0000807863-21-000098 | 10-K | XBRL Viewer

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Sep. 30, 2021	Nov. 30, 2021	Mar. 31, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2021
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 Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 615,744,135
Entity Common Stock, Shares Outstanding		44,622,578
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement for the 2022 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A are incorporated by reference into Part III of this Form 10-K to the extent stated herein.
Current Fiscal Year End Date	--09-30
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0000807863

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 30,312	$ 19,986
Short-term investments	149,057	40,035
Accounts receivable, net	16,602	15,612
Contract assets	4,080	5,187
Prepaid expenses	1,920	1,338
Other current assets	2,085	1,968
Total current assets	204,056	84,126
Long-term investments	48,051	1,963
Property and equipment, net	3,671	3,610
Right-of-use assets	7,056	5,407
Intangible assets, net	28,734	19,289
Goodwill	63,096	35,669
Deferred income tax assets	10,511	13,484
Convertible senior notes hedge	48,208	0
Other non-current assets	6,310	5,606
Total assets	419,693	169,154
Current liabilities:
Accounts payable	2,507	3,909
Accrued payroll and related taxes	11,776	8,882
Deferred revenue, current portion	10,381	7,973
Lease liabilities, current portion	1,943	1,819
Acquisition-related contingent consideration	11,050	753
Other current liabilities	1,552	1,020
Total current liabilities	39,209	24,356
Convertible senior notes	120,918	0
Embedded conversion derivative	48,208	0
Deferred revenue, non-current portion	955	1,597
Lease liabilities, non-current portion	6,588	5,327
Deferred income tax liabilities	4,117	4,649
Other non-current liabilities	6,868	982
Total liabilities	226,863	36,911
Stockholders’ equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding, as of September 30, 2021 and 2020	0	0
Common stock, $0.001 par value, 60,000,000 shares authorized, 44,168,745 and 41,779,853 issued and outstanding, as of September 30, 2021 and 2020, respectively	44	42
Additional paid-in capital	199,935	146,518
Accumulated other comprehensive loss	(943)	(323)
Accumulated deficit	(6,066)	(13,994)
Treasury stock, at cost, 7,773 and no shares as of September 30, 2021 and 2020, respectively	(140)	0
Total stockholders’ equity	192,830	132,243
Total liabilities and stockholders’ equity	$ 419,693	$ 169,154

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Sep. 30, 2020
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)	44,168,745	41,779,853
Common stock, shares outstanding (in shares)	44,168,745	41,779,853
Treasury stock, at cost (in shares)	7,773	0

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Sep. 30, 2019

Revenue

$ 119,797

$ 101,310

$ 84,590

Operating costs and expenses

Selling and marketing

32,497

27,646

24,550

^[1]

Research and development

28,042

22,859

21,873

^[1]

General and administrative

22,490

22,284

19,861

Acquisition-related costs and expenses

8,951

6,575

7,563

Restructuring costs

(114)

3,067

Total operating costs and expenses

106,520

92,442

89,180

Operating income (loss)

13,277

8,868

(4,590)

Interest expense

5,129

Other income, net

654

541

602

Income (loss) before income taxes

8,802

9,409

(3,988)

Income tax benefit (provision)

(824)

(1,595)

3,264

Net income (loss)

$ 7,978

$ 7,814

$ (724)

Net income (loss) per share—basic (in dollars per share)

$ 0.18

$ 0.19

$ (0.02)

Net income (loss) per share—diluted (in dollars per share)

$ 0.18

$ (0.02)

Shares used in calculating net income (loss) per share—basic (in shares)

43,509

41,410

39,341

Shares used in calculating net income (loss) per share—diluted (in shares)

45,083

42,533

39,341

Other comprehensive income (loss)

Net income

$ 7,978

$ 7,814

$ (724)

Foreign currency translation adjustment

(455)

3,635

(3,504)

Unrealized gain (loss) on investments

(165)

103

Other comprehensive income (loss)

7,358

11,552

(4,199)

Software and hardware

Revenue

60,069

54,152

46,845

Operating costs and expenses

Cost of revenue

2,468

3,303

3,711

Services and other

Revenue

59,728

47,158

37,745

Operating costs and expenses

Cost of revenue

$ 12,072

$ 9,889

$ 8,555

[1]	September 30, 2019 consolidated statement of operations reflects reclassifications to conform to the current year presentation.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative-effect adjustment from the adoption of ASU 2014-09	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Deficit Cumulative-effect adjustment from the adoption of ASU 2014-09	Accumulated Other Comprehensive Income (Loss)
Accounting Standard Update [Extensible Enumeration]	us-gaap:AccountingStandardsUpdate201609Member
Beginning Balance (in shares) at Sep. 30, 2018			37,961,000		0
Beginning Balance at Sep. 30, 2018	$ 95,394	$ 920	$ 38	$ 116,944	$ 0	$ (21,002)	$ 920	$ (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	(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			40,367,000		0
Ending Balance at Sep. 30, 2019	$ 107,333		$ 40	132,160	$ 0	(20,806)		(4,061)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	580,861		581,000
Exercise of stock options	$ 3,572		$ 1	3,571
Settlement of restricted stock units (in shares)			819,000
Settlement of restricted stock units	0		$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)			150,000
Issuance of common stock under employee stock purchase plan	1,237			1,237
Stock-based compensation expense	9,551			9,551
Repurchase and retirements of common stock (in shares)			(137,000)
Repurchases and retirements of common stock	(1,002)					(1,002)
Components of other comprehensive income (loss)
Net income	7,814					7,814
Currency translation adjustment	3,635							3,635
Change in unrealized gain (loss) on investments	103							103
Other comprehensive income (loss)	$ 11,552
Ending Balance (in shares) at Sep. 30, 2020	41,779,853		41,780,000		0
Ending Balance at Sep. 30, 2020	$ 132,243		$ 42	146,518	$ 0	(13,994)		(323)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	329,878		330,000
Exercise of stock options	$ 2,516			2,516
Settlement of restricted stock units (in shares)			1,066,000
Settlement of restricted stock units	0		$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)			129,000
Issuance of common stock under employee stock purchase plan	1,519			1,519
Acquisition-related shares issued (in shares)			867,000
Acquisition-related shares issued	13,943		$ 1	13,942
Stock-based compensation expense	11,532			11,532
Sale of convertible senior notes warrants	23,909			23,909
Repurchase and retirements of common stock (in shares)			(3,000)		(8,000)
Repurchases and retirements of common stock	(190)				$ (140)	(50)
Components of other comprehensive income (loss)
Net income	7,978					7,978
Currency translation adjustment	(455)							(455)
Change in unrealized gain (loss) on investments	(165)							(165)
Other comprehensive income (loss)	$ 7,358
Ending Balance (in shares) at Sep. 30, 2021	44,168,745		44,169,000		(8,000)
Ending Balance at Sep. 30, 2021	$ 192,830		$ 44	$ 199,935	$ (140)	$ (6,066)		$ (943)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Operating activities:
Net income	$ 7,978	$ 7,814	$ (724)
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	11,532	9,551	9,637
Amortization of intangible assets	7,505	6,439	7,024
Depreciation and amortization	1,439	1,504	1,388
Amortization of investment premiums & other	1,266	63	(134)
Accretion and amortization on debt securities	4,372	0	0
Net changes in estimated fair value of acquisition-related contingent consideration	1,080	136	472
Deferred taxes	105	1,903	(3,775)
Changes in assets and liabilities:
Accounts receivable	(813)	(361)	1,564
Contract assets	1,150	(6,695)	(1,757)
Other assets	(1,331)	173	(769)
Accounts payable	(1,589)	277	28
Accrued payroll and related taxes	2,687	2,343	(1,529)
Deferred revenue	1,790	3,141	1,125
Restructuring accrual	0	(1,562)	1,573
Other liabilities	170	(604)	127
Net cash provided by operating activities	37,341	24,122	14,250
Investing activities:
Purchases of investments	(246,508)	(44,725)	(24,410)
Sales and maturities of investments	89,956	20,822	14,966
Acquisitions, net of cash acquired	(12,549)	0	0
Purchases of property and equipment	(1,387)	(803)	(1,063)
Net cash used in investing activities	(170,488)	(24,706)	(10,507)
Financing activities:
Proceeds from the issuance of convertible senior notes	155,250	0	0
Payment for convertible senior notes issuance costs	(5,513)	0	0
Purchase of 2026 convertible senior notes hedge	(33,192)	0	0
Proceeds from issuance of convertible senior notes warrants	23,909	0	0
Proceeds from the issuance of equity plan common stock	4,035	4,809	5,581
Repurchases and retirements of common stock	(190)	(1,002)	0
Payment of acquisition-related contingent consideration	(782)	(478)	(1,030)
Proceeds from other borrowings	251	217	128
Principal payments on other borrowings	(88)	(143)	(296)
Net cash provided by financing activities	143,680	3,403	4,383
Foreign currency effect on cash and cash equivalents	(207)	419	(406)
Net increase in cash and cash equivalents	10,326	3,238	7,720
Cash and cash equivalents at beginning of period	19,986	16,748	9,028
Cash and cash equivalents at end of period	30,312	19,986	16,748
Supplemental disclosures of cash flow information:
Cash paid for interest	569	0	0
Cash paid for income taxes	741	(451)	310
Supplemental disclosures of non-cash investing and financing activities:
Unrealized holding gain (loss) on available-for-sale investments	$ (165)	$ 103	$ 29

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2021

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 is a leading innovator of mobile image capture and digital identity verification solutions. We are a software development company with expertise in computer vision, artificial intelligence, and machine learning. We currently serve more than 7,500 financial services organizations and leading marketplace and financial technology (“fintech”) brands around the globe. Customers count on Mitek to deliver trusted and convenient online experiences, detect and reduce fraud, and document Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) regulatory compliance. Our solutions are embedded in native mobile apps and web browsers to facilitate digital consumer experiences. Mitek’s identity verification and authentication technologies and services make it possible for banks, financial services organizations and the world’s leading marketplace and sharing platforms to verify an individual’s identity during digital transactions, allowing them to reduce risk and meet regulatory requirements. Our advanced mobile deposit system enables secure, fast and convenient deposit services. Thousands of organizations use Mitek solutions to optimize the security of mobile check deposits, new account openings and more.

To ensure a high level of security against evolving digital fraud threats, in June this year, Mitek acquired ID R&D, Inc. (“ID R&D”), an award-winning provider of AI-based voice and face biometrics and liveness detection. With a strong research and development team, ID R&D consistently delivers innovative, best-in-class biometric capabilities that raise the bar on usability and performance.

Mitek 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. Our partner sales strategy includes channel partners who are financial services technology providers and identity verification providers. These partners integrate our products into their solutions to meet the needs of their customers.

In May 2021 (as more fully described in Note 3 to the consolidated financial statements) Mitek acquired ID R&D, Inc., an award-winning provider of artificial intelligence (AI)-based voice and face biometrics and liveness detection. The ID R&D Acquisition (as defined below) will help simplify and secure the entire transaction lifecycle for both businesses and consumers. Businesses and financial institutions will have access to one authentication solution to deploy throughout the complete transaction cycle, and can provide consumers with a simple, intuitive approach to fighting fraud.

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 $0.5 million for the twelve months ended September 30, 2021, net gains resulting from foreign exchange translation of $3.6 million for the twelve months ended September 30, 2020, and net losses resulting from foreign exchange translation of $3.5 million for the twelve months ended September 30, 2019.

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, fair value of debt derivatives, standalone selling price related to revenue recognition, contingent consideration, and income taxes.

Reclassifications

Certain reclassifications have been made to the fiscal 2019 presentation to conform to the current year presentation. Prior to fiscal 2020, the Company had included its product management costs in selling and marketing expenses. Due to certain personnel and functional responsibility changes in this function, the Company has reclassified these costs to research and development expenses. To conform to the current period’s presentation, the fiscal 2019 financials have been reclassified accordingly. The Company has determined that this reclassification was not material to previously reported financial statements. Product management costs were $3.0 million and $2.9 million, in the twelve months ended 2020 and 2019, respectively.

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 to customers (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.

Contract Assets and Liabilities

The Company recognizes revenue when control of the license 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 on 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 sheet. 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 sheet. The Company reports net contract asset or liability positions on a customer-by-customer basis at the end of each reporting period.

Contract Costs

The Company incurs incremental costs to obtain a contract, consisting primarily of sales commissions incurred only if a contract is obtained. 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 and amortized using a portfolio approach consistent with the pattern of transfer of the good or service to which the asset relates. Contract costs are recorded in other current and non-current assets in the consolidated balance sheets.

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 per share because to do so would be antidilutive, and the number of shares used to calculate basic and diluted net loss per share is the same.

For the twelve months ended September 30, 2021, 2020 and 2019, 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):


	2021	2020	2019
Stock options	543	239	1,687
RSUs	1,113	1,519	2,352
ESPP common stock equivalents	9	14	74
Performance options	272	—	—
Performance RSUs	104	32	—
Convertible senior notes	4,856	—	—
Warrants	4,856	—	—
Total potentially dilutive common shares outstanding	11,753	1,804	4,113

The calculation of basic and diluted net income (loss) per share for the twelve months ended September 30, 2021, 2020, and 2019 is as follows (amounts in thousands, except per share data):


	2021		2020		2019
Net income (loss)	$	7,978	$	7,814	$	(724)
Weighted-average shares outstanding—basic	43,509		41,410		39,341
Common stock equivalents	1,574		1,123		—
Weighted-average shares outstanding—diluted	45,083		42,533		39,341
Net income (loss) per share:
Basic	$	0.18	$	0.19	$	(0.02)
Diluted	$	0.18	$	0.18	$	(0.02)

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, U.S. Treasury securities, and asset-backed 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, net in the consolidated statements of operations and other comprehensive income (loss). No other-than-temporary impairment charges were recognized in the twelve months ended September 30, 2021, 2020, and 2019.

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

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, $0.2 million, and $0.1 million of write-offs to the allowance for doubtful accounts for the twelve months ended September 30, 2021, 2020, and 2019, respectively. The Company maintained an allowance for doubtful accounts of $0.4 million and $0.2 million as of September 30, 2021 and 2020, respectively.

Property and Equipment

Property and equipment are carried at cost. The following is a summary of property and equipment as of September 30, 2021 and 2020 (amounts shown in thousands):


	2021		2020
Property and equipment—at cost:
Leasehold improvements	$	2,623	$	3,639
Equipment	2,947		3,545
Capitalized internal-use software development costs	2,147		1,363
Furniture and fixtures	700		618
	8,417		9,165
Less: accumulated depreciation and amortization	(4,746)		(5,555)
Total property and equipment, net	$	3,671	$	3,610

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. The decrease in leasehold improvements of $1.0 million was due to fully depreciated leasehold improvements that were disposed of. Depreciation and amortization of property and equipment totaled $1.4 million, $1.5 million, and $1.4 million for the twelve months ended September 30, 2021, 2020, and 2019, respectively. Expenditures for repairs and maintenance are charged to operations. Total repairs and maintenance expenses were $0.1 million for each of the twelve months ended September 30, 2021, 2020, and 2019, respectively.

Leases

The Company determines if an arrangement is a lease at inception in accordance with ASC 842. The lease term begins on the commencement date, which is the date the Company takes possession of the property, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease term is used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments arising from the lease. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and auto leases. ROU assets and lease liabilities are recognized at commencement date based upon the present value of lease payments over the lease term. ROU assets also include prepaid lease payments and exclude lease incentives received. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date of each lease. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current secured borrowing rate. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet; instead, lease payments are recognized as lease expenses on a straight-line basis over the lease term. See Note 9 of the consolidated financial statements for additional details.

Operating lease assets and liabilities are recognized for leases with lease terms greater than 12 months based on the present value of the future lease payments over the lease term at the commencement date. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet. Operating leases are included in Right-of-use-assets, Lease liabilities, current portion and Lease liabilities, non-current portion on our consolidated balance sheet. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. We account for substantially all lease and related non-lease components together as a single lease component. Operating lease expense is recognized on a straight-line basis over the lease term.

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 twelve months ended September 30, 2021, 2020, or 2019.

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 twelve months ended September 30, 2021, 2020, and 2019, 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 or were not realizable. The Company had no amortization expense from capitalized software costs during the twelve months ended September 30, 2021, 2020, or 2019.

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 the 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 $0.8 million, $0.3 million, and $0.2 million of costs related to computer software developed for internal use during the twelve months ended September 30, 2021, 2020 and 2019, respectively. The Company recognized $0.3 million, $0.4 million and $0.3 million of amortization expense from internal use software during the twelve months ended September 30, 2021, 2020 and 2019, respectively.

Goodwill and Purchased Intangible Assets

The Company’s goodwill and intangible assets 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 assets 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. No such events or circumstances have occurred since the last impairment assessment was performed.

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 350 and ASC Topic 280, Segment Reporting, management has determined that the Company operates in one segment and consists of one reporting unit. 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 believes this represents the best evidence of fair value. In the fourth quarter of fiscal 2021, 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 the Company’s common stock, par value $0.001 per share ("Common Stock"). For example, a significant decline in the price of the Common Stock may cause the fair value of its goodwill to fall below its carrying value. Therefore, the Company cannot assure that when it completes its future reviews of goodwill for impairment, a material impairment charge will not be recorded.

Intangible assets 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 twelve months ended September 30, 2021, 2020, or 2019.

Other Borrowings

The Company has certain loan agreements with Spanish government agencies which were assumed when the Company acquired ICAR Vision Systems, S.L. (“ICAR”). These agreements have repayment periods of five to twelve years and bear no interest. As of September 30, 2021, $0.8 million, was outstanding under these agreements and approximately $0.1 million and $0.7 million is recorded in other current liabilities and other non-current liabilities, respectively, in the consolidated balance sheets. As of September

30, 2020, $0.7 million, was outstanding under these agreements and $0.1 million and $0.6 million is recorded in other current liabilities and other non-current liabilities, respectively, in the consolidated balance sheets.

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.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”). 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 7 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 7 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 $1.2 million, $1.6 million and $0.8 million during the twelve months ended September 30, 2021, 2020, and 2019, respectively.

Research and Development

Research and development costs are expensed in the period incurred.

Segment Reporting

FASB ASC Topic 280, Segment Reporting, requires the use of a management approach in identifying segments of an enterprise. During the twelve months ended September 30, 2021, 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 $0.9 million and $0.3 million at September 30, 2021 and 2020, respectively.

Recently Adopted 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. The Company adopted ASU 2018-15 in the first quarter of fiscal 2021, and the adoption did not 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 (“ASU 2018-13”), 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 Company adopted ASU 2018-13 in the first quarter of fiscal 2021, and the adoption did not 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. The Company adopted ASU 2017-04 in the first quarter of fiscal 2021, and the adoption did not have a material impact on its consolidated financial statements.

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.

Convertible Senior Notes Hedge and Embedded Conversion Derivative

In February 2021, the Company issued $155.3 million aggregate principal amount of 0.750% convertible notes due 2026 (the “2026 Notes”). Concurrently with the issuance of the 2026 Notes, the Company entered into privately-negotiated convertible senior note hedge (the “Notes Hedge”) and warrant transactions (the “Warrant Transactions”) which, in combination, are intended to reduce the potential dilution from the conversion of the 2026 Notes. The Company could not elect to issue the shares of its common stock, par value $0.001 per share (“Common Stock”) upon settlement of the 2026 Notes due to insufficient authorized share capital. As a result, the embedded conversion option (the “embedded conversion derivative”) is accounted for as a derivative liability and the Notes Hedge as a derivative asset with the resulting gain (or loss) reported in other income, net, in the consolidated statement of operations to the extent the valuation changed from the date of issuance of the 2026 Notes. The Warrant Transactions were recorded in additional paid-in-capital in the consolidated balance sheet and are not remeasured as long as they continue to meet the conditions for equity classification. See Note 8. “Convertible Senior Notes” for additional information related to these transactions.

Recently Issued Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-06—Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)—Accounting For Convertible Instruments and Contracts in an Entity's Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features through equity. Without an initial allocation of proceeds to the conversion option, the debt will likely have a lower discount, thereby resulting in less noncash interest expense through accretion. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for such exception. ASU 2020-06 also simplifies the diluted net income per share calculation in certain areas. ASU 2020-06

is effective for annual and interim periods beginning after December 15, 2021, and early adoption is permitted for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. This update permits the use of either the modified retrospective or fully retrospective method of transition. The Company expects that ASU 2020-06 will eliminate the separate accounting described above and reduce the interest expense that we expect to recognize. The Company plans to early adopt ASU 2020-06 for its fiscal year beginning October 1, 2021.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on the consolidated financial statements.

No other new accounting pronouncement issued or effective during the twelve months ended September 30, 2021 had, or is expected to have, a material impact on the Company’s consolidated financial statements.

Revenue Recognition

12 Months Ended

Sep. 30, 2021

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.

Services and Other

Services 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 services 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,
	2021		2020		2019
Major product category
Deposits software and hardware	$	55,129	$	49,765	$	41,860
Deposits services and other	20,388		17,965		15,170
Deposits revenue	75,517		67,730		57,030
Identity verification software and hardware	4,940		4,387		4,985
Identity verification services and other	39,340		29,193		22,575
Identity verification revenue	44,280		33,580		27,560
Total revenue	$	119,797	$	101,310	$	84,590

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. Services 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, 2021		September 30, 2020
Contract assets, current	$	4,080	$	5,187
Contract assets, non-current	4,409		4,468
Contract liabilities (deferred revenue), current	10,381		7,973
Contract liabilities (deferred revenue), non-current	955		1,597

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 customer-by-customer basis at the end of each reporting period. The Company recognized $9.1 million and $3.9 million of revenue during the twelve months ended September 30, 2021 and 2020, respectively, which was included in the contract liability balance at the beginning of each such period.

Contract Costs

Contract costs included in other current and non-current assets on the consolidated balance sheets totaled $2.3 million and $1.5 million at September 30, 2021 and 2020, respectively. 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 other comprehensive income (loss) and totaled $1.2 million and $0.8 million during the twelve months ended September 30, 2021 and 2020, respectively. There were no impairment losses recognized during the twelve months ended September 30, 2021 and 2020 related to capitalized contract costs.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Business Combinations

12 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

BUSINESS COMBINATIONS

3. BUSINESS COMBINATIONS

On May 28, 2021 (the “Closing Date”), the Company completed the acquisition of ID R&D (the “ID R&D Acquisition”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) dated May 28, 2021, by and among the Company, ID R&D and Alexey Khitrov (the “Representative”). Upon completion of the ID R&D Acquisition, ID R&D became a direct wholly owned subsidiary of Mitek Systems, Inc. ID R&D is an award-winning provider of artificial intelligence-based voice and face biometrics and liveness detection.

As consideration for the ID R&D Acquisition, the Company agreed to pay an aggregate purchase price of up to $49.0 million. On the Closing Date, the equityholders of ID R&D received from the Company: (i) $13.0 million in cash, subject to adjustments for transaction expenses, escrow amounts, indebtedness and working capital adjustments (the “Initial Cash Payment”); and (ii) 867,226 shares or $13.9 million of Common Stock. In addition to the foregoing, the equityholders of ID R&D may become entitled to receive additional consideration from the Company upon achievement of certain milestones as follows (collectively, the “Earnout Payments”): subject to ID R&D’s achievement of target revenue for the period commencing on the Closing Date and ending on the one year anniversary thereof and the period commencing on the one year anniversary of the Closing Date and ending on the one year anniversary thereof (each such period, an “Earnout Period”): (i) an aggregate maximum amount of approximately $12.3 million with respect to the first Earnout Period and (ii) approximately $9.8 million with respect to the second Earnout Period, with 15% of the first Earnout Period’s payment to be deposited (as additional funds) into an escrow fund described below. The Company will

make the Earnout Payments in the form of cash and up to 711,535 shares of Common Stock as set forth in the Merger Agreement. The Company has granted the Representative an option to shift the Earnout Period(s) out by one year, pursuant to the terms of the Merger Agreement. Moreover, in the event actual revenue for an Earnout Period exceeds the target revenue for such period, the amount of such excess will be credited towards the achievement of the subsequent Earnout Period’s Earnout Payment.

The Company estimated the fair value of the consideration for the Earnout Periods to be $15.7 million on the Closing Date, 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, and is included in level three of the fair value hierarchy. Each quarter the Company revises the estimated fair value of the consideration for the Earnout Periods. Accordingly, an additional $1.1 million of expense was recognized in acquisition-related costs and expenses in the consolidated statements of operations and other comprehensive income (loss) for the twelve months ended September 30, 2021.

The Company incurred $0.6 million of expense in connection with the 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 the Closing Date, the Company deposited a portion of the Initial Cash Payment and a number of shares of Common Stock having a collective value of approximately $4.0 million into an escrow fund to serve as collateral and partial security for working capital adjustments and certain indemnification rights of the Company. As indicated above, 15% of the Earnout Payment with respect to the first Earnout Period, if and when earned, will also be deposited into the escrow fund. The escrow fund will be maintained for up to 24 months following the completion of the ID R&D Acquisition or until such earlier time as the escrow fund is exhausted. The Company used cash on hand for the Initial Cash Payment.

Acquisitions are accounted for using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Accordingly, the results of operations of ID R&D have been included in the accompanying consolidated financial statements since the date of such acquisition. The purchase price has 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 the ID R&D Acquisition and are based on assumptions that the Company’s management believes are reasonable.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed from the ID R&D Acquisition as of September 30, 2021 (amounts shown in thousands):



Current assets	$	320
Property, plant, and equipment	114
Intangible assets	16,930
Goodwill	27,748

Current liabilities	(425)

Other non-current liabilities	(2,355)
Net assets acquired	$	42,332

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 from the ID R&D Acquisition during the twelve months ended September 30, 2021 (amounts shown in thousands, except for years):


	Amortization Period	Amount assigned

Completed technologies	7.0 years	$	14,020
Customer relationships	3.0 years	2,540
Trade names	5.0 years	370
Total intangible assets acquired		$	16,930

The following unaudited pro forma financial information should not be taken as representative of the Company’s future consolidated results of operations and includes adjustments for the amortization expense related to the identified intangible assets. The following table summarizes the Company’s unaudited pro forma financial information and is presented as if the ID R&D Acquisition occurred on October 1, 2018 (amounts shown in thousands):


	For the twelve months ended September 30,
	2021		2020
Pro forma revenue	$	121,533	$	102,880
Pro forma net income (loss)	$	4,977	$	2,919

Revenue of $0.8 million and a net loss of $3.0 million from ID R&D since the acquisition date is included in the Company's consolidated statements of operations and other comprehensive income (loss).

Investments

12 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

4. 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, 2021 and 2020, 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 that 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 on debt securities 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 (loss). No other-than-temporary impairment charges

were recognized in the twelve months ended September 30, 2021, 2020, and 2019. There were no realized gains or losses from the sale of available-for-sale securities during the twelve months ended September 30, 2021 and 2020.

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 other income, net in the consolidated statements of operations and other comprehensive income (loss).

The following tables summarize investments by type of security as of September 30, 2021 and 2020, respectively (amounts shown in thousands):


September 30, 2021:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	4,222	$	1	$	—	$	4,223
Asset-backed securities, short-term	4,812		1		(2)		4,811
Corporate debt securities, short-term	140,042		6		(25)		140,023
U.S. Treasury, long-term	6,996		1		(2)		6,995
Foreign government and agency securities, long-term	2,909		—		(1)		2,908
Corporate debt securities, long-term	38,184		3		(39)		38,148
Total	$	197,165	$	12	$	(69)	$	197,108


September 30, 2020:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	10,245	$	38	$	—	$	10,283
Asset-backed securities, short-term	4,723		36		—		4,759
Corporate debt securities, short-term	24,956		37		—		24,993

Corporate debt securities, long-term	1,966		—		(3)		1,963
Total	$	41,890	$	111	$	(3)	$	41,998

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 the following three levels of inputs that may be used to measure fair value, 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 inputs 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, 2021 and 2020, respectively (amounts shown in thousands):


September 30, 2021:	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	$	4,223	$	4,223	$	—	$	—
Asset-backed securities	4,811		—		4,811		—
Corporate debt securities	65,666		—		65,666		—
Commercial paper	74,357		—		74,357		—
Total short-term investments at fair value	149,057		4,223		144,834		—
Long-term investments:
U.S. Treasury	6,995		6,995		—		—
Foreign government and agency securities	2,908		—		2,908		—

Corporate debt securities	38,148		—		38,148		—
Total long-term investments at fair value	48,051		6,995		41,056		—

Convertible senior notes hedge	48,208		—		48,208		—

Total assets at fair value	$	245,316	$	11,218	$	234,098	$	—

Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	11,050	$	—	$	—	$	11,050
Non-current liabilities:
Acquisition-related contingent consideration	5,720		—		—		5,720
Embedded conversion derivative	48,208		—		48,208		—
Total liabilities at fair value	$	64,978	$	—	$	48,208	$	16,770


September 30, 2020:	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	$	10,283	$	10,283	$	—	$	—
Asset-backed securities	4,759		—		4,759		—
Corporate debt securities	9,619		—		9,619		—
Commercial paper	15,374		—		15,374		—
Total short-term investments at fair value	40,035		10,283		29,752		—
Long-term investments:

Corporate debt securities	1,963		—		1,963		—
Total long-term investments at fair value	1,963		—		1,963		—

Total assets at fair value	$	41,998	$	10,283	$	31,715	$	—
Liabilities:
Acquisition-related contingent consideration	$	753	$	—	$	—	$	753
Total liabilities at fair value	$	753	$	—	$	—	$	753

As of September 30, 2021, total acquisition-related contingent consideration related to the ID R&D Acquisition of $11.1 million is recorded in acquisition-related contingent consideration and $5.7 million is recorded in other non-current liabilities, in the consolidated balance sheets. The Company recorded the acquisition-date fair value based on the likelihood of contingent Earnout Payments, as part of the consideration transferred. The Earnout Payments consist of cash payments and issuances of Common Stock and are subsequently remeasured to fair value each reporting date. The Company uses a Monte Carlo Simulation to estimate fair value of total contingent consideration. Additionally, for contingent consideration to be settled in a variable number of shares of Common Stock, the Company used the most recent Mitek share price as reported by NASDAQ to determine the fair value of the shares expected to be issued. The Company classified the contingent consideration as Level 3, due to the lack of relevant observable inputs and market activity. Changes in assumptions described above could have an impact on the payout of contingent consideration with a maximum payout being $22.1 million. The following table includes a summary of the contingent consideration measured at fair value using significant unobservable inputs (Level 3) during the twelve months ended September 30, 2021 (amounts shown in thousands):


Balance at September 30, 2020	$	753
Contingent consideration associated with ID R&D Acquisition	15,690
Expenses recorded due to changes in fair value	1,080
Payment of contingent consideration associated with the ICAR acquisition	(782)

Foreign currency effect on contingent consideration	29
Balance at September 30, 2021	$	16,770

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company has goodwill balances of $63.1 million and $35.7 million at September 30, 2021 and 2020, respectively, representing the excess of costs over fair value of net assets of businesses acquired. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC Topic 350. The following table summarizes changes in the balance of goodwill during the twelve months ended September 30, 2021 (amounts shown in thousands):


Balance at September 30, 2020	$	35,669
Acquisition of ID R&D	27,748
Foreign currency effect on goodwill	(321)
Balance at September 30, 2021	$	63,096

Intangible Assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, and trade names. The estimated useful lives for all of these intangible assets, range from two to seven years. Intangible assets as of September 30, 2021 and 2020 are summarized as follows (amounts shown in thousands, except for years):


September 30, 2021:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.6 years	$	34,361	$	13,311	$	21,050
Customer relationships	4.6 years	20,168		12,905		7,263
Trade names	4.7 years	988		567		421
Total intangible assets		$	55,517	$	26,783	$	28,734


September 30, 2020:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	9,416	$	10,925
Customer relationships	4.8 years	17,628		9,390		8,238
Trade names	4.5 years	618		492		126
Total intangible assets		$	38,587	$	19,298	$	19,289

Amortization expense related to acquired intangible assets was $7.5 million, $6.4 million, and $7.0 million for twelve months ended September 30, 2021, 2020, and 2019, respectively and is recorded in acquisition-related costs and expenses in the consolidated statements of operations.

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
2022	$	8,830
2023	6,801
2024	4,471
2025	3,264
2026	2,051
Thereafter	3,317
Total	$	28,734

Stockholders' Equity

12 Months Ended

Sep. 30, 2021

Equity [Abstract]

STOCKHOLDERS' EQUITY

6. STOCKHOLDERS’ EQUITY

Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense related to RSUs, stock options, and ESPP shares for the twelve months ended September 30, 2021, 2020, and 2019, which were allocated as follows (amounts shown in thousands):


	2021		2020		2019
Cost of revenue	$	339	$	267	$	207
Selling and marketing	3,399		2,528		2,554
Research and development	3,218		2,802		2,426
General and administrative	4,576		3,954		4,450
Stock-based compensation expense included in expenses	$	11,532	$	9,551	$	9,637

No options were granted in the twelve months ended September 30, 2021. The fair value calculations for stock-based compensation awards to employees for the twelve months ended September 30, 2020, and 2019 were based on the following assumptions:


	2020	2019
Risk-free interest rate	1.35% – 1.35%	1.85% – 3.08%
Expected life (years)	5.78	5.43
Expected volatility	48%	57%
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, 2021, the Company had $19.6 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 2.2 years.

2020 Incentive Plan

In January 2020, the Board adopted the Mitek Systems, Inc. 2020 Incentive Plan (the “2020 Plan”) upon the recommendation of the compensation committee of the Board. On March 4, 2020, the Company’s stockholders approved the 2020 Plan. The total number of shares of Common Stock reserved for issuance under the 2020 Plan is 4,500,000 shares plus such number of shares, not to exceed 107,903, as remained available for issuance under the 2002 Stock Option Plan, 2006 Stock Option Plan, 2010 Stock Option Plan, and 2012 Incentive Plan (collectively, the “Prior Plans”) as of January 17, 2020, plus any shares underlying awards under the Prior Plans that are terminated, forfeited, cancelled, expire unexercised or are settled in cash after January 17, 2020. As of September 30, 2021, (i) 929,135 RSUs and 528,724 Performance RSUs were outstanding under the 2020 Plan, and 2,767,497 shares of Common Stock were reserved for future grants under the 2020 Plan and (ii) stock options to purchase an aggregate of 506,928 shares of Common Stock and 1,023,130 RSUs 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, 2021, (i) 479,135 shares have been issued to participants pursuant to the ESPP and (ii) 520,865 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 $0.6 million in stock-based compensation expense related to the ESPP during the twelve months ended September 30, 2021 and $0.4 million in each of the twelve months ended September 30, 2020 and 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, 2021, (i) 333,819 RSUs were outstanding under the Director Plan and (ii) 214,888 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 twelve months ended September 30, 2021, 2020, and 2019:


	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in Years)
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
Granted	92,610	$	9.49
Exercised	(580,861)	$	6.15
Canceled	(36,146)	$	10.76
Outstanding at September 30, 2020	1,162,505	$	7.51	6.1
Granted	—	$	—
Exercised	(329,878)	$	7.63
Canceled	(15,910)	$	9.41
Outstanding at September 30, 2021	816,717	$	7.42	5.8
Vested and Expected to Vest at September 30, 2021	816,717	$	7.42	5.8
Exercisable at September 30, 2021	628,763	$	6.79	5.3

The Company recognized $0.7 million in stock-based compensation expense related to outstanding stock options in the twelve months ended September 30, 2021, 2020, and 2019, respectively. As of September 30, 2021, the Company had $0.8 million of unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted-average period of approximately two 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 twelve months ended September 30, 2021, 2020, and 2019 was $2.7 million, $2.5 million, and $11.1 million, respectively. There were no options granted during the twelve months ended September 30, 2021. The per-share weighted-average fair value of options granted during the twelve months ended September 30, 2020 and 2019 were $4.32, and $5.07, respectively. The aggregate intrinsic value of options outstanding as of September 30, 2021 and 2020, was $9.0 million and $6.1 million, respectively.

Restricted Stock Units

The following table summarizes RSU activity under the Company’s equity plans in the twelve months ended September 30, 2021, 2020, and 2019:


	Number of Shares	Weighted- Average Fair Value Per Share
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
Granted	1,394,869	$	7.39
Settled	(818,665)	$	7.82
Canceled	(266,748)	$	8.26
Outstanding at September 30, 2020	2,661,943	$	7.95
Granted	887,049	$	13.35
Settled	(975,764)	$	7.64
Canceled	(161,961)	$	8.94
Outstanding at September 30, 2021	2,411,267	$	9.99

The cost of RSUs is determined using the fair value of the Common Stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $8.1 million, $6.9 million, and $6.8 million in stock-based compensation expense related to outstanding RSUs in the twelve months ended September 30, 2021, 2020, and 2019, respectively. As of September 30, 2021, the Company had approximately $16.0 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 2.3 years.

Performance Restricted Stock Units

Pursuant to the 2020 Plan, the Company granted a performance-based restricted stock unit award (“Performance RSUs”) to certain members of the Company’s senior leadership team including the Chief Executive Officer. The Performance RSUs are subject to vesting based on a performance-based condition and a service-based condition. The Performance RSU will vest over three years in a percentage of the target number of shares between 0 and 133%, depending on the extent the performance condition is achieved. The following table summarizes Performance RSU activity under the Company’s equity plans in the twelve months ended September 30, 2021, 2020, and 2019:


	Number of Shares	Weighted- Average Fair Value Per Share
Outstanding at September 30, 2018	2,042,817	$	7.66
Granted	—	$	—
Exercised	—	$	—
Canceled	(320,266)	$	7.11
Outstanding at September 30, 2019	1,722,551	$	7.76
Granted	353,556	$	6.06
Exercised	—	$	—
Canceled	(1,722,551)	$	7.76
Outstanding at September 30, 2020	353,556	$	6.06
Granted	284,765	$	11.84
Exercised	(90,345)	$	6.06
Canceled	(19,252)	$	6.06
Outstanding at September 30, 2021	528,724	$	9.17

There were 528,724 Performance RSUs outstanding as of September 30, 2021. The Company recognized $1.3 million, $0.7 million, and $1.0 million in stock-based compensation expense related to outstanding Performance RSUs in the twelve months ended September 30, 2021, 2020, and 2019, respectively. As of September 30, 2021, the Company had $2.5 million of unrecognized compensation expense related to outstanding Performance RSUs expected to be recognized over a weighted-average period of approximately 2.0 years. During the twelve months ended September 30, 2021, the Company cancelled 19,252 of previously issued Performance RSUs as the criteria for vesting were not met during the performance period.

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. During fiscal 2021 the performance conditions were achieved and in November 2021 the performance options vested in full. The Company recognized $0.8 million and $0.8 million in stock-based compensation expense related to outstanding Performance Options in the twelve months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, the Company had $0.1 million of unrecognized compensation expense related to outstanding Performance Options expected to be recognized over a weighted-average period of approximately 0.1 years.

Earnout Shares

In connection with the acquisition of ID R&D and subject to the achievement by ID R&D of certain revenue targets for the period commencing on the Closing Date and ending on the one year anniversary thereof and the period commencing on the one year anniversary of the Closing Date and ending on the one year anniversary thereof, the Company will issue to certain equity holders of ID R&D up to an aggregate of 711,535 shares of Common Stock (the “Earnout Shares”). The Company will make the Earnout Payments as set forth in the Merger Agreement. The Company estimated the fair value of the consideration for the Earnout Periods to be $15.7 million on the Closing Date, 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, and is included in level three of the fair value hierarchy. Each quarter the Company revises the estimated fair value of the consideration for the Earnout Periods and changes in the fair value are included in acquisition-related costs and expenses in the consolidated statements of operations and other comprehensive income (loss). The Company recognized $1.1 million in acquisition-related costs and expenses related to the Earnout Shares for the twelve months ended September 30, 2021. The Company did not recognize any expense related to the Earnout Shares for each of the twelve months ended September 30, 2020 and 2019.

Share Repurchase Program

On June 15, 2021, the Board authorized and approved a share repurchase program for up to $15 million of the currently outstanding shares of our Common Stock. The share repurchase program will expire on June 30, 2022. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The repurchases may be made from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a share repurchase trading plan. The program may be discontinued or amended at any time.

The Company made purchases of $0.2 million, or 10,555 shares, during twelve months ended 2021 at an average price of $17.99 per share.

From the period October 1, 2021 through December 10, 2021, the Company made purchases of $8.1 million, or 474,213 shares at an average price of $17.09 per share.

On December 13, 2019, the Board authorized and approved a share repurchase program for up to $10.0 million of the currently outstanding shares of the Company’s Common Stock. The share repurchase program will expire December 16, 2020. The purchases under the share repurchase program may be made from time to time in the open market, through block trades, 10b5-1 trading plans, privately negotiated transactions or otherwise, in each case, in accordance with applicable laws, rules, and regulations. The timing and actual number of the shares repurchased will depend on a variety of factors including price, market conditions, and corporate and regulatory requirements. The Company intends to fund the share repurchases from cash on hand. The share repurchase program does not commit the Company to repurchase shares of its Common Stock and it may be amended, suspended, or discontinued at any time.

The Company made purchases of $1.0 million, or approximately 137,000 shares, during the twelve months ended September 30, 2020 at an average price of $7.33 per share. Total purchases made under the share repurchase program were $1.0 million as of September 30, 2020 and the repurchased shares were retired.

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.

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 of 2017 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.

The Rights expired on October 22, 2021 and no Rights were redeemed or exchanged.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
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+ Details

Income Taxes

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

7. INCOME TAXES

Provision for Income Taxes

Income (loss) before income taxes for the twelve months ended September 30, 2021, 2020, and 2019 is comprised of the following (amounts shown in thousands):


	2021		2020		2019
Domestic	$	10,966	$	11,071	$	8,992
Foreign	(2,164)		(1,662)		(12,980)
Total	$	8,802	$	9,409	$	(3,988)

For the twelve months ended September 30, 2021, 2020, and 2019 the income tax benefit (provision) was as follows (amounts shown in thousands):


	2021		2020		2019
Federal—current	$	—	$	—	$	(117)
Federal—deferred	(1,387)		(2,182)		639
State—current	(78)		(46)		(438)
State—deferred	457		67		515
Foreign—current	(1,119)		(436)		594
Foreign—deferred	1,303		1,002		2,071
Total	$	(824)	$	(1,595)	$	3,264

Deferred Income Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2021 and 2020 are as follows (amounts shown in thousands):


	2021		2020
Deferred tax assets:
Stock-based compensation	$	1,864	$	2,503
Net operating loss carryforwards	5,669		5,931
Research credit carryforwards	7,322		6,264
Lease liability	856		1,091
Intangibles	—		300

Total deferred assets	15,711		16,089
Deferred tax liabilities:

Right of use asset	(570)		(726)
Foreign deferred liabilities	(8,019)		(5,756)
Other, net	1		(62)
Net deferred tax asset	7,123		9,545
Valuation allowance for net deferred tax assets	(729)		(710)
Net deferred tax asset	$	6,394	$	8,835

The net change in the total valuation allowance for the twelve months ended September 30, 2021 and 2020 was an increase of $19 thousand and a decrease of $0.2 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, 2021, the Company has available net operating loss carryforwards of $14.9 million for federal income tax purposes. The Company did not generate any net operating losses in the twelve months ended September 30, 2021. Of the remaining net operating losses, $9.4 million can be carried forward indefinitely, and $5.6 million, which were generated prior to the fiscal year 2021, will start to expire in 2032 unless previously utilized. The net operating losses for state purposes are $28.0 million, which will begin to expire in 2028. As of September 30, 2021, the Company has available federal research and development credit carryforwards, net of reserves, of $3.8 million. The federal research and development credits will start to expire in 2022. As of September 30, 2021, the Company has available California research and development credit carryforwards, net of reserves, of $3.4 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 twelve months ended September 30, 2021, 2020, and 2019 (amounts shown in thousands):


	2021		2020		2019
Amount computed using statutory rate	$	(1,849)	$	(1,977)	$	841
Net change in valuation allowance for net deferred tax assets	(19)		221		(459)
Other	—		—		—
Foreign rate differential	13		86		664
Non-deductible items	(141)		(178)		(151)
State income tax	(276)		(205)		(370)

Impact of tax reform on deferred taxes	—		—		—
Research and development credits	1,248		897		1,694
Foreign income tax	(15)		10		(494)
Stock compensation, net	215		(449)		1,539
Income tax benefit (provision)	$	(824)	$	(1,595)	$	3,264

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 twelve months ended September 30, 2021, 2020, and 2019 (amounts shown in thousands):


	2021		2020		2019
Gross unrecognized tax benefits at the beginning of the year	$	1,810	$	1,607	$	1,321
Additions from tax positions taken in the current year	268		203		213
Additions from tax positions taken in prior years	36		—		73


Gross unrecognized tax benefits at end of the year	$	2,114	$	1,810	$	1,607

Of the total unrecognized tax benefits at September 30, 2021, $2.1 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, 2021, 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 examination of the Company’s U.S. federal tax return for the year ended September 30, 2017 was completed during the fourth quarter of fiscal 2020. To our knowledge, the Company is not currently under examination by any other taxing authorities.

Tax Cuts and Jobs Act

On December 22, 2017, the U.S. government enacted comprehensive tax legislation referred to as the Tax Cuts and Jobs Act (the “Tax Cuts and Jobs Act"). The Tax Cuts and Jobs Act includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. federal corporate tax rate from a maximum of 35% to a flat 21%, effective January 1, 2018.

In conjunction with the tax law changes, the Securities and Exchange Commission staff issued Staff Accounting Bulletin 118 ("SAB 118") to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. In accordance with SAB 118, the Company completed the accounting for the remeasurement of deferred tax assets and liabilities in the twelve months ended September 30, 2020, which included the period of enactment. Additionally, for the twelve months ended September 30, 2020, the entire fiscal year’s activity was under the 21% tax rate.

CARES Act

On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief and Economic Security (CARES) Act” (the “CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company continues to examine the impacts the CARES Act may have on our business. For the twelve months ended September 30, 2021, the CARES Act has been considered for the income tax provision.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Convertible Senior Notes

12 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

8. CONVERTIBLE SENIOR NOTES

The carrying values of the Company’s 2026 Notes are as follows (in thousands):


	September 30, 2021
2026 Notes:
Principal amount	$	155,250
Less: unamortized discount and issuance costs, net of amortization	(34,332)
Carrying amount	120,918
2026 Notes embedded conversion derivative	$	48,208

In February 2021, the Company issued $155.3 million aggregate principal amount of the 2026 Notes (including the Additional

Notes, as defined below). The 2026 Notes are senior unsecured obligations of the Company. The 2026 Notes were issued pursuant to an Indenture, dated February 5, 2021 (the “Indenture”), between the Company and UMB Bank, National Association, as trustee. The Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company after which the 2026 Notes become automatically due and payable. The Company granted the initial purchasers of the 2026 Notes (collectively, the “Initial Purchasers”) a 13-day option to purchase up to an additional $20.25 million aggregate principal amount of the 2026 Notes (the “Additional Notes”), which was exercised in full. The 2026 Notes were purchased in a transaction that was completed on February 5, 2021.

The 2026 Notes will mature on February 1, 2026, unless earlier redeemed, repurchased or converted. The 2026 Notes will bear interest from February 5, 2021 at a rate of 0.750% per year payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021. The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding August 1, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021, if the last reported sale price per share of Common Stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Common Stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on the Common Stock. On or after August 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2026 Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash and, if applicable at the Company’s election, shares of the Common Stock, based on the applicable conversion rate(s); provided that the Company will be required to settle conversions solely in cash unless and until the Company (i) receives stockholder approval to increase the number of authorized shares of the Common Stock and (ii) reserves such amount of shares of the Common Stock for future issuance as required pursuant to the Indenture that governs the 2026 Notes. The conversion rate for the 2026 Notes will initially be 47.9731 shares of the Common Stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $20.85 per share of the Common Stock. The initial conversion price of the 2026 Notes represents a premium of approximately 37.5% to the $15.16 per share last reported sale price of the Common Stock on February 2, 2021. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture.

The net proceeds from this offering were approximately $149.7 million, after deducting the Initial Purchasers’ discounts and commissions and the Company’s estimated offering expenses related to the offering. The Company used approximately $9.3 million of the net proceeds from the offering to pay the cost of the Notes Hedge (as defined below) (after such cost is partially offset by the proceeds from the Warrant Transactions described below). The Initial Purchasers exercised their option to purchase Additional Notes in full and the Company used a portion of the net proceeds from the sale of such Additional Notes to enter into additional Notes Hedges (after such cost is partially offset by the proceeds from the additional Warrant Transactions) with the Option Counterparties (as defined below). The Company intends to use the remainder of the net proceeds from the offering for general corporate purposes, which may include working capital, capital expenditures, and potential acquisitions and strategic transactions.

As of September 30, 2021, the number of authorized and unissued shares of Common Stock that are not reserved for other purposes is less than the maximum number of underlying shares that will be required to settle the 2026 Notes into equity. Accordingly, unless and until the Company has a number of authorized shares that have not been issued or reserved for any other purpose that equals or exceeds the maximum number of underlying shares (“share reservation condition”), the Company will pay to the converting holder in respect of each $1,000 principal amount of notes being converted solely cash in an amount equal to the sum of the daily conversion values for each of the 40 consecutive trading days during the related observation period. However, following satisfaction of the share reservation condition, the Company may settle conversions of notes through payment or delivery, as the case may be, of cash, shares of Common Stock or a combination of cash and shares of Common Stock, at the Company’s election.

In accounting for the issuance of the 2026 Notes, the conversion option of the 2026 Notes was deemed an embedded derivative requiring bifurcation from the 2026 Notes (“host contract”) and separate accounting as an embedded derivative liability, as a result of the Company not having the necessary number of authorized but unissued shares of its Common Stock available to settle the conversion option of the 2026 Notes in shares. The proceeds from the 2026 Notes are first allocated to the embedded derivative liability and the remaining proceeds are then allocated to the host contract. On February 5, 2021, the fair value of the embedded derivative liability representing the conversion option was $33.2 million and the remaining $116.5 million was allocated to the host contract. The difference between the principal amount of the 2026 Notes and the fair value of the host contract (the “debt discount”) is amortized to interest expense using the effective interest method over the term of the 2026 Notes.

As of September 30, 2021, the embedded derivative liability is included in embedded conversion derivative in the consolidated balance sheet and the change in fair value of derivative is included in other income, net in the consolidated statement of operations and other comprehensive income (loss). The carrying amount of the embedded derivative liability was determined using a Black-Scholes option valuation model.

The following table presents the fair value and the change in fair value for the embedded conversion derivative (in thousands):


Embedded conversion derivative
Fair value as of February 5, 2021	$	33,192
Change in fair value	15,016
Fair value as of September 30, 2021	$	48,208

Debt issuance costs for the issuance of the 2026 Notes were approximately $5.5 million, consisting of initial purchasers' discount and other issuance costs. In accounting for the transaction costs, the Company allocated the total amount incurred to the 2026 Notes. Transaction costs were recorded as debt issuance cost (presented as contra debt in the consolidated balance sheet) and are being amortized using the effective interest method to interest expense over the term of the 2026 Notes.

The following table presents the total amount of interest cost recognized relating to the 2026 Notes for the twelve months ended September 30, 2021 and 2020 (in thousands):



	2021		2020
Contractual interest expense	$	756	$	—
Amortization of debt discount and issuance costs	4,372		—
Total interest expense recognized	$	5,128	$	—

The derived effective interest rate on the 2026 Notes host contract was determined to be 6.71%, which remains unchanged from

the date of issuance. The remaining unamortized debt discount was $34.3 million as of September 30, 2021, and will be amortized over approximately 4.3 years.

Convertible Senior Notes Hedge and Warrants

In connection with the pricing of the 2026 Notes, the Company entered into the Notes Hedge with Bank of America, N.A., Jefferies International Limited and Goldman Sachs & Co. LLC (the “Option Counterparties”). The Notes Hedge provided the Company with the option to acquire, on a net settlement basis, approximately 7.4 million shares of Common Stock at a strike price of $20.85, which is equal to the number of shares of Common Stock that notionally underlie and corresponds to the conversion price of the 2026 Notes. The Company also entered into Warrant Transactions with the Option Counterparties relating to the same number of shares of the Common Stock, subject to customary anti-dilution adjustments. The strike price of the Warrant Transactions is $26.53 per share, which represents a 75.0% premium to the last reported sale price of the Common Stock on The NASDAQ Capital Market on February 2, 2021, and is subject to certain adjustments under the terms of the Warrant Transactions.

As the Company is required to settle the Notes Hedge in cash, they do not qualify for the scope exception for contracts involving an issuer’s own equity in ASC 815 and have been accounted for as a derivative asset. Upon initial purchase, the Notes Hedge was recorded in our consolidated balance sheets in convertible senior notes hedge at $33.2 million. As of September 30, 2021,

the Notes Hedge is included in convertible senior notes hedge in the consolidated balance sheet and the change in fair value is included in other income, net in the consolidated statement of operations and other comprehensive income (loss). As of September 30, 2021, the Company had not purchased any shares under the Notes Hedge.

As a result of the Warrant Transactions, the Company is required to recognize incremental dilution of earnings per share to the extent the average share price is over $26.53 for any fiscal quarter. During 2021, there was no dilution of earnings per share. The Warrant Transactions expire over a period of 80 trading days commencing on May 1, 2026 and may be settled in net shares of Common Stock or net cash at the Company’s election. Upon initial sale, the Warrant Transactions were recorded as an increase in additional paid-in capital within stockholders’ equity of $23.9 million. As of September 30, 2021, the Warrant Transactions had not been exercised and remained outstanding.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Commitments and Contingencies

12 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

Leases

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 $1.2 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, 2021, the unamortized balance of the lease incentives was $0.4 million, of which $0.1 million has been included in other current liabilities and $0.2 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 May 31, 2025, with an annual base rent of approximately €418 thousand (or $484 thousand). The term of the Amsterdam, The Netherlands lease continues through December 31, 2022, with an annual base rent of approximately €191 thousand (or $222 thousand). The term of the New York, New York lease continues through November 30, 2024, with an annual base rent of approximately $195 thousand. The term of the Barcelona, Spain lease continues through May 31, 2023, with an annual base rent of approximately €97 thousand (or $113 thousand). The term of the London, United Kingdom lease continues through May 31, 2022, with an annual base rent of approximately £112 thousand (or approximately $151 thousand).

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.

The Company’s leases have remaining terms of 1 to 9 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. As of September 30, 2021, the weighted-average remaining lease term for the Company’s operating leases was 5.5 years and the weighted-average discount rate was 3.2%.

Lease liabilities expected to be paid within one year are recorded in current liabilities in the consolidated balance sheets. All other lease liabilities are recorded in non-current liabilities in the consolidated balance sheets. As of September 30, 2021, the Company had operating ROU assets of $7.1 million. Total operating lease liabilities of $8.5 million were comprised of current lease liabilities of $1.9 million and non-current lease liabilities of $6.6 million.

The Company recognized $2.2 million of operating lease costs in the twelve months ended September 30, 2021. Operating lease costs are included within cost of revenue, selling and marketing, research and development, and general and administrative expenses, dependent upon the nature and use of the ROU asset, in the Company’s consolidated statement of operations and other comprehensive income (loss). Rent expense for the Company’s operating leases for its facilities for the twelve months ended September 30, 2021, 2020, and 2019 totaled $2.2 million, $2.2 million and $2.1 million, respectively.

The Company paid $2.3 million in operating cash flows for operating leases in the twelve months ended September 30, 2021.

Maturities of our operating lease liabilities as of September 30, 2021 were as follows (amounts shown in thousands):


	Operating leases
2022	$	2,140
2023	2,096
2024	1,764
2025	677
2026	671
Thereafter	1,759
Total	9,107
Less: amount representing interest	577
Present value of future lease payments	$	8,530

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 but has been delayed as a consequence of the COVID-19 pandemic.

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 receives indemnification demands from end-user customers who received third party patentee offers to license patents and allegations of patent infringement. 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 extract 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. In neither lawsuit was the Company named in the Complaint as an infringer and at no time did USAA allege specifically that the Company’s products by themselves infringed any of the asserted patents. 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. In the Second Wells Lawsuit, USAA dropped two of the patents from the litigation, and the judge in the case found that one of the remaining three patents was invalid. On January 10, 2020, a jury in the Second Wells Lawsuit found that Wells Fargo willfully infringed at least one of the patents at issue in that case and awarded USAA $102 million in damages. No Mitek product was accused of infringing either of the two patents in question in the Second Wells Lawsuit as the litigation involved broad banking processes and not Mitek’s specific mobile deposit features. USAA and Wells Fargo subsequently reached a settlement, and on April 1, 2021 the court granted the parties’ joint motion and stipulation of dismissal of the Wells Lawsuits with prejudice.

Wells Fargo filed petitions for Inter Partes Review (“IPR”) with the Patent Trial and Appeal Board (“PTAB”) challenging the validity of the four patents in the First Wells Lawsuit. Three of those four petitions were instituted, while one (relating to the ‘090 Patent) was denied institution. On November 24, 2020, and January 26, 2021, the PTAB issued final written decisions determining that Wells Fargo had not demonstrated by a preponderance of the evidence that any claims of the ‘571 Patent, the ‘779 Patent, or ‘517 Patent were unpatentable.

On September 30, 2020, USAA filed suit against PNC Bank (the “First PNC Lawsuit”) in the Eastern District of Texas alleging infringement of U.S. Patent Nos. 10,482,432 and 10,621,559. These two patents are continuations of an asserted patent in the Second Wells Lawsuit and relate to similar subject matter. On October 19, 2020, PNC Bank’s integration partner, NCR Corporation, sent an indemnification demand to the Company requesting indemnification from all claims related to the First PNC Lawsuit. The complaint against PNC does not claim that any Company product infringes any of the asserted patents. At this time, the Company does not believe it is obligated to indemnify NCR Corporation or end-users of NCR Corporation resulting from the patent infringement allegations by USAA. On December 4, 2020, USAA filed an amended complaint against PNC Bank also asserting two patents at issue in the First Wells Lawsuit—U.S. Patent Nos. 8,699,779 (“the ’779 Patent”) and 8,977,571 (“the ’571 Patent”). Also on December 4, 2020, PNC Bank filed a complaint for declaratory judgement of non-infringement of the ’779 Patent and the ’571 Patent in the Western District of Pennsylvania (“PNC DJ Action”). On January 19, 2021, USAA filed a motion to dismiss the PNC DJ Action in view of the pending lawsuit between the parties in the Eastern District of Texas. On February 2, 2021, NCR Corporation sent a second indemnification demand to the Company requesting indemnification of the claims described in the amended complaint. On March 31, 2021, USAA filed another suit against PNC Bank in the Eastern District of Texas alleging infringement of two patents from the Second Wells Lawsuit, U.S. Patent Nos. 10,013,605 and 10,013,681 (the “Second PNC Lawsuit” and together with the First PNC Lawsuit, the “PNC Lawsuits”). On June 1, 2021, the Western District of Pennsylvania court stayed the PNC DJ Action in view of the earlier-filed action between USAA and PNC in the Eastern District of Texas. On July 7, 2021, USAA filed a third lawsuit against PNC Bank (the “Third PNC Lawsuit”) asserting infringement of U.S. Patents 10,769,598; 10,402,638; and 9,224,136.

While neither the Wells Lawsuits nor the PNC Lawsuits name the Company as a defendant, given (among other factors) the Company’s prior history of litigation with USAA and the continued use of the Company’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 the ’779 Patent, the ’571 Patent, U.S. Patent No. 9,336,517 (“the ’517 Patent”), and U.S. Patent No. 9,818,090 (“the ’090 Patent”) (collectively, the “Subject Patents”). On January 15, 2020, USAA filed motions requesting the dismissal of the declaratory judgement of the Subject Patents and transfer of the case to the Eastern District of Texas, both of which the Company opposed. On April 21, 2020, the court in the Northern District of California transferred the Company’s declaratory judgement action to the Eastern District of Texas and did not rule on USAA’s motion to dismiss. On April 28, 2021, the court in the Eastern District of Texas granted USAA’s motion to dismiss the Company’s declaratory judgment action on jurisdictional grounds. The Court’s ruling did not address the merits of the Company’s claim of non-infringement. 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.

In April, May, and June 2020, the Company filed petitions for IPR with the PTAB of the U.S. Patent & Trademark Office challenging the validity of the Subject Patents. On November 6 and 17, 2020, the PTAB decided to exercise its discretion and deny institution of the four petitions due to the alleged relationship between the Company and Wells Fargo, who previously filed petitions for IPR on the Subject Patents. The PTAB did not address the merits of the Company’s petitions or the prior art cited in those petitions. The Company continues to believe that the prior art cited in the petitions renders all the claims of the Subject Patents invalid. On December 6, 2020, December 17, 2020, and February 23, 2021, the Company filed requests for rehearing and Precedential Opinion Panel (“POP”) review of the four denied IPR petitions.

In September 2020, the Company filed an additional two petitions for IPR with the U.S. Patent & Trademark Office challenging the validity of U.S. Patent Nos. 10,013,681 and 10,013,605—two of the patents at issue in the Second Wells Lawsuit. In March 2021, the PTAB decided not to institute the two petitions.

On July 7, July 14, and July 21 2021, PNC Bank filed six additional petitions for IPR with the U.S. Patent & Trademark Office challenging the validity of the ’779 Patent, the ’571 Patent, the ‘559 Patent, and the ‘432 Patent. In November and December of 2021, PNC Bank filed four more petitions for IPR against the ‘638 Patent, the ‘136 Patent, and the ‘598 Patent. Decisions from the Patent Office whether to institute these IPRs are expected in February and May 2022.

On August 16, 2021, USAA filed suit against BBVA USA (“BBVA”) in the Eastern District of Texas alleging infringement of the same patents at issue in the lawsuits against PNC. While Mitek’s IPR petitions were mentioned in the complaint, Mitek was not named as a defendant or mentioned in connection with any alleged infringement. BBVA then sent Mitek an indemnification demand on September 7, 2021. For the same reasons discussed above in connection with PNC, the Company does not believe it is obligated to indemnify BBVA.

The Company incurred legal fees of $1.0 million in the fiscal year ended September 30, 2021 related to third-party claims against our customers. Such fees are included in general and administrative expenses in the consolidated statement of operations and other comprehensive income (loss).

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-DEB). UrbanFT is delinquent in payment and attempted to justify its non-payment by asserting that the Company is or may be infringing on purported UrbanFT patents. The Company filed such lawsuit to collect the delinquent payments and to obtain a declaratory judgment of non-infringement of five purported UrbanFT patents. UrbanFT filed an answer and later asserted infringement of two of the five patents-at-issue in the Company’s lawsuit against UrbanFT. The Company thereafter filed counterclaims seeking a declaration that the two patents now asserted by UrbanFT are invalid in addition to being not infringed. During the course of the litigation, the Company learned that a

judgment had been entered against UrbanFT’s affiliates and its predecessor owner in which an Oregon court ordered that the patents in issue revert to a prior owner, Mr. Stevens, because UrbanFT’s affiliates did not pay the purchase price owed to the prior owner. On September 8, 2020, the Company filed a motion for summary judgment on its breach of contract claim. On September 15, 2020, the district court issued an order to show cause regarding jurisdiction over patent issues in light of the Oregon judgment. On December 17, 2020, the district court dismissed Mitek’s claims for declaratory judgment of non-infringement and UrbanFT’s counterclaims for patent infringement and related affirmative defenses based on infringement of the patents for lack of subject matter jurisdiction because UrbanFT does not own the patents. The district court then dismissed the remaining state law claims without prejudice to refiling in state court.

On December 18, 2020, the Company filed a new suit against UrbanFT in the Superior Court of the State of California, County of San Diego (case no. 37-2020-00046670-CU-BC-CTL) asserting claims for breach of contract, open book account, and monetary damages. UrbanFT filed an answer and has not asserted any cross-claims. The Company filed a motion for summary judgment which is set to be heard on April 15, 2022. No trial date has been set. We intend to vigorously pursue our claims and defend any cross-claims if any are filed at a later date.

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 50% 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 $0.7 million, $0.4 million, and $0.2 million for the twelve months ended September 30, 2021, 2020, and 2019, respectively.

Revenue Concentration	12 Months Ended
Revenue Concentration	Sep. 30, 2021
Risks and Uncertainties [Abstract]
REVENUE CONCENTRATION	10. REVENUE CONCENTRATION Revenue Concentration For the twelve months ended September 30, 2021, the Company derived revenue of $20.2 million from one customer, with such customer accounting for 17% of the Company’s total revenue. For the twelve months ended September 30, 2020, the Company derived revenue of $15.8 million from one customer, with such customer accounting for 16% of the Company's total revenue. For the twelve months ended September 30, 2019, the Company derived revenue of $22.8 million from two customers, with such customers accounting for 17% and 10% 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 $3.4 million, $4.5 million, and $5.4 million at September 30, 2021, 2020, and 2019, 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. These contractual arrangements do not obligate the Company’s channel partners to order, purchase or distribute any fixed or minimum quantities of the Company’s products. 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 several quarters, 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 26%, 24%, and 31% of the Company’s total revenue for the twelve months ended September 30, 2021, 2020, and 2019, respectively. From a geographic perspective, approximately 24% and 66% of the Company’s total long-term assets as of September 30, 2021 and 2020, respectively, are associated with the Company’s international subsidiaries. From a geographic perspective, approximately 6% and 15% of the Company’s total long-term assets excluding goodwill and other intangible assets as of September 30, 2021 and 2020, respectively, are associated with the Company’s international subsidiaries.

Quarterly Information (Unaudited)

12 Months Ended

Sep. 30, 2021

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY INFORMATION (UNAUDITED)

11. QUARTERLY INFORMATION (UNAUDITED)

The following table sets forth selected quarterly financial data for 2021, 2020, and 2019 (shown in thousands except per share data):


	2021
	1		2		3		4
Revenue	$	25,976	$	28,773	$	31,778	$	33,270
Cost of revenue	4,138		3,792		3,410		3,200
Operating expenses	20,301		22,598		22,936		26,145
Operating income	1,537		2,383		5,432		3,925
Interest expense	—		1,319		2,223		1,587
Other income, net	96		372		80		106
Income tax benefit (provision)	534		(417)		(304)		(637)
Net income	$	2,167	$	1,019	$	2,985	$	1,807
Net income per share:
Net income per share—basic	$	0.05	$	0.02	$	0.07	$	0.04
Net income per share—diluted	$	0.05	$	0.02	$	0.07	$	0.04
Shares used in calculating net income per share—basic	42,476		43,138		43,773		44,616
Shares used in calculating net income per share—diluted	43,897		44,554		45,194		46,236


	2020
	1		2		3		4
Revenue	$	22,067	$	23,192	$	25,413	$	30,638
Cost of revenue	2,933		3,186		3,496		3,577
Operating expenses	18,835		18,941		20,483		20,991
Operating income	299		1,065		1,434		6,070
Other income, net	303		32		145		61
Income tax provision	(41)		(188)		(231)		(1,135)
Net income	$	561	$	909	$	1,348	$	4,996
Net income per share:
Net income per share—basic	$	0.01	$	0.02	$	0.03	$	0.12
Net income per share—diluted	$	0.01	$	0.02	$	0.03	$	0.12
Shares used in calculating net income per share—basic	40,615		41,022		41,483		41,770
Shares used in calculating net income per share—diluted	41,828		42,028		42,428		43,101


	2019
	1		2		3		4
Revenue	$	17,683	$	19,983	$	21,906	$	25,018
Cost of revenue	2,878		2,991		3,168		3,229
Operating expenses	19,365		18,642		21,647		17,260
Operating income (loss)	(4,560)		(1,650)		(2,909)		4,529
Other income, net	14		140		98		350
Income tax benefit (provision)	1,355		794		2,712		(1,597)
Net income (loss)	$	(3,191)	$	(716)	$	(99)	$	3,282
Net income (loss) per share:
Net income (loss) per share—basic	$	(0.08)	$	(0.02)	$	—	$	0.08
Net loss per share—diluted	$	(0.08)	$	(0.02)	$	—	$	0.08
Shares used in calculating net income (loss) per share—basic	38,247		38,926		39,936		40,252
Shares used in calculating net income (loss) per share—diluted	38,247		38,926		39,936		41,635

Nature of Operations and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Nature of Operations Mitek is a leading innovator of mobile image capture and digital identity verification solutions. We are a software development company with expertise in computer vision, artificial intelligence, and machine learning. We currently serve more than 7,500 financial services organizations and leading marketplace and financial technology (“fintech”) brands around the globe. Customers count on Mitek to deliver trusted and convenient online experiences, detect and reduce fraud, and document Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) regulatory compliance. Our solutions are embedded in native mobile apps and web browsers to facilitate digital consumer experiences. Mitek’s identity verification and authentication technologies and services make it possible for banks, financial services organizations and the world’s leading marketplace and sharing platforms to verify an individual’s identity during digital transactions, allowing them to reduce risk and meet regulatory requirements. Our advanced mobile deposit system enables secure, fast and convenient deposit services. Thousands of organizations use Mitek solutions to optimize the security of mobile check deposits, new account openings and more. To ensure a high level of security against evolving digital fraud threats, in June this year, Mitek acquired ID R&D, Inc. (“ID R&D”), an award-winning provider of AI-based voice and face biometrics and liveness detection. With a strong research and development team, ID R&D consistently delivers innovative, best-in-class biometric capabilities that raise the bar on usability and performance. Mitek 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. Our partner sales strategy includes channel partners who are financial services technology providers and identity verification providers. These partners integrate our products into their solutions to meet the needs of their customers. In May 2021 (as more fully described in Note 3 to the consolidated financial statements) Mitek acquired ID R&D, Inc., an award-winning provider of artificial intelligence (AI)-based voice and face biometrics and liveness detection. The ID R&D Acquisition (as defined below) will help simplify and secure the entire transaction lifecycle for both businesses and consumers. Businesses and financial institutions will have access to one authentication solution to deploy throughout the complete transaction cycle, and can provide consumers with a simple, intuitive approach to fighting fraud.
Basis of Presentation	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	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	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	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, fair value of debt derivatives, standalone selling price related to revenue recognition, contingent consideration, and income taxes.
Reclassifications	ReclassificationsCertain reclassifications have been made to the fiscal 2019 presentation to conform to the current year presentation. Prior to fiscal 2020, the Company had included its product management costs in selling and marketing expenses. Due to certain personnel and functional responsibility changes in this function, the Company has reclassified these costs to research and development expenses. To conform to the current period’s presentation, the fiscal 2019 financials have been reclassified accordingly.
Revenue Recognition, Contract Assets and Liabilities and Contract Costs	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 to customers (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. Contract Assets and Liabilities The Company recognizes revenue when control of the license 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 on 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 sheet. 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 sheet. The Company reports net contract asset or liability positions on a customer-by-customer basis at the end of each reporting period. Contract Costs The Company incurs incremental costs to obtain a contract, consisting primarily of sales commissions incurred only if a contract is obtained. 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 and amortized using a portfolio approach consistent with the pattern of transfer of the good or service to which the asset relates. Contract costs are recorded in other current and non-current assets in the consolidated balance sheets. 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. Services and Other Services 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 services 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. 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. Services 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 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 customer-by-customer basis at the end of each reporting period.Contract CostsContract costs included in other current and non-current assets on the consolidated balance sheets 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 other comprehensive income (loss)
Net Income (Loss) Per Share	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 per share because to do so would be antidilutive, and the number of shares used to calculate basic and diluted net loss per share is the same.
Cash and Cash Equivalents	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	InvestmentsInvestments consist of corporate notes and bonds, U.S. Treasury securities, and asset-backed 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, net in the consolidated statements of operations and other comprehensive income (loss)All investments whose maturity or sale is expected within one year are classified as “current” on the consolidated balance sheets. All other securities are classified as long-term on the consolidated balance sheets.
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.
Leases	Leases The Company determines if an arrangement is a lease at inception in accordance with ASC 842. The lease term begins on the commencement date, which is the date the Company takes possession of the property, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease term is used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments arising from the lease. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and auto leases. ROU assets and lease liabilities are recognized at commencement date based upon the present value of lease payments over the lease term. ROU assets also include prepaid lease payments and exclude lease incentives received. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date of each lease. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current secured borrowing rate. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet; instead, lease payments are recognized as lease expenses on a straight-line basis over the lease term. See Note 9 of the consolidated financial statements for additional details. Operating lease assets and liabilities are recognized for leases with lease terms greater than 12 months based on the present value of the future lease payments over the lease term at the commencement date. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet. Operating leases are included in Right-of-use-assets, Lease liabilities, current portion and Lease liabilities, non-current portion on our consolidated balance sheet. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. We account for substantially all lease and related non-lease components together as a single lease component. Operating lease expense is recognized on a straight-line basis over the lease term.
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	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 twelve months ended September 30, 2021, 2020, and 2019, 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 or were not realizable. The Company had no amortization expense from capitalized software costs during the twelve months ended September 30, 2021, 2020, or 2019. 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 the 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.
Goodwill and Purchased Intangible Assets	Goodwill and Purchased Intangible Assets The Company’s goodwill and intangible assets 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 assets 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. No such events or circumstances have occurred since the last impairment assessment was performed. 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 350 and ASC Topic 280, Segment Reporting, management has determined that the Company operates in one segment and consists of one reporting unit. 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 believes this represents the best evidence of fair value. In the fourth quarter of fiscal 2021, 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 the Company’s common stock, par value $0.001 per share ("Common Stock"). For example, a significant decline in the price of the Common Stock may cause the fair value of its goodwill to fall below its carrying value. Therefore, the Company cannot assure that when it completes its future reviews of goodwill for impairment, a material impairment charge will not be recorded. Intangible assets 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 twelve months ended September 30, 2021, 2020, or 2019.
Other Borrowings	Other BorrowingsThe Company has certain loan agreements with Spanish government agencies which were assumed when the Company acquired ICAR Vision Systems, S.L. (“ICAR”). These agreements have repayment periods of five to twelve years and bear no interest.
Guarantees	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.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”). 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 7 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 7 of the consolidated financial statements for additional details.
Stock-Based Compensation	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 ExpenseAdvertising costs are expensed as incurred
Research and Development	Research and Development Research and development costs are expensed in the period incurred.
Segment Reporting	Segment Reporting FASB ASC Topic 280, Segment Reporting, requires the use of a management approach in identifying segments of an enterprise. During the twelve months ended September 30, 2021, 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)Comprehensive income (loss) consists of net income (loss), unrealized gains and losses on available-for-sale securities, and foreign currency translation adjustments.
Recently Adopted Accounting Pronouncements, Changes in Significant Accounting Policy and Recently Issued Accounting Pronouncements	Recently Adopted 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. The Company adopted ASU 2018-15 in the first quarter of fiscal 2021, and the adoption did not 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 (“ASU 2018-13”), 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 Company adopted ASU 2018-13 in the first quarter of fiscal 2021, and the adoption did not 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. The Company adopted ASU 2017-04 in the first quarter of fiscal 2021, and the adoption did not have a material impact on its consolidated financial statements. 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. Convertible Senior Notes Hedge and Embedded Conversion Derivative In February 2021, the Company issued $155.3 million aggregate principal amount of 0.750% convertible notes due 2026 (the “2026 Notes”). Concurrently with the issuance of the 2026 Notes, the Company entered into privately-negotiated convertible senior note hedge (the “Notes Hedge”) and warrant transactions (the “Warrant Transactions”) which, in combination, are intended to reduce the potential dilution from the conversion of the 2026 Notes. The Company could not elect to issue the shares of its common stock, par value $0.001 per share (“Common Stock”) upon settlement of the 2026 Notes due to insufficient authorized share capital. As a result, the embedded conversion option (the “embedded conversion derivative”) is accounted for as a derivative liability and the Notes Hedge as a derivative asset with the resulting gain (or loss) reported in other income, net, in the consolidated statement of operations to the extent the valuation changed from the date of issuance of the 2026 Notes. The Warrant Transactions were recorded in additional paid-in-capital in the consolidated balance sheet and are not remeasured as long as they continue to meet the conditions for equity classification. See Note 8. “Convertible Senior Notes” for additional information related to these transactions. Recently Issued Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-06—Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)—Accounting For Convertible Instruments and Contracts in an Entity's Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features through equity. Without an initial allocation of proceeds to the conversion option, the debt will likely have a lower discount, thereby resulting in less noncash interest expense through accretion. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for such exception. ASU 2020-06 also simplifies the diluted net income per share calculation in certain areas. ASU 2020-06 is effective for annual and interim periods beginning after December 15, 2021, and early adoption is permitted for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. This update permits the use of either the modified retrospective or fully retrospective method of transition. The Company expects that ASU 2020-06 will eliminate the separate accounting described above and reduce the interest expense that we expect to recognize. The Company plans to early adopt ASU 2020-06 for its fiscal year beginning October 1, 2021. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on the consolidated financial statements. No other new accounting pronouncement issued or effective during the twelve months ended September 30, 2021 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, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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


	2021	2020	2019
Stock options	543	239	1,687
RSUs	1,113	1,519	2,352
ESPP common stock equivalents	9	14	74
Performance options	272	—	—
Performance RSUs	104	32	—
Convertible senior notes	4,856	—	—
Warrants	4,856	—	—
Total potentially dilutive common shares outstanding	11,753	1,804	4,113

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

The calculation of basic and diluted net income (loss) per share for the twelve months ended September 30, 2021, 2020, and 2019 is as follows (amounts in thousands, except per share data):


	2021		2020		2019
Net income (loss)	$	7,978	$	7,814	$	(724)
Weighted-average shares outstanding—basic	43,509		41,410		39,341
Common stock equivalents	1,574		1,123		—
Weighted-average shares outstanding—diluted	45,083		42,533		39,341
Net income (loss) per share:
Basic	$	0.18	$	0.19	$	(0.02)
Diluted	$	0.18	$	0.18	$	(0.02)

Schedule of Summary of Property and Equipment

The following is a summary of property and equipment as of September 30, 2021 and 2020 (amounts shown in thousands):


	2021		2020
Property and equipment—at cost:
Leasehold improvements	$	2,623	$	3,639
Equipment	2,947		3,545
Capitalized internal-use software development costs	2,147		1,363
Furniture and fixtures	700		618
	8,417		9,165
Less: accumulated depreciation and amortization	(4,746)		(5,555)
Total property and equipment, net	$	3,671	$	3,610

Revenue Recognition (Tables)

12 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

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


	Twelve Months Ended September 30,
	2021		2020		2019
Major product category
Deposits software and hardware	$	55,129	$	49,765	$	41,860
Deposits services and other	20,388		17,965		15,170
Deposits revenue	75,517		67,730		57,030
Identity verification software and hardware	4,940		4,387		4,985
Identity verification services and other	39,340		29,193		22,575
Identity verification revenue	44,280		33,580		27,560
Total revenue	$	119,797	$	101,310	$	84,590

Schedule of Contract Balances

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


	September 30, 2021		September 30, 2020
Contract assets, current	$	4,080	$	5,187
Contract assets, non-current	4,409		4,468
Contract liabilities (deferred revenue), current	10,381		7,973
Contract liabilities (deferred revenue), non-current	955		1,597

Business Combinations (Tables)

12 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [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 from the ID R&D Acquisition as of September 30, 2021 (amounts shown in thousands):



Current assets	$	320
Property, plant, and equipment	114
Intangible assets	16,930
Goodwill	27,748

Current liabilities	(425)

Other non-current liabilities	(2,355)
Net assets acquired	$	42,332

Schedule of Estimated Useful Lives of Assets Acquired

The following table summarizes the estimated fair values and estimated useful lives of intangible assets with definite lives acquired from the ID R&D Acquisition during the twelve months ended September 30, 2021 (amounts shown in thousands, except for years):


	Amortization Period	Amount assigned

Completed technologies	7.0 years	$	14,020
Customer relationships	3.0 years	2,540
Trade names	5.0 years	370
Total intangible assets acquired		$	16,930

Schedule of Pro Forma Information


	For the twelve months ended September 30,
	2021		2020
Pro forma revenue	$	121,533	$	102,880
Pro forma net income (loss)	$	4,977	$	2,919

Investments (Tables)

12 Months Ended

Sep. 30, 2021

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, 2021 and 2020, respectively (amounts shown in thousands):


September 30, 2021:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	4,222	$	1	$	—	$	4,223
Asset-backed securities, short-term	4,812		1		(2)		4,811
Corporate debt securities, short-term	140,042		6		(25)		140,023
U.S. Treasury, long-term	6,996		1		(2)		6,995
Foreign government and agency securities, long-term	2,909		—		(1)		2,908
Corporate debt securities, long-term	38,184		3		(39)		38,148
Total	$	197,165	$	12	$	(69)	$	197,108


September 30, 2020:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	10,245	$	38	$	—	$	10,283
Asset-backed securities, short-term	4,723		36		—		4,759
Corporate debt securities, short-term	24,956		37		—		24,993

Corporate debt securities, long-term	1,966		—		(3)		1,963
Total	$	41,890	$	111	$	(3)	$	41,998

Schedule of Fair Value of Investments Measured on Recurring Basis


September 30, 2021:	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	$	4,223	$	4,223	$	—	$	—
Asset-backed securities	4,811		—		4,811		—
Corporate debt securities	65,666		—		65,666		—
Commercial paper	74,357		—		74,357		—
Total short-term investments at fair value	149,057		4,223		144,834		—
Long-term investments:
U.S. Treasury	6,995		6,995		—		—
Foreign government and agency securities	2,908		—		2,908		—

Corporate debt securities	38,148		—		38,148		—
Total long-term investments at fair value	48,051		6,995		41,056		—

Convertible senior notes hedge	48,208		—		48,208		—

Total assets at fair value	$	245,316	$	11,218	$	234,098	$	—

Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	11,050	$	—	$	—	$	11,050
Non-current liabilities:
Acquisition-related contingent consideration	5,720		—		—		5,720
Embedded conversion derivative	48,208		—		48,208		—
Total liabilities at fair value	$	64,978	$	—	$	48,208	$	16,770


September 30, 2020:	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	$	10,283	$	10,283	$	—	$	—
Asset-backed securities	4,759		—		4,759		—
Corporate debt securities	9,619		—		9,619		—
Commercial paper	15,374		—		15,374		—
Total short-term investments at fair value	40,035		10,283		29,752		—
Long-term investments:

Corporate debt securities	1,963		—		1,963		—
Total long-term investments at fair value	1,963		—		1,963		—

Total assets at fair value	$	41,998	$	10,283	$	31,715	$	—
Liabilities:
Acquisition-related contingent consideration	$	753	$	—	$	—	$	753
Total liabilities at fair value	$	753	$	—	$	—	$	753

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 twelve months ended September 30, 2021 (amounts shown in thousands):


Balance at September 30, 2020	$	753
Contingent consideration associated with ID R&D Acquisition	15,690
Expenses recorded due to changes in fair value	1,080
Payment of contingent consideration associated with the ICAR acquisition	(782)

Foreign currency effect on contingent consideration	29
Balance at September 30, 2021	$	16,770

The following table presents the fair value and the change in fair value for the embedded conversion derivative (in thousands):


Embedded conversion derivative
Fair value as of February 5, 2021	$	33,192
Change in fair value	15,016
Fair value as of September 30, 2021	$	48,208

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table summarizes changes in the balance of goodwill during the twelve months ended September 30, 2021 (amounts shown in thousands):


Balance at September 30, 2020	$	35,669
Acquisition of ID R&D	27,748
Foreign currency effect on goodwill	(321)
Balance at September 30, 2021	$	63,096

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, 2021 and 2020 are summarized as follows (amounts shown in thousands, except for years):


September 30, 2021:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.6 years	$	34,361	$	13,311	$	21,050
Customer relationships	4.6 years	20,168		12,905		7,263
Trade names	4.7 years	988		567		421
Total intangible assets		$	55,517	$	26,783	$	28,734


September 30, 2020:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	9,416	$	10,925
Customer relationships	4.8 years	17,628		9,390		8,238
Trade names	4.5 years	618		492		126
Total intangible assets		$	38,587	$	19,298	$	19,289

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
2022	$	8,830
2023	6,801
2024	4,471
2025	3,264
2026	2,051
Thereafter	3,317
Total	$	28,734

Stockholders' Equity (Tables)

12 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Stock-Based Compensation Expense


	2021		2020		2019
Cost of revenue	$	339	$	267	$	207
Selling and marketing	3,399		2,528		2,554
Research and development	3,218		2,802		2,426
General and administrative	4,576		3,954		4,450
Stock-based compensation expense included in expenses	$	11,532	$	9,551	$	9,637

Schedule of Fair Value Calculations for Stock-Based Compensation Awards

The fair value calculations for stock-based compensation awards to employees for the twelve months ended September 30, 2020, and 2019 were based on the following assumptions:


	2020	2019
Risk-free interest rate	1.35% – 1.35%	1.85% – 3.08%
Expected life (years)	5.78	5.43
Expected volatility	48%	57%
Expected dividends	—	—

Schedule of Stock Option Activity

The following table summarizes stock option activity under the Company’s stock option plans during the twelve months ended September 30, 2021, 2020, and 2019:


	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in Years)
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
Granted	92,610	$	9.49
Exercised	(580,861)	$	6.15
Canceled	(36,146)	$	10.76
Outstanding at September 30, 2020	1,162,505	$	7.51	6.1
Granted	—	$	—
Exercised	(329,878)	$	7.63
Canceled	(15,910)	$	9.41
Outstanding at September 30, 2021	816,717	$	7.42	5.8
Vested and Expected to Vest at September 30, 2021	816,717	$	7.42	5.8
Exercisable at September 30, 2021	628,763	$	6.79	5.3

Schedule of RSU Activity

The following table summarizes RSU activity under the Company’s equity plans in the twelve months ended September 30, 2021, 2020, and 2019:


	Number of Shares	Weighted- Average Fair Value Per Share
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
Granted	1,394,869	$	7.39
Settled	(818,665)	$	7.82
Canceled	(266,748)	$	8.26
Outstanding at September 30, 2020	2,661,943	$	7.95
Granted	887,049	$	13.35
Settled	(975,764)	$	7.64
Canceled	(161,961)	$	8.94
Outstanding at September 30, 2021	2,411,267	$	9.99

Schedule of Performance RSU Activity

The following table summarizes Performance RSU activity under the Company’s equity plans in the twelve months ended September 30, 2021, 2020, and 2019:


	Number of Shares	Weighted- Average Fair Value Per Share
Outstanding at September 30, 2018	2,042,817	$	7.66
Granted	—	$	—
Exercised	—	$	—
Canceled	(320,266)	$	7.11
Outstanding at September 30, 2019	1,722,551	$	7.76
Granted	353,556	$	6.06
Exercised	—	$	—
Canceled	(1,722,551)	$	7.76
Outstanding at September 30, 2020	353,556	$	6.06
Granted	284,765	$	11.84
Exercised	(90,345)	$	6.06
Canceled	(19,252)	$	6.06
Outstanding at September 30, 2021	528,724	$	9.17

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Benefit (Provision)

Income (loss) before income taxes for the twelve months ended September 30, 2021, 2020, and 2019 is comprised of the following (amounts shown in thousands):


	2021		2020		2019
Domestic	$	10,966	$	11,071	$	8,992
Foreign	(2,164)		(1,662)		(12,980)
Total	$	8,802	$	9,409	$	(3,988)

For the twelve months ended September 30, 2021, 2020, and 2019 the income tax benefit (provision) was as follows (amounts shown in thousands):


	2021		2020		2019
Federal—current	$	—	$	—	$	(117)
Federal—deferred	(1,387)		(2,182)		639
State—current	(78)		(46)		(438)
State—deferred	457		67		515
Foreign—current	(1,119)		(436)		594
Foreign—deferred	1,303		1,002		2,071
Total	$	(824)	$	(1,595)	$	3,264

Schedule Significant Components of 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, 2021 and 2020 are as follows (amounts shown in thousands):


	2021		2020
Deferred tax assets:
Stock-based compensation	$	1,864	$	2,503
Net operating loss carryforwards	5,669		5,931
Research credit carryforwards	7,322		6,264
Lease liability	856		1,091
Intangibles	—		300

Total deferred assets	15,711		16,089
Deferred tax liabilities:

Right of use asset	(570)		(726)
Foreign deferred liabilities	(8,019)		(5,756)
Other, net	1		(62)
Net deferred tax asset	7,123		9,545
Valuation allowance for net deferred tax assets	(729)		(710)
Net deferred tax asset	$	6,394	$	8,835

Schedule of Income Taxes Computed Using Federal Income Tax Rate


	2021		2020		2019
Amount computed using statutory rate	$	(1,849)	$	(1,977)	$	841
Net change in valuation allowance for net deferred tax assets	(19)		221		(459)
Other	—		—		—
Foreign rate differential	13		86		664
Non-deductible items	(141)		(178)		(151)
State income tax	(276)		(205)		(370)

Impact of tax reform on deferred taxes	—		—		—
Research and development credits	1,248		897		1,694
Foreign income tax	(15)		10		(494)
Stock compensation, net	215		(449)		1,539
Income tax benefit (provision)	$	(824)	$	(1,595)	$	3,264

Schedule of Reconciliation of Unrecognized Tax Benefits

The following table reconciles the beginning and ending amount of unrecognized tax benefits for the twelve months ended September 30, 2021, 2020, and 2019 (amounts shown in thousands):


	2021		2020		2019
Gross unrecognized tax benefits at the beginning of the year	$	1,810	$	1,607	$	1,321
Additions from tax positions taken in the current year	268		203		213
Additions from tax positions taken in prior years	36		—		73


Gross unrecognized tax benefits at end of the year	$	2,114	$	1,810	$	1,607

Convertible Senior Notes (Tables)

12 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Carrying Values of Company's 2026 Notes

The carrying values of the Company’s 2026 Notes are as follows (in thousands):


	September 30, 2021
2026 Notes:
Principal amount	$	155,250
Less: unamortized discount and issuance costs, net of amortization	(34,332)
Carrying amount	120,918
2026 Notes embedded conversion derivative	$	48,208

Schedule of Changes in Fair Value of Embedded Conversion Derivative


Balance at September 30, 2020	$	753
Contingent consideration associated with ID R&D Acquisition	15,690
Expenses recorded due to changes in fair value	1,080
Payment of contingent consideration associated with the ICAR acquisition	(782)

Foreign currency effect on contingent consideration	29
Balance at September 30, 2021	$	16,770

The following table presents the fair value and the change in fair value for the embedded conversion derivative (in thousands):


Embedded conversion derivative
Fair value as of February 5, 2021	$	33,192
Change in fair value	15,016
Fair value as of September 30, 2021	$	48,208

Schedule of Interest Costs Recognized Related to 2026 Notes

The following table presents the total amount of interest cost recognized relating to the 2026 Notes for the twelve months ended September 30, 2021 and 2020 (in thousands):



	2021		2020
Contractual interest expense	$	756	$	—
Amortization of debt discount and issuance costs	4,372		—
Total interest expense recognized	$	5,128	$	—

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Maturities of Operating Lease Liabilities

Maturities of our operating lease liabilities as of September 30, 2021 were as follows (amounts shown in thousands):


	Operating leases
2022	$	2,140
2023	2,096
2024	1,764
2025	677
2026	671
Thereafter	1,759
Total	9,107
Less: amount representing interest	577
Present value of future lease payments	$	8,530

Quarterly Information (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2021

Quarterly Financial Information Disclosure [Abstract]

Schedule of Selected Quarterly Financial Data

The following table sets forth selected quarterly financial data for 2021, 2020, and 2019 (shown in thousands except per share data):


	2021
	1		2		3		4
Revenue	$	25,976	$	28,773	$	31,778	$	33,270
Cost of revenue	4,138		3,792		3,410		3,200
Operating expenses	20,301		22,598		22,936		26,145
Operating income	1,537		2,383		5,432		3,925
Interest expense	—		1,319		2,223		1,587
Other income, net	96		372		80		106
Income tax benefit (provision)	534		(417)		(304)		(637)
Net income	$	2,167	$	1,019	$	2,985	$	1,807
Net income per share:
Net income per share—basic	$	0.05	$	0.02	$	0.07	$	0.04
Net income per share—diluted	$	0.05	$	0.02	$	0.07	$	0.04
Shares used in calculating net income per share—basic	42,476		43,138		43,773		44,616
Shares used in calculating net income per share—diluted	43,897		44,554		45,194		46,236


	2020
	1		2		3		4
Revenue	$	22,067	$	23,192	$	25,413	$	30,638
Cost of revenue	2,933		3,186		3,496		3,577
Operating expenses	18,835		18,941		20,483		20,991
Operating income	299		1,065		1,434		6,070
Other income, net	303		32		145		61
Income tax provision	(41)		(188)		(231)		(1,135)
Net income	$	561	$	909	$	1,348	$	4,996
Net income per share:
Net income per share—basic	$	0.01	$	0.02	$	0.03	$	0.12
Net income per share—diluted	$	0.01	$	0.02	$	0.03	$	0.12
Shares used in calculating net income per share—basic	40,615		41,022		41,483		41,770
Shares used in calculating net income per share—diluted	41,828		42,028		42,428		43,101


	2019
	1		2		3		4
Revenue	$	17,683	$	19,983	$	21,906	$	25,018
Cost of revenue	2,878		2,991		3,168		3,229
Operating expenses	19,365		18,642		21,647		17,260
Operating income (loss)	(4,560)		(1,650)		(2,909)		4,529
Other income, net	14		140		98		350
Income tax benefit (provision)	1,355		794		2,712		(1,597)
Net income (loss)	$	(3,191)	$	(716)	$	(99)	$	3,282
Net income (loss) per share:
Net income (loss) per share—basic	$	(0.08)	$	(0.02)	$	—	$	0.08
Net loss per share—diluted	$	(0.08)	$	(0.02)	$	—	$	0.08
Shares used in calculating net income (loss) per share—basic	38,247		38,926		39,936		40,252
Shares used in calculating net income (loss) per share—diluted	38,247		38,926		39,936		41,635

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details)

3 Months Ended

12 Months Ended

Sep. 30, 2021

USD ($)

institution

$ / shares

Sep. 30, 2021

USD ($)

institution

segment

$ / shares

Sep. 30, 2020

USD ($)

$ / shares

Sep. 30, 2019

USD ($)

Feb. 05, 2021

USD ($)

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

7,500

Foreign currency translation adjustment

$ (455,000)

$ 3,635,000

$ (3,504,000)

Product management costs

28,042,000

22,859,000

21,873,000

^[1]

Other-than-temporary impairment charges recognized in earnings

Write-offs of allowance for doubtful accounts

100,000

200,000

100,000

Allowance for doubtful accounts receivable

$ 400,000

400,000

200,000

Depreciation and amortization of property and equipment

1,439,000

1,504,000

1,388,000

Repairs and maintenance expenses

100,000

Impairment or long-lived assets

Capitalized software development costs

Amortization expense for capitalized software development costs

Capitalized software development costs for internal use

800,000

300,000

200,000

Amortization expense for capitalized software development costs for internal use

$ 300,000

$ 400,000

300,000

Number of operating segments | segment

Number of reporting units | segment

Goodwill impairment

$ 0

Common stock, par value (in dollars per share) | $ / shares

$ 0.001

Impairment to intangible assets

$ 0

Trading-day average stock price period

20 days

Advertising costs

$ 1,200,000

1,600,000

800,000

Accumulated other comprehensive loss

$ 943,000

943,000

323,000

Leasehold improvements

Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]

Decrease in leasehold improvements due to fully depreciated assets disposed of

$ 1,000,000

Convertible Senior Unsecured Notes Due 2026 | Convertible Debt

Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]

Interest rate on loan agreements

0.75%

Debt issued

$ 155,300,000

Revision of Prior Period, Reclassification, Adjustment

Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]

Product management costs

3,000,000

$ 2,900,000

ICAR | Spanish Government Agencies

Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]

Interest rate on loan agreements

0.00%

Total amounts outstanding under loan agreements

$ 800,000

700,000

ICAR | Spanish Government Agencies | Other Current Liabilities

Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]

Current amount outstanding under loan agreements

100,000

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

$ 700,000

$ 600,000

Minimum

Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]

Property and equipment, estimated useful lives

3 years

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 | ICAR | Spanish Government Agencies

Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]

Repayment period of loan agreements

12 years

[1]	September 30, 2019 consolidated statement of operations reflects reclassifications to conform to the current year presentation.

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, 2021	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	11,753	1,804	4,113
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	543	239	1,687
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	1,113	1,519	2,352
ESPP common stock equivalents
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	9	14	74
Performance options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	272	0	0
Performance RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	104	32	0
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	4,856	0	0
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	4,856	0	0

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, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 1,807	$ 2,985	$ 1,019	$ 2,167	$ 4,996	$ 1,348	$ 909	$ 561	$ 3,282	$ (99)	$ (716)	$ (3,191)	$ 7,978	$ 7,814	$ (724)
Weighted-average shares outstanding—basic (in shares)	44,616	43,773	43,138	42,476	41,770	41,483	41,022	40,615	40,252	39,936	38,926	38,247	43,509	41,410	39,341
Common stock equivalents (in shares)													1,574	1,123	0
Weighted-average shares outstanding—diluted (in shares)	46,236	45,194	44,554	43,897	43,101	42,428	42,028	41,828	41,635	39,936	38,926	38,247	45,083	42,533	39,341
Net income (loss) per share:
Net income per share—basic (in dollars per share)	$ 0.04	$ 0.07	$ 0.02	$ 0.05	$ 0.12	$ 0.03	$ 0.02	$ 0.01	$ 0.08	$ 0	$ (0.02)	$ (0.08)	$ 0.18	$ 0.19	$ (0.02)
Net income per share—diluted (in dollars per share)	$ 0.04	$ 0.07	$ 0.02	$ 0.05	$ 0.12	$ 0.03	$ 0.02	$ 0.01	$ 0.08	$ 0	$ (0.02)	$ (0.08)	$ 0.18	$ 0.18	$ (0.02)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
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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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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Nature of Operations and Summary of Significant Accounting Policies - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 8,417	$ 9,165
Less: accumulated depreciation and amortization	(4,746)	(5,555)
Total property and equipment, net	3,671	3,610
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	2,623	3,639
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	2,947	3,545
Capitalized internal-use software development costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	2,147	1,363
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 700	$ 618

Revenue Recognition - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 33,270	$ 31,778	$ 28,773	$ 25,976	$ 30,638	$ 25,413	$ 23,192	$ 22,067	$ 25,018	$ 21,906	$ 19,983	$ 17,683	$ 119,797	$ 101,310	$ 84,590
Deposits revenue
Disaggregation of Revenue [Line Items]
Revenue													75,517	67,730	57,030
Deposits software and hardware \| Transferred at point in time
Disaggregation of Revenue [Line Items]
Revenue													55,129	49,765	41,860
Deposits services and other \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue													20,388	17,965	15,170
Identity verification revenue
Disaggregation of Revenue [Line Items]
Revenue													44,280	33,580	27,560
Identity verification software and hardware \| Transferred at point in time
Disaggregation of Revenue [Line Items]
Revenue													4,940	4,387	4,985
Identity verification services and other \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue													$ 39,340	$ 29,193	$ 22,575

Revenue from Contract with Customer - Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 4,080	$ 5,187
Contract assets, non-current	4,409	4,468
Contract liabilities (deferred revenue), current	10,381	7,973
Contract liabilities (deferred revenue), non-current	$ 955	$ 1,597

Revenue from Contract with Customer - Narrative (Details) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue recognized included in contract liability balance at the beginning of the period	$ 9,100,000	$ 3,900,000
Impairment losses recognized in capitalized contract costs	0	0
Selling and marketing
Disaggregation of Revenue [Line Items]
Amortization of capitalized contract costs	1,200,000	800,000
Other current and non-current assets
Disaggregation of Revenue [Line Items]
Capitalized contract costs	$ 2,300,000	$ 1,500,000

Business Combinations - Narrative (Details)		4 Months Ended	12 Months Ended
Business Combinations - Narrative (Details)	May 28, 2021 USD ($) shares	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)
Business Acquisition [Line Items]
Acquisition-related costs and expenses			$ 8,951,000	$ 6,575,000	$ 7,563,000
ID R&D
Business Acquisition [Line Items]
Aggregate purchase price	$ 49,000,000
Initial cash payment paid for acquisition	$ 13,000,000
Common stock issued during acquisition (in shares) \| shares	867,226
Common stock issued during acquisition, value	$ 13,900,000
Earnout period	1 year
Maximum payout of contingent consideration liability		$ 22,100,000	22,100,000
Earnout period shift	1 year
Fair value of earnout consideration	$ 15,700,000
Acquisition-related costs and expenses	600,000		$ 1,100,000
Escrow deposit	$ 4,000,000
Period to maintain escrow funds	24 months
Goodwill expected to be deductible for income tax purposes	$ 0
Revenue from business combinations		800,000
Net loss from business combinations		$ 3,000,000
ID R&D \| Earnout Shares
Business Acquisition [Line Items]
Shares issuable (up to) (in shares) \| shares	711,535
Acquisition-related costs and expenses				$ 0	$ 0
ID R&D \| First Earnout Anniversary
Business Acquisition [Line Items]
Earnout period	1 year
Maximum payout of contingent consideration liability	$ 12,300,000
Earnout percentage	0.15
ID R&D \| Second Earnout Anniversary
Business Acquisition [Line Items]
Earnout period	1 year
Maximum payout of contingent consideration liability	$ 9,800,000

Business Combinations - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Goodwill	$ 63,096	$ 35,669
ID R&D
Business Acquisition [Line Items]
Current assets	320
Property, plant, and equipment	114
Intangible assets	16,930
Goodwill	27,748
Current liabilities	(425)
Other non-current liabilities	(2,355)
Net assets acquired	$ 42,332

Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	4 years 7 months 6 days	4 years 9 months 18 days
ID R&D
Acquired Indefinite-lived Intangible Assets [Line Items]
Amount assigned	$ 16,930
ID R&D \| Completed technologies
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	7 years
Amount assigned	$ 14,020
ID R&D \| Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	3 years
Amount assigned	$ 2,540
ID R&D \| Trade names
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	5 years
Amount assigned	$ 370

Business Combinations - Pro Forma Financial Information (Details) - ID R&D - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro forma revenue	$ 121,533	$ 102,880
Pro forma net income (loss)	$ 4,977	$ 2,919

Investments - Narrative (Details) - USD ($)	12 Months Ended
Investments - Narrative (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
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	0
Debt Securities, Available-for-sale [Line Items]
Acquisition-related consideration, current	11,050,000	$ 753,000
Acquisition-related consideration, noncurrent	5,720,000
ID R&D
Debt Securities, Available-for-sale [Line Items]
Acquisition-related consideration, current	11,100,000
Acquisition-related consideration, noncurrent	5,700,000
Maximum payout of contingent consideration liability	$ 22,100,000

Investments - Summary of Investments by Type of Security (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Cost	$ 197,165	$ 41,890
Gross Unrealized Gains	12	111
Gross Unrealized Losses	(69)	(3)
Fair Market Value	197,108	41,998
U.S. Treasury \| Short-term
Debt Securities, Available-for-sale [Line Items]
Cost	4,222	10,245
Gross Unrealized Gains	1	38
Gross Unrealized Losses	0	0
Fair Market Value	4,223	10,283
U.S. Treasury \| Long-term
Debt Securities, Available-for-sale [Line Items]
Cost	6,996
Gross Unrealized Gains	1
Gross Unrealized Losses	(2)
Fair Market Value	6,995
Asset-backed securities \| Short-term
Debt Securities, Available-for-sale [Line Items]
Cost	4,812	4,723
Gross Unrealized Gains	1	36
Gross Unrealized Losses	(2)	0
Fair Market Value	4,811	4,759
Corporate debt securities \| Short-term
Debt Securities, Available-for-sale [Line Items]
Cost	140,042	24,956
Gross Unrealized Gains	6	37
Gross Unrealized Losses	(25)	0
Fair Market Value	140,023	24,993
Corporate debt securities \| Long-term
Debt Securities, Available-for-sale [Line Items]
Cost	38,184	1,966
Gross Unrealized Gains	3	0
Gross Unrealized Losses	(39)	(3)
Fair Market Value	38,148	$ 1,963
Foreign government and agency securities \| Long-term
Debt Securities, Available-for-sale [Line Items]
Cost	2,909
Gross Unrealized Gains	0
Gross Unrealized Losses	(1)
Fair Market Value	$ 2,908

Investments - Summary of Fair Value of Investments Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Assets
Total short-term investments at fair value	$ 149,057	$ 40,035
Total long-term investments at fair value	48,051	1,963
Convertible senior notes hedge	48,208
Total assets at fair value	245,316	41,998
Current liabilities:
Acquisition-related contingent consideration	11,050	753
Non-current liabilities:
Acquisition-related contingent consideration	5,720
Embedded conversion derivative	48,208
Total liabilities at fair value	64,978	753
U.S. Treasury
Assets
Total short-term investments at fair value	4,223	10,283
Total long-term investments at fair value	6,995
Asset-backed securities
Assets
Total short-term investments at fair value	4,811	4,759
Corporate debt securities
Assets
Total short-term investments at fair value	65,666	9,619
Total long-term investments at fair value	38,148	1,963
Commercial paper
Assets
Total short-term investments at fair value	74,357	15,374
Foreign government and agency securities
Assets
Total long-term investments at fair value	2,908
Quoted Prices in Active Markets (Level 1)
Assets
Total short-term investments at fair value	4,223	10,283
Total long-term investments at fair value	6,995	0
Convertible senior notes hedge	0
Total assets at fair value	11,218	10,283
Current liabilities:
Acquisition-related contingent consideration	0	0
Non-current liabilities:
Acquisition-related contingent consideration	0
Embedded conversion derivative	0
Total liabilities at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| U.S. Treasury
Assets
Total short-term investments at fair value	4,223	10,283
Total long-term investments at fair value	6,995
Quoted Prices in Active Markets (Level 1) \| Asset-backed securities
Assets
Total short-term investments at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| Corporate debt securities
Assets
Total short-term investments at fair value	0	0
Total long-term investments at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| Commercial paper
Assets
Total short-term investments at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| Foreign government and agency securities
Assets
Total long-term investments at fair value	0
Significant Other Observable Inputs (Level 2)
Assets
Total short-term investments at fair value	144,834	29,752
Total long-term investments at fair value	41,056	1,963
Convertible senior notes hedge	48,208
Total assets at fair value	234,098	31,715
Current liabilities:
Acquisition-related contingent consideration	0	0
Non-current liabilities:
Acquisition-related contingent consideration	0
Embedded conversion derivative	48,208
Total liabilities at fair value	48,208	0
Significant Other Observable Inputs (Level 2) \| U.S. Treasury
Assets
Total short-term investments at fair value	0	0
Total long-term investments at fair value	0
Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Assets
Total short-term investments at fair value	4,811	4,759
Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Assets
Total short-term investments at fair value	65,666	9,619
Total long-term investments at fair value	38,148	1,963
Significant Other Observable Inputs (Level 2) \| Commercial paper
Assets
Total short-term investments at fair value	74,357	15,374
Significant Other Observable Inputs (Level 2) \| Foreign government and agency securities
Assets
Total long-term investments at fair value	2,908
Significant Unobservable Inputs (Level 3)
Assets
Total short-term investments at fair value	0	0
Total long-term investments at fair value	0	0
Convertible senior notes hedge	0
Total assets at fair value	0	0
Current liabilities:
Acquisition-related contingent consideration	11,050	753
Non-current liabilities:
Acquisition-related contingent consideration	5,720
Embedded conversion derivative	0
Total liabilities at fair value	16,770	753
Significant Unobservable Inputs (Level 3) \| U.S. Treasury
Assets
Total short-term investments at fair value	0	0
Total long-term investments at fair value	0
Significant Unobservable Inputs (Level 3) \| Asset-backed securities
Assets
Total short-term investments at fair value	0	0
Significant Unobservable Inputs (Level 3) \| Corporate debt securities
Assets
Total short-term investments at fair value	0	0
Total long-term investments at fair value	0	0
Significant Unobservable Inputs (Level 3) \| Commercial paper
Assets
Total short-term investments at fair value	0	$ 0
Significant Unobservable Inputs (Level 3) \| Foreign government and agency securities
Assets
Total long-term investments at fair value	$ 0

Investments - Summary of Contingent Consideration Measured at Fair Value (Details) - Significant Unobservable Inputs (Level 3) - Contingent Consideration $ in Thousands	12 Months Ended
	Sep. 30, 2021 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 753
Contingent consideration associated with ID R&D Acquisition	15,690
Expenses recorded due to changes in fair value	1,080
Payment of contingent consideration associated with the ICAR acquisition	(782)
Foreign currency effect on contingent consideration	29
Ending Balance	$ 16,770

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 63,096	$ 35,669
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Amortization of intangible assets	7,505	6,439	$ 7,024
Acquisition-related costs and expenses
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Amortization of intangible assets	$ 7,500	$ 6,400	$ 7,000
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 - Changes in Goodwill (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2021 USD ($)
Goodwill [Roll Forward]
Balance at September 30, 2020	$ 35,669
Acquisition of ID R&D	27,748
Foreign currency effect on goodwill	(321)
Balance at September 30, 2021	$ 63,096

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Indefinite-lived Intangible Assets [Line Items]
Cost	$ 55,517	$ 38,587
Accumulated Amortization	26,783	19,298
Finite-Lived Intangible Assets, Net, Total	$ 28,734	$ 19,289
Completed technologies
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	6 years 7 months 6 days	6 years 4 months 24 days
Cost	$ 34,361	$ 20,341
Accumulated Amortization	13,311	9,416
Finite-Lived Intangible Assets, Net, Total	$ 21,050	$ 10,925
Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	4 years 7 months 6 days	4 years 9 months 18 days
Cost	$ 20,168	$ 17,628
Accumulated Amortization	12,905	9,390
Finite-Lived Intangible Assets, Net, Total	$ 7,263	$ 8,238
Trade names
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	4 years 8 months 12 days	4 years 6 months
Cost	$ 988	$ 618
Accumulated Amortization	567	492
Finite-Lived Intangible Assets, Net, Total	$ 421	$ 126

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 8,830
2023	6,801
2024	4,471
2025	3,264
2026	2,051
Thereafter	3,317
Finite-Lived Intangible Assets, Net, Total	$ 28,734	$ 19,289

Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 11,532	$ 9,551	$ 9,637
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	339	267	207
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	3,399	2,528	2,554
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	3,218	2,802	2,426
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 4,576	$ 3,954	$ 4,450

Stockholders' Equity - Fair Value Calculations Stock-based Compensation Awards (Details)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Equity [Abstract]
Risk-free interest rate, minimum	1.35%	1.85%
Risk-free interest rate, maximum	1.35%	3.08%
Expected life (years)	5 years 9 months 10 days	5 years 5 months 4 days
Expected volatility	48.00%	57.00%
Expected dividends	0.00%	0.00%

Stockholders' Equity - Narrative (Details)			2 Months Ended	12 Months Ended
Stockholders' Equity - Narrative (Details)	May 28, 2021 USD ($) shares	Nov. 06, 2018 $ / shares shares	Dec. 10, 2021 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($) $ / shares shares	Oct. 22, 2021 shares	Jun. 15, 2021 USD ($)	Jan. 31, 2020 shares	Dec. 13, 2019 USD ($)	Feb. 28, 2019	Oct. 23, 2018 $ / right $ / shares shares	Sep. 30, 2018 shares	Mar. 07, 2018 shares	Mar. 10, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)				0	92,610	409,368
Unrecognized compensation expense related to options outstanding \| $				$ 19,600,000
Weighted average period for unrecognized compensation expense expected to be recognized				2 years 2 months 12 days
Options to purchase common stock outstanding (in shares)				816,717	1,162,505	1,686,902							2,806,364
Recognized compensation expense \| $				$ 11,532,000	$ 9,551,000	$ 9,637,000
Total intrinsic value of options exercised \| $				2,700,000	$ 2,500,000	$ 11,100,000
Weighted average fair value of options granted (in dollars per share) \| $ / shares					$ 4.32	$ 5.07
Aggregate intrinsic value of options \| $				9,000,000	$ 6,100,000
Acquisition-related costs and expenses \| $				8,951,000	6,575,000	$ 7,563,000
Amount authorized under share repurchase program \| $								$ 15,000,000		$ 10,000,000
Amount of shares repurchased \| $				$ 200,000	$ 1,000,000
Number of shares repurchased (in shares)				10,555	137,000
Average price of shares repurchased (in dollars per share) \| $ / shares				$ 17.99	$ 7.33
Amount of shares repurchased and retired \| $				$ 190,000	$ 1,002,000
Preferred stock, par value per share (in dollars per share) \| $ / shares				$ 0.001	$ 0.001
Percentage of common stock outstanding for acquiring person under right agreement											4.90%
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of shares repurchased \| $			$ 8,100,000
Number of shares repurchased (in shares)			474,213
Average price of shares repurchased (in dollars per share) \| $ / shares			$ 17.09
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												0.001
Preferred stock, par value per share (in dollars per share) \| $ / shares												$ 0.001
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
Series B Junior Preferred Stock \| Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, number of rights expired, redeemed or exchanged (in shares)							0
ID R&D
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earnout period	1 year
Fair value of earnout consideration \| $	$ 15,700,000
Acquisition-related costs and expenses \| $	$ 600,000			$ 1,100,000
ID R&D \| First Earnout Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earnout period	1 year
ID R&D \| Second Earnout Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earnout period	1 year
ID R&D \| Earnout Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Earnout shares issuable (up to) (in shares)	711,535
Acquisition-related costs and expenses \| $					$ 0	$ 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
Awards outstanding (in shares)				2,411,267	2,661,943	2,352,487							2,580,176
Recognized compensation expense \| $				$ 8,100,000	$ 6,900,000	$ 6,800,000
Unrecognized compensation expense \| $				$ 16,000,000
Number of previously issued awards cancelled that did not meet criteria for vesting (in shares)				161,961	266,748	494,245
Performance 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
Awards outstanding (in shares)				528,724	353,556	1,722,551							2,042,817
Recognized compensation expense \| $				$ 1,300,000	$ 700,000	$ 1,000,000
Unrecognized compensation expense \| $				$ 2,500,000
Vesting service period				3 years
Number of previously issued awards cancelled that did not meet criteria for vesting (in shares)				19,252	1,722,551	320,266
Performance RSUs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting service percentage				0.00%
Performance RSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting service percentage				133.00%
Performance options \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to options outstanding \| $				$ 100,000
Weighted average period for unrecognized compensation expense expected to be recognized				1 month 6 days
Number of common stock reserved for future grants (in shares)		800,000
Recognized compensation expense \| $				$ 800,000	$ 800,000
Vesting service period		3 years
Exercise price per share (in dollars per share) \| $ / shares		$ 9.50
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to options outstanding \| $				$ 800,000
Weighted average period for unrecognized compensation expense expected to be recognized				2 years
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)									4,500,000
Number of common stock reserved for future grants (in shares)				2,767,497
2020 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)				929,135
2020 Plan \| Performance RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)				528,724
Prior Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase common stock outstanding (in shares)				506,928
Prior Plans \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)									107,903
Awards outstanding (in shares)				1,023,130
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)				520,865
Shares issued under the plan (in shares)				479,135
Recognized compensation expense \| $				$ 600,000	400,000	$ 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	$ 700,000	$ 700,000
Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)															1,500,000
Number of common stock reserved for future grants (in shares)				214,888
Director Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase common stock outstanding (in shares)				333,819

Stockholders' Equity - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Number of Shares
Outstanding, beginning balance (in shares)	1,162,505	1,686,902	2,806,364
Granted (in shares)	0	92,610	409,368
Exercised (in shares)	(329,878)	(580,861)	(1,384,647)
Canceled (in shares)	(15,910)	(36,146)	(144,183)
Outstanding, ending balance (in shares)	816,717	1,162,505	1,686,902	2,806,364
Weighted- Average Exercise Price Per Share
Outstanding, beginning balance (in dollars per share)	$ 7.51	$ 7.00	$ 4.75
Granted (in dollars per share)	0	9.49	9.59
Exercised (in dollars per share)	7.63	6.15	3.25
Canceled (in dollars per share)	9.41	10.76	6.62
Outstanding, ending balance (in dollars per share)	$ 7.42	$ 7.51	$ 7.00	$ 4.75
Weighted- Average Remaining Contractual Term (in Years)
Outstanding	5 years 9 months 18 days	6 years 1 month 6 days	5 years 4 months 24 days	4 years 7 months 6 days
Vested and Expected to Vest at September 30, 2021
Outstanding (in shares)	816,717
Exercisable (in shares)	628,763
Outstanding, weighted average exercise price (in dollars per share)	$ 7.42
Exercisable, weighted average exercise price (in dollars per share)	$ 6.79
Outstanding, weighted average remaining contractual term (in years)	5 years 9 months 18 days
Exercisable, weighted average remaining contractual term (in years)	5 years 3 months 18 days

Stockholders' Equity - RSU Activity (Details) - RSUs - $ / shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Number of Shares
Beginning balance (in shares)	2,661,943	2,352,487	2,580,176
Granted (in shares)	887,049	1,394,869	1,147,976
Settled (in shares)	(975,764)	(818,665)	(881,420)
Canceled (in shares)	(161,961)	(266,748)	(494,245)
Ending balance (in shares)	2,411,267	2,661,943	2,352,487
Weighted- Average Fair Value Per Share
Beginning balance (in dollars per share)	$ 7.95	$ 8.26	$ 6.92
Granted (in dollars per share)	13.35	7.39	9.67
Settled (in dollars per share)	7.64	7.82	6.53
Canceled (in dollars per share)	8.94	8.26	7.70
Ending balance (in dollars per share)	$ 9.99	$ 7.95	$ 8.26

Stockholders' Equity - Performance RSU Activity (Details) - Performance RSUs - $ / shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Number of Shares
Beginning balance (in shares)	353,556	1,722,551	2,042,817
Granted (in shares)	284,765	353,556	0
Exercised (in shares)	(90,345)	0	0
Canceled (in shares)	(19,252)	(1,722,551)	(320,266)
Ending balance (in shares)	528,724	353,556	1,722,551
Weighted- Average Fair Value Per Share
Beginning balance (in dollars per share)	$ 6.06	$ 7.76	$ 7.66
Granted (in dollars per share)	11.84	6.06	0
Exercised (in dollars per share)	6.06	0	0
Canceled (in dollars per share)	6.06	7.76	7.11
Ending balance (in dollars per share)	$ 9.17	$ 6.06	$ 7.76

Income Taxes - Income Tax Benefit (Provision) (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Domestic													$ 10,966	$ 11,071	$ 8,992
Foreign													(2,164)	(1,662)	(12,980)
Income (loss) before income taxes													8,802	9,409	(3,988)
Federal—current													0	0	(117)
Federal—deferred													(1,387)	(2,182)	639
State—current													(78)	(46)	(438)
State—deferred													457	67	515
Foreign—current													(1,119)	(436)	594
Foreign—deferred													1,303	1,002	2,071
Income tax benefit (provision)	$ (637)	$ (304)	$ (417)	$ 534	$ (1,135)	$ (231)	$ (188)	$ (41)	$ (1,597)	$ 2,712	$ 794	$ 1,355	$ (824)	$ (1,595)	$ 3,264

Income Taxes - Significant Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Deferred tax assets:
Stock-based compensation	$ 1,864	$ 2,503
Net operating loss carryforwards	5,669	5,931
Research credit carryforwards	7,322	6,264
Lease liability	856	1,091
Intangibles	0	300
Total deferred assets	15,711	16,089
Deferred tax liabilities:
Right of use asset	(570)	(726)
Foreign deferred liabilities	(8,019)	(5,756)
Other, net	1	(62)
Net deferred tax asset	7,123	9,545
Valuation allowance for net deferred tax assets	(729)	(710)
Net deferred tax asset	$ 6,394	$ 8,835

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Income Taxes [Line Items]
Net increase (decrease) in total valuation allowance	$ 19,000	$ (200,000)
Research and development credits carryforwards	7,322,000	$ 6,264,000
Unrecognized tax benefits that will impact the company's effective tax rate	2,100,000
Accrued interest or penalties related to uncertain tax positions	0
Federal
Income Taxes [Line Items]
Net operating loss carryforwards	14,900,000
Net operating losses that can be carried forward indefinitely	9,400,000
Net operating losses subject to expiration	5,600,000
Federal \| Research and development credit
Income Taxes [Line Items]
Research and development credits carryforwards	3,800,000
Federal \| Tax Year 2020
Income Taxes [Line Items]
Net operating loss carryforwards	0
State
Income Taxes [Line Items]
Net operating losses subject to expiration	28,000,000
State \| Research and development credit \| California
Income Taxes [Line Items]
Research and development credits carryforwards	$ 3,400,000

Income Taxes - Income Taxes Computed Using Federal Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Amount computed using statutory rate													$ (1,849)	$ (1,977)	$ 841
Net change in valuation allowance for net deferred tax assets													(19)	221	(459)
Other													0	0	0
Foreign rate differential													13	86	664
Non-deductible items													(141)	(178)	(151)
State income tax													(276)	(205)	(370)
Impact of tax reform on deferred taxes													0	0	0
Research and development credits													1,248	897	1,694
Foreign income tax													(15)	10	(494)
Stock compensation, net													215	(449)	1,539
Income tax benefit (provision)	$ (637)	$ (304)	$ (417)	$ 534	$ (1,135)	$ (231)	$ (188)	$ (41)	$ (1,597)	$ 2,712	$ 794	$ 1,355	$ (824)	$ (1,595)	$ 3,264

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits at the beginning of the year	$ 1,810	$ 1,607	$ 1,321
Additions from tax positions taken in the current year	268	203	213
Additions from tax positions taken in prior years	36	0	73
Gross unrecognized tax benefits at end of the year	$ 2,114	$ 1,810	$ 1,607

Convertible Senior Notes - Carrying Value of 2026 Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Feb. 05, 2021
Debt Instrument [Line Items]
2026 Notes embedded conversion derivative	$ 48,208
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026
Debt Instrument [Line Items]
Principal amount	155,250
Less: unamortized discount and issuance costs, net of amortization	(34,332)
Carrying amount	120,918
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026 \| Embedded conversion derivative
Debt Instrument [Line Items]
Less: unamortized discount and issuance costs, net of amortization	(34,300)
2026 Notes embedded conversion derivative	$ 48,208	$ 33,200

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Convertible Senior Notes - Narrative (Details)		3 Months Ended	8 Months Ended	12 Months Ended
Convertible Senior Notes - Narrative (Details)	Feb. 05, 2021 USD ($) patent $ / shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Feb. 02, 2021 $ / shares
Debt Instrument [Line Items]
Payment costs related to hedge transactions				$ 33,192,000	$ 0	$ 0
Embedded conversion derivative		$ 48,208,000	$ 48,208,000	48,208,000
Senior notes hedge balance		48,208,000	48,208,000	48,208,000	$ 0
Increase in additional paid-in-capital for sale or warrants				23,909,000
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026
Debt Instrument [Line Items]
Debt issued	$ 155,300,000
Debt interest rate	0.75%
Debt conversion ratio (per $1,000 principal amount)	0.0479731000
Debt conversion price (in dollars per share) \| $ / shares	$ 20.85
Conversion price premium percentage							0.375
Proceeds from debt offerings, net of discounts, commissions and expenses	$ 149,700,000
Debt issuance costs	$ 5,500,000
Remaining unamortized debt discount		34,332,000	34,332,000	34,332,000
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026 \| Common Stock
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares							$ 15.16
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026 \| During any calendar quarter commencing after the calendar quarter ending on June 30, 2021
Debt Instrument [Line Items]
Debt conversion price percentage	1.30
Trading days in period \| patent	20
Consecutive trading days in period \| patent	30
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026 \| Measurement period
Debt Instrument [Line Items]
Debt conversion price percentage	0.98
Consecutive trading days in period \| patent	5
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026 \| Observation period
Debt Instrument [Line Items]
Consecutive trading days in period \| patent	40
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026 \| Embedded conversion derivative
Debt Instrument [Line Items]
Payment costs related to hedge transactions	$ 9,300,000
Embedded conversion derivative	33,200,000	48,208,000	48,208,000	48,208,000
Value of remaining embedded derivative allocated to host contract	$ 116,500,000
Derivative interest rate	6.71%
Remaining unamortized debt discount		$ 34,300,000	$ 34,300,000	$ 34,300,000
Remaining debt discount amortization period	4 years 3 months 18 days
Convertible Debt \| Additional Notes
Debt Instrument [Line Items]
Option period to purchase additional notes	13 days
Additional aggregate principal amount purchased	$ 20,250,000
Convertible Debt \| Notes Hedge
Debt Instrument [Line Items]
Debt conversion price (in dollars per share) \| $ / shares	$ 20.85
Conversion price premium percentage							0.750
Number of shares that can initially be converted into common stock \| patent	7,400,000
Strike price of warrants (in dollar per share) \| $ / shares	$ 26.53
Senior notes hedge balance	$ 33,200,000
Shares purchased under the notes hedge (in shares) \| shares			0
Increase in additional paid-in-capital for sale or warrants			$ 23,900,000
Warrants exercised (in shares) \| shares			0
Warrants outstanding (in shares) \| shares		0	0	0
Convertible Debt \| Notes Hedge \| Observation period
Debt Instrument [Line Items]
Consecutive trading days in period \| patent	80
Incremental dilution of earnings per share of warrants (in shares) \| shares		0

Convertible Senior Notes - Change in Fair Value of Embedded Conversion Derivative (Details) - Convertible Debt - Convertible Senior Unsecured Notes Due 2026 - Embedded conversion derivative $ in Thousands	8 Months Ended
	Sep. 30, 2021 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 33,192
Change in fair value	15,016
Ending Balance	$ 48,208

Convertible Senior Notes - Interest Costs Recognized on 2026 Notes (Details) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Total interest expense recognized	$ 1,587	$ 2,223	$ 1,319	$ 0	$ 5,129	$ 0	$ 0
Convertible Debt \| Convertible Senior Unsecured Notes Due 2026
Debt Instrument [Line Items]
Contractual interest expense					756	0
Amortization of debt discount and issuance costs					4,372	0
Total interest expense recognized					$ 5,128	$ 0

Commitments and Contingencies - Narrative (Details) € in Thousands, £ in Thousands, ft² in Thousands, $ in Thousands													1 Months Ended	2 Months Ended	3 Months Ended	12 Months Ended
	Jul. 21, 2021 patent	Mar. 31, 2021 patent	Dec. 18, 2020 patent	Dec. 04, 2020 patent	Sep. 30, 2020 USD ($) patent	Jan. 10, 2020 USD ($) patent	Nov. 06, 2019 USD ($) patent day	Jul. 31, 2019 patent	Aug. 17, 2018 patent	Jul. 07, 2018 patent	Jun. 11, 2018 USD ($)	Jun. 11, 2018 EUR (€)	Dec. 10, 2021 patent	Jan. 26, 2021 patent	Feb. 23, 2021 patent	Sep. 30, 2021 USD ($) ft²	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2021 EUR (€) ft²	Sep. 30, 2021 GBP (£) ft²
Leases
Annual base rent																$ 1,200
Tenant improvement allowances																1,000
Unamortized lease incentives																$ 400
Weighted average remaining lease term of operating leases																5 years 6 months			5 years 6 months	5 years 6 months
Weighted average discount rate of operating leases																3.20%			3.20%	3.20%
Right-of-use assets					$ 5,407											$ 7,056	$ 5,407
Operating lease liabilities																8,530
Lease liabilities, current portion					1,819											1,943	1,819
Lease liabilities, non-current portion					$ 5,327											6,588	5,327
Operating lease costs																2,200
Operating lease expense																2,200	2,200
Rent expense for operating leases																		$ 2,100
Operating lease payments																$ 2,300
Claims
Company contribution, percent of designated deferral of eligible compensation																50.00%
Company contribution, percent of employee compensation eligible for company match																6.00%
Employer contribution related to 401(k) plan																$ 700	$ 400	$ 200
France
Leases
Annual base rent																484			€ 418
Netherlands
Leases
Annual base rent																222			191
United States
Leases
Annual base rent																195
Spain
Leases
Annual base rent																113			€ 97
United Kingdom
Leases
Annual base rent																151				£ 112
Other Current Liabilities
Leases
Unamortized lease incentives																100
Other Noncurrent Liabilities
Leases
Unamortized lease incentives																200
Pending Litigation \| General and administrative
Claims
Legal fees incurred related to third-party claims against customers																$ 1,000
Pending Litigation \| UrbanFT
Claims
Number of patents allegedly infringed \| patent			2					5
Number of patents invalid \| patent			2
Number of patents not infringed \| patent			2
Pending Litigation \| Global Equity & Corporate Consulting, S.L.- Breach of Services Agreement \| ICAR
Claims
Amount claimed during court proceedings											$ 900	€ 800
Pending Litigation \| USAA \| Wells Fargo
Claims
Number of patents allegedly infringed					2	2	3		5	4					4
Number of patents infringed \| patent						1	1
Amount awarded in damages to other party						$ 102,000	$ 200,000
Number of patents dropped \| patent									2
Number of patents invalid \| patent									1
Number of patents instituted \| patent														3
Number of patents denied institution \| patent														1
Pending Litigation \| USAA \| PNC Bank
Claims
Number of patents allegedly infringed \| patent		2		2	2
Number of patents denied institution \| patent	6	2
Pending Litigation \| USAA \| PNC Bank \| Subsequent Event
Claims
Number of patents denied institution \| patent													4
Minimum
Leases
Remaining operating lease term																1 year			1 year	1 year
Maximum
Leases
Remaining operating lease term																9 years			9 years	9 years
Building \| Executive Offices and R&D Facility, San Diego
Leases
Office space subject to lease \| ft²																29			29	29

Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 2,140
2023	2,096
2024	1,764
2025	677
2026	671
Thereafter	1,759
Total	9,107
Less: amount representing interest	577
Present value of future lease payments	$ 8,530

Revenue Concentration (Details) - USD ($) $ in Thousands	12 Months Ended
Revenue Concentration (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 16,602	$ 15,612
Revenue \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Revenue	$ 20,200	$ 15,800	$ 22,800
Revenue \| Customer Concentration Risk \| Customer One
Revenue, Major Customer [Line Items]
Concentration risk percentage	17.00%	16.00%	17.00%
Revenue \| Customer Concentration Risk \| Customer Two
Revenue, Major Customer [Line Items]
Concentration risk percentage			10.00%
Revenue \| Geographic Concentration Risk \| International
Revenue, Major Customer [Line Items]
Concentration risk percentage	26.00%	24.00%	31.00%
Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 3,400	$ 4,500	$ 5,400
Long-term Assets \| Geographic Concentration Risk \| International
Revenue, Major Customer [Line Items]
Concentration risk percentage	24.00%	66.00%
Long-term Assets, Excluding Goodwill and Intangible Assets \| Geographic Concentration Risk \| International
Revenue, Major Customer [Line Items]
Concentration risk percentage	6.00%	15.00%

Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended												12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 33,270	$ 31,778	$ 28,773	$ 25,976	$ 30,638	$ 25,413	$ 23,192	$ 22,067	$ 25,018	$ 21,906	$ 19,983	$ 17,683	$ 119,797	$ 101,310	$ 84,590
Cost of revenue	3,200	3,410	3,792	4,138	3,577	3,496	3,186	2,933	3,229	3,168	2,991	2,878
Operating expenses	26,145	22,936	22,598	20,301	20,991	20,483	18,941	18,835	17,260	21,647	18,642	19,365
Operating income (loss)	3,925	5,432	2,383	1,537	6,070	1,434	1,065	299	4,529	(2,909)	(1,650)	(4,560)	13,277	8,868	(4,590)
Interest expense	1,587	2,223	1,319	0									5,129	0	0
Other income, net	106	80	372	96	61	145	32	303	350	98	140	14	654	541	602
Income tax provision	(637)	(304)	(417)	534	(1,135)	(231)	(188)	(41)	(1,597)	2,712	794	1,355	(824)	(1,595)	3,264
Net income (loss)	$ 1,807	$ 2,985	$ 1,019	$ 2,167	$ 4,996	$ 1,348	$ 909	$ 561	$ 3,282	$ (99)	$ (716)	$ (3,191)	$ 7,978	$ 7,814	$ (724)
Net income (loss) per share:
Net income (loss) per share—basic (in dollars per share)	$ 0.04	$ 0.07	$ 0.02	$ 0.05	$ 0.12	$ 0.03	$ 0.02	$ 0.01	$ 0.08	$ 0	$ (0.02)	$ (0.08)	$ 0.18	$ 0.19	$ (0.02)
Net income (loss) per share—diluted (in dollars per share)	$ 0.04	$ 0.07	$ 0.02	$ 0.05	$ 0.12	$ 0.03	$ 0.02	$ 0.01	$ 0.08	$ 0	$ (0.02)	$ (0.08)	$ 0.18	$ 0.18	$ (0.02)
Shares used in calculating net income (loss) per share—basic (in shares)	44,616	43,773	43,138	42,476	41,770	41,483	41,022	40,615	40,252	39,936	38,926	38,247	43,509	41,410	39,341
Shares used in calculating net income (loss) per share—diluted (in shares)	46,236	45,194	44,554	43,897	43,101	42,428	42,028	41,828	41,635	39,936	38,926	38,247	45,083	42,533	39,341