive income (loss):
Net income (loss)	14,092			14,092
Currency translation adjustment	208				208
Change in unrealized gain (loss) on investments	(19)				(19)
Other comprehensive income (loss)	14,281
Ending Balance (in shares) at Sep. 30, 2017		33,724,000
Ending Balance at Sep. 30, 2017	$ 61,408	$ 34	78,677	(17,450)	147
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	250,823	251,000
Exercise of stock options	$ 743		743
Settlement of restricted stock units (in shares)		745,000
Settlement of restricted stock units	0	$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)		61,000
Issuance of common stock under employee stock purchase plan	382		382
Stock-based compensation expense	8,950		8,950
Acquisition-related shares issued (in shares)		3,180,000
Acquisition-related shares issued	27,486	$ 3	27,483
Amortization of closing shares and earnout shares	710		710
Components of other comprehensive income (loss):
Net income (loss)	(11,807)			(11,807)
Currency translation adjustment	(723)				(723)
Change in unrealized gain (loss) on investments	(10)				(10)
Other comprehensive income (loss)	$ (12,540)
Ending Balance (in shares) at Sep. 30, 2018	37,961,224	37,961,000
Ending Balance at Sep. 30, 2018	$ 95,394	$ 38	116,944	(21,002)	(586)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	1,384,647	1,385,000
Exercise of stock options	$ 4,500	$ 1	4,499
Settlement of restricted stock units (in shares)		881,000
Settlement of restricted stock units	0	$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)		140,000
Issuance of common stock under employee stock purchase plan	1,081		1,081
Stock-based compensation expense	9,637		9,637
Components of other comprehensive income (loss):
Net income (loss)	(724)			(724)
Currency translation adjustment	(3,504)				(3,504)
Change in unrealized gain (loss) on investments	29				29
Other comprehensive income (loss)	$ (4,199)
Ending Balance (in shares) at Sep. 30, 2019	40,367,456	40,367,000
Ending Balance at Sep. 30, 2019	$ 107,333	$ 40	$ 132,160	$ (20,806)	$ (4,061)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net income (loss)	$ (724)	$ (11,807)	$ 14,092
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation expense	9,637	8,950	5,478
Amortization of closing shares and earnout shares	0	355	1,579
Amortization of acquisition-related intangible assets	7,024	4,023	591
Depreciation and other amortization	1,388	615	322
Accretion and amortization on debt securities and other	(134)	(14)	30
Net change in the estimated fair value of acquisition-related contingent consideration	472	1,750	0
Deferred income taxes	(3,775)	3,636	(11,065)
Changes in assets and liabilities:
Accounts receivable	1,564	(5,673)	(2,101)
Contract assets	(1,757)
Other assets	(769)	(1,676)	249
Accounts payable	28	309	593
Accrued payroll and related taxes	(1,529)	2,553	429
Deferred revenue	1,125	1,670	(269)
Restructuring accrual	1,573	0	0
Other liabilities	127	935	517
Net cash provided by operating activities	14,250	5,626	10,445
Investing activities:
Purchases of investments	(24,410)	(15,391)	(39,939)
Sales and maturities of investments	14,966	41,018	32,650
Payments for business acquisitions, net of cash acquired	0	(29,744)	0
Purchases of property and equipment	(1,063)	(4,307)	(488)
Net cash used in investing activities	(10,507)	(8,424)	(7,777)
Financing activities:
Proceeds from the issuance of equity plan common stock	5,581	1,125	687
Payment for acquisition-related contingent consideration	(1,030)	(1,284)	0
Proceeds from other borrowings	128	0	0
Principal payments on other borrowings	(296)	(270)	0
Net cash provided by (used in) financing activities	4,383	(429)	687
Foreign currency effect on cash and cash equivalents	(406)	(34)	(76)
Net increase (decrease) in cash and cash equivalents	7,720	(3,261)	3,279
Cash and cash equivalents at beginning of period	9,028	12,289	9,010
Cash and cash equivalents at end of period	16,748	9,028	12,289
Supplemental disclosures of cash flow information:
Cash paid for interest	0	29	0
Cash paid for income taxes	310	402	113
Supplemental disclosures of non-cash investing and financing activities:
Unrealized holding gain (loss) on available for sale investments	$ 29	$ (10)	$ (19)

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Mitek Systems, Inc. (“Mitek” or the “Company”) is a leading innovator of mobile image capture and digital identity verification solutions. Mitek is a software development company with expertise in computer vision, artificial intelligence, and machine learning. The Company is currently serving more than 6,500 financial services organizations and leading marketplace and financial technology (“fintech”) brands across the globe. The Company’s solutions are embedded in native mobile apps and browsers to facilitate better online user experiences, fraud detection and reduction, and compliant transactions.

Mitek’s Mobile Deposit® solution is used today by millions of consumers in the United States (“U.S.”) and Canada for mobile check deposit. Mobile Deposit® enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet. Mitek’s Mobile Deposit® solution is embedded within the financial institutions’ digital banking apps used by consumers and has now processed over three billion check deposits. Mitek began selling Mobile Deposit® in early 2008 and received its first patent issued for this product in August 2010. As of September 30, 2019, the Company has been granted 57 patents and it has an additional 25 patent applications pending.

Mitek’s Mobile Verify® verifies a user’s identity online enabling organizations to build safer digital communities. Scanning an identity document helps enable an enterprise to verify the identity of the person with whom they are conducting business, comply with growing governmental Anti-Money Laundering (“AML”) and Know Your Customer (“KYC”) regulatory requirements, and to improve the overall customer experience for digital onboarding. To be sure the person submitting the identity document is who they say they are, Mitek’s Mobile Verify Face Comparison provides an additional layer of online verification and compares the face on the submitted identity document with the live selfie photo of the user.

The combination of identity document capture and data extraction process enables the organization to prefill the end user’s application, with far fewer key strokes, thus reducing keying errors, and improving both operational efficiency and the customer experience. Today, the financial services verticals (banks, credit unions, lenders, payments processors, card issuers, fintech companies, etc.) represent the greatest percentage of use of our solutions, but there is accelerated adoption by marketplaces, sharing economy, and hospitality sectors. Mitek uses artificial intelligence and machine learning to constantly improve the product performance of Mobile Verify® such as speed and accuracy of approvals of identification documents. The core of Mitek’s user experience is driven by Mitek MiSnap™, the leading image capture technology, which is incorporated across the Company’s product lines. It provides a simple, intuitive, and superior user-experience, making digital transactions faster, more accurate, and easier for the consumer. Mobile Fill® automates application prefill of any form with user data by simply snapping a picture of the driver’s license or other similar user identity document.

CheckReader™ enables financial institutions to automatically extract data from a check image received across any deposit channel – branch, ATM, RDC, and mobile. Through the automatic recognition of all fields on checks, whether handwritten or machine print, CheckReader™ speeds the time to deposit for banks and customers and helps enable financial institutions to comply with check clearing regulations.

The Company markets and sells its products and services worldwide through internal, direct sales teams located in the U.S., Europe, and Latin America as well as through channel partners. The Company’s partner sales strategy includes channel partners who are financial services technology providers and identity verification providers. These partners integrate the Company’s products into their solutions to meet the needs of their customers.

Summary of Significant Accounting Policies

Basis of Presentation

The financial statements are prepared under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 105-10, Generally Accepted Accounting Principles, in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Foreign Currency

The Company has foreign subsidiaries that operate and sell products and services in various countries and jurisdictions around the world. As a result, the Company is exposed to foreign currency exchange risks. For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollars equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive loss in the consolidated balance sheet. The Company recorded net losses resulting from foreign exchange translation of $3.5 million for the fiscal year ended September 30, 2019, net losses resulting from foreign exchange translation of $0.7 million for the fiscal year ended September 30, 2018, and net gains resulting from foreign exchange translation of $0.2 million for the fiscal year ended September 30, 2017.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, deferred taxes, and related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards, fair value of assets and liabilities acquired, impairment of goodwill, useful lives of intangible assets, standalone selling price related to revenue recognition, contingent consideration, and income taxes.

Revenue Recognition

The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers, and its related amendments (collectively known as “ASC 606”). ASC 606 outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. The core principle, involving a five-step process, of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

The Company generates revenue primarily from the delivery of licenses and related services (for both on premise and transactional software as a service (“SaaS”) products), as well as the delivery of hardware and professional services. Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. See Note 2 of the consolidated financial statements for additional details.

Net Income (Loss) Per Share

The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings per Share. Basic net income (loss) per share is based on the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share also gives effect to all potentially dilutive securities outstanding during the period, such as restricted stock units (“RSUs”), stock options, and Employee Stock Purchase Plan ("ESPP") shares, if dilutive. In a period with a net loss position, potentially dilutive securities are not included in the computation of diluted net loss because to do so would be antidilutive, and the number of shares used to calculate basic and diluted net loss is the same.

For the fiscal years ended September 30, 2019, 2018 and 2017, the following potentially dilutive common shares were excluded from the net income (loss) per share calculation, as they would have been antidilutive (amounts in thousands):


	2019	2018	2017
Stock options	1,687	2,806	569
RSUs	2,352	2,580	83
ESPP common stock equivalents	74	71	—
ID Checker earnout shares	—	—	24
Total potentially dilutive common shares outstanding	4,113	5,457	676

The computation of basic and diluted net income (loss) per share for the fiscal years ended September 30, 2019, 2018, and 2017 is as follows (amounts in thousands, except per share data):


	2019		2018		2017
Net income (loss)	$	(724)	$	(11,807)	$	14,092
Weighted-average shares outstanding—basic	39,341		35,811		33,083
Common stock equivalents	—		—		2,454
Weighted-average shares outstanding—diluted	39,341		35,811		35,537
Net income (loss) per share:
Basic	$	(0.02)	$	(0.33)	$	0.43
Diluted	$	(0.02)	$	(0.33)	$	0.40

Cash and Cash Equivalents

Cash and cash equivalents are defined as highly liquid financial instruments with original maturities of three months or less. The Company's cash and cash equivalents are composed of interest and non-interest-bearing deposits and money market funds.

Investments

Investments consist of corporate notes and bonds, commercial paper, and U.S. Treasury securities. The Company classifies investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive loss, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other-than-temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations and other comprehensive income (loss). No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2019, 2018, and 2017.

All investments whose maturity or sale is expected within one year are classified as “current” on the consolidated balance sheet. All other securities are classified as “long-term” on the consolidated balance sheet.

Fair Value Measurements

The carrying amounts of cash equivalents, investments, accounts receivable, accounts payable, and other accrued liabilities are considered representative of their respective fair values because of the short-term nature of those instruments.

Accounts Receivable and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. Allowances for doubtful accounts are established based on various factors including credit profiles of the Company’s customers, contractual terms and conditions, historical payments, and current economic trends. The Company reviews its allowances by assessing individual accounts receivable over a specific aging and amount. Accounts receivable are written off on a case-by-case basis, net of any amounts that may be collected. The Company had $0.1 million of write-offs to the allowance for doubtful accounts for the fiscal year ended September 30, 2019. The Company had no write-offs to the allowance for doubtful accounts for the fiscal years ended September 30, 2018 and 2017. The Company maintained an allowance for doubtful accounts of $0.2 million and $0.3 million as of September 30, 2019 and 2018, respectively.

Property and Equipment

Property and equipment are carried at cost. The following is a summary of property and equipment as of September 30, 2019 and 2018 (amounts shown in thousands):


	2019		2018
Property and equipment—at cost:
Leasehold improvements	$	3,575	$	3,825
Equipment	3,041		2,604
Capitalized internal-use software development costs	1,088		916
Furniture and fixtures	526		425
	8,230		7,770
Less: accumulated depreciation and amortization	(3,999)		(3,105)
Total property and equipment, net	$	4,231	$	4,665

Depreciation and amortization of property and equipment are provided using the straight-line method over estimated useful lives ranging from three to ten years. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life of the assets. Depreciation and amortization of property and equipment totaled $1.4 million, $0.6 million, and $0.3 million for the fiscal years ended September 30, 2019, 2018, and 2017, respectively. Expenditures for repairs and maintenance are charged to operations. Total repairs and maintenance expenses were $0.1 million, $0.1 million and $0.2 million for the fiscal years ended September 30, 2019, 2018, and 2017, respectively.

Long-Lived Assets

The Company evaluates the carrying value of long-lived assets, including license agreements and other intangible assets, when events and circumstances indicate that these assets may be impaired or in order to determine whether any revision to the related amortization periods should be made. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each product or asset. If management’s evaluation indicates that the carrying values of these intangible assets were impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company did not record any impairment of long-lived assets for the fiscal years ended September 30, 2019, 2018, and 2017.

Capitalized Software Development Costs

Costs incurred for the development of software that will be sold, leased, or otherwise marketed are capitalized when technological feasibility has been established. Software development costs consist primarily of compensation of development personnel and related overhead incurred to develop new products and upgrade and enhance the Company’s current products, as well as fees paid to outside consultants. Capitalization of software development costs ceases and amortization of capitalized software development costs commences when the products are available for general release. For the fiscal years ended September 30, 2019 and 2018, no software development costs were capitalized because the time period and cost incurred between technological feasibility and general release for all software product releases were not material. The Company had no amortization expense from capitalized software costs during the years ended September 30, 2019, 2018, or 2017.

Costs related to software acquired, developed, or modified solely to meet our internal requirements, with no substantive plans to market such software at the time of development, are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. The Company defines the design, configuration, and coding process as the application development stage. The Company capitalized $0.2 million and $0.9 million of costs related to computer software developed for internal use during the years ended September 30, 2019 and 2018, respectively. The Company recognized $0.3 million and $0.1 million of amortization expense from internal use software during the years ended September 30, 2019 and 2018, respectively. The Company had no amortization expense from internal use software during the year ended September 30, 2017.

Goodwill and Purchased Intangible Assets

The Company’s goodwill resulted from prior acquisitions. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually or as circumstances indicate that their value may no longer be recoverable. In accordance with ASC Topic 350, Intangibles—Goodwill and Other (“ASC Topic 350”), the Company reviews its goodwill and indefinite-lived intangible asset for impairment at least annually in its fiscal fourth quarter and more frequently if events or changes in circumstances occur that indicate a potential reduction in the fair value of its reporting unit and/or its indefinite-lived intangible asset below their respective carrying values. Examples of such events or circumstances include: a significant adverse change in legal factors or in the business climate, a significant decline in the Company’s stock price, a significant decline in the Company’s projected revenue

or cash flows, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, or the presence of other indicators that would indicate a reduction in the fair value of a reporting unit.

The Company’s goodwill is considered to be impaired if management determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds management’s estimate of its fair value. Based on the guidance provided by ASC Topic 350 and ASC Topic 280, Segment Reporting (“ASC Topic 280”), management has determined that the Company operates in one segment and consists of one reporting unit given the similarities in economic characteristics between its operations and the common nature of its products, services and customers. Because the Company has only one reporting unit, and because the Company is publicly traded, the Company determines the fair value of the reporting unit based on its market capitalization as it believe this represents the best evidence of fair value. In the fourth quarter of fiscal 2019, management completed its annual goodwill impairment test and concluded that the Company’s goodwill was not impaired. The Company’s conclusion that goodwill was not impaired was based on a comparison of its net assets to its market capitalization.

Because the Company determines the fair value of its reporting unit based on its market capitalization, the Company’s future reviews of goodwill for impairment may be impacted by changes in the price of its common stock, par value $0.001 per share ("Common Stock"). For example, a significant decline in the price of the Company’s Common Stock may cause the fair value of its goodwill to fall below its carrying value. Therefore, the Company cannot provide assurance that when it completes its future reviews of goodwill for impairment, a material impairment charge will not be recorded.

Intangible assets with definite lives are amortized over their useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. The carrying amounts of these assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. The carrying amount of such assets is reduced to fair value if the undiscounted cash flows used in the test for recoverability are less than the carrying amount of such assets. No impairment charge related to the impairment of intangible assets was recorded during the fiscal years ended September 30, 2019, 2018, and 2017.

Guarantees

In the ordinary course of business, the Company is not subject to potential obligations under guarantees that fall within the scope of FASB ASC Topic 460, Guarantees (“ASC 460”), except for standard indemnification and warranty provisions that are contained within many of the Company’s customer license and service agreements and certain supplier agreements, and give rise only to the disclosure requirements prescribed by ASC 460. Indemnification and warranty provisions contained within the Company’s customer license and service agreements and certain supplier agreements are generally consistent with those prevalent in the Company’s industry. The Company has not historically incurred significant obligations under customer indemnification or warranty provisions and does not expect to incur significant obligations in the future. Accordingly, the Company does not maintain accruals for potential customer indemnification or warranty-related obligations.

Loss Contingencies

The Company records its best estimates of a loss contingency when it is considered probable and the amount can be reasonably estimated. When a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending loss contingency and revises its estimates. The Company discloses contingencies if there is at least a reasonable possibility that a material loss or a material additional loss may have been incurred. The Company’s legal costs are expensed as incurred.

Other Borrowings

The Company has certain loan agreements with Spanish government agencies which were assumed when the Company acquired ICAR. These agreements have repayment periods of five to twelve years and bear no interest. As of September 30, 2019, $0.6 million, was outstanding under these agreements and approximately $0.2 million and $0.4 million is recorded in other current liabilities and other non-current liabilities, respectively, in the consolidated balance sheets. As of September 30, 2018, $0.8 million, was outstanding under these agreements and $0.3 million and $0.5 million is recorded in other current liabilities and other non-current liabilities, respectively.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes. Deferred tax assets and liabilities arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years.

Management evaluates the available evidence about future taxable income and other possible sources of realization of deferred tax assets. The valuation allowance reduces deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred tax assets that more likely than not will be realized. See Note 8 of the consolidated financial statements for additional details.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. See Note 8 of the consolidated financial statements for additional details.

Stock-Based Compensation

The Company issues RSUs, stock options, performance options, and Senior Executive Long-Term Incentive Restricted Stock Units (“Senior Executive Performance RSUs”) as awards to its employees. Additionally, eligible employees may participate in the Company’s ESPP. Employee stock awards are measured at fair value on the date of grant and expense is recognized using the straight-line single-option method in accordance with FASB ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). Forfeitures are recorded as they occur.

The Company assigns fair value to RSUs based on the closing stock price of its Common Stock on the date of grant.

The Company estimates the fair value of stock options and ESPP shares using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected life of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company’s stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods.

The Company estimates the fair value of performance options, Senior Executive Performance RSUs, and similar awards using the Monte-Carlo simulation. The Monte-Carlo simulation requires subjective assumptions, including the Company’s valuation date stock price, the annual risk-free interest rate, expected volatility, the probability of reaching the stock performance targets, and a 20-trading-day average stock price.

Advertising Expense

Advertising costs are expensed as incurred and totaled $0.8 million, $0.5 million and $0.3 million during the fiscal years ended September 30, 2019, 2018, and 2017, respectively.

Research and Development

Research and development costs are expensed in the period incurred.

Leases

Leases are reviewed and classified as capital or operating at their inception. For leases that contain rent escalations, the Company records the total rent payable on a straight-line basis over the term of the lease. The difference between rent payments and straight-line rent expense is recorded as deferred rent.

Segment Reporting

FASB ASC Topic 280, Segment Reporting, requires the use of a management approach in identifying segments of an enterprise. During the fiscal year ended September 30, 2019, management determined that the Company has only one operating segment: the development, sale, and service of proprietary software solutions related to mobile imaging.

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (loss), unrealized gains and losses on available-for-sale securities, and foreign currency translation adjustments. Included on the consolidated balance sheet is an accumulated other comprehensive loss of $4.1 million and $0.6 million at September 30, 2019 and 2018, respectively.

Recently Adopted Accounting Pronouncements

In October 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which eliminates the current prohibition on immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory, with the intent of reducing complexity and diversity in practice. Under ASU 2016-16, entities must recognize the income tax consequences when the transfer occurs rather than deferring recognition. For public entities, ASU 2016-16 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. Entities must apply the guidance on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-16 in the first quarter of fiscal 2019, and the adoption did not have a material impact on its consolidated financial statements.

In May 2014, the FASB issued guidance codified in ASC 606 to replace existing revenue recognition rules with a single comprehensive model to use in accounting for revenue arising from contracts with customers. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services for an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, ASC 606 requires expanded disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

The Company adopted ASC 606 on October 1, 2018 for all contracts that were not completed as of the adoption date using the modified retrospective method and the practical expedient was not applied. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company expects the impact of the adoption of the new revenue standard to be immaterial to our net income on an ongoing basis.

See Note 2 of the consolidated financial statements for additional details on the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

Change in Significant Accounting Policy

Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in its consolidated financial statements. The details of the significant changes and quantitative impact of the changes are disclosed below.

Contract Assets and Liabilities

The Company previously recognized license revenue on term licenses and transactional SaaS revenue on the date payments become due and payable. Under ASC 606, the Company recognizes revenue when control of the license or transactional SaaS service is transferred to the customer. The Company records a contract asset when the revenue is recognized prior to the date payments become due.

Contract assets that are expected to be paid within one year are recorded in current assets in the consolidated balance sheets. All other contract assets are recorded in other non-current assets in the consolidated balance sheet. Contract liabilities consist of deferred revenue. When the performance obligation is expected to be fulfilled within one year, the deferred revenue is recorded in current liabilities in the consolidated balance sheets. When the performance obligation is expected to be fulfilled beyond one year, the deferred revenue is recorded in non-current liabilities in the consolidated balance sheets. The Company reports net contract asset or liability positions on a contract-by-contract basis at the end of each reporting period.

Contract Acquisition Costs

The Company previously recognized commission costs in the period earned if the contract was for one year or less. Under ASC 606, when the commission rate for a customer renewal is not commensurate with the commission rate for a new contract, the commission is capitalized if expected to be recovered. Such costs are capitalized on a contract-by-contract basis and amortized using a portfolio approach consistent with the pattern of transfer of the good or service to which the asset relates. Contract acquisition costs are recorded in other current and non-current assets in the consolidated balance sheets.

Impacts on Financial Statements

The following table summarizes the cumulative effect of the changes made to the consolidated balance sheet as of October 1, 2018 due to the adoption of ASC 606 (amounts in thousands):


	Balance at September 30, 2018		Adjustments Due to the Adoption of ASC 606		Balance at October 1, 2018
Assets
Contract assets	$	—	$	169	$	169
Deferred income tax asset	15,356		(267)		15,089
Other non-current assets	2,147		507		2,654

Liabilities
Deferred revenue, current portion	4,792		(511)		4,281
Deferred revenue, non-current portion	485		—		485

Equity
Accumulated deficit	$	(21,002)	$	920	$	(20,082)

The following tables summarize the impacts of ASC 606 adoption on the Company's consolidated financial statements as of and for the year ended September 30, 2019 (amounts in thousands):


Consolidated Statement of Operations










	Impact of changes in accounting policies
Twelve Months Ended September 30, 2019:	As reported		Adjustments		Balances without adoption of ASC 606
Revenue
Software and hardware	$	46,845	$	(2,454)	$	44,391
Service and other	37,745		—		37,745
Total revenue	84,590		(2,454)		82,136

Operating expenses
Selling and marketing	$	27,405	$	15	$	27,420


Consolidated Balance Sheet
	Impact of changes in accounting policies
September 30, 2019:	As reported		Adjustments		Balances without adoption of ASC 606
Assets
Accounts receivable, net	$	14,938	$	414	$	15,352
Contract assets	2,350		(2,350)		—
Deferred income tax asset	16,596		822		17,418
Other non-current assets	2,347		(596)		1,751

Liabilities
Deferred revenue, current portion	5,612		1,124		6,736
Deferred revenue, non-current portion	736		—		736

Equity
Accumulated deficit	$	(20,806)	$	(2,834)	$	(23,640)

Recently Issued Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (ASC 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which requires hosting arrangements that are service contracts to follow the guidance for internal-use software to determine which implementation costs can be capitalized. ASU 2018-15 is effective either prospectively or retrospectively for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of ASU 2018-15 to have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, to eliminate, add, and modify certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for annual and interim periods beginning after December 15, 2019, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company is currently evaluating how to apply the new guidance.

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). Under previously existing GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Cuts and Jobs Act”). The amendments in this ASU also require certain disclosures about stranded tax effects. The guidance is required for fiscal years beginning after December 15, 2018 (our fiscal year 2020), and interim periods within those fiscal years. Early adoption in any period is permitted. The Company does not expect the adoption of ASU 2018-02 to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 will be effective prospectively for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires entities to use a Current Expected Credit Loss model which is a new impairment model based on expected losses rather than incurred losses. Under this model, an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost. The entity’s estimate would consider relevant information about past events, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 31, 2019 with early adoption permitted for annual reporting periods beginning after December 31, 2018. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for each lease with a term longer than twelve months. The recognized liability is measured at the present value of lease payments not yet paid, and the corresponding asset represents the lessee’s right to use the underlying asset over the lease term and is based on the liability, subject to certain adjustments. For income statement purposes, the standard retains the dual model with leases classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The standard prescribes a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842; ASU No. 2018-11, Leases (Topic 842)—Targeted Improvements; ASU No. 2018-20, Narrow-Scope Improvements for Lessors; ASU No. 2019-01, Codification Improvements to Topic 842; and ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). ASU No. 2018-11 provides an additional transition method allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2016-02 will be effective for the Company beginning in its first quarter of fiscal 2020.

The Company plans to adopt this accounting standard update using the optional transition method in ASU 2018-11. Under this method, the Company will not adjust its comparative period financial statements for the effects of the new standard or make the new, expanded required disclosures for periods prior to the effective date. The Company will elect the package of practical expedients permitted under the transition guidance in ASU 2016-02 to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. In addition, the Company will make an accounting policy election that will keep leases with an initial term of twelve months or less off the consolidated balance sheet. The Company will also elect the practical expedient not to separate the non-lease components of a contract from the lease component to which they relate.

The adoption of the new lease standard is expected to result in the recognition of lease liabilities of $7.9 million to $8.4 million and right-of-use assets of $6.5 million to $7.0 million, which include the impact of existing deferred rents and tenant improvement allowances, on the consolidated balance sheet as of October 1, 2019. The adoption of ASU 2016-02 is not expected to have a material impact on the Company’s consolidated statements of operations and other comprehensive income (loss) or consolidated statements of cash flows.

No other new accounting pronouncement issued or effective during the year ended September 30, 2019 had, or is expected to have, a material impact on the Company’s consolidated financial statements.

Revenue Recognition

12 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

2. REVENUE RECOGNITION

Nature of Goods and Services

The following is a description of principal activities from which the Company generates its revenue. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include multiple types of goods and services as described below.

Software and Hardware

Software and hardware revenue is generated from on premise software license sales, as well as sales of hardware scanner boxes and on premise appliance products. For software license agreements that are distinct, the Company recognizes software license revenue upon delivery and after evidence of a contract exists. Hardware revenue is recognized in the period that the hardware is shipped.

Service and Other

Service and other revenue is generated from the sale of transactional SaaS products and services, maintenance associated with the sale of software and hardware, and consulting and professional services. The Company recognizes service and other revenue over the period in which such services are performed. The Company’s model typically includes an up-front fee and a periodic commitment from the customer that commences upon completion of the implementation through the remainder of the customer life. The up-front fee is the initial setup fee, or the implementation fee. The periodic commitment includes, but is not limited to, a fixed periodic fee and / or a transactional fee based on system usage that exceeds committed minimums. If the up-front fee is not distinct, revenue is deferred until the date the customer commences use of the Company’s services, at which point the up-front fee is recognized ratably over the life of the customer arrangement. The Company does not view the signing of the contract or the provision of initial setup services as discrete earnings events that are distinct.

Significant Judgments in Application of the Guidance

The Company uses the following methods, inputs, and assumptions in determining amounts of revenue to recognize:

Identification of Performance Obligations

For contracts that contain multiple performance obligations, which include combinations of software licenses, maintenance, and services, the Company accounts for individual goods or services as a separate performance obligation if they are distinct. The good or service is distinct if the good or service is separately identifiable from other items in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation.

Determination of Transaction Price

The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. The Company includes any fixed charges within its contracts as part of the total transaction price. To the extent that variable consideration is not constrained, the Company includes an estimate of the variable amount, as appropriate, within the total transaction price and updates its assumptions over the duration of the contract. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

Assessment of Estimates of Variable Consideration

Many of the Company’s contracts with customers contain some component of variable consideration; however, the constraint will generally not result in a reduction in the estimated transaction price for most forms of variable consideration. The Company may constrain the estimated transaction price in the event of a high degree of uncertainty as to the final consideration amount owed because of an extended length of time over which the fees may be adjusted.

Allocation of Transaction Price

The transaction price, including any discounts, is allocated between separate goods and services in a contract that contains multiple performance obligations based on their relative standalone selling prices. The standalone selling prices are determined based on the prices at which the Company separately sells each good or service. For items that are not sold separately, the Company estimates the standalone selling prices using available information such as market conditions and internally approved pricing guidelines. In instances where there are observable selling prices for professional services and support and maintenance, the Company may apply the residual approach to estimate the standalone selling price of software licenses. In certain situations, primarily transactional SaaS revenue described above, the Company allocates variable consideration to a series of distinct goods or services within a contract. The Company allocates variable payments to one or more, but not all, of the distinct goods or services or to a series of distinct goods or services in a contract when (i) the variable payment relates specifically to the Company’s efforts to transfer the distinct good or service and (ii) the variable payment is for an amount that depicts the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to its customer.

Disaggregation of Revenue

The following table presents the Company's revenue disaggregated by major product category (amounts in thousands):


	Twelve Months Ended September 30,
	2019		2018		2017
Major product category
Deposits software and hardware	$	41,860	$	33,071	$	25,407
Deposits service and other	15,170		8,437		6,963
Deposits revenue	57,030		41,508		32,370
Identity verification software and hardware	4,985		7,627		4,240
Identity verification service and other	22,575		14,424		8,780
Identity verification revenue	27,560		22,051		13,020
Total revenue	$	84,590	$	63,559	$	45,390

Software and hardware revenue is generated from on premise software license sales, as well as sales of hardware scanner boxes and on premise appliance products. Service and other revenue is generated from the sale of transactional SaaS products and services, maintenance associated with the sale of software and hardware, and consulting and professional services.

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers (amounts in thousands):


	September 30, 2019		October 1, 2018
Contract assets, current	$	2,350	$	169
Contract assets, non-current	581		507
Contract liabilities, current	5,612		4,281
Contract liabilities, non-current	736		485

Contract assets, reported within current assets and other long-term assets in the consolidated balance sheets, primarily result from revenue being recognized when a license is delivered and payments are made over time. Contract liabilities primarily relate to advance consideration received from customers, deferred revenue, for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $4.4 million of revenue during the year ended September 30, 2019 that was included in the contract liability balance at the beginning of the period.

Contract Costs

The Company incurs incremental costs to obtain a contract, consisting primarily of sales commissions incurred only if a contract is obtained. Capitalized sales commissions included in other current and non-current assets on the consolidated balance sheets totaled $1.5 million and $1.0 million at September 30, 2019 and October 1, 2018, respectively.

Capitalized contract costs are amortized based on the transfer of goods or services to which the asset relates. The amortization period also considers expected customer lives and whether the asset relates to goods or services transferred under a specific anticipated contract. These costs are included in selling and marketing expenses in the consolidated statement of operations and totaled $0.6 million during the year ended September 30, 2019. There was no impairment loss recognized during the year ended September 30, 2019 related to capitalized contract costs.

Business Combinations

12 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

BUSINESS COMBINATIONS

3. BUSINESS COMBINATIONS

A2iA Group II, S.A.S.

On May 23, 2018, the Company acquired all of the issued and outstanding shares of A2iA Group II, S.A.S. ("A2iA"), a simplified joint stock company formed under the laws of France, pursuant to a share purchase agreement, by and among the Company, each of the holders of outstanding shares of A2iA and Andera Partners, S.C.A., as representative of the sellers (the “A2iA Acquisition”). A2iA is a software development organization focused on delivering specialized and highly intelligent data extraction tools that enable customers to optimize their data capture, document processing, and workflow automation capabilities. Upon completion of the A2iA Acquisition, A2iA became a direct wholly owned subsidiary of the Company. The A2iA Acquisition extends Mitek’s global leadership position in both mobile check deposit and digital identity verification and combines the two market leaders in document recognition and processing.

As consideration for the A2iA Acquisition, the Company (i) made a cash payment of $26.8 million, net of cash acquired; (ii) issued 2,514,588 shares, or $21.9 million, of the Company’s Common Stock; and (iii) incurred transaction related liabilities of $0.2 million.

The Company incurred $2.2 million of expense in connection with the A2iA Acquisition primarily related to legal fees, outside service costs, and travel expense, which are included in acquisition-related costs and expenses in the consolidated statements of operations and other comprehensive income (loss).

On May 23, 2018, the Company deposited $0.7 million of the cash payment and 508,479 shares, or $4.4 million, of Common Stock into an escrow fund to serve as collateral and partial security for certain indemnification rights of the Company. The escrow fund will be maintained for up to 24 months following the completion of the A2iA Acquisition or until such earlier time as the escrow fund is exhausted.

The Company used cash on hand for the cash paid on May 23, 2018.

ICAR Vision Systems, S.L.

On October 16, 2017, Mitek Holding B.V., a company incorporated under the laws of The Netherlands and a wholly owned subsidiary of the Company (“Mitek Holding B.V.”), acquired all of the issued and outstanding shares of ICAR, a company incorporated under the laws of Spain (the “ICAR Acquisition”), and each of its subsidiaries, pursuant to a Share Purchase Agreement (the “Purchase Agreement”), by and among, the Company, Mitek Holding B.V., and each of the shareholders of ICAR (the “Sellers”). ICAR is a technology provider of identity fraud proofing and document management solutions for web, desktop, and mobile platforms. Upon completion of the ICAR Acquisition, ICAR became a direct wholly owned subsidiary of Mitek Holding B.V. and an indirect wholly owned subsidiary of the Company. ICAR is a leading provider of consumer identity verification solutions in Spain and Latin America. The ICAR Acquisition strengthens the Company’s position as a global digital identity verification powerhouse in the Consumer Identity and Access Management solutions market.

As consideration for the ICAR Acquisition, the Company agreed to an aggregate purchase price of up to $13.9 million, net of cash acquired. On October 16, 2017, the Company: (i) made a cash payment to Sellers of $3.0 million, net of cash acquired and subject to adjustments for transaction expenses, escrow amounts, indebtedness, and working capital adjustments; and (ii) issued to Sellers 584,291 shares, or $5.6 million, of Common Stock. In addition to the foregoing, the Sellers may be entitled to additional cash consideration upon achievement of certain milestones as follows: (a) subject to achievement of the revenue target for the fourth quarter of calendar 2017, the Company will pay to Sellers up to $1.5 million (the “Q4 Consideration”), which amount shall be deposited (as additional funds) into the escrow fund described below; and (b) subject to achievement of certain revenue and net income targets for ICAR for the twelve-month period ending on September 30, 2018, and the twelve-month period ending on September 30, 2019, the Company will pay to Sellers up to $3.8 million in additional cash consideration (the “Earnout Consideration”); provided that if the revenue target set forth in clause (a) is not met, then the Q4 Consideration will instead be added to the Earnout Consideration payable upon (and subject to) achievement of the revenue and net income targets for the twelve-month period ending on September 30, 2018. The Company estimated the fair value of the total Q4 Consideration and Earnout

Consideration to be $2.9 million on October 16, 2017, which was determined using a discounted cash flow methodology based on financial forecasts determined by management that included assumptions about revenue growth and discount rates. Each quarter the Company revises the estimated fair value of the Earnout Consideration and revises as necessary.

The Company incurred $0.5 million of expense in connection with the ICAR Acquisition primarily related to legal fees, outside service costs, and travel expense, which are included in acquisition-related costs and expenses in the consolidated statements of operations and other comprehensive income (loss).

On October 16, 2017, the Company deposited $1.5 million of cash into an escrow fund to serve as collateral and partial security for working capital adjustments and certain indemnification rights. In April 2018, the Q4 Consideration of $1.5 million was deposited into the escrow fund. As a result of the achievement of earnout targets during fiscal 2018, the Company paid $1.8 million in January 2019. The Company intends to extend the period over which the remaining $1.8 million of earnout consideration is earned. A portion of the earnout consideration will be paid during first quarter of fiscal 2020 based on the achievement of revenue and income targets earned during fiscal 2019. The remaining portion of the earnout consideration will be paid out during the first quarter of fiscal 2021, which will be based on the achievement of certain revenue, income, development and corporate targets achieved during fiscal 2020. During the first quarter of fiscal 2020, the Company released all escrow funds, excluding $1.0 million which is being held for any potential settlement relating to the claims which may arise from the litigation which was brought on by Global Equity & Corporate Consulting, S.L. against ICAR as more fully described in Note 9.

The Company used cash on hand for cash paid on October 16, 2017, and under the terms of the Purchase Agreement, the Company has agreed to guarantee the obligations of Mitek Holding B.V. thereunder.

Acquisitions are accounted for using the purchase method of accounting in accordance with ASC Topic 805, Business Combinations. Accordingly, the results of operations of A2iA and ICAR have been included in the accompanying consolidated financial statements since the date of each acquisition. The purchase price for both the A2iA Acquisition and the ICAR Acquisition have been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of each acquisition, and are based on assumptions that the Company’s management believes are reasonable given the information currently available.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed during the year ended September 30, 2018 (amounts shown in thousands):


	A2iA		ICAR		Total
Current assets	$	3,929	$	2,036	$	5,965
Property, plant, and equipment	307		83		390
Intangible assets	28,610		6,407		35,017
Goodwill	24,991		6,936		31,927
Other non-current assets	1,177		87		1,264
Current liabilities	(2,688)		(1,652)		(4,340)
Deferred income tax liabilities	(7,503)		(1,602)		(9,105)
Other non-current liabilities	(7)		(828)		(835)
Net assets acquired	$	48,816	$	11,467	$	60,283

The goodwill recognized is due to expected synergies and other factors and is not expected to be deductible for income tax purposes. The Company estimated the fair value of identifiable acquisition-related intangible assets with definite lives primarily based on discounted cash flow projections that will arise from these assets. The Company exercised significant judgment with regard to assumptions used in the determination of fair value such as with respect to discount rates and the determination of the estimated useful lives of the intangible assets.

The following table summarizes the estimated fair values and estimated useful lives of intangible assets with definite lives acquired during the year ended September 30, 2018 (amounts shown in thousands, except for years):


	Amortization Period	Amount assigned
A2iA
Completed technologies	7.0 years	$	13,015
Customer relationships	5.0 years	15,360
Trade names	5.0 years	235
Total intangible assets acquired from A2iA		$	28,610

ICAR
Completed technologies	5.0 years	$	4,956
Customer relationships	2.0 years	1,298
Trade names	3.0 years	153
Total intangible assets acquired from ICAR		$	6,407

The following unaudited pro forma financial information is presented as if the acquisitions had taken place at the beginning of the periods presented and should not be taken as representative of the Company’s future consolidated results of operations. The following unaudited pro forma information includes adjustments for the amortization expense related to the identified intangible assets.

The following table summarizes the Company’s unaudited pro forma financial information is presented as if the acquisitions occurred on October 1, 2017 (amounts shown in thousands):


	For the years ended September 30,
	2019		2018
Pro forma revenue	$	86,206	$	78,130
Pro forma net income (loss)	$	889	$	(12,268)

For the year ended September 30, 2018, revenue of $9.1 million and a net loss of $5.3 million related to the A2iA and ICAR businesses since the respective acquisition dates are included in the Company's consolidated statements of operations.

Investments

12 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

5. INVESTMENTS

The Company determines the appropriate designation of investments at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s investments are designated as available-for-sale debt securities. As of September 30, 2019 and 2018, the Company’s short-term investments have maturity dates of less than one year from the balance sheet date. The Company’s long-term investments have maturity dates of greater than one year from the balance sheet date.

Available-for-sale marketable securities are carried at fair value as determined by quoted market prices for identical or similar assets, with unrealized gains and losses, net of taxes, and reported as a separate component of stockholders’ equity. Management reviews the fair value of the portfolio at least monthly and evaluates individual securities with fair value below amortized cost at the balance sheet date. For debt securities, in order to determine whether impairment is other-than-temporary, management must conclude whether the Company intends to sell the impaired security and whether it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. If management intends to sell an impaired debt security or it is more likely than not the Company will be required to sell the security prior to recovering its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of an other-than-temporary impairment related to a credit loss, or securities that management intends to sell before recovery, is recognized in earnings. The amount of an other-than-temporary impairment on debt securities related to other factors is recorded consistent with changes in the fair value of all other available-for-sale securities as a component of stockholders’ equity in other comprehensive income. No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2019, 2018, and 2017. There were no realized gains or losses from the sale of available-for-sale securities during the years ended September 30, 2019 and 2017. The Company recorded a net realized loss from the sale of available-for-sale securities of $49,000 during the year ended September 30, 2018.

The cost of securities sold is based on the specific identification method. Amortization of premiums, accretion of discounts, interest, dividend income, and realized gains and losses are included in investment income.

The following tables summarize investments by type of security as of September 30, 2019 and 2018, respectively (amounts shown in thousands):


September 30, 2019:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	4,240	$	2	$	—	$	4,242
Corporate debt securities, short-term	12,258		2		—		12,260
U.S. Treasury, long-term	1,102		—		(1)		1,101
Corporate debt securities, long-term	451		—		—		451
Total	$	18,051	$	4	$	(1)	$	18,054


September 30, 2018:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	3,693	$	—	$	(10)	$	3,683
Corporate debt securities, short-term	4,779		—		(14)		4,765

Total	$	8,472	$	—	$	(24)	$	8,448

Fair Value Measurements and Disclosures

FASB ASC Topic 820, Fair Value Measurements (“ASC 820”) defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which consists of the following:

•Level 1—Quoted prices in active markets for identical assets or liabilities;

•Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

•Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following tables represent the fair value hierarchy of the Company’s investments and acquisition-related contingent consideration as of September 30, 2019 and 2018 (amounts shown in thousands):


September 30, 2019:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	4,242	$	4,242	$	—	$	—
Corporate debt securities
Financial	2,503		—		2,503		—
Industrial	1,371		—		1,371		—
Commercial paper
Financial	5,560		—		5,560		—
Industrial	2,826		—		2,826		—
Total short-term investments at fair value	16,502		4,242		12,260		—
Long-term investments:
U.S. Treasury	1,101		1,101		—		—
Corporate debt securities
Financial	451		—		451		—

Total assets at fair value	$	18,054	$	5,343	$	12,711	$	—
Liabilities:
Acquisition-related contingent consideration	1,601		—		—		1,601
Total liabilities at fair value	$	1,601	$	—	$	—	$	1,601


September 30, 2018:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	3,683	$	3,683	$	—	$	—
Corporate debt securities
Financial	2,847		—		2,847		—
Industrial	1,918		—		1,918		—
Commercial paper
Financial	—		—		—		—
Industrial	—		—		—		—
Total short-term investments at fair value	8,448		3,683		4,765		—
Long-term investments:
Corporate debt securities
Financial	—		—		—		—
Industrial	—		—		—		—
Total assets at fair value	$	8,448	$	3,683	$	4,765	$	—
Liabilities:
Acquisition-related contingent consideration	3,051		—		—		3,051
Total liabilities at fair value	$	3,051	$	—	$	—	$	3,051

As of September 30, 2019, total acquisition-related contingent consideration related to the ICAR Acquisition of $1.0 million and $0.6 million is recorded in acquisition-related contingent consideration and other non-current liabilities, respectively, in the consolidated balance sheets. The following table includes a summary of the contingent consideration measured at fair value using significant unobservable inputs (Level 3) during the year ended September 30, 2019 (amounts shown in thousands):


Balance at September 30, 2018	$	3,051

Expenses recorded due to changes in fair value	472
Payment of contingent consideration	(1,818)

Foreign currency effect on contingent consideration	(104)
Balance at September 30, 2019	$	1,601

Stockholders' Equity

12 Months Ended

Sep. 30, 2019

Equity [Abstract]

STOCKHOLDERS' EQUITY

7. STOCKHOLDERS’ EQUITY

Stock-based Compensation

The following table summarizes stock-based compensation expense related to RSUs, stock options, and ESPP shares for the fiscal years ended September 30, 2019, 2018, and 2017, which were allocated as follows (amounts shown in thousands):


	2019		2018		2017
Cost of revenue	$	207	$	78	$	52
Selling and marketing	2,967		2,656		1,577
Research and development	2,013		1,801		1,028
General and administrative	4,450		4,415		2,821
Stock-based compensation expense included in expenses	$	9,637	$	8,950	$	5,478

The fair value calculations for stock-based compensation awards to employees for the fiscal years ended September 30, 2019, 2018, and 2017 were based on the following assumptions:


	2019	2018	2017
Risk-free interest rate	1.85% – 3.08%	2.04%	1.68% – 1.92%
Expected life (years)	5.43	5.15	5.25
Expected volatility	57%	60%	74%
Expected dividends	—	—	—

The expected life of options granted is derived using assumed exercise rates based on historical exercise patterns and vesting terms, and represents the period of time that options granted are expected to be outstanding. Expected stock price volatility is based upon implied volatility and other factors, including historical volatility. After assessing all available information on either historical volatility, or implied volatility, or both, the Company concluded that a combination of both historical and implied volatility provides the best estimate of expected volatility.

As of September 30, 2019, the Company had $16.6 million of unrecognized compensation expense related to outstanding RSUs, stock options, and ESPP shares expected to be recognized over a weighted-average period of approximately 2.3 years.

2012 Incentive Plan

In January 2012, the Company’s board of directors (the “Board”) adopted the Mitek Systems, Inc. 2012 Incentive Plan (the “2012 Plan”), upon the recommendation of the compensation committee of the Board. On March 10, 2017, the Company’s stockholders approved the amendment and restatement of the 2012 Plan. The total number of shares of Common Stock reserved for issuance under the 2012 Plan is 9,500,000 shares plus that number of shares of Common Stock that would otherwise return to the available pool of unissued shares reserved for awards under its 1999 Stock Option Plan, 2000 Stock Option Plan, 2002 Stock Option Plan, 2006 Stock Option Plan, and 2010 Stock Option Plan (collectively, the “Prior Plans”). As of September 30, 2019, (i) stock options to purchase 1,171,708 shares of Common Stock, 1,890,879 RSUs, and 1,722,551 Senior Executive Performance RSUs were outstanding under the 2012 Plan, and 807,144 shares of Common Stock were reserved for future grants under the 2012 Plan and (ii) stock options to purchase an aggregate of 298,015 shares of Common Stock were outstanding under the Prior Plans.

Employee Stock Purchase Plan

In January 2018, the Board adopted the Mitek ESPP. On March 7, 2018, the Company’s stockholders approved the ESPP. The total number of shares of Common Stock reserved for issuance thereunder is 1,000,000 shares. As of September 30, 2019, (i) 200,914 shares have been issued under the ESPP and (ii) 799,086 shares of Common Stock were reserved for future purchases under the ESPP. The Company commenced the initial offering period on April 2, 2018.

The ESPP enables eligible employees to purchase shares of Common Stock at a discount from the market price through payroll deductions, subject to limitations. Eligible employees may elect to participate in the ESPP only during an open enrollment period. The offering period immediately follows the open enrollment window, at which time ESPP contributions are withheld from the participant's regular paycheck. The ESPP provides for a 15% discount on the market value of the stock at the lower of the grant date price (first day of the offering period) and the purchase date price (last day of the offering period). The Company recognized $0.4 million in stock-based compensation expense related to the ESPP during the year ended September 30, 2019.

Director Restricted Stock Unit Plan

In January 2011, the Board adopted the Mitek Systems, Inc. Director Restricted Stock Unit Plan, as amended and restated (the “Director Plan”). On March 10, 2017, the Company's stockholders approved an amendment to the Director Plan. The total number of shares of Common Stock reserved for issuance thereunder is 1,500,000 shares. As of September 30, 2019, (i) 366,870 RSUs were outstanding under the Director Plan and (ii) 391,701 shares of Common Stock were reserved for future grants under the Director Plan.

Stock Options

The following table summarizes stock option activity under the Company’s stock option plans during the fiscal years ended September 30, 2019, 2018, and 2017:


	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in Years)
Outstanding at September 30, 2016	3,015,374	$	3.95	6.4
Granted	147,800	$	7.06
Exercised	(235,514)	$	2.92
Canceled	(81,794)	$	3.59
Outstanding at September 30, 2017	2,845,866	$	4.21	5.4
Granted	299,397	$	8.60
Exercised	(250,823)	$	2.96
Canceled	(88,076)	$	5.23
Outstanding at September 30, 2018	2,806,364	$	4.75	4.6
Granted	409,368	$	9.59
Exercised	(1,384,647)	$	3.25
Canceled	(144,183)	$	6.62
Outstanding at September 30, 2019	1,686,902	$	7.00	5.4

The Company recognized $0.7 million, $1.4 million, and $1.0 million in stock-based compensation expense related to outstanding stock options in the fiscal years ended September 30, 2019, 2018, and 2017, respectively. As of September 30, 2019, the Company had $2.0 million of unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted-average period of approximately three years.

Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the fiscal period in excess of the weighted-average exercise price, multiplied by the number of options outstanding and exercisable. The total intrinsic value of options exercised during the fiscal years ended September 30, 2019, 2018, and 2017 was $11.1 million, $1.4 million, and $1.4 million, respectively. The per-share weighted-average fair value of options granted during the fiscal years ended September 30, 2019, 2018, and 2017 was $5.07, $4.56, and $4.28, respectively. The aggregate intrinsic value of options outstanding as of September 30, 2019 and 2018, was $4.9 million and $8.7 million, respectively.

Restricted Stock Units

The following table summarizes RSU activity in the fiscal years ended September 30, 2019, 2018, and 2017:


	Number of Shares	Weighted- Average Fair Value Per Share
Outstanding at September 30, 2016	2,046,169	$	4.90
Granted	1,249,224	$	6.61
Settled	(707,174)	$	4.81
Canceled	(231,198)	$	4.93
Outstanding at September 30, 2017	2,357,021	$	5.65
Granted	1,184,906	$	8.54
Settled	(745,197)	$	5.26
Canceled	(216,554)	$	7.39
Outstanding at September 30, 2018	2,580,176	$	6.92
Granted	1,147,976	$	9.67
Settled	(881,420)	$	6.53
Canceled	(494,245)	$	7.70
Outstanding at September 30, 2019	2,352,487	$	8.26

The cost of RSUs is determined using the fair value of the Company’s Common Stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $6.8 million, $5.9 million, and $4.0 million in stock-based compensation expense related to outstanding RSUs in the fiscal years ended September 30, 2019, 2018, and 2017, respectively. As of September 30, 2019, the Company had approximately $12.2 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 2.3 years.

Senior Executive Performance RSUs

There were 1,722,551 Senior Executive Performance RSUs outstanding as of September 30, 2019. The Company recognized $1.0 million and $1.5 million in stock-based compensation expense related to outstanding Senior Executive Performance RSUs in the years ended September 30, 2019 and 2018, respectively. As of September 30, 2019, the Company had $0.6 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 1.1 years.

Performance Options

On November 6, 2018, as an inducement grant pursuant to Nasdaq Listing Rule 5635(c)(4), the Company’s Chief Executive Officer was granted performance options (the “Performance Options”) to purchase up to 800,000 shares of Common Stock at an exercise price of $9.50 per share, the closing market price for a share of the Common Stock on the date of the grant. As long as he remains employed by the Company, such Performance Options shall vest upon the closing market price of the Common Stock achieving certain predetermined levels and his serving as the Chief Executive Officer of the Company for at least three years. In the event of a change of control of the Company, all of the unvested Performance Options will vest if the per share price payable to the stockholders of the Company in connection with the change of control is an amount reaching those certain predetermined levels required for the Performance Options to otherwise vest. The Company recognized $0.7 million in stock-based compensation expense related to outstanding Performance Options in the year ended September 30, 2019. As of September 30, 2019, the Company had $1.7 million of unrecognized compensation expense related to outstanding Performance Options expected to be recognized over a weighted-average period of approximately 2.1 years.

Closing Shares

On June 17, 2015, the Company completed the acquisition of ID Checker NL B.V., a company incorporated under the laws of The Netherlands (“IDC NL”), and ID Checker, Inc., a California corporation and wholly owned subsidiary of IDC NL (“IDC Inc.” and together with IDC NL, “ID Checker”). In connection with the closing of this acquisition, the Company issued to the Sellers 712,790 shares of Common Stock (the "Closing Shares"). Vesting of these shares is subject to the continued employment of the founders of ID Checker and occurs over a period of 27 months (the “Service Period”) from the date of issuance. The cost of the Closing Shares was determined using the fair value of Common Stock on the award date, and the stock-based compensation is recognized ratably over the vesting period. Stock-based compensation expense related to the Closing Shares is recorded within acquisition-related costs and expenses on the consolidated statements of operations and other comprehensive income (loss). The Company recognized no stock-

based compensation expense related to the Closing Shares in the years ended September 30, 2019 and 2018. The Company recognized $1.2 million in stock-based compensation expense related to the Closing Shares for the year ended September 30, 2017.

Earnout Shares

In connection with the acquisition of ID Checker, the Company issued 137,306 shares of Common Stock (the "Earnout Shares") to the Sellers for achievement by ID Checker of certain revenue targets for the nine-month period ended September 30, 2015. Additionally, 81,182 Earnout Shares were earned by the Sellers for achievement by ID Checker of certain revenue targets for the twelve-month period ended September 30, 2016. The Company estimated the fair value of the Earnout Shares using the Monte-Carlo simulation (using the Company’s valuation date stock price, the annual risk-free interest rate, expected volatility, the probability of reaching the performance targets, and a 10 trading day average stock price). In November 2017, a contingency triggered the immediate vesting of all Earnout Shares, resulting in an acceleration of all stock-based compensation related to the earnout shares. Stock-based compensation expense related to the Earnout Shares is recorded within acquisition-related costs and expenses on the consolidated statements of operations and other comprehensive income (loss). The Company did not recognize any stock-based compensation expense related to the Earnout Shares for the year ended September 30, 2019. The Company recognized $0.4 million in stock-based compensation expense related to the Earnout Shares for each of the years ended September 30, 2018 and 2017.

Rights Agreement

On October 23, 2018, the Company entered into the Section 382 Rights Agreement (the “Rights Agreement”) and issued a dividend of one preferred share purchase right (a “Right”) for each share of Common Stock payable on November 2, 2018 to the stockholders of record of such shares on that date. Each Right entitles the registered holder, under certain circumstances, to purchase from the Company one one-thousandth of a share of Series B Junior Preferred Stock, par value $0.001 per share (the “Preferred Shares”), of the Company, at a price of $35.00 per one one-thousandth of a Preferred Share represented by a Right, subject to adjustment. The description and terms of the Rights are set forth in the Rights Agreement.

The Rights are not exercisable until the Distribution Date (as defined in the Rights Agreement). Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends.

At any time prior to the time any person becomes an Acquiring Person (as defined in the Rights Agreement), the Board may redeem the Rights in whole, but not in part, at a price of $0.0001 per Right (the “Redemption Price”). The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.

The Rights will expire on the earlier of (i) the close of business on October 22, 2021, (ii) the time at which the Rights are redeemed, and (iii) the time at which the Rights are exchanged.

On February 28, 2019, the Company entered into an Amendment No. 1 to the Rights Agreement for the purpose of (i) modifying the definitions of “Beneficial Owner,” “Beneficially Own,” and “Beneficial Ownership” under the Rights Agreement to more closely align such definitions to the actual and constructive ownership rules under Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”) or such similar provisions of the Tax Cuts and Jobs Act and the rules and regulations promulgated thereunder, and (ii) adding an exemption request process for persons to seek an exemption from becoming an “Acquiring Person” under the Rights Agreement in the event such person wishes to acquire 4.9% or more of the Common Stock then outstanding.

Income Taxes

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

8. INCOME TAXES

Provision for Income Taxes

Income (loss) before income taxes for the years ended September 30, 2019, 2018, and 2017 is comprised of the following (amounts shown in thousands):


	2019		2018		2017
Domestic	$	8,992	$	(1,584)	$	4,057
Foreign	(12,980)		(7,157)		(886)
Total	$	(3,988)	$	(8,741)	$	3,171

For the years ended September 30, 2019, 2018, and 2017 the income tax benefit (provision) was as follows (amounts shown in thousands):


	2019		2018		2017
Federal—current	$	(117)	$	(87)	$	(127)
Federal—deferred	639		(4,537)		8,291
State—current	(438)		(26)		(20)
State—deferred	515		773		2,748
Foreign—current	594		(270)		29
Foreign—deferred	2,071		1,081		—
Total	$	3,264	$	(3,066)	$	10,921

Deferred Income Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2019 and 2018 are as follows (amounts shown in thousands):


	2019		2018
Deferred tax assets:
Stock-based compensation	$	2,646	$	3,067
Net operating loss carryforwards	9,419		8,568
Research credit carryforwards	5,570		3,890
Intangibles	58		—

Other, net	90		354
Total deferred assets	17,783		15,879
Deferred tax liabilities:
Intangibles	—		(181)
Foreign deferred liabilities	(5,811)		(8,032)
Net deferred tax asset	11,972		7,666
Valuation allowance for net deferred tax assets	(931)		(472)
Net deferred tax asset	$	11,041	$	7,194

The net change in the total valuation allowance for the fiscal years ended September 30, 2019 and 2018 was an increase of $0.5 million and an increase of $0.4 million, respectively. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. The Company considers projected future taxable income and planning strategies in making this assessment. Based on the level of historical operating results and the projections for future taxable income, the Company has determined that it is more likely than not that the deferred tax assets may be realized for all deferred tax assets with the exception of the net foreign deferred tax assets at Mitek Systems B.V.

As of September 30, 2019, the Company has available net operating loss carryforwards of $29.5 million for federal income tax purposes, of which $2.1 million were generated in the fiscal year ended September 30, 2019 and can be carried forward indefinitely under the Tax Cuts and Jobs Act. The remaining federal net operating loss of $27.4 million, which were generated prior to the fiscal year ended September 30, 2019, will start to expire in 2032 if not utilized. The net operating losses for state purposes are $29.4 million and will begin to expire in 2028. As of September 30, 2019, the Company has available federal research and development credit carryforwards, net of reserves, of $2.8 million. The federal research and development credits will start to expire in 2027. As of September 30, 2019, the Company has available California research and development credit carryforwards, net of reserves, of $2.4 million, which do not expire.

Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the “IRC”) limit the utilization of tax attribute carryforwards that arise prior to certain cumulative changes in a corporation’s ownership. The Company has completed an IRC Section 382/383 analysis through March 31, 2017 and any identified ownership changes had no impact to the utilization of tax attribute carryforwards. Any future ownership changes may have an impact on the utilization of the tax attribute carryforwards.

Income Tax Provision Reconciliation

The difference between the income tax benefit (provision) and income taxes computed using the U.S. federal income tax rate was as follows for the years ended September 30, 2019, 2018, and 2017 (amounts shown in thousands):


	2019		2018		2017
Amount computed using statutory rate	$	841	$	2,122	$	(1,078)
Net change in valuation allowance for net deferred tax assets	(459)		(367)		10,058
AMT and other	—		(191)		20
Foreign rate differential	664		22		(169)
Non-deductible items	(151)		(276)		(370)
State income tax	(370)		50		(34)

Impact of tax reform on deferred taxes	—		(4,901)		—
Research and development credits	1,694		475		2,494
Foreign income tax	(494)		—		—
Stock compensation, net	1,539		—		—
Income tax benefit (provision)	$	3,264	$	(3,066)	$	10,921

Uncertain Tax Positions

In accordance with authoritative guidance, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.

The following table reconciles the beginning and ending amount of unrecognized tax benefits for the fiscal years ended September 30, 2019, 2018, and 2017 (amounts shown in thousands):


	2019		2018		2017
Gross unrecognized tax benefits at the beginning of the year	$	1,321	$	1,181	$	—
Additions from tax positions taken in the current year	213		140		140
Additions from tax positions taken in prior years	73		—		1,041
Reductions from tax positions taken in prior years	—		—		—
Tax settlements	—		—		—
Gross unrecognized tax benefits at end of the year	$	1,607	$	1,321	$	1,181

Of the total unrecognized tax benefits at September 30, 2019, $1.6 million will impact the Company’s effective tax rate. The Company does not anticipate that there will be a substantial change in unrecognized tax benefits within the next twelve months.

The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of September 30, 2019, no accrued interest or penalties related to uncertain tax positions are recorded in the consolidated financial statements.

The Company is subject to income taxation in the U.S. at the federal and state levels. All tax years are subject to examination by U.S., California, and other state tax authorities due to the carryforward of unutilized net operating losses and tax credits. The Company is also subject to foreign income taxes in the countries in which it operates. The Company’s U.S. federal tax return for the year ended September 30, 2017 is currently under examination. To our knowledge, the Company is not currently under examination by any other taxing authorities.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

Claim Against ICAR

On June 11, 2018, a claim was filed before the Juzgado de Primera Instancia number 5 of Barcelona, Spain, the first instance court in the Spanish civil procedure system, against ICAR. The claim, also directed to Mr. Xavier Codó Grasa, former controlling shareholder of ICAR and its current General Manager, was brought by the Spanish company Global Equity & Corporate Consulting, S.L. for the alleged breach by ICAR of a services agreement entered into in the context of the sale of the shares in ICAR to Mitek Holding B.V.

ICAR responded to the claim on September 7, 2018 and the court process is ongoing.

The amount claimed is €0.8 million (or $0.9 million), plus the interest accrued during the court proceedings.

Pursuant and subject to the terms of the sale and purchase agreement concerning the acquisition of the shares in ICAR, Mitek Holding B.V. is to be indemnified in respect of any damages suffered by ICAR and/or Mitek Holding B.V. in respect of this claim.

Third Party Claims Against Our Customers

The Company is subject to indemnification demands related to various offers to license patents and allegations of patent infringement against several end-customers. Some of the offers and allegations have resulted in ongoing litigation. The Company is not a party to any such litigation. License offers to and infringement allegations against the Company’s end-customers were made by Lighthouse Consulting Group, LLC; Lupercal, LLC; Pebble Tide, LLC; Dominion Harbor Group, LLC; and IP Edge, LLC, which appear to be non-practicing entities (“NPEs”)—often called “patent trolls”—and not the Company’s competitors. These NPEs may seek to exact settlements from our end-customers, resulting in new or renewed indemnification demands to the Company. At this time, the Company does not believe it is obligated to indemnify any customers or end-customers resulting from license offers or patent infringement allegations by the companies listed above. However, the Company could incur substantial costs if it is determined that it is required to indemnify any customers or end-customers in connection with these offers or allegations. Given the potential for impact to other customers and the industry, the Company is actively monitoring the offers, allegations and any resulting litigation.

On July 7, 2018, United Services Automobile Association (“USAA”) filed a lawsuit against Wells Fargo Bank, N.A. (“Wells Fargo”) in the Eastern District of Texas alleging that Wells Fargo’s remote deposit capture systems (which in part utilize technology provided by the Company to Wells Fargo through a partner), infringe four USAA owned patents related to mobile deposits (the “First Wells Lawsuit”). On August 17, 2018, USAA filed a second lawsuit (the “Second Wells Lawsuit” and together with the First Wells Lawsuit, the “Wells Lawsuits”) against Wells Fargo in the Eastern District of Texas asserting that an additional five patents owned by USAA were infringed by Wells Fargo’s remote deposit capture system. Subsequently, on November 6, 2019, a jury in the First Wells Lawsuit found that Wells Fargo willfully infringed at least one of the Subject Patents (as defined below) and awarded USAA $200 million in damages. The jury verdict is subject to post-trial motions and appeal by Wells Fargo. The Second Wells Lawsuit is ongoing and no final judgments or awards have been made to date. Given the potential impact such litigation could have on the use of Mitek’s products by Wells Fargo, our other customers, as well as the industry as a whole, the Company is closely monitoring the Wells Lawsuits.

While the Wells Lawsuits do not name Mitek as a defendant, given the Company’s prior history of litigation with USAA and the continued use of Mitek’s products by its customers, on November 1, 2019, the Company filed a Complaint in the U.S. District Court for the Northern District of California seeking declaratory judgment that its products do not infringe USAA’s U.S. Patent Nos. 8,699,779; 9,336,517; 9,818,090; and 8,977,571 (collectively, the “Subject Patents”). The Company continues to believe that its products do not infringe the Subject Patents and will vigorously defend the right of its end-users to use its technology.

The Company incurred legal fees of $0.8 million in the fiscal year ended September 30, 2019 related to third party claims against our customers. Such fees are included in general and administrative expenses in the consolidated statement of operations.

Claim Against UrbanFT, Inc.

On July 31, 2019, the Company filed a lawsuit against one of its customers, UrbanFT, Inc. (“UrbanFT”) in the United States District Court for the Southern District of California (case No. 19-CV-1432-CAB-WVG). UrbanFT is delinquent in payment and attempted to justify its non-payment by asserting that the Company is or may be infringing on unspecified Urban FT patents. The Company filed such lawsuit to collect the delinquent payments and to obtain a declaratory judgment of non-infringement. UrbanFT filed an answer to the complaint but did not file any cross-claims for infringement. The Company intends to vigorously pursue its claims and defend against any claims of infringement.

Other Legal Matters

In addition to the foregoing, the Company is subject to various claims and legal proceedings arising in the ordinary course of its business. The Company accrues for such liabilities when it is both (i) probable that a loss has occurred and (ii) the amount of the loss can be reasonably estimated in accordance with ASC 450, Contingencies. While any legal proceeding has an element of uncertainty, the Company believes that the disposition of such matters, in the aggregate, will not have a material effect on the Company’s financial condition or results of operations.

Employee 401(k) Plan

The Company has a 401(k) plan that allows participating employees to contribute a percentage of their salary, subject to Internal Revenue Service annual limits. In 2015, the Company implemented a company match to the plan. The Company's contributions are made in an amount equal to 25% of the first 6% of an employee's designated deferral of their eligible compensation. The Company's total cost related to the 401(k) plan was $231,000, $123,000, and $121,000 for the fiscal years ended September 30, 2019, 2018, and 2017, respectively.

Facility Lease

The Company’s principal executive offices, as well as its research and development facility, are located in approximately 29,000 square feet of office space in San Diego, California and the term of the lease continues through June 30, 2024. The average annual base rent under this lease is approximately $1.0 million per year. In connection with this lease, the Company received tenant improvement allowances totaling approximately $1.0 million. These lease incentives are being amortized as a reduction of rent expense over the term of the lease. As of September 30, 2019, the unamortized balance of the lease incentives was $0.6 million, of which $0.1 million has been included in other current liabilities and $0.5 million has been included in other non-current liabilities.

The Company’s other offices are located in Paris, France; Amsterdam, The Netherlands; New York, New York; Barcelona, Spain; and London, United Kingdom. The term of the Paris, France lease continues through July 31, 2021, with an annual base rent of approximately €0.4 million (or $0.4 million). The term of the Amsterdam, The Netherlands lease continues through December 31, 2022, with an annual base rent of approximately €0.2 million (or $0.2 million). The term of the New York, New York lease continues through November 30, 2024, with an annual base rent of approximately $0.2 million. The term of the Barcelona, Spain lease continues through May 31, 2023, with an annual base rent of approximately €0.1 million (or $0.1 million). The term of the London, United Kingdom lease continues through May 31, 2020, with an annual base rent of approximately £63,000 (or approximately $78,000).

Other than the lease for office space in San Diego, California, the Company does not believe that the leases for the offices are material to the Company. The Company believes its existing properties are in good condition and are sufficient and suitable for the conduct of its business.

Future annual minimum rental payments payable under the facility and other operating leases are as follows (shown in thousands):


Years ended September 30:
2020	$	1,699
2021	2,166
2022	1,784
2023	1,554
2024	1,153
Thereafter	36
Total	$	8,392

Rent expense for the Company’s operating leases for its facilities for the years ended September 30, 2019, 2018, and 2017 totaled $2.1 million, $1.7 million and $0.6 million, respectively.

Revolving Credit Facility

On May 3, 2018, the Company and ID Checker, Inc. (together, the “Co-Borrowers”) entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). Pursuant to the Loan Agreement, the Company arranged for a $10.0 million secured revolving credit facility (the “Revolver”) with a floating per annum interest rate equal to the greater of the Wall Street Journal prime rate, plus 0.25%, or 4.5%. The Co-Borrowers must maintain, at all times when any amounts are outstanding under the Revolver, either (i) minimum unrestricted cash at SVB and unused availability on the Revolver of at least $15.0 million and (ii) Adjusted Quick Ratio (as defined in the Loan Agreement) of 1.75:1.00. In May 2019, the Company and SVB entered into an amendment of the Loan Agreement to extend the maturity of the Revolver to September 30, 2020. There were no borrowings outstanding under the Revolver as of September 30, 2019.

Revenue and Vendor Concentrations	12 Months Ended
Revenue and Vendor Concentrations	Sep. 30, 2019
Risks and Uncertainties [Abstract]
REVENUE AND VENDOR CONCENTRATIONS	10. REVENUE AND VENDOR CONCENTRATIONS Revenue Concentration For the year ended September 30, 2019, the Company derived revenue of $22.8 million from two customers, with such customers accounting for 17% and 10%, respectively, of the Company’s total revenue. For the year ended September 30, 2018, the Company derived revenue of $20.0 million from two customers, with such customers accounting for 22% and 10% of the Company's total revenue. For the year ended September 30, 2017, the Company derived revenue of $10.4 million from one customer, with such customer accounting for 23% of the Company’s total revenue. The corresponding accounts receivable balances of customers from which revenues were in excess of 10% of total revenue were $5.4 million, $5.7 million, and $1.3 million at September 30, 2019, 2018, and 2017, respectively. The Company’s revenue is derived primarily from the sale by the Company to channel partners, including systems integrators and resellers, and end-users of licenses to sell products covered by the Company’s patented technologies. In most cases, the channel partners purchase the license from the Company after they receive an order from an end-user. The channel partners receive orders from various individual end-users; therefore, the sale of a license to a channel partner may represent sales to multiple end-users. End-users can purchase the Company’s products through more than one channel partner. Revenues can fluctuate based on the timing of license renewals by channel partners. When a channel partner purchases or renews a license, the Company receives a license fee in consideration for the grant of a license to sell the Company’s products and there are no future payment obligations related to such agreement; therefore, the license fee the Company receives with respect to a particular license renewal in one period does not have a correlation with revenue in future periods. During the last few years, sales of licenses to one or more channel partners have comprised a significant part of the Company’s revenue. This is attributable to the timing of renewals or purchases of licenses and does not represent a dependence on any single channel partner. The Company believes that it is not dependent upon any single channel partner, even those from which revenues were in excess of 10% of the Company’s total revenue in a specific reporting period, and that the loss or termination of the Company’s relationship with any such channel partner would not have a material adverse effect on the Company’s future operations because either the Company or another channel partner could sell the Company’s products to the end-user that had purchased from the channel partner the Company lost. International sales accounted for approximately 31%, 27%, and 14% of the Company’s total revenue for the years ended September 30, 2019, 2018, and 2017, respectively. From a geographic perspective, approximately 68% and 72% of the Company’s total long-term assets as of September 30, 2019 and 2018, respectively, are associated with the Company’s international subsidiaries. From a geographic perspective, approximately 12% and 13% of the Company’s total long-term assets excluding goodwill and other intangible assets as of September 30, 2019 and 2018, respectively, are associated with the Company’s international subsidiaries. Vendor Concentration The Company purchases its integrated software components from multiple third-party software providers at competitive prices. For the years ended September 30, 2019, 2018, and 2017, the Company did not make purchases from any one vendor comprising 10% or more of the Company’s total purchases. The Company has entered into contractual relationships with some of its vendors; however, the Company does not believe it is substantially dependent upon nor exposed to any significant concentration risk related to purchases from any of its vendors, given the availability of alternative sources for its necessary integrated software components.

Nature of Operations and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Basis of Presentation

Principles of Consolidation

Foreign Currency

Foreign CurrencyThe Company has foreign subsidiaries that operate and sell products and services in various countries and jurisdictions around the world. As a result, the Company is exposed to foreign currency exchange risks. For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollars equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive loss in the consolidated balance sheet.

Use of Estimates

Revenue Recognition

Net Income (Loss) Per Share

Cash and Cash Equivalents

Investments

Fair Value Measurements

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful AccountsTrade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. Allowances for doubtful accounts are established based on various factors including credit profiles of the Company’s customers, contractual terms and conditions, historical payments, and current economic trends. The Company reviews its allowances by assessing individual accounts receivable over a specific aging and amount. Accounts receivable are written off on a case-by-case basis, net of any amounts that may be collected.

Property and Equipment

Property and EquipmentProperty and equipment are carried at cost.

Long-Lived Assets

Long-Lived AssetsThe Company evaluates the carrying value of long-lived assets, including license agreements and other intangible assets, when events and circumstances indicate that these assets may be impaired or in order to determine whether any revision to the related amortization periods should be made. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each product or asset. If management’s evaluation indicates that the carrying values of these intangible assets were impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

Capitalized Software Development Costs

Goodwill and Purchased Intangible Assets

Guarantees

Loss Contingencies

Other Borrowings

Other BorrowingsThe Company has certain loan agreements with Spanish government agencies which were assumed when the Company acquired ICAR. These agreements have repayment periods of five to twelve years and bear no interest.

Income Taxes

Stock-Based Compensation

The Company assigns fair value to RSUs based on the closing stock price of its Common Stock on the date of grant.

Advertising Expense

Advertising ExpenseAdvertising costs are expensed as incurred

Research and Development

Research and development costs are expensed in the period incurred.

Leases

Segment Reporting

Comprehensive Income (Loss)

Comprehensive Income (Loss)Comprehensive income (loss) consists of net income (loss), unrealized gains and losses on available-for-sale securities, and foreign currency translation adjustments.

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

See Note 2 of the consolidated financial statements for additional details on the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

Change in Significant Accounting Policy

Contract Assets and Liabilities

Contract Acquisition Costs

Impacts on Financial Statements

The following table summarizes the cumulative effect of the changes made to the consolidated balance sheet as of October 1, 2018 due to the adoption of ASC 606 (amounts in thousands):


	Balance at September 30, 2018		Adjustments Due to the Adoption of ASC 606		Balance at October 1, 2018
Assets
Contract assets	$	—	$	169	$	169
Deferred income tax asset	15,356		(267)		15,089
Other non-current assets	2,147		507		2,654

Liabilities
Deferred revenue, current portion	4,792		(511)		4,281
Deferred revenue, non-current portion	485		—		485

Equity
Accumulated deficit	$	(21,002)	$	920	$	(20,082)

The following tables summarize the impacts of ASC 606 adoption on the Company's consolidated financial statements as of and for the year ended September 30, 2019 (amounts in thousands):


Consolidated Statement of Operations










	Impact of changes in accounting policies
Twelve Months Ended September 30, 2019:	As reported		Adjustments		Balances without adoption of ASC 606
Revenue
Software and hardware	$	46,845	$	(2,454)	$	44,391
Service and other	37,745		—		37,745
Total revenue	84,590		(2,454)		82,136

Operating expenses
Selling and marketing	$	27,405	$	15	$	27,420


Consolidated Balance Sheet
	Impact of changes in accounting policies
September 30, 2019:	As reported		Adjustments		Balances without adoption of ASC 606
Assets
Accounts receivable, net	$	14,938	$	414	$	15,352
Contract assets	2,350		(2,350)		—
Deferred income tax asset	16,596		822		17,418
Other non-current assets	2,347		(596)		1,751

Liabilities
Deferred revenue, current portion	5,612		1,124		6,736
Deferred revenue, non-current portion	736		—		736

Equity
Accumulated deficit	$	(20,806)	$	(2,834)	$	(23,640)

Recently Issued Accounting Pronouncements

No other new accounting pronouncement issued or effective during the year ended September 30, 2019 had, or is expected to have, a material impact on the Company’s consolidated financial statements.

Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Potentially Dilutive Common Shares Excluded from Net Income (Loss) per Share Calculation


	2019	2018	2017
Stock options	1,687	2,806	569
RSUs	2,352	2,580	83
ESPP common stock equivalents	74	71	—
ID Checker earnout shares	—	—	24
Total potentially dilutive common shares outstanding	4,113	5,457	676

Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share

The computation of basic and diluted net income (loss) per share for the fiscal years ended September 30, 2019, 2018, and 2017 is as follows (amounts in thousands, except per share data):


	2019		2018		2017
Net income (loss)	$	(724)	$	(11,807)	$	14,092
Weighted-average shares outstanding—basic	39,341		35,811		33,083
Common stock equivalents	—		—		2,454
Weighted-average shares outstanding—diluted	39,341		35,811		35,537
Net income (loss) per share:
Basic	$	(0.02)	$	(0.33)	$	0.43
Diluted	$	(0.02)	$	(0.33)	$	0.40

Schedule of Summary of Property and Equipment

The following is a summary of property and equipment as of September 30, 2019 and 2018 (amounts shown in thousands):


	2019		2018
Property and equipment—at cost:
Leasehold improvements	$	3,575	$	3,825
Equipment	3,041		2,604
Capitalized internal-use software development costs	1,088		916
Furniture and fixtures	526		425
	8,230		7,770
Less: accumulated depreciation and amortization	(3,999)		(3,105)
Total property and equipment, net	$	4,231	$	4,665

Schedule of Cumulative Effect of Adoption of ASC 606 on Consolidated Financial Statements

Impacts on Financial Statements

The following table summarizes the cumulative effect of the changes made to the consolidated balance sheet as of October 1, 2018 due to the adoption of ASC 606 (amounts in thousands):


	Balance at September 30, 2018		Adjustments Due to the Adoption of ASC 606		Balance at October 1, 2018
Assets
Contract assets	$	—	$	169	$	169
Deferred income tax asset	15,356		(267)		15,089
Other non-current assets	2,147		507		2,654

Liabilities
Deferred revenue, current portion	4,792		(511)		4,281
Deferred revenue, non-current portion	485		—		485

Equity
Accumulated deficit	$	(21,002)	$	920	$	(20,082)

The following tables summarize the impacts of ASC 606 adoption on the Company's consolidated financial statements as of and for the year ended September 30, 2019 (amounts in thousands):


Consolidated Statement of Operations










	Impact of changes in accounting policies
Twelve Months Ended September 30, 2019:	As reported		Adjustments		Balances without adoption of ASC 606
Revenue
Software and hardware	$	46,845	$	(2,454)	$	44,391
Service and other	37,745		—		37,745
Total revenue	84,590		(2,454)		82,136

Operating expenses
Selling and marketing	$	27,405	$	15	$	27,420


Consolidated Balance Sheet
	Impact of changes in accounting policies
September 30, 2019:	As reported		Adjustments		Balances without adoption of ASC 606
Assets
Accounts receivable, net	$	14,938	$	414	$	15,352
Contract assets	2,350		(2,350)		—
Deferred income tax asset	16,596		822		17,418
Other non-current assets	2,347		(596)		1,751

Liabilities
Deferred revenue, current portion	5,612		1,124		6,736
Deferred revenue, non-current portion	736		—		736

Equity
Accumulated deficit	$	(20,806)	$	(2,834)	$	(23,640)

Business Combinations (Tables)

12 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Estimated Fair Values of Assets acquired and Liabilities Assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed during the year ended September 30, 2018 (amounts shown in thousands):


	A2iA		ICAR		Total
Current assets	$	3,929	$	2,036	$	5,965
Property, plant, and equipment	307		83		390
Intangible assets	28,610		6,407		35,017
Goodwill	24,991		6,936		31,927
Other non-current assets	1,177		87		1,264
Current liabilities	(2,688)		(1,652)		(4,340)
Deferred income tax liabilities	(7,503)		(1,602)		(9,105)
Other non-current liabilities	(7)		(828)		(835)
Net assets acquired	$	48,816	$	11,467	$	60,283

Schedule of Estimated Useful Lives of Assets Acquired


	Amortization Period	Amount assigned
A2iA
Completed technologies	7.0 years	$	13,015
Customer relationships	5.0 years	15,360
Trade names	5.0 years	235
Total intangible assets acquired from A2iA		$	28,610

ICAR
Completed technologies	5.0 years	$	4,956
Customer relationships	2.0 years	1,298
Trade names	3.0 years	153
Total intangible assets acquired from ICAR		$	6,407

Schedule of Pro Forma Information

The following table summarizes the Company’s unaudited pro forma financial information is presented as if the acquisitions occurred on October 1, 2017 (amounts shown in thousands):


	For the years ended September 30,
	2019		2018
Pro forma revenue	$	86,206	$	78,130
Pro forma net income (loss)	$	889	$	(12,268)

Investments (Tables)

12 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments by Type of Security

The following tables summarize investments by type of security as of September 30, 2019 and 2018, respectively (amounts shown in thousands):


September 30, 2019:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	4,240	$	2	$	—	$	4,242
Corporate debt securities, short-term	12,258		2		—		12,260
U.S. Treasury, long-term	1,102		—		(1)		1,101
Corporate debt securities, long-term	451		—		—		451
Total	$	18,051	$	4	$	(1)	$	18,054


September 30, 2018:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	3,693	$	—	$	(10)	$	3,683
Corporate debt securities, short-term	4,779		—		(14)		4,765

Total	$	8,472	$	—	$	(24)	$	8,448

Schedule of Fair Value of Investments Measured on Recurring Basis

The following tables represent the fair value hierarchy of the Company’s investments and acquisition-related contingent consideration as of September 30, 2019 and 2018 (amounts shown in thousands):


September 30, 2019:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	4,242	$	4,242	$	—	$	—
Corporate debt securities
Financial	2,503		—		2,503		—
Industrial	1,371		—		1,371		—
Commercial paper
Financial	5,560		—		5,560		—
Industrial	2,826		—		2,826		—
Total short-term investments at fair value	16,502		4,242		12,260		—
Long-term investments:
U.S. Treasury	1,101		1,101		—		—
Corporate debt securities
Financial	451		—		451		—

Total assets at fair value	$	18,054	$	5,343	$	12,711	$	—
Liabilities:
Acquisition-related contingent consideration	1,601		—		—		1,601
Total liabilities at fair value	$	1,601	$	—	$	—	$	1,601


September 30, 2018:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	3,683	$	3,683	$	—	$	—
Corporate debt securities
Financial	2,847		—		2,847		—
Industrial	1,918		—		1,918		—
Commercial paper
Financial	—		—		—		—
Industrial	—		—		—		—
Total short-term investments at fair value	8,448		3,683		4,765		—
Long-term investments:
Corporate debt securities
Financial	—		—		—		—
Industrial	—		—		—		—
Total assets at fair value	$	8,448	$	3,683	$	4,765	$	—
Liabilities:
Acquisition-related contingent consideration	3,051		—		—		3,051
Total liabilities at fair value	$	3,051	$	—	$	—	$	3,051

Schedule of Acquisition-related Contingent Consideration Measured at Fair Value

The following table includes a summary of the contingent consideration measured at fair value using significant unobservable inputs (Level 3) during the year ended September 30, 2019 (amounts shown in thousands):


Balance at September 30, 2018	$	3,051

Expenses recorded due to changes in fair value	472
Payment of contingent consideration	(1,818)

Foreign currency effect on contingent consideration	(104)
Balance at September 30, 2019	$	1,601

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table summarizes changes in the balance of goodwill during the year ended September 30, 2019 (amounts shown in thousands):


Balance at September 30, 2018	$	34,407

A2iA purchase accounting adjustment	121
Foreign currency effect on goodwill	(1,892)
Balance at September 30, 2019	$	32,636

Schedule of Intangible Assets

The estimated useful lives for all of these intangible assets, range from two to seven years. Intangible assets as of September 30, 2019 and 2018 are summarized as follows (amounts shown in thousands, except for years):


September 30, 2019:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	7,104	$	13,237
Customer relationships	4.8 years	17,628		6,701		10,927
Trade names	4.5 years	618		377		241
Total intangible assets		$	38,587	$	14,182	$	24,405


September 30, 2018:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	3,070	$	17,271
Customer relationships	4.8 years	17,628		2,351		15,277
Trade names	4.5 years	618		219		399
Total intangible assets		$	38,587	$	5,640	$	32,947

Schedule of Estimated Future Amortization Expense

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts shown in thousands):


	Estimated Future Amortization Expense
2020	$	6,258
2021	5,998
2022	5,613
2023	3,683
2024	1,734
Thereafter	1,119
Total	$	24,405

Stockholders' Equity (Tables)

12 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Stock-Based Compensation Expense


	2019		2018		2017
Cost of revenue	$	207	$	78	$	52
Selling and marketing	2,967		2,656		1,577
Research and development	2,013		1,801		1,028
General and administrative	4,450		4,415		2,821
Stock-based compensation expense included in expenses	$	9,637	$	8,950	$	5,478

Schedule of Fair Value Calculations for Stock-Based Compensation Awards

The fair value calculations for stock-based compensation awards to employees for the fiscal years ended September 30, 2019, 2018, and 2017 were based on the following assumptions:


	2019	2018	2017
Risk-free interest rate	1.85% – 3.08%	2.04%	1.68% – 1.92%
Expected life (years)	5.43	5.15	5.25
Expected volatility	57%	60%	74%
Expected dividends	—	—	—

Schedule of Stock Option Activity

The following table summarizes stock option activity under the Company’s stock option plans during the fiscal years ended September 30, 2019, 2018, and 2017:


	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in Years)
Outstanding at September 30, 2016	3,015,374	$	3.95	6.4
Granted	147,800	$	7.06
Exercised	(235,514)	$	2.92
Canceled	(81,794)	$	3.59
Outstanding at September 30, 2017	2,845,866	$	4.21	5.4
Granted	299,397	$	8.60
Exercised	(250,823)	$	2.96
Canceled	(88,076)	$	5.23
Outstanding at September 30, 2018	2,806,364	$	4.75	4.6
Granted	409,368	$	9.59
Exercised	(1,384,647)	$	3.25
Canceled	(144,183)	$	6.62
Outstanding at September 30, 2019	1,686,902	$	7.00	5.4

Schedule of RSU Activity

The following table summarizes RSU activity in the fiscal years ended September 30, 2019, 2018, and 2017:


	Number of Shares	Weighted- Average Fair Value Per Share
Outstanding at September 30, 2016	2,046,169	$	4.90
Granted	1,249,224	$	6.61
Settled	(707,174)	$	4.81
Canceled	(231,198)	$	4.93
Outstanding at September 30, 2017	2,357,021	$	5.65
Granted	1,184,906	$	8.54
Settled	(745,197)	$	5.26
Canceled	(216,554)	$	7.39
Outstanding at September 30, 2018	2,580,176	$	6.92
Granted	1,147,976	$	9.67
Settled	(881,420)	$	6.53
Canceled	(494,245)	$	7.70
Outstanding at September 30, 2019	2,352,487	$	8.26

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax (Provision) Benefit

Income (loss) before income taxes for the years ended September 30, 2019, 2018, and 2017 is comprised of the following (amounts shown in thousands):


	2019		2018		2017
Domestic	$	8,992	$	(1,584)	$	4,057
Foreign	(12,980)		(7,157)		(886)
Total	$	(3,988)	$	(8,741)	$	3,171

For the years ended September 30, 2019, 2018, and 2017 the income tax benefit (provision) was as follows (amounts shown in thousands):


	2019		2018		2017
Federal—current	$	(117)	$	(87)	$	(127)
Federal—deferred	639		(4,537)		8,291
State—current	(438)		(26)		(20)
State—deferred	515		773		2,748
Foreign—current	594		(270)		29
Foreign—deferred	2,071		1,081		—
Total	$	3,264	$	(3,066)	$	10,921

Schedule Net Deferred Tax Assets and Liabilities

Deferred Income Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2019 and 2018 are as follows (amounts shown in thousands):


	2019		2018
Deferred tax assets:
Stock-based compensation	$	2,646	$	3,067
Net operating loss carryforwards	9,419		8,568
Research credit carryforwards	5,570		3,890
Intangibles	58		—

Other, net	90		354
Total deferred assets	17,783		15,879
Deferred tax liabilities:
Intangibles	—		(181)
Foreign deferred liabilities	(5,811)		(8,032)
Net deferred tax asset	11,972		7,666
Valuation allowance for net deferred tax assets	(931)		(472)
Net deferred tax asset	$	11,041	$	7,194

Schedule of Income Taxes Computed Using Federal Income Tax Rate


	2019		2018		2017
Amount computed using statutory rate	$	841	$	2,122	$	(1,078)
Net change in valuation allowance for net deferred tax assets	(459)		(367)		10,058
AMT and other	—		(191)		20
Foreign rate differential	664		22		(169)
Non-deductible items	(151)		(276)		(370)
State income tax	(370)		50		(34)

Impact of tax reform on deferred taxes	—		(4,901)		—
Research and development credits	1,694		475		2,494
Foreign income tax	(494)		—		—
Stock compensation, net	1,539		—		—
Income tax benefit (provision)	$	3,264	$	(3,066)	$	10,921

Schedule of Reconciliation of Unrecognized Tax Benefits

The following table reconciles the beginning and ending amount of unrecognized tax benefits for the fiscal years ended September 30, 2019, 2018, and 2017 (amounts shown in thousands):


	2019		2018		2017
Gross unrecognized tax benefits at the beginning of the year	$	1,321	$	1,181	$	—
Additions from tax positions taken in the current year	213		140		140
Additions from tax positions taken in prior years	73		—		1,041
Reductions from tax positions taken in prior years	—		—		—
Tax settlements	—		—		—
Gross unrecognized tax benefits at end of the year	$	1,607	$	1,321	$	1,181

Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, deposit in Billions	3 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) patent institution deposit $ / shares	Sep. 30, 2019 USD ($) deposit segment institution patent $ / shares	Sep. 30, 2018 USD ($) $ / shares	Sep. 30, 2017 USD ($)	Oct. 01, 2019 USD ($)	Oct. 23, 2018 $ / shares
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of financial services organizations, leading marketplace and financial technology brands (more than) \| institution	6,500	6,500
Number of check deposits processed (over) \| deposit	3	3
Number of patents granted \| patent	57	57
Number of patent applications pending \| patent	25	25
Foreign currency translation adjustment		$ (3,504,000)	$ (723,000)	$ 208,000
Other-than-temporary impairment charges recognized in earnings		0	0	0
Write-offs of allowance for doubtful accounts		100,000	0	0
Allowance for doubtful accounts receivable	$ 200,000	200,000	300,000
Depreciation and amortization of property and equipment		1,388,000	615,000	322,000
Repairs and maintenance expenses		100,000	100,000	200,000
Impairment or long-lived assets		0	0	0
Capitalized software development costs	0	0	0
Amortization expense for capitalized software development costs		0	0	0
Capitalized software development costs for internal use	200,000	200,000	900,000
Amortization expense for capitalized software development costs for internal use		$ 300,000	$ 100,000	0
Number of operating segments \| segment		1
Number of reporting units \| segment		1
Goodwill impairment	$ 0
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.001			$ 0.001
Impairment to intangible assets		$ 0	$ 0	0
Trading-day average stock price period		20 days
Advertising costs		$ 800,000	500,000	$ 300,000
Accumulated other comprehensive loss	$ (4,061,000)	$ (4,061,000)	(586,000)
ICAR \| Spanish Government Agencies
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Interest rate of loan agreements	0.00%	0.00%
Total amounts outstanding under loan agreements	$ 600,000	$ 600,000	800,000
ICAR \| Spanish Government Agencies \| Other Current Liabilities
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Current amount outstanding under loan agreements	200,000	200,000	300,000
ICAR \| Spanish Government Agencies \| Other Noncurrent Liabilities
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Non-current amount outstanding under loan agreements	$ 400,000	$ 400,000	$ 500,000
Minimum
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Property and equipment, estimated useful lives		3 years
Minimum \| ASU 2016-02 \| Scenario, Forecast
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Lease liabilities					$ 7,900,000
Right-of-use assets					6,500,000
Minimum \| ICAR \| Spanish Government Agencies
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Repayment period of loan agreements		5 years
Maximum
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Property and equipment, estimated useful lives		10 years
Maximum \| ASU 2016-02 \| Scenario, Forecast
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Lease liabilities					8,400,000
Right-of-use assets					$ 7,000,000.0
Maximum \| ICAR \| Spanish Government Agencies
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Repayment period of loan agreements		12 years

Nature of Operations and Summary of Significant Accounting Policies - Potentially Dilutive Common Stocks Excluded From Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	4,113	5,457	676
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	1,687	2,806	569
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	2,352	2,580	83
ESPP common stock equivalents
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	74	71	0
ID Checker earnout shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	0	0	24

Nature of Operations and Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ 3,282	$ (99)	$ (716)	$ (3,191)	$ (2,127)	$ (2,784)	$ (1,160)	$ (5,736)	$ 12,866	$ 616	$ 1,217	$ (607)	$ (724)	$ (11,807)	$ 14,092
Weighted-average shares outstanding—basic (in shares)	40,252	39,936	38,926	38,247					33,522	33,024	32,786	32,377	39,341	35,811	33,083
Common stock equivalents (in shares)													0	0	2,454
Weighted-average shares outstanding—diluted (in shares)	41,635	39,936	38,926	38,247					36,251	35,610	34,815	32,377	39,341	35,811	35,537
Net income (loss) per share:
Basic (in dollars per share)	$ 0.08	$ (0.00)	$ (0.02)	$ (0.08)					$ 0.38	$ 0.02	$ 0.04	$ (0.02)	$ (0.02)	$ (0.33)	$ 0.43
Diluted (in dollars per share)	$ 0.08	$ (0.00)	$ (0.02)	$ (0.08)					$ 0.35	$ 0.02	$ 0.03	$ (0.02)	$ (0.02)	$ (0.33)	$ 0.40

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Nature of Operations and Summary of Significant Accounting Policies - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 8,230	$ 7,770
Less: accumulated depreciation and amortization	(3,999)	(3,105)
Total property and equipment, net	4,231	4,665
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	3,575	3,825
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	3,041	2,604
Capitalized internal-use software development costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	1,088	916
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 526	$ 425

Nature of Operations and Summary of Significant Accounting Policies - Cumulative Effect of Adoption of ASC 606 on Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Oct. 01, 2018
Assets
Accounts receivable, net	$ 14,938				$ 16,821								$ 14,938	$ 16,821
Contract assets	2,350												2,350			$ 169
Deferred income taxes, net	16,596				15,356								16,596	15,356		15,089
Other non-current assets	2,347				2,147								2,347	2,147		2,654
Liabilities
Deferred revenue, current portion	5,612				4,792								5,612	4,792		4,281
Deferred revenue, non-current portion	736				485								736	485		485
Equity [Abstract]
Accumulated deficit	(20,806)				(21,002)								(20,806)	(21,002)		$ (20,082)
Revenue
Revenue	25,018	$ 21,906	$ 19,983	$ 17,683	21,037	$ 16,109	$ 14,277	$ 12,136	$ 12,904	$ 11,798	$ 11,419	$ 9,269	84,590	63,559	$ 45,390
Operating expenses
Selling and marketing													27,405	21,700	14,484
Software and hardware
Revenue
Revenue													46,845	40,698	29,647
Service and other
Revenue
Revenue													37,745	22,861	$ 15,743
Adjustments Due to the Adoption of ASC 606 \| ASC 606
Assets
Accounts receivable, net	414												414
Contract assets	(2,350)				169								(2,350)	169
Deferred income taxes, net	822				(267)								822	(267)
Other non-current assets	(596)				507								(596)	507
Liabilities
Deferred revenue, current portion	1,124				(511)								1,124	(511)
Deferred revenue, non-current portion	0				0								0	0
Equity [Abstract]
Accumulated deficit	(2,834)				920								(2,834)	920
Revenue
Revenue													(2,454)
Operating expenses
Selling and marketing													15
Adjustments Due to the Adoption of ASC 606 \| ASC 606 \| Software and hardware
Revenue
Revenue													(2,454)
Adjustments Due to the Adoption of ASC 606 \| ASC 606 \| Service and other
Revenue
Revenue													0
Balances without adoption of ASC 606
Assets
Accounts receivable, net	15,352												15,352
Contract assets	0				0								0	0
Deferred income taxes, net	17,418				15,356								17,418	15,356
Other non-current assets	1,751				2,147								1,751	2,147
Liabilities
Deferred revenue, current portion	6,736				4,792								6,736	4,792
Deferred revenue, non-current portion	736				485								736	485
Equity [Abstract]
Accumulated deficit	$ (23,640)				$ (21,002)								(23,640)	$ (21,002)
Revenue
Revenue													82,136
Operating expenses
Selling and marketing													27,420
Balances without adoption of ASC 606 \| Software and hardware
Revenue
Revenue													44,391
Balances without adoption of ASC 606 \| Service and other
Revenue
Revenue													$ 37,745

Revenue Recognition - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 25,018	$ 21,906	$ 19,983	$ 17,683	$ 21,037	$ 16,109	$ 14,277	$ 12,136	$ 12,904	$ 11,798	$ 11,419	$ 9,269	$ 84,590	$ 63,559	$ 45,390
Deposits revenue
Disaggregation of Revenue [Line Items]
Revenue													57,030	41,508	32,370
Deposits software and hardware \| Transferred at point in time
Disaggregation of Revenue [Line Items]
Revenue													41,860	33,071	25,407
Deposits service and other \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue													15,170	8,437	6,963
Identity verification revenue
Disaggregation of Revenue [Line Items]
Revenue													27,560	22,051	13,020
Identity verification software and hardware \| Transferred at point in time
Disaggregation of Revenue [Line Items]
Revenue													4,985	7,627	4,240
Identity verification service and other \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue													$ 22,575	$ 14,424	$ 8,780

Revenue from Contract with Customer - Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Oct. 01, 2018	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Contract assets	$ 2,350	$ 169
Contract assets, non-current	581	507
Contract liabilities, current	5,612	4,281	$ 4,792
Contract liabilities, non-current	$ 736	$ 485	$ 485

Revenue from Contract with Customer - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Oct. 01, 2018
Disaggregation of Revenue [Line Items]
Revenue recognized included in contract liability balance at the beginning of the period	$ 4,400,000
Impairment losses recognized in capitalized contract costs	0
Selling and marketing
Disaggregation of Revenue [Line Items]
Amortization of capitalized contract costs	600,000
Other current and non-current assets
Disaggregation of Revenue [Line Items]
Capitalized contract costs	$ 1,500,000	$ 1,000,000.0

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended	12 Months Ended
	May 23, 2018	Oct. 16, 2017	Jan. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Dec. 06, 2019	Apr. 30, 2018
Business Acquisition [Line Items]
Consideration paid for acquisition, net of cash acquired				$ 0	$ 29,744	$ 0
Acquisition-related contingent consideration				1,601	3,051
Payment for contingent consideration liability				1,030	1,284	$ 0
Revenue from business combinations					9,100
Net loss from business combinations					$ 5,300
A2iA
Business Acquisition [Line Items]
Consideration paid for acquisition, net of cash acquired	$ 26,800
Acquisition-related shares issued (in shares)	2,514,588
Value of common stock issued during acquisition	$ 21,900
Transaction-related liabilities	200
Expenses incurred in connection with acquisition	2,200
Payments for cash for collateral	$ 700
Payments for collateral, equity (in shares)	508,479
Payments for collateral, equity, value	$ 4,400
Period to maintain escrow funds	24 months
ICAR
Business Acquisition [Line Items]
Consideration paid for acquisition, net of cash acquired		$ 3,000
Acquisition-related shares issued (in shares)		584,291
Value of common stock issued during acquisition		$ 5,600
Expenses incurred in connection with acquisition		500
Acquisition-related contingent consideration		2,900
Escrow deposit		1,500						$ 1,500
ICAR \| Subsequent Event
Business Acquisition [Line Items]
Escrow deposit							$ 1,000
ICAR \| Q4 Consideration
Business Acquisition [Line Items]
Contingent consideration arrangement		1,500
ICAR \| Earnout Consideration
Business Acquisition [Line Items]
Contingent consideration arrangement		3,800
Acquisition-related contingent consideration				$ 1,800
Payment for contingent consideration liability			$ 1,800
ICAR \| Maximum
Business Acquisition [Line Items]
Aggregate purchase price		$ 13,900

Business Combinations - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition [Line Items]
Goodwill	$ 32,636	$ 34,407
A2iA
Business Acquisition [Line Items]
Current assets		3,929
Property, plant, and equipment		307
Intangible assets		28,610
Goodwill		24,991
Other non-current assets		1,177
Current liabilities		(2,688)
Deferred income tax liabilities		(7,503)
Other non-current liabilities		(7)
Net assets acquired		48,816
ICAR
Business Acquisition [Line Items]
Current assets		2,036
Property, plant, and equipment		83
Intangible assets		6,407
Goodwill		6,936
Other non-current assets		87
Current liabilities		(1,652)
Deferred income tax liabilities		(1,602)
Other non-current liabilities		(828)
Net assets acquired		11,467
Total
Business Acquisition [Line Items]
Current assets		5,965
Property, plant, and equipment		390
Intangible assets		35,017
Goodwill		31,927
Other non-current assets		1,264
Current liabilities		(4,340)
Deferred income tax liabilities		(9,105)
Other non-current liabilities		(835)
Net assets acquired		$ 60,283

Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	4 years 9 months 18 days	4 years 9 months 18 days
A2iA \| Completed technologies
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period		7 years
Amount assigned		$ 13,015
A2iA \| Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period		5 years
Amount assigned		$ 15,360
A2iA \| Trade names
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period		5 years
Amount assigned		$ 235
ICAR \| Completed technologies
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period		5 years
Amount assigned		$ 4,956
ICAR \| Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period		2 years
Amount assigned		$ 1,298
ICAR \| Trade names
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period		3 years
Amount assigned		$ 153

Restructuring (Details) - USD ($) $ in Thousands	12 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Restructuring Reserve [Roll Forward]
Costs incurred	$ 3,067	$ 0	$ 0
A2iA
Restructuring Reserve [Roll Forward]
Balance at September 30, 2018	0
Costs incurred	3,067
Payments	(1,473)
Foreign currency effect on the restructuring accrual	(68)
Balance at September 30, 2019	$ 1,526	$ 0

Investments - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Other-than-temporary impairment charges recognized in earnings	$ 0	$ 0	$ 0
Realized gains (losses) from sale of available-for-sale securities	0	49,000	$ 0
Debt Securities, Available-for-sale [Line Items]
Acquisition-related consideration, current	1,036,000	$ 1,849,000
Other Current Liabilities \| ICAR
Debt Securities, Available-for-sale [Line Items]
Acquisition-related consideration, current	1,000,000.0
Other Noncurrent Liabilities \| ICAR
Debt Securities, Available-for-sale [Line Items]
Acquisition-related consideration, noncurrent	$ 600,000

Investments - Summary of Investments by Type of Security (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Debt Securities, Available-for-sale [Line Items]
Cost	$ 18,051	$ 8,472
Gross Unrealized Gains	4	0
Gross Unrealized Losses	(1)	(24)
Fair Market Value	18,054	8,448
US Treasury \| Short-term
Debt Securities, Available-for-sale [Line Items]
Cost	4,240	3,693
Gross Unrealized Gains	2	0
Gross Unrealized Losses	0	(10)
Fair Market Value	4,242	3,683
US Treasury \| Long-term
Debt Securities, Available-for-sale [Line Items]
Cost	1,102
Gross Unrealized Gains	0
Gross Unrealized Losses	(1)
Fair Market Value	1,101
Corporate debt securities \| Short-term
Debt Securities, Available-for-sale [Line Items]
Cost	12,258	4,779
Gross Unrealized Gains	2	0
Gross Unrealized Losses	0	(14)
Fair Market Value	12,260	$ 4,765
Corporate debt securities \| Long-term
Debt Securities, Available-for-sale [Line Items]
Cost	451
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Market Value	$ 451

Investments - Summary of Fair Values of Investments Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	$ 16,502	$ 8,448
Total assets at fair value	18,054	8,448
Acquisition-related contingent consideration	1,601	3,051
Total liabilities at fair value	1,601	3,051
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	4,242	3,683
Long-term investments at fair value	1,101
Corporate debt securities \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	2,503	2,847
Long-term investments at fair value	451	0
Corporate debt securities \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	1,371	1,918
Long-term investments at fair value		0
Commercial paper \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	5,560	0
Commercial paper \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	2,826	0
Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	4,242	3,683
Total assets at fair value	5,343	3,683
Acquisition-related contingent consideration	0	0
Total liabilities at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	4,242	3,683
Long-term investments at fair value	1,101
Quoted Prices in Active Markets (Level 1) \| Corporate debt securities \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Long-term investments at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| Corporate debt securities \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Long-term investments at fair value		0
Quoted Prices in Active Markets (Level 1) \| Commercial paper \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| Commercial paper \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	12,260	4,765
Total assets at fair value	12,711	4,765
Acquisition-related contingent consideration	0	0
Total liabilities at fair value	0	0
Significant Other Observable Inputs (Level 2) \| U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Long-term investments at fair value	0
Significant Other Observable Inputs (Level 2) \| Corporate debt securities \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	2,503	2,847
Long-term investments at fair value	451	0
Significant Other Observable Inputs (Level 2) \| Corporate debt securities \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	1,371	1,918
Long-term investments at fair value		0
Significant Other Observable Inputs (Level 2) \| Commercial paper \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	5,560	0
Significant Other Observable Inputs (Level 2) \| Commercial paper \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	2,826	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Total assets at fair value	0	0
Acquisition-related contingent consideration	1,601	3,051
Total liabilities at fair value	1,601	3,051
Significant Unobservable Inputs (Level 3) \| U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Long-term investments at fair value	0
Significant Unobservable Inputs (Level 3) \| Corporate debt securities \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Long-term investments at fair value	0	0
Significant Unobservable Inputs (Level 3) \| Corporate debt securities \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Long-term investments at fair value		0
Significant Unobservable Inputs (Level 3) \| Commercial paper \| Financial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	0	0
Significant Unobservable Inputs (Level 3) \| Commercial paper \| Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments at fair value	$ 0	$ 0

Investments - Summary of Contingent Consideration Measured at Fair Value (Details) - Contingent Consideration - ICAR Vision Systems, S.L. $ in Thousands	12 Months Ended
	Sep. 30, 2019 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at September 30, 2018	$ 3,051
Expenses recorded due to changes in fair value	472
Payment of contingent consideration	(1,818)
Foreign currency effect on contingent consideration	(104)
Balance at September 30, 2019	$ 1,601

Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Balance at September 30, 2018	$ 34,407
Foreign currency effect on goodwill	(1,892)
Balance at September 30, 2019	32,636
A2iA
Goodwill [Roll Forward]
Balance at September 30, 2018	24,991
A2iA purchase accounting adjustment	$ 121

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 32,636	$ 34,407
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Amortization of acquisition-related intangible assets	7,024	4,023	$ 591
Acquisition-related costs and expenses
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Amortization of acquisition-related intangible assets	$ 7,000	$ 4,000	$ 600
Minimum
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Estimated useful lives of intangible assets	2 years
Maximum
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Estimated useful lives of intangible assets	7 years

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Indefinite-lived Intangible Assets [Line Items]
Cost	$ 38,587	$ 38,587
Accumulated Amortization	14,182	5,640
Net	$ 24,405	$ 32,947
Completed technologies
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	6 years 4 months 24 days	6 years 4 months 24 days
Cost	$ 20,341	$ 20,341
Accumulated Amortization	7,104	3,070
Net	$ 13,237	$ 17,271
Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	4 years 9 months 18 days	4 years 9 months 18 days
Cost	$ 17,628	$ 17,628
Accumulated Amortization	6,701	2,351
Net	$ 10,927	$ 15,277
Trade names
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	4 years 6 months	4 years 6 months
Cost	$ 618	$ 618
Accumulated Amortization	377	219
Net	$ 241	$ 399

Goodwill and Intangibles Assets - Schedule of Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 6,258
2021	5,998
2022	5,613
2023	3,683
2024	1,734
Thereafter	1,119
Net	$ 24,405	$ 32,947

Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 9,637	$ 8,950	$ 5,478
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	207	78	52
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	2,967	2,656	1,577
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	2,013	1,801	1,028
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 4,450	$ 4,415	$ 2,821

Stockholders' Equity - Fair Value Calculations Stock-based Compensation Awards (Details)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Equity [Abstract]
Risk-free interest rate, minimum	1.85%	2.04%	1.68%
Risk-free interest rate, maximum	3.08%		1.92%
Expected life (years)	5 years 5 months 4 days	5 years 1 month 24 days	5 years 3 months
Expected volatility rate	57.00%	60.00%	74.00%
Expected dividend rate	0.00%	0.00%	0.00%

Stockholders' Equity - Additional Information (Details)			3 Months Ended	9 Months Ended	12 Months Ended
Stockholders' Equity - Additional Information (Details)	Nov. 06, 2018 $ / shares shares	Jun. 17, 2015 shares	Dec. 31, 2016	Sep. 30, 2015 shares	Sep. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2018 USD ($) $ / shares shares	Sep. 30, 2017 USD ($) $ / shares shares	Sep. 30, 2016 shares	Feb. 28, 2019	Oct. 23, 2018 $ / right $ / shares shares	Mar. 07, 2018 shares	Mar. 10, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense \| $					$ 16,600,000
Weighted average period for unrecognized compensation expense expected to be recognized					2 years 3 months 18 days
Purchase of common stock (in shares)					1,686,902	2,806,364	2,845,866	3,015,374
Recognized compensation expense \| $					$ 9,637,000	$ 8,950,000	$ 5,478,000
Total intrinsic value of options exercised \| $					$ 11,100,000	$ 1,400,000	$ 1,400,000
Weighted average fair value of options granted (in dollars per share) \| $ / shares					$ 5.07	$ 4.56	$ 4.28
Aggregate intrinsic value of options \| $					$ 4,900,000	$ 8,700,000
Preferred stock, par value per share (in dollars per share) \| $ / shares					$ 0.001	$ 0.001				$ 0.001
Percentage of common stock outstanding for acquiring person under right agreement									4.90%
Series B Junior Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of preferred share purchase right for each share of common stock (in shares)										1
Preferred stock, share conversion ratio										0.001000
Preferred stock, purchase price per right (in dollars per right) \| $ / right										35.00
Preferred stock, redemption price per right (in dollars per share) \| $ / shares										$ 0.0001
ID Checker \| Closing Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense \| $					$ 0	$ 0	$ 1,200,000
Vesting service period of shares received		27 months
Common stock issued during acquisition (in shares)		712,790
ID Checker \| ID Checker earnout shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense \| $					$ 0	$ 400,000	$ 400,000
Earnout shares issued (in shares)				137,306				81,182
Common stock trading period			10 days
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized compensation expense expected to be recognized					3 years
Unrecognized compensation expense \| $					$ 2,000,000.0
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized compensation expense expected to be recognized					2 years 3 months 18 days
Options outstanding (in shares)					2,352,487	2,580,176	2,357,021	2,046,169
Recognized compensation expense \| $					$ 6,800,000	$ 5,900,000	$ 4,000,000.0
Unrecognized compensation expense \| $					$ 12,200,000
Senior Executive Performance RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized compensation expense expected to be recognized					1 year 1 month 6 days
Options outstanding (in shares)					1,722,551
Recognized compensation expense \| $					$ 1,000,000.0	1,500,000
Unrecognized compensation expense \| $					600,000
Performance Options \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense \| $					$ 1,700,000
Weighted average period for unrecognized compensation expense expected to be recognized					2 years 1 month 6 days
Number of common stock reserved for future grants (in shares)	800,000
Recognized compensation expense \| $					$ 700,000
Exercise price per share (in dollars per share) \| $ / shares	$ 9.50
Vesting service period of shares received	3 years
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)												9,500,000
Purchase of common stock (in shares)					1,171,708
Number of common stock reserved for future grants (in shares)					807,144
2012 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)					1,890,879
2012 Plan \| Senior Executive Performance RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)					1,722,551
Prior Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase of common stock (in shares)					298,015
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)											1,000,000
Number of common stock reserved for future grants (in shares)					799,086
Shares issued under the plan (in shares)					200,914
Recognized compensation expense \| $					$ 400,000
ESPP \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount rate from market price purchase date					0.15
ESPP \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount rate from market price offering date					15.00%
ESPP \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense \| $					$ 700,000	$ 1,400,000	$ 1,000,000.0
Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock reserved for future grants (in shares)					391,701
Director Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)												1,500,000
Purchase of common stock (in shares)					366,870

Stockholders' Equity - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Number of Shares
Beginning balance (in shares)	2,806,364	2,845,866	3,015,374
Granted (in shares)	409,368	299,397	147,800
Exercised (in shares)	(1,384,647)	(250,823)	(235,514)
Canceled (in shares)	(144,183)	(88,076)	(81,794)
Ending balance (in shares)	1,686,902	2,806,364	2,845,866	3,015,374
Weighted- Average Exercise Price Per Share
Beginning balance (in dollars per share)	$ 4.75	$ 4.21	$ 3.95
Granted (in dollars per share)	9.59	8.60	7.06
Exercised (in dollars per share)	3.25	2.96	2.92
Cancelled (in dollars per share)	6.62	5.23	3.59
Ending balance (in dollars per share)	$ 7.00	$ 4.75	$ 4.21	$ 3.95
Additional Disclosures [Abstract]
Weighted- Average Remaining Contractual Term (in Years)	5 years 4 months 24 days	4 years 7 months 6 days	5 years 4 months 24 days	6 years 4 months 24 days

Stockholders' Equity - RSU Activity (Details) - RSUs - $ / shares	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Number of Shares
Beginning balance (in shares)	2,580,176	2,357,021	2,046,169
Granted (in shares)	1,147,976	1,184,906	1,249,224
Settled (in shares)	(881,420)	(745,197)	(707,174)
Canceled (in shares)	(494,245)	(216,554)	(231,198)
Ending balance (in shares)	2,352,487	2,580,176	2,357,021
Weighted- Average Fair Value Per Share
Beginning balance (in dollars per share)	$ 6.92	$ 5.65	$ 4.90
Granted (in dollars per share)	9.67	8.54	6.61
Settled (in dollars per share)	6.53	5.26	4.81
Cancelled (in dollars per share)	7.70	7.39	4.93
Ending balance (in dollars per share)	$ 8.26	$ 6.92	$ 5.65

Income Taxes - Components of Income Tax (Provision) Benefit (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income (Loss) before taxes by component
Domestic													$ 8,992	$ (1,584)	$ 4,057
Foreign													(12,980)	(7,157)	(886)
Income (loss) before income taxes													(3,988)	(8,741)	3,171
Federal—current													(117)	(87)	(127)
Federal—deferred													639	(4,537)	8,291
State—current													(438)	(26)	(20)
State—deferred													515	773	2,748
Foreign—current													594	(270)	29
Foreign—deferred													2,071	1,081	0
Income tax benefit (provision)	$ (1,597)	$ 2,712	$ 794	$ 1,355	$ (783)	$ 1,430	$ (99)	$ (3,614)	$ 11,012	$ (17)	$ (74)	$ 0	$ 3,264	$ (3,066)	$ 10,921

Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Deferred tax assets:
Stock-based compensation	$ 2,646	$ 3,067
Net operating loss carryforwards	9,419	8,568
Research credit carryforwards	5,570	3,890
Intangibles	58	0
Other, net	90	354
Total deferred assets	17,783	15,879
Deferred tax liabilities:
Intangibles	0	(181)
Foreign deferred liabilities	(5,811)	(8,032)
Net deferred tax asset	11,972	7,666
Valuation allowance for net deferred tax assets	(931)	(472)
Net deferred tax asset	$ 11,041	$ 7,194

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Taxes [Line Items]
Net increase in total valuation allowance	$ 500,000	$ 400,000
Research and development credits carryforwards	5,570,000	$ 3,890,000
Unrecognized tax benefits that will impact the company's effective tax rate	1,600,000
Accrued interest or penalties related to uncertain tax positions	0
Federal
Income Taxes [Line Items]
Available net operating loss carryforwards	29,500,000
Net operating losses that can be carried forward indefinitely	2,100,000
Net operating losses subject to expiration	$ 27,400,000
Operating loss carryforwards, expiration start year	2032
Research and development credits carryforwards, expiration start year	2027
Federal \| Research and development credit
Income Taxes [Line Items]
Research and development credits carryforwards	$ 2,800,000
State
Income Taxes [Line Items]
Available net operating loss carryforwards	$ 29,400,000
Operating loss carryforwards, expiration start year	2028
State \| Research and development credit \| California
Income Taxes [Line Items]
Research and development credits carryforwards	$ 2,400,000

Income Taxes - Income Taxes Computed Using Federal Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Amount computed using statutory rate													$ 841	$ 2,122	$ (1,078)
Net change in valuation allowance for net deferred tax assets													(459)	(367)	10,058
AMT and other													0	(191)	20
Foreign rate differential													664	22	(169)
Non-deductible items													(151)	(276)	(370)
State income tax													(370)	50	(34)
Impact of tax reform on deferred taxes													0	(4,901)	0
Research and development credits													1,694	475	2,494
Foreign income tax													(494)	0	0
Stock compensation, net													1,539	0	0
Income tax benefit (provision)	$ (1,597)	$ 2,712	$ 794	$ 1,355	$ (783)	$ 1,430	$ (99)	$ (3,614)	$ 11,012	$ (17)	$ (74)	$ 0	$ 3,264	$ (3,066)	$ 10,921

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits at the beginning of the year	$ 1,321	$ 1,181	$ 0
Additions from tax positions taken in the current year	213	140	140
Additions from tax positions taken in prior years	73	0	1,041
Reductions from tax positions taken in prior years	0	0	0
Tax settlements	0	0	0
Gross unrecognized tax benefits at end of the year	$ 1,607	$ 1,321	$ 1,181

Commitments and Contingencies - Additional Information (Details) £ in Thousands, ft² in Thousands, € in Millions								12 Months Ended
	Nov. 06, 2019 USD ($) patent	Jul. 31, 2019 claim customer	Aug. 17, 2018 patent	Jul. 07, 2018 patent	Jun. 11, 2018 EUR (€)	Jun. 11, 2018 USD ($)	May 03, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2019 EUR (€) ft²	Sep. 30, 2019 GBP (£) ft²	Sep. 30, 2019 USD ($) ft²
Loss Contingencies [Line Items]
Company contribution, percent of designated deferral of eligible compensation								25.00%
Company contribution, percent of employee compensation eligible for company match								6.00%
Employer contribution amount								$ 231,000	$ 123,000	$ 121,000
Annual base rent													$ 1,000,000.0
Tenant improvement allowances													1,000,000.0
Unamortized lease incentives													600,000
Rent expense for operating leases								2,100,000	$ 1,700,000	$ 600,000
Line of Credit \| Revolving Credit Facility
Loss Contingencies [Line Items]
Maximum borrowing capacity							$ 10,000,000.0
Interest rate floor							0.045
Minimum unrestricted cash and unused borrowing capacity							$ 15,000,000.0
Adjusted quick ratio requirement							1.75
Borrowings outstanding													0
Line of Credit \| Revolving Credit Facility \| Prime Rate
Loss Contingencies [Line Items]
Basis spread on variable rate							0.25%
France
Loss Contingencies [Line Items]
Annual base rent											€ 0.4		400,000
Netherlands
Loss Contingencies [Line Items]
Annual base rent											0.2		200,000
United States
Loss Contingencies [Line Items]
Annual base rent													200,000
Spain
Loss Contingencies [Line Items]
Annual base rent											€ 0.1		100,000
United Kingdom
Loss Contingencies [Line Items]
Annual base rent												£ 63	78,000
Other Current Liabilities
Loss Contingencies [Line Items]
Unamortized lease incentives													100,000
Other Noncurrent Liabilities
Loss Contingencies [Line Items]
Unamortized lease incentives													$ 500,000
Building
Loss Contingencies [Line Items]
Space area subject to lease (in square feet) \| ft²											29	29	29
Pending Litigation \| General and administrative
Loss Contingencies [Line Items]
Legal fees								$ 800,000
Pending Litigation \| Global Equity & Corporate Consulting, S.L.- Breach of Services Agreement \| ICAR
Loss Contingencies [Line Items]
Loss contingency, amount claimed					€ 0.8	$ 900,000
Pending Litigation \| USAA \| Wells Fargo
Loss Contingencies [Line Items]
Number of patents allegedly infringed \| patent			5	4
Pending Litigation \| USAA \| Wells Fargo \| Subsequent Event
Loss Contingencies [Line Items]
Number of patents infringed \| patent	1
Amount awarded in damages to other party	$ 200,000,000
Pending Litigation \| UrbanFT
Loss Contingencies [Line Items]
Number of lawsuits filed \| claim		1
Number of customers in delinquent payment \| customer		1

Commitments and Contingencies - Future Annual Minimum Rental Payments Payable (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2020	$ 1,699
2021	2,166
2022	1,784
2023	1,554
2024	1,153
Thereafter	36
Total	$ 8,392

Revenue and Vendor Concentrations (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 14,938	$ 16,821
Revenue \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Revenue	$ 22,800	$ 20,000	$ 10,400
Revenue \| Customer Concentration Risk \| Customer One
Revenue, Major Customer [Line Items]
Concentration risk percentage	17.00%	22.00%	23.00%
Revenue \| Customer Concentration Risk \| Customer Two
Revenue, Major Customer [Line Items]
Concentration risk percentage	10.00%	10.00%
Revenue \| Geographic Concentration Risk \| International
Revenue, Major Customer [Line Items]
Concentration risk percentage	31.00%	27.00%	14.00%
Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 5,400	$ 5,700	$ 1,300
Long-term Assets \| Geographic Concentration Risk \| International
Revenue, Major Customer [Line Items]
Concentration risk percentage	68.00%	72.00%
Long-term Assets, Excluding Goodwill and Intangible Assets \| Geographic Concentration Risk \| International
Revenue, Major Customer [Line Items]
Concentration risk percentage	12.00%	13.00%

Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 25,018	$ 21,906	$ 19,983	$ 17,683	$ 21,037	$ 16,109	$ 14,277	$ 12,136	$ 12,904	$ 11,798	$ 11,419	$ 9,269	$ 84,590	$ 63,559	$ 45,390
Cost of revenue	3,229	3,168	2,991	2,878	2,674	2,678	1,717	1,617	1,138	1,182	830	891
Operating expenses	17,260	21,647	18,642	19,365	19,729	16,294	13,825	12,831	10,033	10,132	9,365	9,050
Operating income (loss)	4,529	(2,909)	(1,650)	(4,560)	(1,366)	(2,863)	(1,265)	(2,312)	1,733	484	1,224	(672)	(4,590)	(7,806)	2,769
Other income (expense), net	350	98	140	14	22	(1,351)	204	190	121	149	67	65	602	(935)	402
Income tax benefit (provision)	(1,597)	2,712	794	1,355	(783)	1,430	(99)	(3,614)	11,012	(17)	(74)	0	3,264	(3,066)	10,921
Net income (loss)	$ 3,282	$ (99)	$ (716)	$ (3,191)	$ (2,127)	$ (2,784)	$ (1,160)	$ (5,736)	$ 12,866	$ 616	$ 1,217	$ (607)	$ (724)	$ (11,807)	$ 14,092
Net income (loss) per share:
Net income (loss) per share—basic (in dollars per share)	$ 0.08	$ (0.00)	$ (0.02)	$ (0.08)					$ 0.38	$ 0.02	$ 0.04	$ (0.02)	$ (0.02)	$ (0.33)	$ 0.43
Net income (loss) per share—diluted (in dollars per share)	$ 0.08	$ (0.00)	$ (0.02)	$ (0.08)					$ 0.35	$ 0.02	$ 0.03	$ (0.02)	$ (0.02)	$ (0.33)	$ 0.40
Net income (loss) per share—basic and diluted (in dollars per share)					$ (0.06)	$ (0.08)	$ (0.03)	$ (0.17)
Shares used in calculating net income (loss) per share—basic (in shares)	40,252	39,936	38,926	38,247					33,522	33,024	32,786	32,377	39,341	35,811	33,083
Shares used in calculating net income (loss) per share—diluted (in shares)	41,635	39,936	38,926	38,247					36,251	35,610	34,815	32,377	39,341	35,811	35,537
Shares used in calculating net income (loss) per share—basic and diluted (in shares)					37,858	36,190	34,976	34,207

Label	Element	Value
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 920,000
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	920,000
Accounting Standards Update 2016-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	8,255,000
Accounting Standards Update 2016-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 8,255,000